News Brief

ZTE Announces 2010 Interim Results

Revenue reaches USD 4.524 billion

European and US revenue increases by 45%

ZTE Corporation (“ZTE” or the “Group”) announced on August 19, 2010 that the Group operating revenue increased by 10.89% year-on-year to USD4.524 billion. Revenue contribution from the European and US markets amounted to 18% of total revenue for the first time. The year-on-year revenue contribution from these two markets increased by 45%.

The net profit grew by 12.02% to USD129.143 million in the six months ended June 30, 2010 based on Hong Kong financial reporting standards. Basic earnings per share amounted to USD0.047.

ZTE’s international revenue rose 19.58% year-on-year to USD2.246 billion, accounting for 49.65% of its total operating revenue.

In the first half of 2010, ZTE supported 3G network construction projects of some carriers and assisted with the replacement, coverage extension and improvements of relevant networks. This helped to consolidate the company’s market share in China’s 3G network construction amid a slowdown of investment in 3G networks.

The Group leveraged its customization capability and cost advantage to participate in carrier tenders for products such as transmission networks, wireline access and terminals. Encouraging tender results were achieved, ensuring stable growth in the Group’s domestic business revenue.

While revenue from Asia declined due to an incident relating to the safety inspection of communications equipment in India, the Group still reported year-on-year growth in international revenue. The Group worked closely with global carriers such as France Telecom, Telkom SA, Telefonica of Spain and America Movil.

By product, the Group registered year-on-year revenue growth of 1.08% for carrier networks, 39.71% for terminal products and 17.99% for telecommunication software systems, services and other products.

In wireless products, the Group optimized its position in the high-end markets of Europe and the United States by consistently meeting customer needs in terms of cost reduction, low carbon emission and environmental issues. The Group also enhanced its standing due to its experience dealing with multi-national carriers and advanced SDR product solutions.

Meanwhile, the company remains committed to key customers in the Asia-Pacific region, Africa and Latin America, which all provide an increasing share of revenue in wireless products.

ZTE’s GSM/UMTS/LTE products were deployed by the leading local European carriers, including KPN, Telenor and Optimus. ZTE and Telefonica deployed the first WiMAX network in Spain. The company has also deployed seven LTE commercial networks and nearly 50 trial networks globally. Building on its success in the China 3G market, ZTE’s wireless delivery capability received recognition from leading carriers in Europe and the US.

In wireline products, the Group maintained its advantageous position in access network and transmission network products. With regards to access networks, the wireline access products, represented by xPON, continued to lead the market. The large-scale, network-wide commercial application of the FTTx solutions was achieved in major cities.

In relation to transmission products, ZTE’s PTN, wave division and data communications products made headway in the industry and have been well received by leading global carriers. In the first quarter of 2010, ZTE’s revenue from optic network products ranked third in the world. Its high-end cluster router T8000 was also launched globally.

During the first half of 2010, the Group achieved rapid growth in the sale of its terminal products, reporting 39.71% year-on-year growth in revenue.

ZTE Helps UCell Launch 4G Network in Uzbekistan

9 August 2010, Shenzhen, China ― ZTE is announcing that a 4G (LTE) network constructed for Uzbekistan mobile operator UCell (trademark of FE COSCOM LLC)―a subsidiary of TeliaSonera telecommunications group and one of the pioneers deploying the LTE network within the Commonwealth of Independent States area―has been successfully deployed with ZTE’s prominent SDR technology and Uni-RAN solution. The network is able to achieve a downloading peak rate of up to 100Mbps.

With ZTE’s industry leading SDR solution, UCell will be able to provide superior 4G services for its subscribers. During the test in the nation’s capital Tashkent, ZTE and UCell demonstrated high-speed Internet access, streaming video, file uploads and downloads, Internet browsing and VoIP services by using ZTE’s LTE equipment.

“We are proud that Uzbekistan has become one of the few countries in the world utilizing the 4G network. As a part of TeliaSonera, a company with over a hundred years of experience in telecommunications, we are committed to delivering state-of-the art technologies and an excellent wireless data experience to our customers,” commented UCell Chief Executive Officer Oguz Memiguven.

ZTE Tops the Global CDMA Market with a 30% Market Share

18 August 2010, Shenzhen, China ― ZTE has been ranked as the leading vendor of CDMA BTS by IDC.

IDC’s 2010 Global CDMA Market and Prospects research note said that by Q1 2010, ZTE had shipped an accumulated total of over 250,000 base stations, allowing the Chinese company to claim the No. 1 spot in the CDMA market with a global share of 30.3%.

