|Traded as||SZSE: 000063, SEHK: 0763|
|Key people||Hou Weigui (Chairman)
Shi Lirong (President)1
|Products||Mobile phones, smartphones, tablet computers, hardware, software and services to telecommunications service providers and enterprises|
|Revenue||CN¥75.23 billion (2013)2|
|Operating income||CN¥926 million (2013)2|
|Net income||CN¥1.35 billion (2013)2|
|Total assets||CN¥102.47 billion (2013)2|
|Literal meaning||China Prosperity Communications Corporation|
ZTE operates in three business units - Carrier Networks(54%)-Terminals(29%)-Telecommunication(17%). ZTE's core products are wireless, exchange, access, optical transmission, and data telecommunications gear; mobile phones; and telecommunications software.3 It also offers products that provide value-added services,4 such as video on demand and streaming media.5 ZTE primarily sells products under its own name but it is also an OEM.6
ZTE is one of the top five largest smartphone manufacturers in its home market,7 and in the top ten, worldwide.
- 1 History
- 2 Subsidiaries
- 3 Products
- 4 Customers
- 5 Controversies
- 6 References
- 7 External links
ZTE, initially founded as Zhongxing Semiconductor Co., Ltd in Shenzhen, China, in 1985, was incorporated by a group of investors associated with China's Ministry of Aerospace.8 In March 1993, Zhongxing Semiconductor has changed its name to Zhongxing New Telecommunications Equipment Co., Ltd with capital of RMB 3 million, and created a new business model as a "state-owned and private-operating" economic entity. Ties to the state notwithstanding, the corporation has evolved into ZTE Corporation of being publicly traded having made an initial public offering (IPO) on the Shenzhen stock exchange in 1997 and another on the Hong Kong stock exchange in December, 2004.8
While the company initially profited from domestic sales,9 it vowed to use money from its 2004 Hong Kong IPO to further expand R&D, overseas sales to developed nations, and overseas production.10 Making headway in the international telecom market in 2006, it took 40% of new global orders for CDMA networks11 topping the world CDMA equipment market by number of shipments.12 That same year also saw ZTE find a customer in the Canadian Telus13 and membership in the Wi-Fi Alliance.14 More customers in developed nations soon followed Telus' lead, and in 2007 ZTE had sold to UK's Vodafone, Spain's Telefonica, and the Australian Telstra,13 as well as garnering the greatest number of CDMA contracts globally.15 By 2008 ZTE could claim its customer base was truly global, as it had made sales in 140 countries.13
In 2009, the company had become the worldwide third-largest vendor of GSM telecom equipment, and about 20% of all GSM gear sold throughout the world that year was ZTE branded.16 As of 2011 it holds around 7% of the key 3GPP Long Term Evolution patents17 and that same year launched the world's first smartphone with dual GPS/GLONASS navigation, MTS 945. ZTE claims to devote 10% of its annual revenue on research and development each year, and it could be producing patents and utility licenses at a furious pace.1819 ZTE has filed 48,000 patents globally, and with more than 13,000 patents granted. 90% more patents are invention-related. In two consecutive years (2011 and 2012), ZTE has been granted the largest number of patent applications globally,20 which is the first for a Chinese company.21
ZTE has several international subsidiaries.
ZTE entered the Australian market in 2005,22 and as of 2009 ZTE (Australia) Pty Ltd23 acts as the exclusive supplier of ZTE handsets, network cards, and other products to customers, such as Telstra, in Australia.
A North American subsidiary of ZTE,25 with headquarters in Richardson, Texas,26 ZTE USA Inc offers wireless handset and networking solutions in the US. ZTE USA partners with NBA's Houston Rockets for the season of 2013-201425
ZTE (Hong Kong) Ltd. (China) serves in such areas as global contract manufacturing.
