(3GSM Congress, Cannes) ZTE Corporation, China’s largest publicly quoted telecommunications equipment manufacturer, and CPS (Cambridge Positioning Systems Limited) today announce the signing of a major marketing and development agreement to deliver Matrix high accuracy location-enabled mobile handsets to the global GSM market.

The agreement, announced today at the 3GSM Congress in Cannes, represents a world first in the integration of CPS’s “user plane” Matrix software into a standardised GSM handset. ZTE is a significant handset supplier to the 260m-strong Chinese mobile market but also has a strategic ambition to expand globally beyond its current Asia Pacific, European and African market presence.

Matrix is a unique software-only solution that combines sub-100m accuracy with rapid location time-to-fix and consistent performance across outdoor and indoor environments – for less than $1 per subscriber. Until now, location-positioning information has been delivered over GSM using the “control plane” – the internal GSM signalling. Utilising the “user plane” - via IP over GPRS or SMS - operators can deploy the Matrix solution across networks from different equipment vendors in a transparent and seamless way. In turn, this leads to significant operational cost benefits.

This is in line with industry-wide moves, promoted by the OMA (Open Mobile Alliance), towards “open” standards, interoperability across all networks and devices and specifically a move from “control plane” to “user plane” solutions. Members of OMA include China Mobile, Vodafone, Texas Instruments, Intel and Nokia.

Matrix will be integrated into a range of ZTE terminals and handset products with further plans for joint marketing to operators worldwide for both 2G and 3G. Already, CPS is working on a number of high accuracy location trials with operators in the Americas, Asia Pacific and Europe that will benefit from this latest development. Initially, ZTE and CPS will focus their joint activities on the Chinese GSM market, where demand for cost-effective location technologies is growing rapidly.

“CPS is very experienced in core technology for wireless location service. And utilising ‘user plane’ will accelerate the commercial application of Matrix solution. We believe this location solution will have good foreground in future wireless market.” Said Tu Biqin, Vice General Manager of Handset Division, ZTE Corporation.

“In 2004, ZTE hopes not only maintain the rapid increase of mobile phone business, but also provide our customer with tailor-made mobile applications. The cooperation with CPS is part of effort to achieve this target.” Tu said.

CPS’ Chief Executive Chris Wade said: “This agreement represents a major step forward for operators worldwide seeking to exploit the huge potential for high accuracy location based services. We are delighted to be working with a major manufacturer with ambitious global plans, who share our vision of the criticality of location to new revenue generating services for operators.

“ZTE understand the importance of the need of low cost cost solutions to drive market take-up. By allowing Matrix to communicate via the user plane in addition to the control plane – in line with OMA’s strategy for industry open standards – we have made this a reality.”

About ZTE

ZTE specialises in offering customised network solutions for telecom carriers worldwide, with equipment deployed in over 40 countries. The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent and next generation networks and mobile handsets.

About CPS

CPS is the high accuracy location enabler for the wireless world. Through consistent innovation, we have developed new ways of helping people pinpoint their whereabouts - via a standard GSM mobile handset. Our technology is called Matrix – a unique software-only solution that combines sub-100m accuracy with rapid time-to-fix and consistent performance across all environments.

Standardised for GSM, Matrix can be rolled out easily and rapidly to meet operator needs for new and differentiated location-enabled services. And because Matrix is software only, it means deployment costs are less than $1 per subscriber – the most competitive high accuracy solution available.