Globally-leading optical technology from ZTE to support expansion of

China Telecom FTTx networks

11 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 selected in all 13 of China Telecom’s annual tenders for passive optical network (PON) equipment and broadband terminals for 2013, strengthening ZTE’s position as a leading supplier to China Telecom in optical network products.

This year, ZTE won tenders for the strategically-important 10Gigabit-EPON (10G-EPON) products in 14 provinces, as the category was included in the China Telecom annual tenders for the first time. The 2013 tenders by China Telecom exceeded the scale of 2012, when ZTE was also among the top vendors. ZTE has long been a main supplier of FTTx products to China Telecom as part of the strategic partnership between the two companies.

“ZTE is committed to supporting China Telecom’s drive to build broadband networks,” said Mr. Zhang Zhenhui, Vice President at ZTE. “ZTE and China Telecom will work together to sustain the strong momentum in network construction and promote the healthy development of the industry supply chain. ZTE will offer comprehensive services to China Telecom to support the growth of next-generation PON technology and intelligent optical distribution network (ODN), helping China Telecom build superior network infrastructure.”

ZTE leads the industry globally in optical access technology. The joint research by ZTE and China Telecom in New-Generation EPON/10G-EPON won second prize in the National Award for Science and Technology Progress. ZTE’s 10G-EPON solutions are deployed on hundreds of thousands of subscriber lines to enhance broadband coverage in outlying areas and school networks in many provinces, making ZTE the biggest commercial vendor for 10G-EPON.

PON products from ZTE are designed to support computability and upgrades.For example, customers of MDUs such as F820 and 9806H can implement smooth upgrade from EPON to 10G-EPON by replacing uplink daughter cards. For broadband terminals, ZTE’s R&D teams can support speedy version customization and function development. In 2012, ZTE completed customization of over 200 versions nationwide in only two months, providing efficient support for FTTH network construction of China Telecom.

The construction of broadband networks is gathering pace across China. ZTE is well-positioned to fulfill the contracts with China Telecom, after setting up full production lines and procuring materials and components for the full series of optical line terminals (OLTs), optical network terminals (ONUs), and broadband terminals. To ensure timely product delivery, ZTE has established regional logistics centers nationwide.

As a leading fixed-network equipment supplier, ZTE has maintained rapid growth in its broadband customer premises equipment (CPE) business, winning orders from top-tier operators on the back of superior product performance and comprehensive product portfolios. According to Ovum’s Market Share Report: 2012 FTTx, DSL, and CMTS Units, ZTE was the world’s leading vendor with 42% market share globally in shipments of PON optical line terminals (OLTs) in 2012, after the company shipped 1.72 million lines. Based on Ovum’s data, ZTE also ranked the first globally in shipments of optical network terminals (ONTs) and optical network units (ONUs) with 32% market share, after the company achieved shipments of more than 13 million lines.