Zhone Technologies, Inc : AXTEL TV Over GPON: The Cutting Edge of Service Differentiation Aurora Arlet Zhone Investor Relations Edelman for Zhone Public Relations Tel: +1 510.777.7013 Tel: +1 404.460.8578 Fax: +1 510.777.7001 E: firstname.lastname@example.org E: email@example.com Julio Salinas Adrian De los Santos AXTEL's Media Relations: AXTEL's Investor Relations: Tel: 52.81.8114.1144 Tel: 52.81.8114.1128 E: firstname.lastname@example.org E: IR@axtel.com.mx AXTEL TV Over GPON: The Cutting Edge of Service Differentiation Mexico's Second-Largest Fixed-Line Telecom Operator Relies on GPON Solution to Expand FTTx Services into New Cities Oakland, CA -April 16,2013 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today commemorates longtime customer, AXTEL (BMV:AXTELCPO), for its successful launch of AXTEL TV in five major Cities: Mexico City, Guadalajara, Monterrey, Querétaro and San Luis Potosí. With more than 16,000 customers signed up since service was launched in February, IPTV is already proving to be a winning strategy for AXTEL in the residential and small and medium business market segments. This service is offered over AXTEL's fiber-based Gigabit Passive Optical Network (GPON), utilizing Zhone's MXK(TM) terabit-scale, multi-service access node (MSAN) system and zNID optical network terminals (ONT). Over the last year, AXTEL's customer base for voice and data services more than doubled to 130,000 subscribers, due to its superior quality, reliability and feature capabilities. Branded as AXTEL X-tremo, business and residential customer service options include speeds of up to 150 Mbps in a symmetrical way, and in a short time AXTEL X-tremo will increase the speed of the service up to 200 Mbps. AXTEL is leveraging its existing GPON customer base by enticing customers to add AXTEL TV to their service plan with special offers. The GPON network is also being extended to two additional cities already. AXTEL's IPTV Basic Plan includes 45 AXTEL IPTV SD channels, 4 HD channels and 50 audio channels. In the Ultra Plan there are 67 SD channels, 4 HD channels and 50 audio channels. The most comprehensive plan is Total, which comes with 76 SD channels, 8 HD channels, 50 audio channels and Video on Demand. Ultra and Total plans include DVR STB, which enables users to record from 50 to 1,000 hours of programming. For plans other than Total, Video on Demand can also be acquired at additional fees. "Zhone's GPON solutions exceed the performance, reliability and efficiency levels that we need to be successful on our market strategy," said Victor Raul Rangel, technology development director of AXTEL. "In addition, the company's consistent strategic guidance, technical expertise and forward-looking product roadmap have been critical enabling factors to realizing our business plan both in the early stages of deployment and long-term." Mexico provides tremendous potential for internet growth, with only roughly 25 percent of the population receiving Internet connectivity. Zhone's industry-leading GPON solutions, including the MXK and zNID platforms, provide a highly scalable and cost efficient medium for delivering sophisticated services to large numbers of subscribers - thus driving more widespread communications accessibility for consumers in Mexico. "For AXTEL, 150 Mbps Internet access, triple play and other applications are now possible thanks to a fiber access network which is no longer a bottle neck," said Brian Caskey, chief marketing officer at Zhone. "Zhone is recognized as a leader in GPON solutions globally and is committed to providing AXTEL with a highly optimized, scalable and feature-rich solution that will enable it to meet advanced connectivity goals for its customers." AXTEL is benefiting from increased service differentiation across Mexico with the integration of Zhone's zNID ONTs into the overall FTTH system. Designed to meet AXTEL's specific network requirements, the GPON zNID platform delivers best-in-class data throughput regardless of packet size to support the most demanding FTTH applications the operator decides to offer. Zhone's MXK is the industry's first intelligent terabit access concentrator providing industry-leading density, throughput and switching capacity. With non-blocking capacity of up to 3,600 100Mbps GPON subscribers or 360 1 Gigabit Active Ethernet subscribers per chassis and well-proven single line multi-service (SLMS) access operating system, MXK equips service providers such as AXTEL with sophisticated service intelligence to guarantee a consistently high quality experience for subscribers across all of Mexico. For more information about the MXK platform or zNID ONTs, please visit http://www.zhone.com. About AXTEL AXTEL is a Mexican telecommunications company with significant growth in the broadband segment, the most advanced pay television service, and one of the leading companies in information and communication technologies solutions in the corporate, financial and government sectors. The Company serves all market segments - corporate, financial, government, wholesale and residential with the most robust offering of integrated communications services in Mexico. Its world-class network consists of different access technologies like fiber optic, fixed wireless access, point to point and point to multipoint links, in order to offer solutions tailored to the needs of its customers. AXTELCPO trades on the Mexican Stock Exchange since 2005. Visit AXTEL website on www.axtel.com.mx About Zhone Technologies Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-service access solutions, serving more than 750 of the world's most innovative network operators. The IP Zhone is the only solution that enables service providers to build the network of the future.today, supporting end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility service. Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers. Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free. Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Forward-Looking Statements This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "target," "will," "would," variations of such words, and similar expressions are intended to identify forward-looking statements. In addition, forward-looking statements include, among others, statements that refer to financial estimates; projections of revenue, margins, expenses or other financial items. Readers are cautioned that actual results could differ materially from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, commercial acceptance of the Company's products; intense competition in the communications equipment market; the Company's ability to execute on its strategy and operating plans; and economic conditions specific to the communications, networking, internet and related industries. In addition, please refer to the risk factors contained in the Company's SEC filings available at www.sec.gov, including without limitation, the Company's annual report on Form 10-K for the year ended December 31, 2012. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason. ### ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Zhone Technologies, Inc via Thomson Reuters ONE HUG#1693300
Zhone Technologies, Inc : AXTEL TV Over GPON: The Cutting Edge of Service Differentiation
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