ZTE Corp announced at the CommunicAsia2010 event that it own a large Passive Optical Network (PON) equipment contract from China Telecom valued at over CNY 1 billion.

ZTE’s PON solution will support China’s Telecom’s City Optical Network project which was launched in 2009 with the aim of providing customers with higher speed broadband access to enhance their user experience.

As part of the deal, ZTE will provide its ZXA10 xPON passive access system to China Telecom. Approximately 20 million lines of fiber optics broadband equipment will be deployed in order to provide 12Mbps broadband access to more than 70% of the rural areas and up to 100Mbps access speeds for major cities across the country.