Messages from ZTE Top Management

Release Date:2008-01-25  Author:ZTE  Click:

2007 is the 20th year anniversary of the commercial deployment of large-scale cellular mobile telecom system in China. Over the past 20 years, China's mobile communications industry has witnessed an unprecedented growth rate, attracting great attention from the global communications industry.

ZTE have defined the mobile phone as a high-tech product from the very beginning of its handset development. We commit over 10% of our annual revenue to R&D every year, and are actively applying for relative intellectual property rights (IPR) to protect our innovations and achievements. We have obtained nearly 1,000 handset patents by the end of June 2007.

The continual investment in R&D has brought us great profit. In the first three quarters of 2007, we sold 22 million handsets across the world, 70% of which were shipped to overseas markets. In the high-end market, through our great R&D strength and outstanding product performance, we have earned trust from many world-famous telecom operators such as Orange (in France), Hutchison, British Telecom (BT), Telecom Italia Mobile (TIM), Sprint Nextel (in the US), Telefonica, Canada's Telus and Australia's Telstra. Our 3G handsets have been exported to over 20 countries and regions worldwide.

In the TD-SCDMA field, we have launched the world's first TD-SCDMA/EDGE dual-mode dual-standby intelligent phone. In May 2007, ZTE and Vodafone (the world's largest telecommunication operator) jointly announced the availability of Ultra Low Cost Handsets (ULCH) in the emerging markets of Austria, Turkey, South Africa and Egypt. We are the biggest winner in India's CDMA handset market, with a market share close to 30%, outperforming well-known mobile phone manufacturers like Samsung, Motorola and LG.

To date, we have sold more than 70 million handsets in over 70 countries and regions. According to a recent report by CCID Consulting, ZTE's handset sales volume ranks first among the Chinese handset vendors, and sixth among global handset vendors. We are striving to be among the world's leading handset manufacturers.

As China is speeding up the commercial deployment of 3G technologies, 3G services will surely be available for ordinary users. This is a historical event of great significance that we should look forward to.

Of course, we do not expect that everything gets ready for 3G when it is deployed. Like the development of the Internet, 3G needs time to mature and to find new service models and revenue generation models. The healthy and robust development of 3G in China also needs the participation of general users, who will help find the most valuable services and applications, and seek for a Chinese way to develop 3G.

ZTE has always embraced innovations in the 3G development process. We focus on user experience, and have made considerable achievements. Our 3G terminals have been widely used in overseas markets. In the TD-SCDMA field, we are the leader to drive TD-SCDMA industrialization in China and worldwide. Therefore, we are full of expectation and confidence in the continuous progress and success of 3G development in China.

ZTE started the research and development of WCDMA mobile phones in 1998.  We launched the world's smallest and lightest WCDMA handset in 2004; teamed up with Hutchison to supply 3G WCDMA handsets for sale in the UK market in 2005; rolled out the world's first commercial HSDPA terminal in 2006; delivered a record of 3 million WCDMA handsets worldwide in 2007.

We have been among the leading Chinese 3G handset vendors, and we are constantly trying to rapidly catch up with global handset giants. Our operation philosophy is to pursue technical innovation and excellent quality. In the handset industry, where the strong gets stronger and the weak gets weaker, we should keep moving ahead aggressively, making our 3G handsets more sophisticated, more fashionable, and closer to what consumers require.