Company to provide more than 70% of technologies in 15 China Provinces
15 September 2011, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, announced today it has won a contract with China Unicom to provide more than 70 per cent of transmission equipment in 15 provinces across China.
The 15-province initiative includes projects in Shandong, Guangdong, and Henan and will make use of several infrastructure technologies such as OTN, WDM, and MSTP/SDH. The ZTE contract involves OTN solutions in metro area core layer and edge layer applications. ZTE competed for the project with several overseas and domestic mainstream vendors.
As a result of a rapid increase of WCDMA users and in-depth 3G strategic layout, China Unicom has committed to building a powerful PTN network for 3G and LTE. It also is committed to promoting next-generation optical networks such as OTN. The ZTE contract marks the first time China Unicom will make a large-scale purchase of OTN equipment.
As part of the project, ZTE will provide its ZXONE 8000 series OTN and ZXONE 5800 MSTP equipment to China Unicom. ZTE won 70 per cent of the China Unicom OTN and WDM contracts and over 90 per cent of its MSTP contract. This large-scale bearer network construction will allow China Unicom to further consolidate its network advantage and to maintain its leading position in the 3G field.
According to a report by industry analysis firm Ovum, global optical networks grew 17 percent in the second quarter of 2011 quarter on quarter with revenue reaching $4.1 billion. ZTE maintained its No. 3 position in the global optical network market, passing $500 million in revenue for the first time. In addition ZTE grew 45 per cent in terms of revenue in the global optics market, with market share rising to 12 percent, its highest level to date.