ZTE

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For other uses, see ZTE (disambiguation).
ZTE Corporation
中兴通讯股份有限公司
Type Public company
Traded as SZSE: 000063, SEHK: 0763
Industry Telecommunications equipment
Founded 1985
Founder(s) Hou Weigui
Headquarters Shenzhen, Guangdong, China
Key people Hou Weigui (Chairman)
Shi Lirong (President)[1]
Products Mobile phones, hardware, software and services to telecommunications service providers and enterprises
Revenue CN¥ 86,254.5 million (2011)[1]
Operating income CN¥ 429.5 million (2011)[1]
Net income CN¥ 1,067.2 million (2011)[1]
Total assets CN¥ 105,368.1 million (2011)[1]
Employees 89,786 (2011)[1]
Website zte.com.cn ztedevices.com
ZTE
Traditional Chinese 中興通訊股份有限公司
Simplified Chinese 中兴通讯股份有限公司
Literal meaning Central Prosperity Communications Corporation

ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation) is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, China. It is the world's fourth-largest mobile phone manufacturer measured by 2012 unit sales[2] and the world's fifth-largest telecoms equipment maker measured by 2011 revenues (after Ericsson, Huawei, Alcatel-Lucent and Nokia Siemens Networks).[3]

ZTE's core products are wireless, exchange, access, optical transmission and data telecommunications gear; mobile phones;[4] and telecommunications software.[5] It also offers products that provide value-added services,[6] such as video on demand and streaming media.[7] ZTE primarily sells products under its own name but it is also an OEM, manufacturing some products which retail under other brand names.[8]

ZTE was founded in 1985 by a group of state-owned enterprises associated with China's Ministry of Aerospace.[9]

Contents

History [edit]

ZTE, like many large Chinese companies, has its roots in the Chinese State having been created in 1985 by a group of earlier investors, some state-owned enterprises associated with China's Ministry of Aerospace.[9] Ties to the state notwithstanding, the corporation is 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.[9]

While the company initially profited from domestic sales,[10] it vowed to use money from its 2004 Hong Kong IPO to further expand R&D, overseas sales to developed nations and overseas production.[9] Making headway in the international telecom market in 2006, it took 40% of new global orders for CDMA networks[11] topping the world CDMA equipment market by number of shipments.[12] That same year also saw ZTE find a customer in the Canadian Telus[13] 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 would be able to 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 ZTE sales accounted for about 20% of all GSM gear sold throughout the world that year.[16] As of 2011 it holds around 7% of the key 3GPP Long Term Evolution patents,[17] and that same year it launched the world's first smartphone with dual GPS/GLONASS navigation, MTS 945. ZTE devotes 10% of its annual revenue on research and development each year. The Company was ranked World No. 1 in Patent Applications by World Intellectual Property Organization (WIPO) in 2012 for a second consecutive year.[18]

Subsidiaries [edit]

The ZTE Tower in Shenzhen

ZTE has several international subsidiaries

ZTE (Australia) Pty Ltd [edit]

ZTE entered the Australian market in 2005,[19] and ZTE (Australia) Pty Ltd,[20] as of 2009, acts as the exclusive supplier of ZTE handsets, network cards and other products to customers, such as Telstra, in Australia.

ZTE Deutschland GmbH [edit]

ZTE Deutschland GmbH was founded in 2005 with headquarters in Düsseldorf; it, as of 2008, had hired 50 people, 60% of whom were recruited locally.[21]

ZTE USA Inc [edit]

A North American subsidiary of ZTE,[22] with headquarters in Richardson, Texas,[23] ZTE USA Inc offers wireless handset and networking solutions in the US.[22]

ZTE (H.K.) Ltd. [edit]

ZTE (Hong Kong) Ltd. (China) serves in such area as global contract manufacturing.

Products [edit]

A ZTE Blade phone

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.[24]

Consumer electronics [edit]

Mobile phones

As of 2012, ZTE is the 4th largest mobile phone vendor.[25] It also makes tablets.

Tablets

In 2011, ZTE announced 2 tablets at Mobile World Congress, the ZTE V11 that runs Android 3.0, and the Z-pad.[26]

ZTE presented in the 2010 Mobile World Congress a tablet computer that runs Google Android,[27] the ZTE V9.[28]

Mobile Hotspots

The MF60 and MF80 4G mifi mobile hotspots were announced in August 2011.[29]

Customers [edit]

ZTE booth at Mobile World Congress 2013 in Barcelona

A good number of ZTE's customers are outside of China. While the majority are developing country mobile network operators, ZTE products see use in developed countries as well. The UK's Vodafone, Canadian Telus, Turkey's Turkcell Avea and Public Mobile, Australia's Telstra, as well as France Telecom have all purchased equipment from ZTE.[30]

Many Chinese companies are also ZTE customers, including China Netcom,[31] China Mobile,[32] China Satcom,[33] China Telecom,[34] and China Unicom.[6]

In the United States ZTE USA manufactures mobile phones and broadband devices for multiple wireless carriers including AT&T, Cricket, MetroPCS, Sprint (Including Boost Mobile and Virgin Mobile USA), T-Mobile, TracFone, and Verizon.

