ZTE secures leading CDMA vendor position in China for six successive years;

innovative solutions from ZTE support growth of China Telecom’s 3G services

4 July 2013, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, is pleased to be awarded the most new contracts in phase 1 of China Telecom Group’s 2013 CDMA network procurement program, the sixth successive year in which ZTE had been entrusted as the leading CDMA vendor in the China market.

ZTE, the global leader in CDMA wireless technology, is proud to support China Telecom in network expansion and optimization by providing innovative and leading-edge solutions. As more consumers access mobile Internet services on smartphones, operators globally face more stringent demands on network capacity and quality. With the 2013 network procurement program, China Telecom is strongly-positioned to grasp the new opportunities in CDMA services and meet the increasingly sophisticated needs of subscribers.

"We are fully committed to offering China Telecom the most advanced products and solutions,” said Fan Xiaobing, vice president of ZTE. “ZTE always strives to deliver the best technology, and the most customized services.”

To meet the requirements of China Telecom, ZTE was the first company to launch the SDR-based distributed base stations in the China market. SDR technology helps operators migrate from a network architecture based on macro stations in metropolitan areas, to a more distributed architecture that effectively enhances indoor and rural area coverage. With zero equipment room footprint, low power consumption, and convenient installation, SDR technology has earned the trust of China Telecom across all provincial and organizational levels.

In 2012, ZTE launched the new generation radio remote unit R8881, delivering a more compact and lower power consumption solution to China Telecom. In addition, to help China Telecom overcome the issue of 3G signaling storms, ZTE developed a customized signaling storm solution, which resolved the problem of signaling storms always caused by on-line applications.

In addition to products and technical solutions, Operation and Maintenance (O&M) is also a key factor for operators in their network investment decisions. To meet China Telecom's requirements for lower manpower investment in network planning, network optimization and O&M, ZTE launched the NetMax network optimization software which provides network troubleshooting, timely network optimization prompts, automatic network performance data analysis, and guidance for provincial companies to perform number distribution by extracting and analyzing network operating data. NetMax is widely appreciated by China Telecom at all provincial and organizational levels.

To date, ZTE has shipped more than 355,000 units of CDMA base stations, with cumulative wireless capacity of 380 million lines. ZTE is the leading CDMA provider worldwide with 32.6% market share globally, and has a strong position on the China market.