ZTE President Shi: Optimistic about the development opportunities of global TDD

Lead: ZTE's president, Shi, said in an interview with the British magazine global telecoms Business that many of the world's top 500 telecom operators already have TDD (time and frequency) spectrum, and these operators will consider evolving to the TD-mode LTE in the future. The following is the full text: "If ZTE wants to be the leader of the future communications industry, innovation must be our first strategy."　　"ZTE's new president, Shi, is passionate about China's standard 3G mobile communications technology and its LTE evolution route, which he believes will be one way to effectively address the network pressures brought about by data services." This March, Shi, 46, took over the post of President of ZTE.　　In his view, many of the world's top 500 telecoms operators already have TDD (TDMA) spectrum, and these operators will consider evolving to the TD-mode LTE in the future. While many operators are already deploying more common FDD (frequency Division) 3G networks and evolving to LTE, Shi points out that "because of the limited spectrum resources, operators consider using the TDD spectrum for data operations." "In 2008, Chinese telecommunications operators were restructured. China Unicom has obtained the traditional WCDMA 3G license plate, the Chinese telecom has obtained the CDMA 3G license, but China Mobile as the world biggest mobile operator obtains the TD-SCDMA license plate, becomes the world first constructs the TD-SCDMA network the operator. For this reason, China Mobile has paid some price at the beginning of exploration. "TD-SCDMA does not yet have a scale advantage, which will lead to an increase in costs," Mr Wang, then China Mobile's president, said. "However, due to the unexpected development of the global mobile broadband market, the industry now has a gradual transition to the TDD model." The attraction of the TDD model is that the data transfer efficiency is greatly improved due to the asymmetry of uplink and downlink traffic.　　The system can allocate the free spectrum resources to other users by dynamically allocating the upstream and downlink time periods. "TDD has a lot of new opportunities," Shi said.　　Prior to his appointment as president earlier this year, he presided over 11 years of ZTE's global marketing effort, leading ZTE to achieve a leapfrog growth in sales revenue. Focus on innovation is ZTE solid technology accumulation or good development prospects, let him so passionate? Maybe it's all.　　"We are more focused on innovation, and we can offer constructive advice to cooperative operators," he said, deftly summarizing both. "Our innovation is more focused on market demand, focusing on customer needs," he said. "If ZTE wants to be the leader in the communications industry, innovation must be our primary strategy." "Now more and more customers know that ZTE has excellent technology, a good TCO control, and a good delivery capability," he said, "Our products are very competitive and we want to be able to occupy a larger market size." Thus, to build a large-scale market advantage canPower is the second management strategy of ZTE Communication. The competitiveness of the product comes from continued investment in research and development, he said, and every year ZTE has to devote 10% of its sales revenue to research and development. According to ZTE's August semi-annual financial report, as of June 30, 2010, ZTE achieved sales revenue of 4.5 billion U.S. dollars in the first half of 2010, an increase of 10%, net profit of 129 million U.S. dollars, an increase of 12% year-on-year. This means that ZTE spends nearly 1 billion dollars a year on research and development. "Our investment in research and development is huge," Shi said, "more than 30,000 research and development elites continue to innovate and develop many excellent innovative products." He also stressed that 10% of research and development funding is for forward-looking product technology development, such as the next generation of base stations and network technology. ZTE currently has more than 30,000 domestic patents, 4100 international patents, covering 2G, 3G, 4G and LTE, UMTS and other core areas.　　2009, ZTE was ranked first in domestic patent applications, and international patent applications increased 3 times times. Shi said that the SDR solution is one of the best research and development results.　　ZTE's SDR solution is a software upgrade through a consistent hardware platform that protects operators ' upfront investments when the operator upgrades to 3G or 4G. The industry's first SDR solution provider "Our SDR solution uses a unified hardware platform in the 2G, 3G and 4G LTE networks," he said, "ZTE is the first supplier of the industry to develop and provide an SDR solution."　　"The Hong Kong CSL mobile operator, affiliated to the Telstra Group, is one of the active users of the SDR solution, and other operators that have used the ZTE SDR solution include South African operators Cell-c, Portuguese sonaecom and KPN in the Netherlands," Shi said. The SDR solution can not only provide the evolution of the GSM model. "We even provide support for the evolution of CDMA, WiMAX, and TD-SCDMA through this platform," he said with a smile.　　In other words, a WiMAX operator is able to convert to TDD 3G mode through the ZTE SDR solution if it is willing to do so. ZTE also offers WiMAX solutions, such as helping Telefonica build Spain's first WiMAX network. "More and more operators will consider the TDD model due to the scarcity and FDD of the spectrum." "Operators will be more focused on data and broadband services and need more spectrum resources, and TDD will be a choice for wireless broadband," Shi said. "In 2008, China's telecom operators completed their restructuring and eventually decided to adopt three different network construction programs." This means that China's telecoms operators will make rapid and huge investments, and ZTE has benefited a lot from it. "We are the first in China's 3G market share, which is mainlyBenefit from our technical advantages and low TCO (total input cost) solutions, "Shi said. ZTE also competes with Ericsson, NSN, rung and Huawei in the Chinese market. "The five equipment suppliers, including ZTE, are in full competition," said the company. But eventually ZTE won the most market share. Shi said: "ZTE received the highest score in the evaluation of three operators."　　