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Orange Awards ZTE Its Fiber Contract for 2016

SHENZHEN, China -- According to the report from “expansion”, a local media in Spain, Orange awards ZTE, a Chinese telecom equipment provider an order to install fibre in 2.2M homes, with the aim of reaching 10M homes this year.

Orange, the second broadband operator in the Spanish Market, has awarded ZTE a contract to supply equipment needed to deploy fibre optic networks in Spain throughout 2016, according to confirmation received by EXPANSION from sources with knowledge of the process.

The contract, awarded at the beginning of the year, shows Orange’s aspirations to continue deploying the network, as per its public commitments.

Orange had forecasted reaching over 7M homes by YE2015 (that is, homes in which fibre reaches a block, or front of a home, so that once it has been contracted it can be supplied immediately to the client), thanks to the merger with Jazztel, who has contributed approximately 5M households.

In 2016, the group announced it wanted to reach 10M households. Sources within the industry estimate that there is a 1M shortfall, and that it could be acquired via a network exchange with other operators, or by means of a co-investment agreement.

The now awarded contract was put out to tender last November. Amongst those invited to participate, in addition to other fibre optic equipment competitors well established in Spain such as Alcatel (now part of Nokia) and the also Chinese Huawei, were less well known companies such as Arcadyan, Comtrend and Sagemcom. However, ZTE has been the sole supplier for Jazztel’s fibre network, and thus is the controlling supplier in Orange’s fibre network.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)

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