ZTE Corporation: China's Hidden Telecom Threat

Report Description

China hosts two, large, integrated suppliers of telecommunications equipment, both based in Shenzhen, China: Huawei Technologies and ZTE Corporation. Huawei has long overshadowed ZTE, but this is changing. Huawei is still the more sophisticated and high-profile of the two, but ZTE has achieved steady growth in recent quarters, is well positioned for wireless growth, and is reversing its early reputation as a technology laggard. It is taking longer for ZTE to master international marketing - perhaps because of its origins as a state company - but it is making visible strides. While Huawei tends to overstate things like its actual revenues, export volume and customer relationships outside China, ZTE has often understated its achievements. Most of ZTEs ex-China sales are in developing countries, but some of these are large markets, and ZTE is progressing with European market entry. Further, ZTE - like Huawei - has the explicit support of the government (e.g., loan guarantees) to support expansion. ZTE, which aspires to $10B in annual sales by 2008, will soon be a formidable global competitor.

"ZTE Corporation: Chinas Hidden Telecom Threat" analyzes ZTEs competitive position, financial situation, products and technologies, and the overall strengths, weaknesses, opportunities, and threats of this emerging global supplier. By section, the report explores:

• Section 1 introduces ZTE and its background.
• Section 2 details ZTEs key product areas.
• Section 3 compares ZTE to three competitors (Alcatel, Huawei, and NEC), and analyzes ZTEs key wireline and wireless products.
• Section 4 discusses ZTEs product development, quality, and manufacturing issues.
• Section 5 outlines ZTEs R&D, partnerships/suppliers, and technological initiatives
• Section 6 analyzes ZTEs competitive positioning and financial status.
• Appendix 1 provides a lengthy excerpt from a recent ZTE bid on a public network data backbone upgrade project.

ZTE is a competitive force in global telecom worth watching carefully. "ZTE Corporation: Chinas Hidden Telecom Threat" gives suppliers, potential partners, and customers the information and insight they need to better evaluate ZTE.