China's Global Communications
Equipment Vendors: It's Not Just About Price Anymore
May 5, 2008
Global wireless communications users in
2007 surpassed the three billion mark, with both 2G and 3G growing rapidly.
This provides an attractive market for China's communications equipment
vendors to continue its expansion globally.
Chinese vendors compete on full range and
spectrum offerings. Huawei and ZTE provide not only GSM and WCDMA, but also
CDMA, CDMA2000 and TD-SCDMA that cover 2G, 2.5G and 3G.
It's been a multi-year effort. Leading the
expansion is Huawei, which has established a brand with solid offerings in G
and C networks. ZTE, leveraging its CDMA strength, joins the list of global
GSM equipment suppliers whose combined market services sixty operators in
fifty countries with over 150 million lines. ZTE's WCDMA equipment has
successfully entered the European market and, significantly, ZTE's
international revenues exceed domestic in 2007.
The Next Phase: It's not just about
price anymore.
Chinese equipment vendors have
traditionally competed on price, focusing on the markets of Asian, Africa
and Latin American. However, there is a shift towards more high-end markets
and customers, like BT Group, France Telecom, Deutsche Telekom and KPN
Telecom. ZTE has made the European markets a key expansion area of focus.
However, such a shift requires not only
competitiveness in product and price, but also a more complete solutions and
services orientation. Such a comprehensive offering is a necessary
requirement to compete in markets like Europe. CCID Consulting will be
actively monitoring these and other Chinese companies.
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all information provided is sourced from CCID Consulting.
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