News Brief ZTE Announces 2010 Interim Results Revenue reaches USD 4.524 billion European and US revenue increases by 45% ZTE Corporation (“ZTE” or the growth in the Group’s domestic business European carriers, including KPN, “Group”) announced on August revenue. Telenor and Optimus. ZTE and 19, 2010 that the Group operating While revenue from Asia declined Telefonica deployed the first WiMAX revenue increased by 10.89% year-on- due to an incident relating to the network in Spain. The company has year to USD4.524 billion. Revenue safety inspection of communications also deployed seven LTE commercial contribution from the European and equipment in India, the Group still networks and nearly 50 trial networks US markets amounted to 18% of total reported year-on-year growth in globally. Building on its success revenue for the first time. The year-on- international revenue. The Group in the China 3G market, ZTE’s year revenue contribution from these worked closely with global carriers wireless delivery capability received two markets increased by 45%. such as France Telecom, Telkom SA, recognition from leading carriers in The net profit grew by 12.02% to Telefonica of Spain and America Movil. Europe and the US. USD129.143 million in the six months By product, the Group registered In wireline products, the Group ended June 30, 2010 based on Hong year-on-year revenue growth of maintained its advantageous position Kong financial reporting standards. 1.08% for carrier networks, 39.71% in access network and transmission Basic earnings per share amounted to for terminal products and 17.99% for network products. With regards to USD0.047. telecommunication software systems, access networks, the wireline access ZTE’s international revenue rose services and other products. products, represented by xPON, 19.58% year-on-year to USD2.246 In wireless products, the Group continued to lead the market. The billion, accounting for 49.65% of its optimized its position in the high- large-scale, network-wide commercial total operating revenue. end markets of Europe and the application of the FTTx solutions was In the first half of 2010, ZTE United States by consistently meeting achieved in major cities. supported 3G network construction customer needs in terms of cost In relation to transmission products, projects of some carriers and assisted reduction, low carbon emission and ZTE’s PTN, wave division and data with the replacement, coverage environmental issues. The Group communications products made extension and improvements of also enhanced its standing due to its headway in the industry and have relevant networks. This helped to experience dealing with multi-national been well received by leading global consolidate the company’s market share carriers and advanced SDR product carriers. In the first quarter of 2010, in China’s 3G network construction solutions. ZTE’s revenue from optic network amid a slowdown of investment in 3G Meanwhile, the company remains products ranked third in the world. Its networks. committed to key customers in the high-end cluster router T8000 was also The Group leveraged its customization Asia-Pacific region, Africa and launched globally. capability and cost advantage to Latin America, which all provide an During the first half of 2010, the participate in carrier tenders for products increasing share of revenue in wireless Group achieved rapid growth in the such as transmission networks, wireline products. sale of its terminal products, reporting access and terminals. Encouraging tender ZTE’s GSM/UMTS/LTE products 39.71% year-on-year growth in results were achieved, ensuring stable were deployed by the leading local revenue. www.zte.com.cn A Monthly Publication Vol. 12 No. 9 Issue 128 September/2010 P3 Interview Winning Out in a New Round of Market Competition An interview with Huang Liqing, President of ZTE’s Wireline Product R&D Institute Focus Wireless E-Frame: See and Share Building a VAS Dream Factory P7 Wireless E-Frame not only enhances P12 A self-operated service platform that photo communication for families, supports fast service development and but also helps operators retain users, deployment gives wings to new service provide numerous information ideas and helps operators increase services, raise ARPU, and generate profit sustainable income streams Opportunities in 3D IPTV MRBT: Better Ringtone Experience, P14 P10 Stronger Visual Impact 3D technology is still new to the ZTE’s MRBT solution allows IPTV field, and this is precisely the subscribers to personalize the look kind of opportunity that will allow and feel of their communications ZTE to demonstrate its leadership with sound, pictures, animations, flash, and video clips Third Eye Editorial Board Editor-in-Chief: Gu Yongcheng The Prospects for CDMA and the Rise o f ZTE 17 Deputy Editor-in-Chief: Huang Xinming By Q1 2010, ZTE had shipped an accumulated total Editorial Director: Zhao Lili of over 250,000 base stations, allowing the Chinese Executive Editor: Yue Lihua company to claim the No.1 spot in the CDMA market Editor: Paul Sleswick with a global