"These comprehensive assessments are detailed, such as China Unicom's assessment factors, including equipment consumption." The scale advantage effect ZTE has been successful in China's 3G investment, he added: "This success has brought us the advantage of scale, which makes us more cost effective and more experienced in the 3G field." Therefore, we will have more opportunities in the two and three phases. "ZTE has a very good market share in China, and there is no doubt that this will bring us economies of scale around the world." Shi said: "Our market share in the Asia-Pacific region is very large, we also focus on other regions of the world." It is hoped that in the near future, we will be able to occupy a higher market share in large countries such as Brazil, Russia, South Africa and Nigeria. "ZTE has had a lot of success in the developed world, but perhaps objectively, the market share of the companies in developed countries is not as high as in the Asia-Pacific and other emerging markets," he said. "There are huge opportunities for growth in Europe and North America," Shi said. "Political factors may have a certain impact. ZTE and Huawei have been politically hampered by the US. Shi does not shy away from this topic, "ZTE is a public company listed in both Shenzhen and Hong Kong." We must also comply with Hong Kong's accounting standards and be more transparent and normative. About 20% of ZTE's shares are foreign shares. 2010 ZTE appointed an American, Timothy Seifert, as an independent director, a lawyer at the former Freshfields law firm and a general counsel for Alibaba, the Chinese online trading company. Shi said: "We are very confident that ZTE is a different Chinese company." He added: "China has undergone tremendous changes and ZTE has grown from a small company to a large company." Our way of thinking has changed. "In the US, ZTE has started to start slowly, as ZTE's motto is ' Step '."　　This and 2010 the company's global slogon--"bringing you Closer" similar. On August 20 this year, ZTE and US carrier giant Verizon announced that it would formally launch ZTE's salute mobile phone in the US market. ZTE's efforts to enter the U.S. market after years of competing with rival giant Ericsson and rung are starting to get a big return. Shi said: "Now the main operators in the United States are choosing ZTE as a terminal equipment provider, we are already giving VerizoN shipments. "In the long term, ZTE is committed to" developing a affordable smartphone, "Shi said." Smart-phone pricing is still too high. People are asking what the iphone will be, and I think ZTE can provide a popular smartphone. "But at the same time," our next step is to enter the U.S. network equipment market, "he continued," We have successfully cooperated with some small and medium sized operators. Next we want to enter the United States first-class operators. "Locking first-class multinational operators" first-class operators is our clear goal. Our strategy is to focus on large and top-tier operators such as MTN, Bharti, Vodafone, and France Telecom, "he said." We are more committed to this type of operator. "For smaller operators, companies will be more cautious," he added. "We are very cautious in India because there will be a merger and reorganization between operators."　　"There are many operators vying for the market. But ZTE is not completely out of touch with small and medium-sized operators. ZTE signed a contract with a new Canadian operator, Public Mobile, in June 2010 to design, build and operate an end-to-end CDMA network, including wireless networks, core networks, business platforms, and IP architectures.　　ZTE will deploy more than 1000 base stations for the network. The contract was valued at $350 million and was financed by the China Import and Export bank. Shi said: "When you provide telecommunications equipment and technology solutions for operators, sometimes we provide a set of financing services." "This can bring value to operators. We have a lot of financial partners, including Chinese and European banks. "The provision of financing services is not a practice in the industry, but" sometimes we can provide a set of financing services if the operators need it, "Shi said. "Customers also have their own financing channels, they will also assess the cost of financing," but "if we can do it, we are willing to provide such financing services." This is a choice for operators. " He added: "We are a listed company with a very stringent risk control measures." "The contract for the design, construction and operation of the Canadian operator network is thought-provoking." Shi said: "Hosting operations is also a very important strategy for ZTE, and we do not advertise it in a big way, but we have already provided this service in many countries." "Over the past 3-4 years, the company has more than 2000 employees in different countries to provide operational services," he added: "We hire a very professional talent." "Referring to ZTE's clients in the field of operation and maintenance, Shi lists India's MTS (a joint venture between India's Shyam and Russia's Sistema), the idea Cellular in India, and the cell-c of South Africa. "We believe we can see that the potential of this market is huge," he added, adding that ZTE's operating contracts are basically "Start with network construction, but some of us are also taking over the network and existing operators now. "Strong management efficiency at the same time, ZTE, like other equipment vendors, is working to cut costs," he said. "Companies want to optimize their internal management and cost savings are also very important," he said. "He means to achieve internal cost reduction by optimizing organizational structure." ZTE must "restructure the structure to make it more flat and effective." "That means he has to set" clear targets "for different departments and perform performance evaluations. He hopes to save on travel by making more use of it and telecoms technology. "We have 400-500 conference video terminals around the world, and our communication is more convenient." "How do we go next?" Shi's global slogan-"Bringing You Closer"-reveals ZTE's global vision. As a global enterprise, we strive to build a friendly, harmonious and barrier-free information space for the whole world, bringing green products to our customers. We need to bring the value of ZTE to the operators, to the whole mankind and society, for the development of society to contribute value, I think it is very important. Shi The visit with such a solution. (Xiaoran)