ZTE, the China-based provider of high technology communication equipment, expects its India revenues to cross the $1 billion mark in 2009. ZTE India clocked $750 million (around Rs 3,750 crore) in sales revenues in 2008.
The telecom equipment company is planning to grow its revenues on the back of a 3G rollout (when the government grants spectrum) and growing the volumes in its mobile device business. Says Wei Zaisheng, executive vice president of ZTE: “ZTE India is in advanced stages of talks with a couple of large telecom players for their 3G rollout. Additionally, we have a strong cash support position for Indian operators, as China Development Bank has provided ZTE a $15 bn credit line, which will include ZTE’s overseas project financing and credit limits.”
D K Ghosh, CMD, ZTE Telecom India, added that their mobile devices are expected to contribute up to 30 per cent of ZTE India’s revenues. He said: “On the handset front, we will broaden our focus from just the lower-end mobile phones to smartphones in the premium segment.” ZTE branded smartphones, priced between $200 and $350, will be launched later in 2009.
At present, ZTE’s partners in the handset market include Aircel, Bharti Airtel, BSNL, HFCL, Reliance, Tata Indicom and Vodafone. The company is strong in low-cost phones and is expected to expand into smartphones based on Microsoft’s Windows Mobile and open-source Linux.
ZTE also unveiled a solar-powered phone at the Mobile World Congress in Barcelona in February, which is aimed at rural communities and will sell for about $40-50.
Zaisheng also said the present credit crunch and the need for carriers to control their capex in order to serve low-end subscribers will create a favourable environment for ZTE in 2009. The officials indicated the company would not be raising its manufacturing capacity in India, as it was presently cheaper to import equipment.