ZTE scores place in Verizon Wireless lineup

ZTE Corp. extended its presence in the U.S. market with the launch of its first mobile handset with a nationwide operator as Verizon Wireless unveiled ZTE’s Salute.
The device has modest features, including a sliding form factor with a 2.4-inch screen, a traditional 12-button keypad, a 1.3-megapixel camera and support for the carrier’s CDMA2000 1x network. Those modest features are echoed in Verizon Wireless’ description of the device: “Let’s face it, you don’t need a mobile phone with a lot of bells and whistles. You need a reliable, easy–to–use handset that can help make your hectic day a little less hectic.”
Highlighting the lack of “bells and whistles,” the Salute sells for $20 after all rebates and a two-year contract and customers are not required to sign up for one of the carrier’s data packages as they are for so-called “3G Multimedia” or “Smart Phones.”
While garnering a place at the nation’s largest wireless operator was a huge win for ZTE, it did lose out a bit in that the device is branded as the “Verizon Wireless Salute,” a naming standard the carrier uses for a number of devices provided by less well-known handset vendors. The handset does have the ZTE logo on the top of the device.
Despite not getting its name in the name, ZTE said the placement at Verizon Wireless was a major win for the company’s burgeoning handset business. The company does sell a number of models through regional operators like MetroPCS Communications Inc. and has garnered a number of infrastructure contracts for its network equipment.
“This is a major step for us to drastically increase our presence in the U.S. market,” noted Jeff Ji, EVP of ZTE USA Inc.
Ji, who prior to joining ZTE’s U.S. operations worked for the company’s European division, noted that one of the challenges in producing a mobile device for the U.S. market is the specific set of requirements needed to meet both carrier and customer expectations.
“The U.S. market overall has higher requirements that Europe,” Ji explained. “In terms of quality and after sales and support of services it’s much different from Europe.”
While the company has so far only garnered interest for devices with a modest feature set, Ji said the company is moving aggressively to bring more advanced devices to the U.S. market.
“We have invested a lot in the development of smart phones and that is our strategy going forward,” Ji explained. “As we understand more of what our customers want we will move to fill in those expectations.”
ZTE had first announced plans to enter the U.S. handset market in 2007, and at the end of 2009 ZTE was the No. 5 handset vendor worldwide, accounting for 4% of total worldwide mobile device shipments.