Investing to sustain growth

07 Dec 2006

SHOW DAILY: What are telecom operators looking for and demanding when they build their 3G and NGN networks‾

Xie Daxiong: Telecom operators aim to strengthen their capability in service provision and service quality, to increase ARPU and decrease capex and opex when they build their 3G and next-gen networks. In short, they aim to maintain and enhance their profit-earning ability in the intensely competitive market. Compared to the existing mobile and fixed networks, 3G and NGN have more capacity in service loading, such as multimedia and data services. In the long run, the convergence of fixed and mobile networks as well as the convergence of telecommunications and IT networks will give birth to more innovative service types.

How would the requirements of operators in developed countries differ from the operators in developing countries‾

The requirements of operators in developed countries differ substantially from the operators in developing countries. In general, they are in different development phases of network construction. Most of operators in developing countries are focusing on the network deployment to feed the needs of basic voice service and data service like SMS. While, operators in developed countries demand more data services, including interactive applications and multimedia applications. In Korea, Singapore and part of China, the data services are also developing so fast as to come close to developed countries.

How is ZTE working to ensure its solutions meet operators' requirements‾

As a customer-oriented company, the essence is to know customers in all facets and make customized solutions that meet the requirements of the current and future market. This mode guarantees that our work comes closer to customers' requirements. Secondly, we invest 10% of our revenue annually and have more than 10,000 people in R&D.

What will be the major focus of 3G operators over the next two years, in terms of technology and business development‾

In respect of business development, 3G operators will focus on multimedia applications, such as video phones, video monitoring, mobile TV, positioning services, etc. In respect of technology, they will concentrate on post-3G evolution from technical standards to applications, such as NGMN.

With consolidation putting vendors under pressure, what measures will you undertake to sustain your growth in the international markets and maintain your profit margin over the next few years‾

On one hand, ZTE will further strengthen its power in R&D, services and branding in spite of industry consolidation. ZTE must continue to increase its competitiveness year by year, which is essential for sustained growth in international markets. On the other hand, we believe that industry consolidation is a challenge as well as an opportunity as the overall prospects of the telecoms market are promising.

In September ZTE signed a deal with BT to jointly develop multi-mode 3G/DAB-IP handsets. How is the deal going‾ And what is ZTE's plan on mobile TV‾

The multi-mode 3G/DAB-IP handset is still in the process of development.

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