Wednesday, February 16, 2005

China’s 3G attack, via Europe - ZTE, Huawei clinching important deals in Europe

From RedHerring: China’s 3G attack, via Europe

"With its major manufacturers clinching important—and long-term—deals in Europe, China is challenging the market’s foreign rulers (Motorola, Ericsson, Nokia). Chinese telecom equipment manufacturer ZTE announced a code division multiple access (CDMA) technology alliance with France’s Alcatel at the 3GSM conference in Cannes this week. It also outlined plans to launch third-generation (3G) mobile handsets on the continent as part of a planned push into the European market. Huawei, another Chinese vendor, clinched its first European contract for a 3G mobile network in December (10-year contract with Telfort, the smallest of the Netherlands’ five mobile carriers)."

“It used to be that Chinese manufacturers were used as a stick to beat down prices but technically were not competitive. Today, it is very different, technically they are competitive as well,” said Jason Chapman, a telecom equipment analyst in the London office of Gartner, a technology consultancy. “It would not surprise me at all if they started winning more contracts in Europe. ... U.S.-based Vodafone has said it is testing Huawei’s networking equipment in its labs, according to Gartner’s Mr. Chapman."

"The company (ZTE) said it has over 2,000 engineers engaged in research and development of the wideband CDMA 3G technology used in the European market. It has set up 14 offices in Europe and opened a research institute in Sweden." Read more

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