ZTE eyes 20% share in 3G equipment

New Delhi: Telecom equipment major, ZTE, with its headquarters in China, is planning big for 3G (third generation) service in India.

Having grabbed 34% of the Chinese 3G market in the just concluded financial year, the company wants to replicate the success in India as well. The Chinese experience will help us handle 3G and 4G in India, said ZTE India chairman and managing director D K Ghosh.

Although security hurdle for Chinese equipment vendors is yet to be sorted out, ZTE is aiming for 15-20% market share in India once 3G is launched in the country. In Wimax, the company may get a better market share, according to Ghosh.

Apart from the 3G focus, ZTE plans to invest more in research and development (R&D) all across the world, including in India. So far, the company has invested about Rs 200 crore on the R&D centre, and may double it in the near future. Increasing R&D investment, widening the product range, aggressive hiring and supporting the 3G rollout are among the strategies of the Chinese firm for the India market.

As part of its localisation strategy, ZTE is recruiting more Indians than ever before. Besides creating an India image for the company, this is also a localisation drive, said Ghosh. Out of the total recruitments made by ZTE in 2009, 50% were made in India.

Also, the number of Chinese employees will come down significantly, he said. Ghosh told the media on Wednesday that ZTE India is not a Chinese company but an Indian one. It is an Indian company with headquarters in China, he said.

Globally, ZTE had the maximum market share of 54% in China during the financial year 2009-10, followed by Asia (excluding China) at 21.9%, Africa 11.4%, and Europe 16.3%.

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