ARMENIA ORDERS CDMA450 NETWORK

Cellular-News, UK
Aug. 17, 2006

China’s ZTE says that it is to provide Armenia with its first CDMA450
network. Under the terms of the agreement, ZTE will provide ArmenTel
with a new network based on ZTE?s end-to-end CDMA450 WLL (Wireless
Local Loop) solution. The agreement will lead to the improvement
and expansion of the country?s nationwide fixed telecoms network
infrastructure and makes ZTE the first Chinese telecoms equipment
vendor to have experience of working in the Republic of Armenia.

"It is a priority for us to enhance fixed-line services across the
country. ZTE?s equipment will allow us to do just that by providing
reliable communications to areas which have traditionally not been
well served by the existing infrastructure. Our use of CDMA450 marks
a new chapter for our company that can invest in a cost-efficient way
and for our customers who will benefit directly from this technology
of high quality service" said Mr Smarnakis, CTO of ArmenTel.

The 450 MHz spectrum is becoming an increasingly attractive networking
option for European carriers as it represents an economic way to
deploy a large-scale wireless network telecoms infrastructure.

Crucially, the low spectrum results in larger cell sizes, therefore
requiring relatively few base stations. This means that operators
benefit from reduced infrastructure investment than would normally
be needed for deployments of a similar size.

As the largest operator in Armenia, ArmenTel owns 100% of the country?s
fixed phone customer base and over 60% of its mobile subscribers. In
1998, 90% of ArmenTel?s shares were acquired by OTE, the largest
fixed-line operator in Greece. ZTE recently worked with OTE when it
was chosen to supply vital broadband Internet access systems during
the Olympic Games in Athens.