Marconi Signs Distribution Agreement

Marconi signs one-year mutual distribution agreement with ZTE, focused on Marconi's SDH-based MDRS and ZTE's CWDM equipment

September 1, 2004

2 Min Read

LONDON -- Marconi Corporation plc (London: MONI and NASDAQ: MRCIY) today announced it has signed a Mutual Distribution Agreement (MDA) with ZTE Corporation that allows either company to distribute specified products from the other. The one-year agreement will initially focus on the SDH-based Marconi Digital Radio System (MDRS) and ZTE’s Coarse Wave Division Multiplexing (CWDM) equipment, and other products could be added to the scope of the deal in the future.

The agreement is beneficial for both companies. For Marconi, it helps the company deliver on its stated strategy of developing new routes to market in key regions and segments. It also allows Marconi to enhance its product portfolio by providing access to complementary equipment and capabilities as well as more aggressively position and expand its highly regarded SDH radio platform into new markets and opportunities.

“The agreement with ZTE has a number of positive aspects for us,” said Geoff Doy, CEO of Sales & Marketing at Marconi. “It allows us to tap into new markets by leveraging ZTE’s local presence and distribution models and gives us access to complementary CWDM technology. It’s a great example of how competitors can partner strategically in selected opportunities to deliver needed functionality to customers and help enable their multiservice next-generation networks.”

For ZTE, it gains access to a proven SDH radio platform from Marconi that can be used in backbone and mobile backhaul projects as well as a route to market in Europe for its new CWDM platform.

“Access to Marconi’s established markets in Europe for our CWDM products will be a big benefit, and its expertise in SDH radio will strengthen our bid position in the tender process,” said Mr. Shi Lirong, senior vice president of sales and marketing at ZTE. “Remaining competitive in today’s industry is a constant challenge, but agreements such as this help us maintain an edge in key product segments and expand our reach beyond our traditional markets.”

Marconi Corp. plc

ZTE Corp.

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