JUNE 16, 2010 -- ZTE Corp. announced at CommunicAsia2010 that it has won a large passive optical network (PON) equipment contract from China Telecom valued at over CNY 1 billion (more than $146 million).

ZTE’s PON equipment will support China’s Telecom’s City Optical Network project that launched in 2009.

Under the contract, ZTE will provide its ZXA10 xPON passive access system to China Telecom. The new network will support triple-play services via multicast and DBA capabilities. The subscriber access services will include high-speed Internet, VoIP, IPTV, and CATV.

Under China Telecom’s City Optical Network plan, approximately 20 million lines of fiber-optic broadband equipment will be deployed to provide 12-Mbps broadband access to more than 70% of the rural areas and up to 100-Mbps access speeds for major cities across the country. The contract for the xPON equipment was tendered earlier this year and ZTE says it won the bid over other competitors.

ZTE and China Telecom started their business relationship in xPON in 2004 and ZTE’s xPON products has already garnered over 40% market share in China over this six-year relationship, the company says.

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