Years of Concentrated Work Leads to Successive Glory

--Ye Weimin, Vice President of ZTE, Talks About ZTE´s Development Strategy on WCDMA

Editor´s Note:

After becoming the leading force in CDMA equipment manufacturing in China, ZTE rolled out its self-developed WCDMA products that attracted much expert attention in the MTNET second phase single system testing completed in June 2003. The following are the remarks of  Ye Weimin, ZTE´s vice president, on ZTE´s strategies, advantages and achievements in the development of WCDMA products.

ZTE´s WCDMA Development Strategy

As far as the project investment is concerned, ZTE has been always following the principle of market orientation and steady progress. ZTE always makes full preparation for the research and development of new technologies in advance, and then transfers the research results into new products at a time when the products are in demand on the market. Such a strategy has also been applied to the WCDMA products development.

In view of the variety of operators´ choices, ZTE believes there is a market share for each of the three kinds of 3G modes. Therefore, ZTE arranged special teams separately in charge of research and development of the three 3G modes, and put large amount of money and human resource. For each team´s research outcomes, ZTE will transform them into productivity at an appropriate time.

ZTE´s Advantages in R&D of WCDMA

As one of the most successful wireless communication equipment suppliers in China, ZTE has four advantages in developing WCDMA, which gives great impetus to the research and development of WCDMA.

(1)The success of mobile business ensures the financial input to the WCDMA projects.

For several successive years, ZTE has gained great profit in the markets of CDMA, GSM, PHS, and mobile terminal, and maintains rapid growth. ZTE´s CDMA equipment has been provided for the construction of the CDMA network of China Mobile, which made ZTE the “NO.1 CDMA equipment provider in China”. PHS equipment has created more than 10 billion RMB of profit for ZTE, and over ten million lines of ZTE´s PHS equipment has been put into operation, taking nearly 40% of the market share in China.

After years of development, ZTE´s GSM equipment has been used in the GSM networks of 25 provinces in China, and also achieved great success in the international market. It was successfully exported to Russia, Nigeria, Ethiopia and Zambia. ZTE is also the only vendor of both mobile systems and mobile terminals in China.

(2)The application of mobile products provides valuable experience for R&D and network deployment.

ZTE is one of the manufacturers providing the full range of mobile products covering CDMA, GSM, PHS, and 3.5G wireless access. The success in mobile market not only brings enough funding to the WCDMA project, but also provides opportunities for the research team to learn and accumulate experience. The deployment of the mobile communication network requires the supplier to have wide experience in network planning and optimization. Therefore, ZTE´s experience in wireless network planning and optimization will greatly enhance its strength in WCDMA network construction, providing high quality services to operators.

(3)ZTE´s achievement in Softswitch and IPv6 ensures its leading position in the research of WCDMA core network.

ZTE´s Softswitch products have been widely deployed in live networks. In addition, ZTE launched its IPv4/IPv6 double-stack router in 2003. Its technology edge in Softswitch and IPv6 guarantees steady progress in the study of WCDMA core network. ZTE has mapped out a clear development path for WCDMA core network: first, launch the R4 system at a proper time on the basis of the R99 commercial system, then, converge the IPv6 technology, and finally roll out the R5 system.

(4)The unified 3G-service platform performed well in live network operation.

Although there are many modes of 3G, they are alike in respect of service platform, profit-making mode and value chain. Based on this understanding, ZTE has integrated R&D resources into the unified 3G service platform development. ZTE´s CDMA 2000 1x service platform is based on its 3G service platform and has been deployed in the network of China Mobile. At, The system served the Asia Forum 2002 by providing high speed data services such as real-time transmission of dynamic images, email, VoD, OICQ, chatroom, visible phone, and wireless high speed internet access. ZTE will integrate its experience in the development of GSM/MMS, PHS, and CDMA 1x, and provide customized WCDMA service platforms and unique services to diversified operators´ demands.

Achievements Made by ZTE in the R&D of WCDMA

In 1995, ZTE engaged in the research and development of WCDMA technology. In early 1998, ZTE conducted a large-scale extensive research in the 3G mobile communication technology. In July 1999, ZTE initiated the “863” C3G Project on WCDMA. In June 2000, ZTE successfully made the first WCDMA call in China.

Now, ZTE is capable of providing complete sets of WCDMA equipment that can be put into commercial use.

In addition to its R&D in WCDMA system, ZTE, together with related operators and their research institutes, is carrying out a series of tests for the WCDMA system and setting up several trial networks to identify the stability and compatibility of the equipment. ZTE is also cooperating closely with operators in the study of the operation mode, 3G phone call mode, networking technology and service platform and has made great steps forward.

Since 2002, ZTE has implemented the inter-connection and inter-working tests with many network and terminal manufacturers such as Nortel, which ensures the compatibility of ZTE´s products in advance. ZTE´s WCDMA equipment has passed most tests.

ZTE Prepared to Make Greater Accomplishment in 3G Era

The excellent performance of ZTE´s WCDMA system, proved by the MTNET test, has increased the government authorities´ confidence in developing the 3G network. The Chinese government is following the principle of “tracing the advanced, heading with the test, fostering the market and supporting the development” to support the 3G market development. While paying great attention to the R&D of 3G technology, ZTE is also making contributions to the formation of a matured value chain of 3G industry in China.

ZTE is prepared for future challenges and confident to follow the success in the area of mobile communications and win more glory once the 3G service is commercially launched in China.