ZTE Corporation Reports Major Contract Win At China Mobile Ltd. (ADR)(NYSE:CHL)

ZTE Corporation, which is a China based telecom equipment manufacturer and technology support provider disclosed on 21st April that it had won a major contract from Chinese telecom services major China Mobile Ltd. (ADR)(NYSE:CHL) to supply Gigabit Passive Optical Network which is  a specialized solution offering falling under the Optical Network Equipment header.

Contract Win After Tough Fight

The contract award was part of an annual tendering exercise carried out by the Hong Kong based telecom major to shortlist and farm out supply contracts to various vendors who are part of its vendor community. ZTE Corporation was one only one of the top three vendors which were chosen by China Mobile. The final contract winners including ZTE Corporation had been subjected to a stringent evaluation process which included a through demonstration of its research and development capabilities, in addition to quality control aspects and its after sales support functions. The two other successful bidders were France based “Alcatel-Lucent Shanghai Bell” and “FiberHome”.

Big Win

Explaining the importance of wining this contract to ZTE Corporation with respect to its ability to acquire marquee customers, company’s Director of Optical Access Products Bei Jinsong has been quoted to have said that, “ZTE is committed to achieving win-win with our customers through dedicated R&D efforts and high-quality customer services. Our efforts have resulted in industry-leading product performance and increasing market acceptance for ZTE’s GPON equipment.”

4Q Saw 27% Increase IN GPON Sales

Today’s announcement by ZTE Corporation comes on the back of sustained increase in its production and market capture accomplishments in the recent weeks.  As per a industry report put out by Ovum, the flag ship  Gigabit Passive Optical Network equipment sales, which are measured in terms of shipments has gone up 27 percent in 4Q, as against 3Q13 on the back of increased demand for this from companies spread across the Europe and Asia.

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