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Press Clipping'In 2007, we expect to sell around 25 mn handsetsglobally of which 10 mn will be sold in India'He Shiyou, SVP of ZTE Corporation and General Manager of Handset Division, talks to VOICE&DATAmagazine about the company's handset strategy and its strategy for the Indian market.JANUARY 2007What’s your handset strategy?From 1998, ZTE has been manufacturing handsets and ispresently a well-known brand. We have a complete portfolioof handsets both on 2G as well as on 3G spaces. On thetechnology front, we cater to GSM, CDMA, PHS, and TD-SCDMA. When we started in 1998, we were strong incommunication systems and started our global expansionin 2004. Presently, we have our presence in 50 countries.Earlier to 2004, we were focusing only on China and utilizedour handset experience and understood the requirements ofdifferent handset segment categories for different markets.Basically, we are focusing on two markets–developedand developing. In developed, we are looking at WesternEurope and North American market whereas in developingmarket we are looking at India, Pakistan, Latin America, andAfrican countries. For developing market, the focus is onmultimedia handsets, Mobile TV and HSDPA whereas fordeveloping market, we are looking at basic voice and SMS.How would you rate India vis-à-vis other markets?What’s your strategy for the Indian market?India is a very important market for ZTE. There is a hugepotential for local companies to contribute to the Indianeconomy. Since 2005 and till date, we have sold more than5 mn handsets in India. Our next strategy is to bring moreproducts and technologies, localize manufacturing andR&D facility. By serving Indian market we can contribute toother developing market also. India, China and developingeconomy are the foundation triangle for our growth. Soour focus will be investing more in R&D and services, thuscontinue to grow the market.We started our GSM expansion in 2006. We visualize thatthere is a huge growth in Indian GSM market and plans areto replicate CDMA success in GSM. For CDMA, we arefocusing on US, Canada, and Mexico whereas for GSM weare looking at India, Africa, and Latin American markets.In 2007, we expect to sell around 25 mn handsets globallyof which 10 mn will be sold in India. On the technologyfront, GSM will contribute around 40% whereas CDMA willcontribute around 60% for the India market.Are you planning to change your distributionstrategy in 2007?In China, we used to sell through distributors but in 2007we are changing our strategy to sell more handsets throughoperators.When are you planning to close the megaorder with Reliance Communications for GSMinfrastructure?So far there is no official announcement, Presently, ifsomething happens we will put it on our website.What’s happening on the BSNL 70 mn tender ?As you know operators have own right to make decisionand there are many factors affecting their decisions. Fromsupplier’s point of view, ZTE is involved in negotiating andparticipation in this kind of project and we make sure toalways do our best.How are you planning to move ahead on the FIPBfront for setting up a manufacturing base in India?As you know communication system is complex and weneed approval from Indian authorities. We will move stepby step so that our manufacturing technology can be fullybrought to India.Will ZTE set up a manufacturing base in India in2007?Since we have a comprehensive product line, I won’t put anytimeline. For certain products, some part is manufactured inIndia whereas some part is manufactured elsewhere. There isalways a gradual process of bringing manufacturing in India.26ZTE TECHNOLOGIES
HandsetsZTE Inks Deal with ChinaUnicom for CDMA HandsetsZTE Corporation, a leading globalprovider of telecommunicationse q u i p m e n t a n d n e t w o r ksolutions, has won a contract to provideChina Unicom with 900,000 CDMAhandsets during the operator’s 2007 Q1central procurement period.Seven vendors in total were namedas suppliers in the contract. ZTE wonthe biggest proportion of the contract,agreeing to provide 40% of the totaltwo million handsets to the operator.ZTE is currently the leading supplierof CDMA handsets to the rapidlygrowing Chinese market, and hasalready supplied over 16% of ChinaUnicom’s CDMA handsets.ZTE will provide the award-winningbar style C172 and C300 models andthe clamshell style C350. The handsetsprovided will be customized for ChinaUnicom’s urban low-end and ruralmarkets to enable China Unicom tooffer a very competitive price, but theywill still be able to support multiplevalue-added services.China Unicom adopted a centralhandset procurement model in 2005,and its sales of CDMA handsets rose20 percent to a record high of eightmillion in 2006.ZTE has been providing CDMAhandsets to China Unicom for overfive years, covering high, middle andlow-end markets. In January of thisyear, China Unicom awarded the“Most Popular CDMA Handset” titleto ZTE because of its leading salesfigures. By August of last year, ZTE’sglobal CDMA handset shipments hadexceeded 10 million, around sevenpercent of the world market.C350C172C300ZTE TECHNOLOGIES27
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