Vodafone has signed a handset procurement agreement with ZTE for the supply of ultra-low cost 2G phones for emerging markets.
The Vodafone-branded handsets are expected to ship in Q2.
Jens Schulte-Bockum, Vodafone's global director of terminals said the low-cost phone was the first of a number of products that ZTE would supply.
ZTE senior vice president He Shiyou described it as a "breakthrough" agreement and proved the company's ability to meet "the needs of a world-class operator".
The firms would not reveal the value of the transaction or the volumes to be supplied.