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Oct 22, 2011

"Late competitor" ZTE

In the Austrian capital the southwestern corner of the Vienna Guglgasse street, a piece of by abandoned gas storage center converted the commercial building, looks weird, but gathers the nokia Siemens, LG, and yellow, Fujitsu and so on several multinational technology enterprise. ZTE (ZTE) is one of them, however, in the brand logo on information boards in can't see.

"How can forget to play on their logo (identification)? And can't see the customer to." Zte headquarters of the visiting brand member see this "negligence" rather perplexed. Zte Austrian company general manager explained Austrian government to xiao Ming doesn enterprise of special strict examination, to avoid unnecessary trouble, project didn't make it before can't too "obtrusive", even the company logo all dare not fight.

"Now make it, logo can play up." Shaw said up just a little relief.


In 2010, due to the customer and yellow network reconstruction needs, zte started here set up the office. From 2008 years before and after just real telecom market in Europe send force of zte, how to look like a market "late" "followers". Here there are not only had DuoNian slow the nokia Siemens, Ericsson and other old European big enterprise, also have already the second place in the European market of Chinese competitors huawei.

Zte admit, come first two or three years in Europe opponent huawei's effort for European operators avoid prejudice, recognize and accept China's enterprise, and laid a good foundation. But, market competition is so cruel, newcomers to put more price.

In June 2010, the European commission announced on China data card and measures of two anti-dumping survey, involving amount to about $4.1 billion. Huawei and zte have at this time in the eu occupy the data card 90% market share. In 2011, zte and huawei has involved in and, Ericsson intellectual property infringement litigation.

The anti-dumping review to legal action from, in another respect shows the huawei, zte bring pressure, make the original rivals had to make the response. However, as currently ranked fifth in the European market of zte, want to be packed into the first three still need more time.

Operators and symbiosis

Old Europe and the telecom equipment vendors is different, then Chinese enterprises have chose terminal first, for the operation of shang dynasty work. Zte in Europe DuoWei said the head of, this is for European operators recognize and accept their fastest shortcut.

Zte in 2001 that is registered affiliates in Britain, but until 2005 and HuangYingGuo and signed a custom mobile phone agreement, is truly into Britain, also is the official start of entering the European market. These cell phones are not mostly on ZTE own logo "ZTE", but if no and and HuangYingGuo mobile phone terminal cooperation, I'm afraid to become Hong Kong after the yellow and equipment suppliers, the more won't be in 2010 and the entire network supplier replace yellow Austria.

Zte Austria subsidiary company was founded in 2005, has been to the early mobile phone and data card terminal business mainly. In the last two years began to send force main business, also cannot leave and hutchison whampoa special symbiotic way.

Austria in the border area may core, per capita GDP in Europe the fourth row, population 870 more than, have four multinational operators: France telecom Orange, Germany telecommunications T-Mobile, Austria telecoms and Austria and yellow 3, the competition is fierce.

Austria and yellow 3 is hutchison whampoa's company, and yellow 3 started is 3 G network. In October 2000 and yellow in Austria won the first piece of telecommunications license, in August 2003, the network construction, operational, initially only 10 tens of thousands of users, and now owns 1.2 million users. Ten years and yellow 3 in Austria a total investment of 1.2 billion euros, become one of the largest foreign investor in Austria.

China has no going out of the operators successful cases, even China mobile boldly into Pakistan, also has not temperature is not fire (see this 2011 years of 20 "going out China mobile").

And yellow 3 in Austria also experienced a long and market growth period until 2005, began to operate, 2010 years to achieve its first profit, not only subscribers increased by 26%, and a 19% revenue growth. This is in Austria whole under the background of the telecom market shrinking profit came easily.

Austria and yellow 3 CEO Yang trevor's (Jan Trionow) in the new "new century" accept money interview revealed, the first few years of 3 G is not widely accepted, operators have a thanks to, and then accept degree is high, growth to fast.

2008 to the end of 2009, and yellow 3 is restricted to the network, the number of users, and income growth is very weak, decided to expansion, and introduces zte.

In early 2010, zte and and yellow 3 Austria signed contract, for the deployment of a nationwide LTE/DC-HSPA + commercial network. According to the contract, zte will in 2011 to move the old network infrastructure, and yellow 3 all-round deployment for the corresponding wireless access, core nets, carry nets, cover 94% of the population of Austria, and responsible for the next six years of operational network dimension hosting service.

The items from August 2010 started, the whole project more than 4000 Node B, over the core network of more than 3600 IP microwave. In September 2011, zte completed all moved, as agreed in the contract than 14 months ahead of time for three months. In 2010, zte Austrian company received a 60%-70% of the new wireless network equipment market share.

Was the choice of zte, terry walter says is not simple because's low cost but zte and yellow 3 provides the most favourable overall technical solutions.

According to the speed institutions Speedtest.net test evaluation, Austria and yellow 3 after improvement, whether the network transmission uplink speed, or descending speed, are already in Austria in the first four operators.

Zte and and yellow relationship is not a simple supplier and the operators of the relationship. By the end of 2010, countries lease, zte, silver hutchison whampoa three parties signed the hutchison whampoa Austria telecom assets operating leases project ", set up a financial leasing mode the symbiosis of assets. Based on this, today must change and follow the developing.

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