ITU Telecom World 2006: Global Networking Platform

Despite, the event being held outside Palexpo, the event was a great success as Hong Kong achieved a record number of exhibitors and participants from across the world. The Telecom World had 695 exhibitors from 37 countries and 61,958 participants from 141 countries. Hong Kong benefited a lot from the event as over 230 Chinese companies participated in the expo. For the first time, the Telecom World had product pavilions like Internet pavilion, GPON pavilion and WiMax pavilion. Apart from this, the expo also had country pavilions like Belgium, Canada, Egypt, Holland, Finland, France, Germany, Hong Kong, Iran, Israel, Japan, Korea, Macao, Russia, Singapore, South Africa, Spain, the UK and USA.

'In 2007, we expect to sell around 25 mn handsets globally of which 10 mn will be sold in India'
-He Shiyou, president, Handset Division and Sr VP, ZTE Corporation

What's your handset strategy?
From 1998, ZTE has been manufacturing handsets and is presently a well-known brand. We have a complete portfolio of handsets both on 2G as well as on 3G spaces. On the technology front, we cater to GSM, CDMA, PHS, and TD-SCDMA. When we started in 1998, we were strong in communication systems and started our global expansion in 2004. Presently, we have our presence in 50 countries. Earlier to 2004, we were focusing only on China and utilized our handset experience and understood the requirements of different handset segment categories for different markets.

Basically, we are focusing on two markets-developed and developing. In developed, we are looking at Western Europe and North American market whereas in developing market we are looking at India, Pakistan, Latin America, and African countries. For developing market, the focus is on multimedia handsets, Mobile TV and HSDPA whereas for developing market we are looking at basic voice and SMS.

How would you rate India vis-à-vis other markets? What's your strategy for the Indian market?
India is a very important market for ZTE. There is a huge potential for local companies to contribute to the Indian economy. Since 2005 and till date, we have sold more than 5 mn handsets in India. Our next strategy is to bring more products and technologies, localize manufacturing and R&D facility. By serving Indian market we can contribute to other developing market also. India, China and developing economy are the foundation triangle for our growth. So our focus will be investing more in R&D and services, thus continue to grow the market.

We started our GSM expansion in 2006. We visualize that there is a huge growth in Indian GSM market and plans are to replicate CDMA success in GSM. For CDMA, we are focusing on US, Canada, and Mexico whereas for GSM we are looking at India, Africa, and Latin American markets.

In 2007, we expect to sell around 25 mn handsets globally of which 10 mn will be sold in India. On the technology front, GSM will contribute around 40% whereas CDMA will contribute around 60% for the India market.

Are you planning to change your distribution strategy in 2007?
In China, we used to sell through distributors but in 2007 we are changing our strategy to sell more handsets through operators.

When are you planning to close the mega order with Reliance Communications for GSM infrastructure?
So far there is no official announcement. Presently, if something happens we will put it on our website.

What's happening on the BSNL 70 mn tender?
As you know operators have own right to make decision and there are many factors affecting their decisions. From supplier's point of view, ZTE is involved in negotiation and participation in this kind of project and we make sure to always do our best.

How are you planning to move ahead on the FIPB front for setting up a manufacturing base in India?
As you know communication system is complex and we need approval from Indian authorities. We will move step by step so that our manufacturing technology can be fully brought to India.

Will ZTE set up a manufacturing base in India in 2007?
Since we have a comprehensive product line, I won't put any timeline. For certain products, some part is manufactured in India whereas some part is manufactured elsewhere. There is always a gradual process of bringing manufacturing in India.

The show floor featured wide range of products and services like mobile solution and devices, content solutions, Internet, IP communications, fixed wireless, wireless WAN, IT systems, satellite, hardware, software, broadband, next generation networks, enterprise solutions, consumer solutions, components and accessories.

Web-based services and applications such as email on the move, multi-tasking or teleworking and a full range of location-based services were on display. Focus was also on mobile broadband to mobile music and TV. Devices were busy talking to other devices, there were robots, fridges that can communicate, phones talking to vending machines and others. WiMAX and an array of other wireless technologies enabling on-the-go broadband access were also on display.

Statistics
Exhibitors: 695 exhibitors from 37 countries, including 21 Pavilions of which four Industry Pavilions
Exhibition Space: 41,200 m² (including upper levels)
Registered Trade Visitors: 43,846 from 141 countries
Total Participants: 61,958 from 141 countries
Electricity Consumption: An estimated 350,000 KWs of electricity was consumed. This is equivalent to the power needed to supply a city of 583,333 inhabitants
Internet Links: 63 dedicated and 477 shared Internet links was set for the expo to connect several locations worldwide
Carpeting: 28,484 square meters of carpeting was laid in all 11 halls

Source: ITU

The event witnessed packed show floor and had participants such as Alcatel-Lucent Technologies, AT&T, China Mobile, China Netcom, China Telecommunications, China Unicom, Cisco Systems, Ericsson, Fujitsu, Hitachi, HP, Huawei, IBM, Intel, LG Electronics, Microsoft, Motorola, NEC, Nortel, OKI, Orange, Qualcomm, Samsung, Siemens, SK telecom, Toshiba, Verizon, ZTE and more. Notable absentees from the show floor were Nokia.