ZTE USA begins long march with regional carrier

ZTE USA, the American face of the Chinese handset and network vendor, will begin supplying co-branded CDMA handsets to MetroPCS Communications Corp., which offers service to 3.7 million subscribers in major metro areas.
The deal is ZTE’s second to provide devices to an American carrier, according to Lance Cornish, VP of the firm’s business development.
ZTE USA already has a deal with undisclosed terms to provide WiMAX devices to Sprint Nextel Corp., which will soon begin testing its working WiMAX network in Chicago, Baltimore and Washington, D.C.
Cornish said that ZTE’s handsets in the PCS and AWS bands would appear on the market in January as part of a “long-term partnership” with MetroPCS. He offered no details on the handsets’ likely features or price points.
In an aside, Cornish said that any movement in the U.S. towards open networks and alternative retail channels would benefit ZTE, which is accustomed to such conditions in the Chinese domestic market.
ZTE declared its interest in the U.S. market at CTIA in March in Orlando.
At that time, Cornish said: “We’re in the handset business in a serious way. But we’re being realistic about our aspirations.”
Cornish said that his firm continues to press its case with the U.S.’ top-tier network operators.
Analyst Bill Morelli at IMS Research said Chinese vendors seeking a foothold in the U.S. meant “getting press and building brand.”
ZTE USA is joined by TCL Communications, another Chinese vendor with aspirations to the U.S. market. The latter is marketing handsets under the “Alcatel Mobile Phones” brand, an identity leased from Alcatel when it exited the handset business.