ZTE is Expected to be the Leading CDMA Network Supplier by Next Year

30 July 2009, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that it has been ranked as the second largest global CDMA network supplier with 25%market share by Frost & Sullivan, the world's leading consulting firm. In its recently published research report entitled “Global CDMA Network Market and Provider Competition Analysis”, Frost & Sullivan also anticipates that ZTE will become the number one provider in the worldwide CDMA network market by obtaining 29.3% global market share by 2010.

According to the report, which tracked up to 2Q09, Alcatel-Lucent and ZTE were the top two vendors leading the world’s CDMA network market with 30.1% and 25% accumulated market share by capacity respectively. The two companies are considered top tiersuppliers. Tier 2 and 3 CDMA vendors worldwide include those with less than 20% percent market share.

In the recent years, CDMA market has been growing fast in Asia and China’s CDMA equipment vendors are performing outstandingly in the industry. ZTE has demonstrated strong performance throughout the Asia Pacific region, especially in China and India where it has realized exceptional CDMA market share and is shaking up the leadership of the traditional CDMA equipment manufacturers. China and India’s CDMA subscribers account for more than 30% of the world’s total CDMA user population. ZTE’s CDMA market share in India and Chinais 35% and 41.5% respectively as of 1Q09.

 For its excellent achievement in the CDMA market, ZTE’s next stage target is to realize market breakthrough in the U.S. and other large-scale, high-end CDMA markets. The Frost & Sullivan’s analyst cites ZTE’s technology advantage in EV-DO Rev.B as an opportunity to further expand CDMA and LTE dual-mode network construction opportunities, and to strengthen its supply of CDMA terminal equipment to the worldwide market. 

ZTE has constructed a number of CDMA networks in the U.S. market. In 2008 ZTE supported Aircell on an industry-first in-flight mobile broadband system to provide fast and accessible Air-To-Ground (ATG) Internet services to Aircell’s customers through its EV-DO Rev. A base stations stationed across the U.S. To date, ZTE has been providing this high-speed in-flight mobile broadband access services to over 400 flights. This has helped ZTE earn the Annual Industry Innovation Achievement Award organized by the CDMA Development Group (CDG).

ZTE was ranked as the top 1 CDMA vendor for three consecutive years from 2006 to 2008 for its CDMA base stations global shipment volume. In 1H09, ZTE’s CDMA base station achieved a record high shipment volume of 75,000 andrealized an accumulated global shipment of 200,000 CDMA base stations.