Controversies [edit]

Bribes for contracts [edit]

Norway

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. Now the Telenor group is reconsidering work and contract with ZTE.[35]

Philippines
Main article: Philippine National Broadband Network controversy

Contract negotiations to build a broadband network for the Philippine government may have included improper activities.[36] The project was later canceled.[36]

Surveillance system sale [edit]

In December 2010, ZTE sold to Telecommunication Company of Iran, which is controlled by the government, a system for eavesdropping on phone and Internet communications.[37] This system may help Iran monitor and track political dissidents.

Handset security [edit]

At least one ZTE mobile phone (sold as the "ZTE Score" in the United States by Cricket and MetroPCS) can be remotely accessed by anyone with an easily-obtained password.[25]

In 2012 politicians in the United States of America raised other security concerns in respect of ZTE and of another Chinese wireless equipment manufacturer, Huawei.[38]

References [edit]

  1. ^ a b c d e f "Annual Report 2011". ZTE Corporation. Retrieved 26 April 2012. 
  2. ^ http://www.isuppli.com/Mobile-and-Wireless-Communications/News/Pages/Samsung-Displaces-Nokia-as-Top-CellphoneBrand-in-2012-and-Takes-Decisive-Smartphone-Lead-Over-Apple.aspx.  Missing or empty |title= (help)
  3. ^ "China's ZTE Q1 net income trails forecasts". Reuters. 25 April 2012. Retrieved 26 April 2012. 
  4. ^
  5. ^ Product Portfolio ZTE Official Site
  6. ^ a b ZTE Secures More than Half of China Unicom GSM Value-Added Service System 2008 Tender ZTE Official Site, 2008-12-15
  7. ^ ZTE Corp's Company Description Businessweek.com
  8. ^ UPDATE 3-LSI sees second half better than first reuters.com, Wed Jan 26, 2011 9:14pm EST
  9. ^ a b c d A Global Telecom Titan Called...ZTE? Businessweek.com, March 7, 2005
  10. ^ UPDATE 1-ZTE says 2010 net profit up 32 pct on better sales reuters.com, Thu Jan 27, 2011 6:33am EST
  11. ^ China-based Huawei and Murali make headway in global telecom market DigiTimes.com. March 9, 2007
  12. ^ ZTE tops 2006 international CDMA market. CIOL Bureau. March 8, 2007
  13. ^ a b c History ZTE Official Site
  14. ^ ZTE joins Wi-Fi Alliance----- one of the first Chinese members ZTE Official Site, 2006-08-30
  15. ^ ZTE Tops 2007 Global CDMA Market ZTE Official Site, 2008-01-30
  16. ^ INTERVIEW-China's ZTE aims for fifth of global GSM gear market reuters.com, Tue Nov 17, 2009 10:53pm EST
  17. ^ China's ZTE targets 10 pct of LTE patents reuters.com, Tue Jan 11, 2011 11:07am EST
  18. ^ "ZTE Ranked World No. 1 in Patent Applications for Second Straight Year". http://www.cnbc.com. CNBC. Retrieved 20 March 2013. 
  19. ^ About ZTE ZTE Australia Official Site
  20. ^ Global Sales Offices > Asia Pacific ZTE Official Site
  21. ^ ZTE opens new office in Bonn, Germany ZTE Official Site, 2008-11-18
  22. ^ a b Pocket Communications Launches ZTE's Tri-Band C79 and C78 ZTE Official Site,2009-04-02
  23. ^ ZTE Opens LTE Laboratory in North America ZTE Official Site, 2009-10-20
  24. ^ "ZTE Corp (ZTCOF.PK): Overview; Full description". Thompson Reuters. Retrieved 2012-05-13. 
  25. ^ a b "ZTE confirms security hole in U.S. phone". reuters.com (Thompson Reuters). May 18, 2012. Retrieved 2012-05-20. 
  26. ^ ZTE Launches Two Android Tablets: Dual-core Z-pad and Android 3.0 V11 at MWC
  27. ^ ZTE V9 Android tablet revealed androidcommunity.com, 12 October 2010
  28. ^ V9 product page ZTE Official Site
  29. ^ [1][dead link]
  30. ^ For Vodafone and France Telecom sales, see ZTE Wins China Mobile WAP Expansion Contract ZTE Official Site, 20071016
  31. ^ China Netcom´s first IPTV agreement confirms ZTE as major international IPTV network provider ZTE Official Site, 20060830
  32. ^ ZTE to Install the World´s Largest Optical Transmission Network ZTE Official Site, 20060830
  33. ^ ZTE and China Satcom to provide GoTa network for China´s 10th National Games ZTE Official Site, 20060830
  34. ^ ZTE Bags Major Value Added Services Contracts in China ZTE Official Site, 2006/11/14
  35. ^ Norway's telco giant bans ZTE for 6 months abs-cbnnews.com, 10/21/2008
  36. ^ a b Arroyo suspends telecoms deal with Chinese firm reuters.com, Sep 22, 2007
  37. ^ Steve Stecklow (22 March 2012). "Special Report: Chinese firm helps Iran spy on citizens". Reuters. Retrieved 23 March 2012. 
  38. ^ U.S. panel cites risks in Chinese Equipment October 9, 2012

External links [edit]

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