ZTE drives new broadband value in Latin America with Performance+, Efficiency+, and Experience+ strategy

• ZTE is committed to unlocking new broadband value in Latin America with its Performance+, Efficiency+, and Experience+ strategy, addressing sluggish ARPU growth
• From ultra-broadband infrastructure to AI-driven operations and smart home ecosystems, ZTE empowers operators to evolve into intelligent service enablers in the post-connectivity era

Mexico City, Mexico, October 23, 2025 - ZTE Corporation (0763.HK / 000063.SZ), a global leading provider of integrated information and communication technology solutions, has shared its Performance+, Efficiency+, Experience+ strategy to support operators in creating new broadband value in Latin America, addressing the region's sluggish ARPU growth and paving the way for sustainable digital evolution.

As the global telecom industry enters the post-connectivity era, traditional revenue streams are plateauing and ARPU growth remains sluggish. In Latin America, for example, Omdia forecasts that fixed broadband revenue will grow from USD 36.5 billion to USD 45.7 billion over the next five years, yet ARPU will only increase by USD 0.78, reflecting insufficient growth momentum.

Against this backdrop, driving the transformation of network infrastructure from "high performance" to "high intelligence" has become a key pathway to unlocking broadband potential and achieving sustainable growth — only by continuously strengthening the network foundation can Latin America steadily advance in the upcoming AI wave.

Performance+: Building an Ultra-Broadband Optical Foundation

ZTE is accelerating all-optical network upgrades to assist Latin American operators in building scalable, high-performance infrastructure.

· Wi-Fi 7 evolution: Commercialized across multiple Eurasian markets, enabling premium home and enterprise applications like online gaming and 4K video.

· 50G PON + FTTR synergy: Expands broadband value across communities, campuses, and factories, opening new opportunities in residential and enterprise markets.

· High-capacity transport & green architecture: C+L band optical networks and multi-service routers deliver up to 1.6T per wavelength and 100T per fiber, boosting efficiency and reducing energy consumption.

· Digital ODN enhancement: AI automation shortens site design time from one month to one week and cuts labor by 70%, accelerating large-scale fiber rollout across Latin America.

Efficiency+: Precision Operations for Enhanced Satisfaction

ZTE leverages AI-native capabilities to reshape telecom operators' operational systems, enabling precision marketing and service optimization. In China, AI-driven operations have increased marketing success rates by 30%, reduced churn by 15% through AI-based identification of devices contributing to degraded user experience, and improved user experience by 75% via QoE optimization for users generating high uplink traffic. These proven results demonstrate how AI can help Latin American operators extract new value from existing markets.

Experience+: Emotional Connectivity Through Smart Home

ZTE envisions the future home as a "virtual data center" with sensing and decision-making capabilities. By integrating AI agents with multimodal terminals, ZTE is building a smart home ecosystem capable of proactive services.

· For senior users: AI-powered behavior recognition enables fall detection and emergency calling, supporting remote healthcare.

· For families with children: AI generates short videos, smart photo albums, and homework assistance, becoming a companion in their growth journey.

· For young users: Personalized sports recommendations, multi-screen interaction, and AI fitness features deliver an immersive experience.

By transforming home connectivity into a space for health, safety, and entertainment, ZTE delivers personalized smart living.

"Connectivity is the foundation, experience is the future," emphasized Peter Hu, Vice President of ZTE. "In high-potential markets like Latin America, operators are well-positioned to evolve from bandwidth providers to intelligent service enablers. Through our Performance+, Efficiency+, and Experience+ strategy, ZTE is committed to collaborating with regional partners to strengthen networks, enhance operational intelligence, and deepen scenario-based experiences. Together, we will build a differentiated, high-value, and sustainably evolving digital ecosystem."