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ZTE Wins Major Uzbekistan UMTS Contract with Ucell

Uzbekistan mobile operator Ucell, part of TeliaSonera, has selected China’s ZTE to upgrade its network to GSM/WCDMA technology. Under the terms of the contract, ZTE will manage the construction and expansion of Ucell’s 2G/3G network, including replacement of existing 2G equipment. Ucell had 4 million subscribers at the end of May 2009, representing a 37% market share.

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, has won a contract to install a GSM/UMTS network for Uzbekistan operator Ucell, part of the international TeliaSonera telecommunications group. ZTE will manage the construction and expansion of a 2G/3G network including replacement of the existing 2G equipment.

The Uzbekistan telecoms market is expanding rapidly, helped by the conversion to digital exchanges which are expected to be completed in 2010. The mobile subscriber based reached 10.8 million in 2008 but is expanding rapidly. This continues the global trend in recent years of developing markets experiencing rapid growth while developed markets approach saturation. Ucell has experienced aggressive growth since its TeliaSonera acquisition, and by May 2009, the company’s subscriber base was nearing 4 million.

“The TeliaSonera Ucell 2G/3G project adds to the growing number of world-class operators using ZTE’s UMTS equipment in highly competitive markets,” said Mr. Zeng Li, President of ZTE CIS. “Telstra’s CSL subsidiary in Hong Kong has a ZTE HSPA+ network up and running, and ZTE UMTS equipment has also entered service in European markets such as Romania, Estonia, Turkey and Belarus in the last 12 months.”

ZTE is committed to the development of UMTS and LTE. The company has been playing an active role in supporting the industry by providing UMTS solutions to worldwide markets including Hong Kong, Romania, Estonia and Turkey, amongst others.

Renowned for its innovative technology and outstanding services, ZTE has attained excellent bidding results in Unicom’s Phase I WCDMA tender in China. The company has now successfully entered into more than half of China’s provincial market, including Guangdong, Fujian, Shandong, Tianjin and other China provinces. ZTE has also successfully helped Unicom complete its Phase I WCDMA network deployment in the above developed provinces. ZTE was also the first vendor to complete deployment of a 3G network in China.

TeliaSonera provides telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia including Russia and Turkey, and in Spain. The operator’s focus is on developing high quality networks that deliver a best-in-class cost structure to deliver the best value to its customers. TeliaSonera is listed on the Stockholm and Helsinki NASDAQ stock exchanges.