ZTE27 was introduced in the Pakistani market in 1999 with its headquarters in Islamabad and major offices in Lahore and Karachi. Providing Telecom Equipment, Network Solutions and Managed Services to telecom operators in Pakistan i.e. PTCL, Telenor, Zong
ZTE operates in three business segments - Carrier Networks(~54%)-Terminals(~29%)-Telecommunication(~17%) Products can be roughly arranged into three categories: equipment used by network operators (links and nodes, etc.), equipment used to access networks (terminals), and services, which includes software.28 On October 2010, ZTE's unified encryption module received U.S./Canada FIPS140-2 security certification,29 which made ZTE the first vendor from P.R. China to successfully validate modules according to the NIST FIPS140-2 standard under the CMVP program.30
- Mobile phones
As of 2012, ZTE is the 4th largest mobile phone vendor.31 It also placed within IDC's Top 5 smartphone vendor leaderboard.3233 Strategy Analytics counts ZTE as 4th largest smartphone vendor (5% market share) in 2Q2013.34 It also manufactures tablets.353637
- Mobile Hotspots
The MF60 and MF80 4G mobile hotspots were announced in August 2011.38
- Windows Phone
ZTE is also a provider of Core Routing and Core Network equipment, also known as Network Elements such as:
- GGSN (GSM / UMTS), PGW (LTE EPC), PDSN (CDMA)
- ZTE ZXR10-Series Core Switches and Core Routers
- MPLS routers40
- Base stations, some of them developed with OBSAI - Open Base Station Architecture Initiative architecture, including China-specific Time-Division Long-Term Evolution aka TD-LTE radio protocol support and CDMA-based EV-DO equipment
- Telephone switches
- legacy WAP and MMSC equipment
- WiMax products, based on ZTE SDR platform, part of the Uni-RAN solution, Uni-Core core network equipment, and services to support the launch of the WiMAX 4G network over 3.5 GHz frequencies.
- SDN / NFV products as seen through Open Daylight Project
A good number of ZTE's customers are outside of China. During the 2000s, the majority were developing country mobile network operators, but ZTE products see use in developed countries as well. The UK's Vodafone, Canadian Telus, Australia's Telstra, as well as France Telecom have all purchased equipment from ZTE.41
In the United States, ZTE USA manufactures mobile phones and broadband devices for multiple wireless carriers including AT&T, Boost Mobile, Cricket Wireless, MetroPCS, Sprint, T-Mobile, TracFone, Verizon, and Virgin Mobile. It may also sell network equipment to these carriers.
Norwegian telecommunications giant Telenor, one of the world’s largest mobile operators, banned ZTE from "participating in tenders and new business opportunities because of an alleged breach of its code of conduct in a procurement proceeding” during a five month time span ending in March 2009.46
In December 2010, ZTE sold systems for eavesdropping on phone and Internet communications to the government-controlled Telecommunication Company of Iran.48 This system may help Iran monitor and track political dissidents.
- "Annual Report 2011". ZTE Corporation. Retrieved 26 April 2012.
- "2013 Annual Report". ZTE. Retrieved 2014-03-19.
- Product Portfolio ZTE Official Site
- ZTE Secures More than Half of China Unicom GSM Value-Added Service System 2008 Tender ZTE Official Site, 2008-12-15
- ZTE Corp's Company Description Businessweek.com
- UPDATE 3-LSI sees second half better than first reuters.com, Wed Jan 26, 2011 9:14pm EST
- For top five in China, see "Apple Competes for Bigger Slice of China's Smartphone Market Share." Khaleej Times (Dubai, United Arab Emirates). Al Bawaba (Middle East) Ltd. 2014. HighBeam Research. 22 May. 2014
- 20 Years History of ZTE Corporation by Mr. Huang Guo in 2005 h http://wwwen.zte.com.cn/endata/magazine/ztecommunications/2005year/no2/articles/200506/t20050622_162340.html
- UPDATE 1-ZTE says 2010 net profit up 32 pct on better sales reuters.com, Thu Jan 27, 2011 6:33am EST
- A Global Telecom Titan Called...ZTE? Businessweek.com, March 7, 2005
- China-based Huawei and Murali make headway in global telecom market DigiTimes.com. March 9, 2007
- ZTE tops 2006 international CDMA market. CIOL Bureau. March 8, 2007
- History ZTE Official Site
- ZTE joins Wi-Fi Alliance----- one of the first Chinese members ZTE Official Site, 2006-08-30
- ZTE Tops 2007 Global CDMA Market ZTE Official Site, 2008-01-30
- INTERVIEW-China's ZTE aims for fifth of global GSM gear market reuters.com, Tue Nov 17, 2009 10:53pm EST
- China's ZTE targets 10 pct of LTE patents reuters.com, Tue Jan 11, 2011 11:07am EST
- "ZTE Ranked World No. 1 in Patent Applications for Second Straight Year". http://www.cnbc.com. CNBC. Retrieved 20 March 2013.
