ZTE Corp said it will sell entry-level mobile phones to the Vodafone Group in a contract that will help China's biggest publicly-listed telecom equipment maker to gain wider recognition globally.　

The Shenzhen-listed firm will produce a range of Vodafone branded, ultra-low cost handsets for sale mainly in Vodafone's emerging markets. The Vodafone-branded, ZTE-made 2G handsets are expected to debut in the second quarter this year, according to the agreement.

"It is a breakthrough for us and highlights ZTE's ability to develop handsets according to European operator requirements and standards," said He Shiyou, ZTE's senior vice president. "Vodafone's requirements include world-class design and quality standards combined with competitive cost structure."

ZTE has previously provided handsets to overseas players like British Telecom and Hutchison Whampoa. Industry insiders said it is a good sign of the capabilities of Chinese telecom firms, including Shenzhen-based Huawei Technologies and ZTE, that they are winning deals in the West after they used to explore emerging markets only.

"The scale of the cooperation will expand if ZTE proves to be qualified and the Shenzhen-based company's revenue will surge over the next few years," China International Capital Corp Ltd said in a note.

Meanwhile, ZTE's plan to offer 48 million discounted new shares to employees was approved by the stock regulator, the company said yesterday. It is due to start next month, ZTE said.

Source:佚名