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  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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