As one of a few companies in the world that still makes large-scale inputs into CDMA technology, ZTE understands the importance of the CDMA market. ZTE is the first vendor in the industry to launch the CDMA/LTE dual mode system which will be able to achieve a smooth upgrading of future networks before evolving into a commercial LTE system.

ZTE has also steadily enhanced overall competitiveness of its CDMA products. It has consolidated its lead in the key emerging markets of China, Indonesia and India, and made breakthroughs in North America. In the Chinese market in 2010, ZTE has undertaken over 80% of the work to migrate Nortel and Motorola CDMA equipment. Following this seamless transition, network performance has been greatly improved. ZTE has therefore won recognition from China Telecom for its outstanding engineering control, execution and delivery abilities in the migration process.

ZTE and Iberbanda Deploy Spain’s First WiMAX 802.16e Network for Residential and Enterprise Market

4 August 2010, Shenzhen, China ― ZTE announced today the deployment of Spain’s first WiMAX 802.16e network with Iberbanda, a Spanish broadband telecommunications operator.

The deployment was executed in the Spanish regions of Galicia on the north-west coast of the country and neighboring Asturias. The initiative will provide high-speed broadband access services.

The deal follows an existing agreement signed between ZTE and Iberbanda in December 2009 to supply 500 WiMAX base stations for two years to provide high-speed broadband services to the rural parts of Spain.

ZTE has built the largest 2.3G WiMAX commercial network in Southeast Asia with 170,000 subscribers.

As of June 2010, ZTE has successfully rolled out 59 WiMAX networks in 41 countries. ZTE’s equipment has been supplied to high-end markets such as the USA, Japan and Europe. In 2009, ZTE was ranked among the top three WiMAX vendors worldwide in terms of new network deployment by Frost & Sullivan.

ZTE and VIVO Strengthen Partnership with the Announcement of Two New Exclusive Mobile Phones

The X850 with Android platform and the X990 with Windows Life application

16 August 2010, São Paulo, Brazil ― ZTE and VIVO, the largest mobile operator in Brazil, announced a partnership to launch two new mobile phones in the Brazilian market.

The two new phones are the ZTE X850―ZTE’s first Android handset in Brazil―and the ZTE X990, which customers can find at VIVO’s stores at a special sale price of R$299,00 in a pre-paid plan. 

The ZTE X990 comes with a 2.0 megapixel camera, FM radio and MP3 player. It supports Java applications and also has a video and audio recorder. For the first 30 days, subscribers will be able to send 100 complimentary SMS texts and access Windows Life at no cost.

With its sophisticated design, the new phone aims to give customers fast and easy access to MSN messenger. 

ZTE’s first mobile phone with Google’s Android platform in Brazil, the ZTE X850, is a display-touch phone with fast 3G internet access that carries Google services such as Google Search, Gmail, Youtube, Google Maps, Google Talk, Google Calendar and e android Market. The X850 also has GPS, a 3.2MP camera and an e-mail system.

“The profile of these new mobiles is aligned with our strategy to provide the best solutions in order to keep our customers connected,” said Hilton Mendes, Director of Terminal Development at VIVO.

Telenor Hungary Commissions ZTE to Build Hungary’s First LTE-Ready Network

Unified GSM/UMTS/LTE network to be deployed in Hungary

23 August 2010, Shenzhen ― ZTE today announced a contract with Telenor Hungary, a subsidiary of one of the world’s largest telecommunications operators, Telenor Group, to build a GSM/UMTS/LTE network in Hungary. ZTE will provide the company with radio and core infrastructure over the next five years, including its industry leading End-to-End and Uni-RAN solutions.

“As part of our vision of a Digital Hungary, we predict a growing need for simple-to-use, value-for-money mobile communications services across Hungary, especially mobile broadband and we now see that the time has come to switch to the next gear and take the lead in providing even faster and even more reliable services to our customers,” said Anders Jensen, CEO of Telenor Hungary.

ZTE will switch, expand and operate the GSM/UMTS/LTE network and deploy over 6,000 base stations, including LTE eNodeBs throughout the country. With its SDR-based solution, ZTE will help Telenor Hungary achieve a unified 2G/3G/LTE core network, supporting multi-mode and multi-band wireless services. This technology eliminates the need for further infrastructure upgrades, providing the operator with the flexibility to roll-out new services and a smooth evolution path to LTE.

“This agreement with Telenor Hungary marks another major breakthrough in the European market for ZTE’s Uni-RAN technology and further cements our partnership with Telenor. With ZTE’s unified network, Telenor Hungary will have the flexibility to upgrade its network as new services are rolled-out, preparing it for the imminent 4G era,”  said Kenneth Fredriksen, GM of ZTE’s Telenor Business Unit.