ZTE Becomes Second CDMA Vendor

Shenzhen-based ZTE become China s second CDMA (Code Division Multiple Access) network equipment this week after the Ministry of Information Industry (MII) granted it permission, sources from the company said. ZTE s ZXC10 CDMA mobile communications system has been certified by MII under state regulations regarding telecommunications equipment standards for CDMA networks in the 800 MHz spectrum band.

ZTE now joins hands with Datang as the only Chinese vendors approved to supply CDMA equipment for Chinese operators. Datang has become a major supplier of CDMA networks being rolled out by former PLA telecoms arm, Great Wall, whose networks have been transferred to the management of China Unicom. ZTE has been seeking to produce CDMA equipment for several years and was a major representative for negotiations between China Unicom and American CDMA vendor Qualcomm.

Qualcomm, who is betting on the adoption of its CDMA technology in China, where it would then be able to collect intellectual property royalties for all equipment sold, already has licensing agreements with 13 Chinese vendors, including ZTE, Datang and major Chinese vendor Huawei Technologies. However, CDMA s status inside China remains undefined.

Despite its ownership of Great Wall s CDMA networks in five major Chinese cities and the province of Fujian, China Unicom, the only licensed operator for CDMA, is reportedly pondering the construction of a new CDMA network with an initial capacity of 10 million lines. ZTE, as well as Datang, Huawei, Eastcoms, is believed to be rushing to develop CDMA capability in anticipation of the Unicom contract, if and when that materializes.