Completion of previous deal with Sprint blocked by government
BARCELONA, Spain - ZTE Corp, China's second-biggest maker of phone-network equipment, will renew attempts to bid for contracts in the United States after it said opposition from the US government foiled the signing of a previous deal with Sprint Nextel Corp.
"The US government has a broadband agenda and we want to make a contribution to this agenda," ZTE's Chief Financial Officer Wei Zaisheng said on Monday at the Mobile World Congress in Barcelona. "We hope to help the further development of Sprint."
In October, US lawmakers asked the Federal Communications Commission to review the security risks of domestic companies such as Sprint Nextel using equipment from ZTE and Huawei Technologies Co.
At the time, Sprint was "very satisfied" with the contract, which was the best in terms of technology and financing, Wei said. Sprint eventually ordered gear from other suppliers.
ZTE, based in Shenzhen, Guangdong province, makes mobile phones, data cards and infrastructure for wireless networks.
It has boosted revenue in many markets by offering advanced technologies at low prices. To tap into the growth opportunities in the United States, the company has invested in fourth-generation wireless technology equipment.
On Tuesday, Bob Azzi, Sprint's network chief, told reporters in Barcelona that the carrier chose its vendors and wasn't influenced by any government intervention.
The United States has less confidence in Chinese network vendors, Wei said. The US government "is also protecting local vendors but it's only in their short-term interests", he said. "We still have contracts with them on the handset side."
ZTE has used the rising popularity of smartphones running Google Inc's Android operating system to expand sales of handsets in the United States and Europe.
Europe was the company's fastest-growing market last year as revenue jumped 150 percent, ZTE said last month. The company also doubled sales in the US last year.
Sales of mobile phones, tablet computers and wireless data cards are projected to jump 33 percent to 120 million units this year, ZTE said last month.
Sales of those products worldwide jumped almost 50 percent last year to 90 million units, led by demand in Europe and the US, the company said.
Bloomberg News
