ZTE Corp, the country's second-largest wireless equipment maker, said one of its self-branded handset models is being sold in North America, making the company the first mainland wireless telephone manufacturer to do so.

Jointly with Telus, Canada's second-largest telecommunications carrier, the Shenzhen-based company yesterday announced the availability in the country of the ZTE D90, a 3G phone with an alphanumeric keypad.

"Telus is one of the most important strategic partners for ZTE's entry into North America's handset market," said He Shi-you, senior vice-president and general manager of ZTE's mobile phone division.

The company is still mostly focused on producing telecommunications networks, especially in developing countries, but has been putting greater emphasis on handsets to diversify its income base.

The top-of-the-line phone, which won a product design award from Germany's design association earlier this year, was priced at US$229.99 without a subscription contract and as little as US$79.99 with a three-year plan, Telus said.

In April, ZTE said its first-quarter profit rose 27 per cent to 42.4 million yuan from a year earlier, helped by a tax benefit. Revenue grew 30.6 per cent to 6.01 billion yuan on higher overseas sales, which accounted for 60 per cent of the total.

Earlier this year, ZTE won orders to supply mobile phones to Vodafone Group and Telefonica.

In May, it won a contract worth US$200 million from Ethiopian Telecommunications Corp to provide network equipment and services. The three-year contract includes network, call centres, optical or microwave transmission and equipment, based on code division multiple access (CDMA) technology.

Shares in ZTE fell 2.56 per cent to close at HK$34.30 on Friday.