The overall economy slow-down affected the telecom market, especially in US and European countries. Most network infrastructure equipment vendors, with the exception of Chinese based players, seem to be either losing money or quitting the business, which includes not only the vendors like Ericsson and Huawei, but also a whole lot of niche market players that have been around for a very long time.
However, the picture is different in emerging countries that still experience rapid growth. China is one of the world's fastest growing telecommunications markets and operates the world's largest fixed (wireline) and wireless telecommunications networks. The Chinese telecom equipment industry maintained high rate of growth, with a 26.6% increase in export business, mainly to the emerging countries. Rising demand for communication service supported by economic development along with major development in technology (such as 3G and 4G) also boost the demand for telecommunication services in China.
According to the financial report of major telecom vendors, Frost & Sullivan concluded that ZTE had achieved the highest growth rate in revenue among the vendors in the global Telecom market, with approximately 33.4% increase in sales revenue by USD year-over-year to $9.17 billion USD for the first 9 months in 2011, from $6.87 billion USD during the same period last year; as compared with the average revenue growth of approximately 10% in 2011 for the whole industry (including Cisco (6% increase, reached $44.82 billion USD during Jan. 2011 to January 2012, from $42.36 billion USD during the same period last year), Ericsson (10% increase, reached $32.89 billion USD in 2011, from $29.90 billion USD), Huawei (14% increase, reached $31.76 billion USD in 2011, from $27.96 billion USD in 2010), ZTE, and Nokia-Siemens(8% increase, reached $18.18 billion USD in 2011, from $16.78 billion USD in 2010)).
ZTE's fast growth in 2011 is contributable to its aggressive marketing and sales strategy both in China and overseas. In global market, ZTE has successfully expanded its business into more geographic regions and cooperated with Tier 1 players, including Softbank (Japan), Bharti Airtel (Indian), América Móvil (Mexico), and etc. ZTE became the network equipment supplier to the top 30 global Telecom operators (excluding US market), and the No. 4 mobile phone manufacturer in the world. Also, as a sign of initial completion of its business layout in high-end market, ZTE has established the corporation with 90% of the top 50 global Telecom operators in Europe.
The motivations towards the capacity expansion and upgrade of wireless network, the development of smart terminals, and the China national broadband strategy and tri-network integration will consolidate ZTE's market position and guarantee its steady and sustainable growth in the future.
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