ZTE recorded a revenue of Rs 3,000 crore last fiscal, up from Rs 2,596 crore
in 2006-07, a growth of 15.6%. Presently, India is the second largest market for
ZTE after China.
The company recorded growth in all segments of operation-transmission,
handsets, wireless infrastructure, and broadband. ZTE is one of the leading
suppliers of broadband infrastructure equipment to BSNL and also the premier
supplier for the rural projects of BSNL.
In FY 2007-08, it received business worth Rs 400 crore through BSNL;
increased its terminal business by 102.3% in 2007; and recorded a growth of 400%
in the broadband segment.
The main sectors, that contributed to the revenue are CDMA, terminals, GSM,
transmission, and broadband. Main orders for the company in the last fiscal came
from expansion and network transfer requirements from TTSL, BSNL, Reliance, and
Spice. The company also bagged a GSM handset order from Vodafone India and a
CDMA handset order from Tata. Undoubtedly, ZTE seeks to become the country's
leading telecommunications equipment and high-end service provider.
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ZTE 10 |
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The company already has a manufacturing facility at Manesar, and is also
planning for an annual manufacturing capacity of 40 mn handsets, targeting the
global telecom market. Besides GSM and CDMA handsets, the 30-acre hub will
manufacture WiMax enabled handsets and equipment, BTS switches, and other
telecom components. Though the location is yet undecided, ZTE plans to invest
around Rs 2,000 crore for the project. The company expects another Rs 800 crore
investment from component manufacturers, who will partner with ZTE in the
venture.
As of now, ZTE's handsets are sourced by most of the telecom operators.
However, the company is planning to enter the Indian branded mobile market in a
big way using its brand name.
ZTE is also scouting for partners to undertake R&D in the area of broadband
and IPTV products, and is believed to be in an advanced stage of discussion with
a private Indian telecom equipment maker.
Competitive pricing, coupled with market differentiation, is part of the
efforts to beat pricing pressure. Also, the primary concern for the company is
heavy competition leading to sharp drop in prices.
With major initiatives like setting up of a manufacturing unit in India and
coming up with its own branded handsets, this fiscal is likely to see the
company further consolidating its position.
We want to become India's leading
telecommunications equipment provider
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CEO, ZTE India
Huang Dabin
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Address: ZTE Telecom India, 2nd Floor Tower — A, Global Business
Park,
Gurgaon — 122001
Tel: +91-124-4323000
Fax: +91-124-4067329
Website: www.zte.com.cn |
Highlights
- Main orders from TTSL,
BSNL, RCom and Spice
- Increased its
broadband revenue by almost 400%
- Terminal business
increased by 102.3%
- Planning to set up
another manufacturing unit in India
- Planning to enter the
branded handset market
- Scouting for partners
to undertake R&D in broadband and IPTV
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What were your main achievements in FY
2007-08?
In the last fiscal, our wireless products were deployed in developed
markets. We were also ranked first in terms of the number of new contracts
secured.
With our all IP-solutions, our wireless
equipment launched a full-scale attack on the mainstream MTO markets.
Operators, ranked among the top 35 in the world, have deployed GSM systems.
We also recorded a 300% increase in our delivery as compared to the previous
fiscal. Moreover, ZTE topped the global CDMA market in terms of the number
of CDMA contracts signed for two consecutive years.
What were your main orders in the last
financial year in India?
In the wireless segment, the main orders came from expansion and network
transfer requirements from TTSL, BSNL, Reliance, and Spice; while, in the
terminal segment, we received a GSM handset order from Vodafone India and
CDMA handset order from Tata.
Our target is to become India's leading
telecommunications equipment and high-end service provider.
What are the growth drivers in India?
There are four major growth drivers that spur the telecommunication
market in India. Firstly, the second largest subscriber base, a growing
middle class population and almost 50% of this being under the age of 25
constitutes the basis for rapid growth.
Secondly, a series of government policies and
regulation have optimized India's telecommunication investment environment.
Thirdly, market competition has attracted
many domestic or overseas investors to divide the telecommunication market
both for operators and telecommunication equipment manufacturers.
And finally, India's developed software
industry provides the possibility for overseas manufacturers to directly
invest and establish R&D centers and production bases in India.
What challenges are you facing in the
Indian market?
The fierce competition in the telecommunication industry has brought
tremendous pressure on profits. For long term planning, ZTE has two weapons,
market differentiation and cost reductions, to deal with it. By satisfying
customized demand, market differentiation can increase customer value. Cost
reduction puts forward demands on reasonable distribution of resources.
What is the industry outlook for 2008-09
in India?
In 2008-09, more wireless licenses of different systems are expected to
be issued to anxious operators. Diversified services will provide more
choices for subscribers. For all business operators, a combination of
multiple services will be offered to increase customer loyalty.
In GSM system, LTE oriented SDR, network
sharing, and spectrum enhancement technology will be important functions
developed in wireless infrastructure equipments. Large capacity equipment
catering dense area application, as well as pico-bay station equipment for
flexible networking, will both be feasible evolution directions. An IP
backbone and WiMax backhaul will be widely used in newly built networks,
complementary to optical and microwave transmission. |
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