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ZTE’s Position as Key Rail Industry Vendor Strengthened by New GSM-R Contract

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, today announced it has won a new GSM-R (GSM for Railways) project from Nanning Railway Bureau, strengthening ZTE’s position as a leading supplier to China’s rail industry.

ZTE is one of the main providers of GSM-R equipment globally. The company’s new generation SDR-based GSM-R system has passed European Integrated Radio Enhanced Network (EIRENE) specifications and received a certification from TÜV Rheinland, a global technical, safety and certification service provider. GSM-R, based on the GSM standards, provides industry-leading technology for precise railway scheduling and communications. Currently, ZTE provides BSCs, BTSs and engineering services for rail operators in Southwest China.

With the new Nanning Railway contract, ZTE will deploy its GSM-R technology on a key transport link in Southwest China. The Nanning Railway section will include six rail lines that support train speeds exceeding 200km/h, and enhance China’s high-speed rail links with countries in the Association of Southeast Asian Nations (ASEAN).

“This GSM-R contract strengthens the partnership between ZTE and Nanning Railway Bureau,” said ZTE Vice President Li Jian. “ZTE’s GSM-R system can overcome the wireless communication challenges in mountainous and undulating terrains, and ensure robust network connections. We will work closely with Nanning Railway Bureau to help our client fulfill their role as a key regional transport hub linking major international cities.”

ZTE provides rail communication solutions including GSM-R and signaling, and assists rail operators in improving the security, efficiency and service quality of their communication networks. The GSM-R system has been commercially used in China, Southeast Asia, Europe and Commonwealth of Independent States (CIS) region. In September 2012, ZTE won the PMI (China) Project Management Outstanding Award for its excellent performance in the Beijing metro communication system.

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