ZTE Pushing M-ICT Strategy with 5G

ZTE Corporation is pushing for its M-ICT strategy for the future and the company is working hard on 5G technology which will be the core of the M-ICT era as envisioned by the Shenzhen, China-based company.

The publicly-listed global provider of telecommunications equipment, network solutions and mobile devices defines M-ICT strategy (M denotes as Mobile, Man to Man, Man to Machine, Machine to Machine), as being concerned with the creation of value through information.

“M-ICT connects everything together where the focus is not on the network itself but on the people,” ZTE’s GM of corporate strategy, planning department Dr George Sun told The Malaysian Reserve in Shenzhen recently.

Sun said ZTE has viewed 5G as a strategic product since 2012, and has established teams to develop major 5G technologies and prototypes, including new services and applications. Since 2009, ZTE has researched software defined air-interface (SDA) technology, and in 2013 debuted its 5G SDA technology.

“We started 4G research 10 years ago and now we are at the forefront of 4G technology,” he said.

ZTE, through its Malaysian operations ZTE (M) Corp Sdn Bhd are working together with some of the country’s telecommunication companies to deliver their long-term evolution offerings in addition to providing other services to these and other telcos.

According to ZTE’s SVP Zhang Renjun, Malaysia is one of the biggest potential markets in the region due to the high growth of smartphones.

“ZTE had focused on B to B business sector in the past. But now, we are ready to establish our brand in the retail market, and we are confident that our products will suit consumer’s needs,” said Renjun.

The company has a strong handset presence in the US, ranking fourth with a 7.4% market share and in Malaysia ZTE recently increased a few new smartphone models and targets a year-on-year sales growth of 3%.

Nonetheless, ZTE is eyeing the Indonesian market which presents the biggest potential market in the Asia-Pacific region and ZTE aims to convert Indonesia to be its top three markets in the next three years.

“Our focus now on Indonesia is on 4G devices. We plan to sell around 100,000 4G devices in the country in 2014,” said Renjun.

Lastly, the company keeps investing in technology, accumulating Intellectual Property Rights patents along the way, all in line with its globalization strategy and market forecast.

ZTE has applied for more than 35,000 patents domestically and internationally and of these, over 90% are essential patents related to essential telecoms standards and core patents related to core telecom technologies.

The company declared a 1.36 billion yuan (RMB 740 million) net profit in FY2013 backed by revenue of 75.2 billion yuan and ZTE said it continuously invests over 10% of its revenue in research and development.