ZTE
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| Type | Public SZSE: 000063 SEHK: 0763 |
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| Founded | 1985 |
| Founder(s) | Hou Weigui |
| Headquarters |  Shenzhen, People's Republic of China |
| Key people | Yin Yimin, CEO and Hou Weigui, chairman |
| Industry | Telecommunication |
| Revenue | 30.327 billion RMB (2008) |
| Net income | 816 million RMB (January-September 2008) |
| Employees | 39,266 (2006) |
| Website | www.zte.com.cn |
ZTE (Chinese： 中兴通讯) (Zhong Xing Telecommunication Equipment Company Limited) is a global provider of telecommunications equipment and network solutions (GSM, CDMA, CDMA2000, W-CDMA, TD-SCDMA, FDD-LTE, TDD-LTE, IMS, NGN, PSTN, SDH, ADSL, IPTV, Value Added Services) based in Shenzhen.
ZTE was established in 1985. Its shares are publicly traded on both the Hong Kong Stock Exchange and Shenzhen Stock Exchange. ZTE is the biggest telecommunications enterprise in China.
As one of the first Chinese telecoms equipment provider to pursue business in overseas markets, ZTE now has about 50,000 employees and 8,000 of them are working in about 100 representative offices around the world.
Since 1996, the company has provided products and services to 135 countries and regions, serving major telecoms operators in Asia Pacific, South Asia, North America, Europe, Latin America, Africa and the Commonwealth of Independent States. Through a combination of strategic marketing, product differentiation, cost advantage improvement, human resources optimization and intellectual property management, ZTE has established firm commercial partnerships with over 500 operators around the world.
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[edit] Research and Development
With more than 33% of its workforce dedicated to R&D and with 10% of its annual revenues channeled to this field, ZTE has established 16 R&D centers and Institutes across North America, Europe and Asia.
International standards such as CMM and CMMI are strictly applied across all ZTE R&D management processes. Using these scientific management mechanisms and shared technology platforms, ZTE has standardized its R&D processes, shortened R&D periods, reduced costs, optimized design flows and guaranteed the performance of new products.
The company's commitment to innovation ensures that its products stay at the leading edge of modern communications technology.
By the end of 2007, ZTE had applied for around 12,000 national or international patents, 90% out of which were innovation patents with associated intellectual property rights.
In 2000, ZTE launched the world's first CDMA mobile phone with detachable SIM card. In 2004, the company launched the world's first CDMA-based digital trunking technology - GoTa (Global open Trunking architecture system) which included many technologies based on ZTE-owned intellectual property.
As a leading global provider of telecommunications equipment and network solutions, ZTE plays an important role in the international telecoms community. The company is an active member of more than 50 international standardization organizations and forums.
ZTE holds the position of Co-chairman in two ITU-T working groups and Editor of ITU-T standards including NGN, optical transmission and network security. As a member of 3GPP, ZTE has edited three standards involving 3G radio access networks and terminal systems. The company is also a board member of the WiMAX Forum.
ZTE has established strategic cooperation agreements with leading telecoms giants such as Portugal Telecom, France Telecom, Alcatel, Ericsson and Nortel in NGN and mobile systems, with Hutchison in 3G, and with Marconi in optical transmission systems.
The company has also established joint laboratory partnerships with Texas Instruments, Intel, Agere Systems, HHNEC, IBM, Microsoft (China), Qualcomm, Huahong NEC and Tsinghua University. The company has undertaken technological research alliance projects with 50 academic institutions throughout China, where ZTE is also a fully fledged member of the China Communications Standardization Association (CCSA).
ZTE corporate headquarters are located in Nanshan Hi-Tech Industrial Park, Shenzhen, Guangdong Province, with domestic R&D centers operating in LianTang/Shenzhen, Shanghai (GSM), Nanjing, Xi'an, Chongqing, Chengdu and Beijing (total fourteen worldwide R&D facilities). ZTE University is located in Damaisa, approximately 1.5 hours east of ZTE HQ, and provides training for both staff and clients from around the world. Latest figures (Q4 '06) estimate over 30,000 employees (Chinese & foreign); approximately 20,000 of these employees are inside China. ZTE established a United States presence in 1998. The U.S. headquarters are located in Dallas, Texas.
[edit] Products and product deployment
ZTE Corporation's full range of network products cover wireless, data, optical transport, switching, video conferencing, power supply, monitoring, etc. ZTE also provides solutions in narrowband, broadband, wired and wireless products, including a ZTE branded line of mobile handsets. ZTE operates in mainland China, Bangladesh, Hong Kong , the Philippines, Norway, Sweden, Portugal, Brazil, Romania, Pakistan, Nepal, Iran, India, Libya, Benin, Ghana, Nigeria, Zambia, Tanzania, Angola, U.S., UK, Algeria, Colombia, Tunisia, Russia, Cuba, Argentina, Chile, Australia, Canada and Sri Lanka. Its financial report is audited by Ernst & Young.ZTE has the most complete telecommunications product line in the world, covering every vertical sector of the wireline, wireless and terminal markets.
With its independent and creative R&D capability and customer-oriented and market-driven strategy, ZTE is capable of developing and producing market-leading, first-class technologies in wireless, switching, access, optical transmission, data, handsets and telecommunications software. ZTE uses this expertise to provide end-to-end solutions tailored to the specific needs of customers around the world.
