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ZTE, Huawei tred into U.S. infrastructure market

LAS VEGAS—Both ZTE Corp. and Huawei Technology Co. Ltd. are launching infrastructure equipment during the CTIA show that may not have an immediate market, but provide insights into the innovative and gutsy nature of the Chinese vendors, eager to increase their share of the hard to crack U.S. equipment market.

ZTE USA Inc., a ZTE subsidiary, came out with an all-IP CDMA2000 solution based on the IOS V5.0 standard, which the company says offers carriers better quality of service and improved voice service.

Click here to see all of RCR Wireless News’ coverage of the CTIA Wireless 2006 show.

The company said its all-IP product has done well during testing and has been successfully deployed for commercial use in China and Sri Lanka.

“This innovative all-IP infrastructure will allow carriers to reduce their CapEx and OpEx, enabling them to extend their savings to the end user,” said Zhao Xianming, general manager of ZTE’s CDMA business division. “Not many vendors around the world today have the ability to offer all-IP CDMA, or have it included in their roadmap.”

Huawei introduced a base station for the advanced wireless services spectrum that the Federal Communications Commission plans to auction this summer.

“Huawei’s release of the new-generation base station for the AWS band reflects its continuous commitment to the North American market,” said Ken Hu, chief sales and service officer of Huawei.

Interestingly, when asked about Huawei’s strategy to penetrate the U.S. market, Sharon Chen, manager of media relations at Huawei, said the company is focusing on research and development as well as services. She pointed out that Huawei isn’t all about being the lower-cost vendor, but rather, the company thinks of itself as offering high-quality products and customer service.

Jack Yang, executive vice president of sales and marketing at ZTE, said much of the same when asked about his company’s drive to establish a U.S presence.

“We’re here to stay. We have great products and great after-sale support. The other vendors know we’re here to stay and that we’re a big force.”

Will either company make a play to acquire a North American of Western European equipment vendor to speed the process of gaining Tier 1-carrier contracts?

“Right now, that’s not something Huawei would be interested in,” said Chen. “We realize that it takes a long time to enter into new markets, and we don’t want to do anything that would seem too aggressive.”

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