share of 30.3% Circulation Manager: Wang Pingping China’s ZTE Makes U.S. Expansion with “Salute” 21 Phone for Verizon Wireless Subscription / Customer Services The U.S. has become the focus of ZTE’s handset efforts Subscription to ZTE TECHNOLOGIES is free of charge Solution Tel: +86-551-5533356 Fax: +86-551-5850139 Driving Rapid Growth of Tri-Network Convergence Email: [email protected] with xPON+EoC Solution 23 Website: www.zte.com.cn To provide converged multimedia voice, data, and image services, network operators are attempting to undergo technical transformation as they compete and cooperate Editorial Office with each other Address: NO. 55, Hi-tech Road South, ShenZhen, P.R.China P17 Postcode: 518057 Tel: +86-755-26775211 P25 Fax: +86-755-26775217 Email: [email protected] ZTE Profile ZTE is a leading global provider of telecommunications equipment and network solutions. It has the widest and most complete Case Study product range in the world—covering virtually Turk Telekom on the Road to Fixed Network 25 every sector of the wireline, wireless, service Transformation and terminals markets. The company delivers innovative, custom-made products and As Turk Telekom’s networks have developed, the disadvantages of traditional PSTN—such as aging, services to over 500 operators in more than large size, high power consumption, and lack of new 140 countries, helping them achieve continued value-added services—have become apparent revenue growth and shape the future of the world’s communications. News Brief 27 2 ZTE TECHNOLOGIES September 2010 Interview Winning Out in a New Round of Market Competition An Interview with Huang Liqing, President of ZTE’s Wireline Product R&D Institute By Fang Li ri-network convergence involving telecom, radio and TV, and TInternet networks has attracted industry attention in China, and the need for Fiber-to-the-home (FTTH) has grown considerably. Faced with a new round of market competition, telecom and cable TV operators are actively seeking to enhance access bandwidth. Optical access technology is entering a rapid- growth period, and bearer networks are undergoing great change to accommodate the upsurge in data traffic. Huang Liqing, President of ZTE’s Wireline Product R&D Institute was recently interviewed by ZTE journalist Fang Li. Huang expressed confidence that with 25 years experience in the wireline sector, ZTE can outperform the competition. Journalist: What is the development trend of future wireline networks? How will ZTE innovate with its technologies to meet future trends? Huang: Future wireline networks are clearly moving towards broadband IP access, flat architecture, and intelligent, optimized operation and management. Huang Liqing is the President of ZTE’s Wireline Product R&D Institute. Network devices will also evolve so that Since joining ZTE in 1994, he has worked as ZXSM Project Manager, they can operate on an integrated platform. General Manager of Transmission Products, Deputy General Manager of Comprehensive Products Division, and President of Comprehensive Service expansion has driven the rapid Products R&D Institute. growth of network processing capacity and bearer bandwidth. Operators in China, September 2010 ZTE TECHNOLOGIES 3 Interview Europe, and the United States all plan in the DSL access market, we have possible to converge our existing data, to offer 50-100Mbps bandwidth to also succeeded in PON access. In transmission, and access equipment. home users and Terabit bandwidth to large-scale EPON deployments across This will bring many benefits to Metropolitan Area Networks (MANs) China, ZTE has led the market with operators. It could speed up the time- within the next five to ten years. its strong technical strength and high- to-market for new services, ZTE series Broadband networks require much quality products. We have also been products could be maintained with higher processing capacity at the core researching and pushing forward the same spare boards and parts, and and interfaces. NG-PON technology. In September new equipment combinations could We have prepared ourselves to 2008, we launched world’s first 10G be quickly assembled using additional provide 100G WDM equipment, EPON prototype; and in May 2009, interfaces. A unified platform would and have now started pre-research the world’s first symmetric 10G also significantly improve ZTE’s R&D into equipment supporting 100G EPON prototype. ZTE worked with efficiency and shorten the product (or greater) interfaces. Our 100G operators to conduct a 10G EPON development cycle. In designing a WDM equipment has differentiated test in July 2009, and launched the universal platform, we will draw upon advantages in terms of integration, world’s first 10G EPON commercial 25 years of technology accumulation power consumption, and transmission trial in September. Research has also in the wireline sector. distance. These can be attributed to been conducted into 10G GPON and Cooperation with operators and our continuous investment in product we are keeping close track of the latest universities is also vital, and we have R&D.