ZTE fuels high-speed push

Spending will go toward advancing the current generation of TD-SCDMA handsets and network equipment, Tian Wenguo, executive vice president of the Shenzhen-based telecoms equipment provider, said in an interview with The Standard.

"Very soon, the TD technology will be as mature as other 3G technologies," Tian said. "We have to acknowledge that for any new technology, there is always time required for maturity."

The performance of the TD-SCDMA network run by China Mobile has already exceeded ZTE's expectations, Tian said.

ZTE was awarded the largest portion of the network equipment contracts from China Mobile, with a combined 34 percent share of the two tenders based on number of base stations, according to industry research firm iSuppli.

Tian said ZTE will also focus on developing a portfolio of next-generation products based on the "long term evolution" or fourth-generation version of the Chinese technology, which is known as TD-LTE.

"We believe ... our technology is about six months ahead of our competitors," he said.

Tian said ZTE sees opportunities to promote the domestically developed technology in overseas markets, a push that is being supported by the central government. The frequency bands used by TD-SCDMA are available in many countries, according to Tian.

ZTE had "a lot of discussions" with many operators about rolling out TD- SCDMA networks, he said.

ZTE has already deployed a TD- HSDPA network in Ghana offering data download speeds of 2.2 megabits per second, according to Richard Ye Lihe, marketing director of ZTE's wireless division. ZTE may work with Korea's SK Telecom to expand the trial TD network they are running in Seoul, Tian said.

Meanwhile, Tian said ZTE sees opportunities to grab market share in the current financial crisis. He said the company aims to become one of the top three vendors of mobile and fixed-line network equipment within the next few years.

ZTE's recently secured US$15 billion (HK$117 billion) credit line from China Development Bank allows it to provide more vendor financing, increasingly needed by telecoms operators who have seen banks withdraw lending facilities, Tian said.

The company expects sales volume in its handset division to jump 33 percent this year to 60 million units, from 45 million in 2008, said Xiong Hui, vice president of the handset division.

The company hopes to be selling 100 million handsets a year by the end of 2011, Xiong added.