Vodafone Group and ZTE Corporation announced today a handset procurement agreement which will see the Chinese company produce a range of Vodafone-only branded, ultra-low cost handsets for sale across Vodafone's Markets.

The handsets will only carry the Vodafone name, adding to the range of devices which Vodafone offers branded in this way for the consumer market, and marks the continuation of Vodafone’s Original Design Manufacturer strategy, which is intended to bring to market devices under the Vodafone name.

Vodafone anticipates offering the first Vodafone-branded, ZTE-manufactured handset, a 2G ultra-low cost device, created particularly for sale in Emerging Markets, in the second quarter of 2007.