New business model makes latest mobile phone technologies available to all

Lisbon, 07 October 2009 - ZTE and mobile network operator TMN have shaken up the Portuguese smart phone market with a business model that makes smart phones available to virtually all handset users, enabling anyone to enjoy mobile internet access and the latest mobile applications.

ZTE is now speaking to operators around Europe about the production of operator branded or joint-branded smart phones.

ZTE’s handset business is focused on customising phones in association with operators for each individual market – targeting specific market segments that the operator believes offer the best business opportunities.

“We cannot disclose any of the discussions currently under way with other operators, but we expect to be delivering smart phones into most Western European markets by the end of 2010,” said ZTE Executive Vice President and head of the Mobile Terminals Division, Mr He Shiyou.

Since its launch in May this year, the co-branded ZTE/TMN Bluebelt 3G handset has taken 30% of the Portuguese smart phone market, and is predicted to take over 40% percent by the end of the year.

ZTE and TMN have today launched the new Bluebelt II and Silverbelt phones running Microsoft Windows® phone to maintain the momentum of the Bluebelt handset’s success, and expect to continue building market share.

“These are high specification handsets at a price that most mobile phone users can afford – making functions that were previously only available to business and premium customers available to almost everyone,” said Mr He.

“ZTE’s approach also strongly supports the operator, with a larger percentage of the consumer’s spend going to the operator rather than the handset manufacturer.”

“Our association with ZTE has changed the face of the smart phone market in Portugal and opened up a huge new market for us,” said Mr. Luis Avelar, CMO of PT Group. “Tens of thousands of people now have smart phones and all the benefits they deliver, who could never have imagined that they could afford such a high specification phone.”

ZTE has invested heavily in the research and development of smart phones over the last five years and has focused on becoming the world leader in the development of customised mobile phones.

Demand for smart phones has reached the point where they are no longer seen as a luxury or a strictly work-related item. ZTE recognised this trend early on and invested in the development of smart phones that not only offer the sleek design, superior processing capabilities and attractive prices consumers desire, but that also work smoothly on each carrier’s network.