ZTE bets on LTE high-level top three

Barcelona between Spain and winter is not a golden season for tourism. There are not many backpackers, but the exhibition site in the center of the city can be described by the hustle and bustle.

This is the site of the annual Mobile World Congress. The 70-year-old chairman of ZTE (Weibo) Hou Weigui repeatedly shuttles here and there. He greets people of all skin colors from time to time. Many people will ask him how ZTE has recently He often smiles indifferently: "It's okay." At the same time, he will say, "LTE's surpassing Chinese manufacturers is the next important opportunity." In fact, with mobile phones and 3G, LTE equipment as the representative, ZTE is launching a new The international offensive with the goal of "leftover is king".

The joy behind moving the base station

From 1985 to the present, ZTE Corporation has developed from an original processing enterprise with an initial investment of 3 million yuan to operating income of 37.345 billion yuan in the first half of last year. As the head of ZTE Corporation, Hou Weigui ’s core position has remained stable It took him more than 20 years to lead the team to build the Big Mac, one of the world's top five equipment manufacturers, and also maintain the stable development of ZTE Corporation. There has never been a big ups and downs.

For many declining old giants, glory has haunted them for many years. The world's largest telecommunications equipment giants had as many as a dozen, but now there are only five left, including Ericsson (Weibo), Huawei, ZTE, Nokia Siemens Networks and Aran. Whenever he heard this, Hou Weigui always smiled slightly.

"In the past few years to participate in the World Mobile Communications Conference, we have received more and more key customers, which shows that we are the major suppliers in the global operator market." He said in an interview with our reporter.

Several base stations of telecommunications equipment manufacturers that have withdrawn from the industry have been relocated by Huawei and ZTE. Zhang Jianguo, vice president of ZTE, also helped him count the names of equipment vendors that were replaced by ZTE. They are all well-known multinational giants in China. Replacing their equipment, there is a pride of Chinese victory, "ZTE relocated the GSM base station of Changsha Mobile last year, and the number of users reached 8 million. At present, this relocation is still continuing. Base stations like Nortel and Motorola (Weibo) It has been relocated and replaced. For example, Motorola has more base stations in Beijing, but it has been replaced a lot in mainland China. "

"And, the pattern of the five existing system telecommunications equipment vendors is also changing." Zhang Jianguo said, "I think that the number of global system telecommunications equipment vendors will be further reduced, in the wireless field, it may become three to three Four. "

Two "top three in the industry" goals

For at least the last seven or eight years, the global telecommunications equipment industry has never stopped shuffling. Noci announced that it plans to lay off 17,000 people by the end of 2013-the number of layoffs accounts for about 23% of the total number of existing employees. Called Noci the most layoffs in history.

In this series of industry turmoil, ZTE does have huge opportunities. In fact, looking forward to the future, in the field of wireless communication equipment, ZTE has shouted out its goal to enter the top three in the industry. At present, ZTE is not only in the top three in all areas of the domestic communications equipment market, but many are among the best.

In 2011, ZTE ’s contract sales exceeded the 100 billion yuan mark for the first time and entered the ranks of Chinese companies ’“ 100 billion clubs ”, which itself means that ZTE has already ranked among the first camps of global telecommunications equipment vendors.

“ZTE ’s growth was the fastest in the industry last year. In the first three quarters of last year, ZTE ’s revenue increased by 27% year-on-year, double the industry ’s average growth rate. ZTE ’s fastest growth last year was the government-enterprise network business, which increased by 90% year-on-year. More than%, the second is the terminal business, the overall sales volume increased by 50%, and the third is the service, an increase of 40.9%. "Hou Weigui revealed some specific conditions of ZTE.

In addition to system equipment, the growth of the mobile phone business is also proud of ZTE in recent years. He Shiyou, executive director and general manager of the mobile phone system of ZTE, revealed that the overall sales of ZTE mobile phones and smartphone sales have maintained strong growth, and the overall sales of ZTE mobile phones have exceeded 50%, especially the rapid growth of overseas markets.

It is worth noting that ZTE's mobile phone system began a smart transformation in 2011. According to the latest report from Gartner, ZTE has become the fastest-growing smartphone maker after Apple. In this regard, He Shiyou said that this is where ZTE is very happy. "Because of the changes in ZTE's mobile phone products, the sales of smart phones are greater. In 2011, ZTE achieved the target of 12 million units shipped at the beginning of the year. "

Similar to Hou Weigui, He Shiyou also proposed a goal of "entering the top three in the industry". He said, "We hope that by 2015 ZTE's mobile phone business revenue will exceed 100 billion, and the brand and revenue will rank in the top five in the world. The occupancy rate ranks among the top three. "

Game in the LTE era

However, to achieve these two "top three in the industry" goals is no easy task. Currently, in the field of system equipment, Novo and Alcatel-Lucent are ranked ahead of ZTE. Their advantage is that they have a long-term market share in some developed countries.

Regarding the means of catching up, Hou Weigui bluntly said that he would not fight the price war. "ZTE has not sent equipment too much. ZTE has passed this stage. Unless very important customers, or a small number of new products, want to use them, the rest are basically not give away."

Hou Weigui believes that ZTE can have the current industry status, and its important support is still its technical capabilities and strength, because ZTE has more than 30,000 R & D personnel, more than R & D personnel of Noci and Alcatel-Lucent.

The most direct manifestation of this powerful R & D force is on the next generation mobile communication network (LTE). Hou Weigui is also very optimistic about the business opportunities in the LTE era. He believes that the pace of LTE commercialization is accelerating because the data traffic is now increasing, which is forcing operators. LTE. In foreign countries, 4G equipment is gradually maturing, but the terminal and spectrum are still a problem.

"In a fully competitive market, ZTE's competitiveness in LTE has become very obvious. By the end of December 2011, ZTE had won 30 LTE commercial contracts, 6 official commercial networks, and more than 100 operators worldwide. The pattern of cooperation and deployment of a trial network has been significantly better than that of the 2G / 3G era. In addition, in terms of 4G patents, ZTE ’s 4G LTE basic patents have accounted for 7% of the global communications manufacturers, entering the 4G standard 'first camp. These are the basis of the game between us and Ericsson's traditional big brothers. "Zhang Jianguo is also confident of competing with the global telecommunications industry leader Ericsson on the same stage in LTE, and is not afraid.

Corn Sheller

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Hunan Furui Mechanical and Electrical Equipment Manufacturing Co., Ltd. , https://www.thresher.nl

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