13 June 2012, Shenzhen, China– ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), has announced the completion of the world’s first commercial “Free-seating” network with Swedish broadband service operator Wexnet.

Free-seating networks enable consumers to connect to a single broadband network but to sign up for services from any number of Internet service providers (ISPs) or Internet content providers (ICPs), saving the need for every ISP to have its own separate network. This significantly reduces network complexity and duplication, while providing users with the greatest possible range of choices.

"Wexnet had always wanted to provide customers with the broadest possible range of services and solutions,” said Wexnet Technical Director Lars Wihlborg. “When ZTE suggested the Free-seating solution we were not sure it could be turned into reality. But we are very happy with the network built by ZTE because it gives us a more reliable operation while providing our customers with the complete range of services that they require. We believe the Free-seating solution is ideal for future network construction.”

Wexnet is a broadband service provider of energy company Växjö Energi AB (VEAB) in the south of Sweden. It provides power supply, super-high-speed broadband service and IPTV services to the city of Växjö which was built in the 11st century.

Wexnet invited ZTE and local distributor Daimler Sweden to build an “intelligent” broadband network in March 2011. Based on ZTE’s Free-seating solution, Wexnet is now no longer just a network operator. It has become a platform connecting service providers and terminal users.

The platform enables many Internet service providers and IPTV media providers to flexibly adjust their market strategies and develop “preview” service promotions. It can automatically adjust service routing based on traffic demand, and payment is implemented without complexity. Users can easily find new services via their web browser on the Wexnet interface platform.

Wexnet is currently providing services to over 30,000 families based on the Free-seating solution. At the same time, 70 ISPs and ICPs are linked direct to customers on the Wexnet platform to provide services.

"In the operation mode, Free-seating like a new “ISP store”, will change operators’ role from pipeline operators to service shop. Free-seating finally realizes the new operation mode of “three-wins” – with benefits for the operator, ICP and terminal users,” said Mr. Huang Zheng, CEO of ZTE Sweden. “Wexnet has become the acknowledged standard-bearer among Sweden’s 1500 medium and small operators in Sweden.”