ZTE Selects Infineon Technologies for Next-Generation Network Equipment to Enable Resilient Packet Ring (RPR) Architectures in China

Feb 25, 2004 | Market News

Munich, Germany – February 25, 2004 – ZTE Corporation, the second largest supplier of data- and telecommunications systems in China, selected Infineon Technologies (FSE/NYSE: IFX) as a strategic partner to deliver Resilient Packet Ring (RPR) solutions to its carrier customers. The Infineon Frea™ PoS Framer/RPR MAC inte-grated circuit (IC), the industry’s first RPR-compliant solution, has been chosen by ZTE for use in its metropolitan area network (MAN) and wide area network (WAN) equipment.

RPR technology combines the low cost and simplicity of packet-based networking with the reliability and resiliency of telecom networks. RPR is a Layer Two MAC technology that integrates efficient bandwidth management support and packet services. With Infineon’s RPR solution, ZTE can offer service providers the ability to create scalable networks that transport voice and data traffic efficiently while lowering both capital expenses and on-going operational expenses.

“RPR is growing at a phenomenal rate,” said Michael Howard, principal analyst of Infonetics Research. “The technology has achieved wide acceptance within the industry, and carriers worldwide are already deploying or plan to deploy the technology. Since Asia is a hotspot for metro Ethernet and optical equipment, and 63% of North American and European carriers are planning to offer Ethernet over RPR in the next few years, we expect RPR revenue to grow over 200% by 2007.”

“The Infineon RPR solution has one of the highest degrees of integration available today,” said Rong Liu, director of networking product division, ZTE. “Infineon’s technology is helping ZTE address customer demands for deployable RPR equipment today while meeting technology requirements for reduced power consumption, board design complexity and space, software development, and overall system cost.”

“Collaborating with ZTE to bring RPR solutions to market builds on Infineon’s commitment to the market, meeting the growing demand for the technology and strengthening our relationship with one of the region’s technology innovators,” said Srinivas Nimmagadda, director of marketing for optical networking, Infineon Technologies. “Furthermore, we expect that by working with ZTE to successfully deploy RPR in Asia, more equipment manufacturers and carriers worldwide will realize the value of this technology and accelerate their adoption plans.”

The single-chip Frea IC integrates functions previously requiring a minimum of four separate components. The Frea chip integrates the PoS (Packet-over-SONET) framer, RPR MAC (Media Access Control) and XAUI SerDes (serializer/deserializer) functions. Frea includes 1 megabyte of memory on-chip, a 16-bit 800 MHz SPI-4.2 system interface and a 4-bit 3.125 GHz mate (XAUI) interface that simplifies linking the two chips that are required for a full RPR implementation.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products.With a global presence, Infineon operates in the US from San Jose, CA; in the Asia-Pacific region from Singapore; and in Japan from Tokyo. In fiscal year 2003 (ending September), the company achieved sales of Euro 6.15 billion with about 32,300 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com.

About ZTE

ZTE Corporation is China's largest listed telecommunications equipment manufacturer specializing in providing customized network solutions for telecom carriers worldwide. The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks and next generation networks. ZTE has been listed on the Shenzhen Stock Exchange since 1997. For more information about ZTE, please visit www.zte.com.cn

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