ZTE is expanding overseas. A PSTN project in Bangladesh was its first overseas project. ZTE undertook ADSL broadband access projects at 16 venues and press centers for the Olympic Games in Athens 2004. ZTE was awarded a contract from Viet Nam Railways valued at VND1 trillion (62.5 million USD) to upgrade and modernize the railway's signal and telecommunications systems [1]. The multi-million dollar project, with planning started in 2001, includes upgrades on three lines out of Hanoi as well as several junctions within and around Hanoi. ZTE made headway in the international telecom market in 2006 and took 40% new global orders for CDMA networks [2] and topped the world CDMA equipment market in 2006 by number of shipments [3]. ZTE is installing its ZTE Class 5 soft switch system in Global e Networks' London Docklands telecoms hub for IP-based communications between the UK and European markets [4].
On March 13, 2007, Reuters reported that ZTE had received the go-ahead to sell equipment based on 3G in China from the Chinese Ministry of Information Industry [5].
ZTE manufacture several models of 3G mobile phone which are rebranded by Telstra for use on their NextG network in Australia. Spanish telecom company Telefónica de España will jointly manufacture and distribute 3G mobile handsets with ZTE [6] (and now distributes ZTE MF620). Telus of Canada is currently offering the ZTE D90 cellphone with the innovative FastapTM keypad[7].
[edit] History
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[edit] 2005
Ranked as one of the 'Top 100 Information Technology Companies' by BusinessWeek
Joined the league of global telecoms giants by teaming up with Alcatel, Ericsson, France Telecom and Portugal Telecom
Became China's largest wireless equipment provider with a global wireless capacity exceeding 100 million lines
Became one of the three largest DSLAM suppliers worldwide (Source: Gartner )
Further enhanced its presence in Europe by rolling out a five-month 3G Roadshow in 10 European countries
[edit] 2004
Listed on the Hong Kong Stock Exchange as the first A to H listed Chinese enterprise
Launched the world's first CDMA2000-based digital trunking technology – GoTa (Global open Trunking architecture)
Provided telecoms services for the 2004 Olympic Games in Athens – ADSL system covered 16 facilities throughout the event
Made the first 3G call in Africa over a ZTE UMTS network in Tunisia
[edit] 2003
Strategic emphasis on international business, with the number of international marketing staff increased by over 100%
Became the largest CDMA system provider to BSNL, India's largest telecoms services company, and constructed Africa's largest CDMA WLL network in Algeria
[edit] 2002
Established ZTE handsets as a strategic product and a new source of revenue growth
Partnered with Intel (China) to develop 3G wireless and wireless LAN integration communications technologies and equipment for CDMA2000 and UMTS
Established ZTE Global Customer Support Centre
[edit] 2001
Constructed ZTE's first CDMA network for China Unicom, with a capacity of up to 1.1 million lines
Constructed the world's first Softswitch network for China Netcom
Ranked No. 3 in the 'Top 50 listed companies with greatest development potential' in China Securities Journal-Asia Business magazine
[edit] 2000
Launched the world's first CDMA handset with detachable SIM card
Successfully put through the first CDMA2000 1x call using ZTE equipment
[edit] 1999
Launched ZTE189 dual-frequency handset, the first Chinese dual-frequency product with Chinese-owned intellectual property
First deployed the ZTE ZXMVC3000 video conferencing system in an overseas market, in Kenya
Signed ZTE's first PHS contract with China Telecom
Established first overseas office, in Islamabad, Pakistan
[edit] 1998
Won a US$95 million turnkey bid in Pakistan, the first large-scale overseas telecoms project contracted with a Chinese telecoms company
Opened the company's first R&D institute in the USA, developing software, switching and CDMA2000 1x technologies
[edit] 1997
Listed on the Shenzhen Stock Exchange in China
[edit] 1985-1996
Started transition to a multi-product R&D strategy, embracing wireless switching, transmission, access, videoconferencing and power supply systems in 1996
Became the first Chinese telecoms equipment provider to attain ISO9001 quality standard certificate in 1995
Developed ZXJ2000 digital SPC exchange which was awarded the 'Star of Innovation and Invention' by the Chinese Branch of Technology Systems at the United Nations in 1993
Founded Zhongxing Semiconductor Co. Ltd., the predecessor of ZTE Corporation in 1985, Shenzhen, China
[edit] Legal controversies
The Philippine National Broadband Network controversy is a political affair that centers upon allegations of corruption regarding the proposed government-managed National Broadband Network (NBN) for the Philippines and the awarding of its construction to ZTE.
Norwegian telecommunications giant Telenor, the world’s 7th largest mobile operator, banned ZTE Corp. from October 13 until March 3, 2009 from "participating in tenders and new business opportunities because of an alleged breach of its code of conduct in a procurement proceeding.”[8]
The Federal Ethics and Anti-Corruption Commission (FEACC) of Ethiopia probed to uncover what is alleged to be a shady deal between an officer at the state-owned Ethiopian Telecommunications Corporation (ETC) and an unidentified representative of ZTE. It was recorded soliciting a two per cent kickback from the unknown ZTE staff member. In 2006,ZTE signed an agreement to provide US$1.5 billion worth of network equipment and related engineering services to Ethiopian Telecommunication Corp.[9]
[edit] References
- ^ Chinese firm wins $63m railway bid. VNS. November 3, 2005
- ^ China-based Huawei and ZTE make headway in global telecom market. DigiTimes.com. March 9, 2007
- ^ ZTE tops 2006 international CDMA market. CIOL Bureau. March 8, 2007
- ^ ZTE Wins Softswitch Deal. Light Reading. FEBRUARY 28, 2007
- ^ ZTE and Datang Telecom Technology approved to sell 3G equipment. Reuters. March 13, 2007
- ^ ZTE to Develop 3G Mobiles For Telefonica. SDA Asia Magazine. February 26. 2007
- ^ ZTE D90. Telus. 2007
- ^ abs-cbnnews.com, Norway's telco giant bans ZTE for 6 months
- ^ Investigators of Alleged ETC Shady Deal Granted Custody Ext’n
