SHENZHEN, China -- The world´s largest optical transmission network is to be completed in China following an agreement between ZTE Corporation (Shenzhen: 000063, Hong Kong: 0763), the fastest growing global provider of telecommunications equipment and network solutions, and China Mobile, the nation´s largest mobile operator for the second construction phase.

The almost 25,000 kilometre network, due for completion by March 2006, will include 521 network nodes covering 18 provinces in Western and Southern China.

The network is based on ZTE´s ZXWM M900 DWDM (Dense Wavelength Division Multiplexing) technology, which incorporates ultra long-haul transmission technologies like ERZ (Enhanced Return to Zero code) modulation technology, AFEC (Advanced Forward Error Correction) technology, HOBA (High-power Optical Booster Amplifier) technology, and compensation technologies.

"The network has been built in two phases, " said Mr Shen Li, ZTE´s General Director for China Mobile. "Phase 1 has been serving 17 provinces mainly in Western and Southern China since its operation in 2002. Phase 2 is an independent network that will overlap with Phase 1, covering 13 provinces of the same region. The networks will improve transmission quality and meet the increasing demand in these regions for bandwidth, especially for data and multimedia services.

"Long-haul transmission technologies can address the transmission problems of long-haul multiplexing and decrease OTM (Optical Terminal Multiplexing) network nodes, thereby lowering construction costs and increasing China Mobile´s competitiveness."

"We are confident of ZTE´s ZXWM M900 DWDM equipment which features powerful capacity, full service access and smooth scalability," said Mrs Wei Lihong, Network Division Director at China Mobile. "It is always trustworthy and reliable."

ZTE Corp.