International research firm IDC in its released recently Insight Report revealed that ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), was the fastest growing telecom equipment and solutions provider in 2008 among the publicly traded major telecom vendors worldwide. IDC based its findings on 2008 earnings results.
IDC highlighted in its report that ZTE’s 2008 revenues reached US$6.5 billion (RMB 44.3 billion), up approximately US$1.4 billion from 2007’s US$5.1 billion (RMB 34.8 billion). Overall revenues rose by 27%, while its wireless business experienced exceptional growth of 20% compared to last year. These sterling earnings results, which according to IDC offers a contrast with rest of the industry, make ZTE stand out among other international telecom equipment companies, in spite of the challenging business climate amidst the global financial crisis.
IDC’s report further indicated that ZTE’s wireless business, including sales of infrastructure, handsets, software and services and other wireless related items, amounted to 38.5% of the company’s total revenues. This business segment grew from US$2.1 billion in 2007 to approximately US$2.5 billion in 2008. Over the past five years, ZTE’s wireless business more than doubled its revenues.
The rapid deployment of 3G networks in China is expected to establish an estimated 660,000 3G carrier frequency by mid-2009. In the 3G tender bids offered by China’s three largest telecom operators, ZTE has secured approximately 30% of the total local market, positioning itself the clear leader in China’s 3G industry.
“We take pride in receiving the distinction of being 2008’s fastest growing telecom vendor, as recognized by IDC,” stated Mr. Yin Yimin, President of ZTE Corporation. “This only shows that ZTE’s commitment to spearheading R&D initiatives, coupled with our determination to innovate and introduce high quality telecom equipment solutions, is 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.”
