Ovum: ZTE Ranked Third in Global Optical Networking Market

ZTE Corporation ( ZTE - H share stock code: 00763.HK / A share stock code: 000063.SZ) today announced that it is ranked third in the global optical networking (ON) industry, according to the latest research by industry analyst firm Ovum. ZTE posted the highest gains for the first quarter of 2010 and a significant increase in overall revenues to rise from its previous position as the seventh-ranked vendor in 1Q09.
According to Ovum s latest report entitled Market Share: 1Q10 optical networks, global and regional , many of the top ten ON vendors posted double digit percentage revenue declines for 1Q10, as compared to 1Q09. ZTE is the only vendor that showed a 33% sequential increase in overall revenues for the first quarter of 2010.
Optical networking spending in 1Q10 fell to 3.2 billion USD globally, posting a decline of 8% compared to the same period last year. While the Asia-Pacific region remains stable, spending in North America is beginning to increase, the EMEA and SCA regions are currently underperforming.

Cisco and ZTE have both reported growth since last year, with ZTE presenting the best performance in the ON market in Q1 this year, fuelled by a major contract win with China Mobile for backhaul-related PTN products for its 3G network. Many vendors have seen benefits from operators needing to revamp their mobile backhaul networks to cope with broadband traffic, new services and new devices. In this regard, ZTE s competitive position in the China market was a strong plus for it in 1Q10, commented Matt Walker, a Principal Analyst on Ovum s Network Infrastructure team.
ZTE made great strides in the optical network markets in 2009, especially in the PTN market where ZTE had a significant win in China Mobile s PTN tender. This was a large scale networking project with stringent networking requirements, and clinching the contract was great encouragement for both ZTE and its customers. ZTE PTN equipments have been widely deployed in some Asia-Pacific countries as well as in several mobile telecommunication operators (MTO) in Europe and America , said Mr. Fan Xiaobing, General Manager of ZTE s bearer network product line.
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