China’s top telecom equipment maker yearns for global appeal

China’s top telecom equipment maker yearns for global appeal

The Chinese telecom and network solutions provider ZTE is one of the leading companies in the global telecoms industry. With its headquarters in Shenzhen it possesses a truly global footprint in 140 countries. As a publicly-listed company on the Hong Kong and China stock exchanges, the company has a high level of transparency. Serving over 500 global customers, ZTE adheres to the highest level of international quality for its products and services.

Maintaining close relationships with customers in order to support them in achieving their targets is a priority and the company works with them as partners in developing solutions to meet their specific requirements. “We are not only a supplier, we are a partner in developing solutions,” said Vice President of ZTE Europe and North America Dr Zhigang Zhang.

ZTE invests heavily in technology innovation with 10 per cent of its annual revenues going into research and development. With more than 60,000 employees worldwide, 35 per cent of ZTE’s staff is dedicated to the company’s R&D initiatives. ZTE has 15 R&D centres in various locations in Asia, Europe and North America that focus on new and innovative products while broadening and enhancing its portfolio. The company holds approximately 1,500 international patents and participates actively in global standards setting organisations.

“A major driving force to ZTE’s technological development is its partnerships with the world’s leading players in telecommunications, information and communications technology”, says Dr Zhang. The company has developed lasting relationships with top tier European customers such as Vodafone, Telefónica, France Telekom, KPN and Deutsche Telekom. Collaborating with innovative operators continually motivates ZTE to improve its position as a global communications vendor.

Although the last five years have been a highly challenging market period for the industry, the company was able to double its growth. The company achieved more than 30 per cent growth in its revenues last year and even 40,4 per cent in first half year of 2009. In line with its global thrust, ZTE’s overseas operations serve a major part in the company’s business development:  Sixty-two per cent of the company’s sales revenues last year came from overseas markets, which have more than tripled the 20 per cent contribution of overseas returns in 2004.

ZTE’s operation in Germany is an important contributor to the company’s business in Western markets. Established in 2005, ZTE Deutschland serves a large customer base and is the largest representation of ZTE in Europe. The company is present in Germany in order to maintain close contact with many important customers. With headquarters in Düsseldorf, ZTE Deutschland is divided into three business units. Vodafone Business Unit works with Vodafone Global in developing handsets, data stick, smartphones and network infrastructure equipments. Business Unit Deutsche Telekomsigned a Global Framework Agreement with Deutsche Telekom’s subsidiary T-Mobile on mobile devices like phones and data sticks. ZTE’s Business Unit German Market maintains close contact to customers like E-Plus and other German carriers.

ZTE Deutschland is growing its local presence with new offices in Bonn, Munich and Luxembourg. While dedicated to existing partnerships, the company is open to developing new long-term partnerships with solid companies with strong growth capabilities.

“We want to remain a global communication leader in key areas and we have high targets to build next generation networks in Europe and worldwide,” Dr Zhang said.In Germany, the first step has already been taken: In summer 2009, ZTE Germany signed a contract on the delivery of GSM/UMTS core network technology to German MVNE (mobile virtual network enabler) Vistream, and more co-operations with leading operators in infrastructure and service areas have been started.

With socially conscientious European customers, ZTE has been recognized for its initiatives in developing “green” products and as an ethical supplier with a focus on corporate responsibility. In February, 2009, ZTE Corporation has formally become a member of the United Nations Global Compact. The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

As an exemplary model of China’s move into the international market, ZTE is proving that high-end technology products from Asia could also be as competitive as Western-made products.

(Quelle: South China Morning Post, 3.Oktober 2009)