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Marconi looks to China.

Midlands telecoms giant Marconi is looking to break into new markets after clinching a distribution agreement with Chinese firm ZTE Corporation.

The one-year deal, which will allow either company to distribute specified products from the other, will initially focus on the SDH-based Marconi Digital Radio System (MDRS) and ZTE's Coarse Wave Division Multiplexing (CWDM) equipment.

MDRS is a point-to-point wireless system for both long-haul and short-haul access, feeder and backhaul applications. A key application is the provision of high-capacity radio links in areas where fibre is impractical for reasons such as physical or legal restrictions.

Marconi, which has a major operation in Coventry, claims that MDRS delivers a transmission quality equal to fibre - whether it is for long haul trunk connections in under served areas, for dense metro networks or for cellular mobile applications.

The two firms yesterday said that the new distribution agreement was mutually beneficial.

It will help Marconi develop new routes to market in key regions and segments, but it also allows the group to further enhance its product portfolio.

'The agreement with ZTE has a number of positive aspects for us,' said Geoff Doy, chief executive of sales & marketing at Marconi. 'It allows us to tap into new markets by leveraging ZTE's local presence and distribution models and gives us access to complementary CWDM technology.

'It's a great example of how competitors can partner strategically in selected opportunities to deliver needed functionality to customers and help enable their multiservice next-generation networks.'

The agreement also gives ZTE access to Marconi's SDH radio platform as well as a route to Europe for its new CWDM platform.

'Access to Marconi's established markets in Europe for our CWDM products will be a big benefit,' said Shi Lirong, senior vice president of sales and marketing at ZTE.

'Remaining competitive in today's industry is a constant challenge, but agreements such as this help us maintain an edge in key product segments and expand our reach beyond our traditional markets.'

Listed on the Shenzhen Stock Exchange since 1997, ZTE Corporation is China's leading telecommunications equipment manufacturer and network solutions provider.

The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks and next generation networks.
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Title Annotation:Business
Publication:The Birmingham Post (England)
Geographic Code:9CHIN
Date:Sep 1, 2004
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