International research firm IDC has reported that ZTE Corporation (“ZTE”), a leading global provider of telecommunications equipment and network solutions, is the fastest growing telecom equipment and solutions provider in 2007 among the major telecom vendors worldwide. IDC based this finding on the company's impressive earning results in 2007.
The research company highlighted in the report ZTE’s outstanding business performance in terms of revenue growth last year where overall revenues rose by 49.8%, while its wireless infrastructure business had an impressive 61.7% growth. This sterling earning results, which according to IDC offers a contrast with rest of the industry, makes ZTE stand out among other international telecom equipment companies, in spite of the challenging and competitive business landscape.
Geographically, the IDC report stated that while China accounts for 42% of ZTE’s total business, emerging markets such as Africa saw sales grow 111%, Asia Pacific by 67% while rest of the world revenues grew at an even more aggressive rate of 155%. IDC attributes the substantial revenue growth in developing markets where the need for network capacity abounds. ZTE has recently released its 2007 annual report where revenues in Europe and North America showed significant growth of 8.3%, clearly indicating that ZTE is getting inroads even in matured markets and gaining increasing recognitions from mainstream telecom players globally.
In terms of business areas, IDC stressed in the report ZTE's success in increasing revenues for its wireless infrastructure solutions, stating that ‘there is no denying ZTE is making an impact on the competitive landscape in wireless infrastructure’. The IDC report also stated that ZTE’s revenue growth is due to an expanding customer diversity brought about by a broader technology business and traction in emerging regions, as well as ZTE highly cost competitive position.
“We take pride in receiving the distinction of being 2007’s fastest growing telecom vendor from a leading research firm such as IDC,” stated Mr Yin Yimin, President of ZTE Corporation. “This only shows that ZTE’s commitment in spearheading R&D initiatives coupled with our determination to innovate and introduce high quality telecom equipment solutions are paying off. With a strong global workforce ready to provide the best technical support to our customers, we believe ZTE will remain a key player in the highly competitive telecom market in the years ahead.”
In 2007, ZTE’s GSM products sales increased by 300% compared to the previous year, accounting for 10% of its total global product shipment. Last year, ZTE also clinched 10 WCDMA deployment contracts in Western Europe, South America and Asia Pacific regions. Over the last two years, the company has been partnering with the top 50 global GSM/WCDMA systems equipment operators including TIM, MTN, Telenor, TeliaSonera, Hutch and Etisalat, as well as six of the top ten WCDMA telecom vendors in terms of terminals.
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