- Strong Growth in Demand for Intellectual Property Rights in 2012 http://www.wipo.int/pressroom/en/articles/2013/article_0006.html
- WIPO declared ZTE as No.1 patent application in 2012, and in 2011. http://www.wipo.int/pressroom/en/articles/2013/article_0006.html http://www.wipo.int/pressroom/en/articles/2012/article_0001.html
- Yahoo reported ZTE as first Chinese company to rank No.1 in global patent applications. http://finance.yahoo.com/news/zte-ranked-world-no-1-020900609.html
- About ZTE ZTE Australia Official Site
- Global Sales Offices > Asia Pacific ZTE Official Site
- ZTE opens new office in Bonn, Germany ZTE Official Site, 2008-11-18
- Pocket Communications Launches ZTE's Tri-Band C79 and C78 ZTE Official Site,2009-04-02
- ZTE Opens LTE Laboratory in North America ZTE Official Site, 2009-10-20
-  ZTE Pakistan Official Site
- "ZTE Corp (ZTCOF.PK): Overview; Full description". Thompson Reuters. Retrieved 2012-05-13.
- NIST website for security certifications http://csrc.nist.gov/groups/STM/cmvp/documents/140-1/140sp/140sp1586.pdf http://csrc.nist.gov/groups/STM/cmvp/documents/140-1/140sp/140sp1589.pdf
- ATSEC participated in ZTE products security evaluations http://www.atsec.com/us/news-zte-products-receive-fips-140-2-certification-from-cmvp-241.html
- Jeremy Wagstaff; Lee Chyen Yee (May 18, 2012). "ZTE confirms security hole in U.S. phone". reuters.com (Thompson Reuters). Retrieved 2012-05-20.
- IDC: Samsung extends lead over Apple while Chinese vendors increase influence http://www.engadget.com/2013/01/25/idc-samsung-extends-lead-over-apple-q4-2012-smartphones/
- IDC: Growth Accelerates in the Worldwide Mobile Phone and Smartphone Markets in the second Quarter, 2013 http://www.idc.com/getdoc.jsp?containerId=prUS24239313
- Strategy Analytics: Global Smartphone shipments Hit Record 230 Million Units in Q2 2013 http://blogs.strategyanalytics.com/WSS/post/2013/07/26/Strategy-Analytics-Global-Smartphone-Shipments-Hit-Record-230-Million-Units-in-Q2-2013.aspx
- ZTE Launches Two Android Tablets: Dual-core Z-pad and Android 3.0 V11 at MWC
- ZTE V9 Android tablet revealed androidcommunity.com, 12 October 2010
- V9 product page ZTE Official Site
- dead link
- "Microsoft Announces ZTE As New Windows Phone Hardware Partner".
- For Vodafone and France Telecom sales, see ZTE Wins China Mobile WAP Expansion Contract ZTE Official Site, 20071016
- For Telus sales, see ZTE Breaks into North America with First Shipment of 3G Terminals for Canada ZTE Official Site, 2006/09/26
- For Public Mobile sales, see ZTE Partners with Public Mobile to Build CDMA Network in Canada ZTE Official Site, 2010-06-03
- China Netcom´s first IPTV agreement confirms ZTE as major international IPTV network provider ZTE Official Site, 20060830
- ZTE to Build World's First AVSIPTV Commercial Network with China Netcom Group ZTE Official Site, 20071206
- ZTE to Install the World´s Largest Optical Transmission Network ZTE Official Site, 20060830
- ZTE Partners with China Mobile to Complete IndustryFirst Commercial IMSBased HD Video Conference System ZTE Official Site, 20091127
- ZTE and China Satcom to provide GoTa network for China´s 10th National Games ZTE Official Site, 20060830
- ZTE Bags Major Value Added Services Contracts in China ZTE Official Site, 2006/11/14
- ZTE bags China Telecom´s largest metropolitan NGN project ZTE Official Site, 20060830
- ZTE Inks 1.33 billion RMB CDMA Contract with China Telecom ZTE Official Site, 20081120
- ZTE Exclusively Awarded IPTV Project by China Telecom, Jiangsu Branch ZTE Official Site, 20060830
- ZTE to install first polyphonic ringtone gateway for China Telecom ZTE Official Site, 20060830
- ZTE Strengthens Competitive Position with Third China Telecom IPTV Project ZTE Official Site, 20060830
- ZTE Helps China Telecom Achieve the Recognition as First in the World to Offer EPONbased 3G Services ZTE Official Site, 20090407
- ZTE Collaborates with China Telecom to Build IMS Network Solution ZTE Official Site, 20091130
- Norway's telco giant bans ZTE for 6 months abs-cbnnews.com, 10/21/2008
- Arroyo suspends telecoms deal with Chinese firm reuters.com, Sep 22, 2007
- Steve Stecklow (22 March 2012). "Special Report: Chinese firm helps Iran spy on citizens". Reuters. Retrieved 23 March 2012.
- U.S. panel cites risks in Chinese Equipment October 9, 2012
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