Displaying items by tag: ZTE
Embattled Chinese telecommunication vendors Huawei and ZTE have received a welcome reprieve following the news that two Spanish operators are planning on using them for forthcoming 5G pilots.
Chinese telecommunication vendors ZTE and Huawei have both endured a difficult number of years in the US marketplace – and their issues have multiplied during the Trump administration.
ZTE were momentarily crippled and almost went out of business following a decision by the US Department of Commerce to ban US companies from using their equipment and products for 7 years. However, following an intervention from US President Donald Trump, the ban was overturned and the vendor was instead hit with a $1bn fine and has to adhere to a number of strict rules and regulations.
Huawei have also been subjected to sharp criticism and have been deemed by US intelligence as a serious threat to national security due to their close ties to the Chinese government. Observers believe that the aggression from the US towards the Chinese telecommunication vendors is part of Trump’s plan to use them as pawns in his trade war with China.
Tensions between Washington and Beijing escalated when ZTE were initially banned, and it sparked an angry backlash from China. The rest of the world looked on anxiously as the two economic superpowers clashed head-on, it has since deescalated, but the high-profile arrest of Huawei CFO Meng Wanzhou in Vancouver has once again put diplomatic relations between the two countries under the microscope.
However, the situation in the US for both ZTE and Huawei is set to worsen following reports that US President Donald Trump is set to issue an executive order that would effectively ban operators in the country from using the Chinese manufacturer’s equipment and products.
Reuters has reported that the Trump administration has been mulling over the order for eight months, but it expected to formally enact it later this month. It is said the order would not name Huawei or its compatriot ZTE by name but would give the US Department of Commerce scope to ban any supplier it suspects of being a threat to national security.
Chinese telecommunications giant ZTE may well have had draconian measures that had crippled the company lifted by the US Department of Commerce following an intervention by President Donald Trump, but the narrative that ZTE is a threat to national security is refusing to subside.
US presidential hopeful Elizabeth Warren became the latest politician to take aim at the telecoms behemoth and strongly criticized US senator Joseph Lieberman for serving as a lobbyist for the powerful Chinese vendor.
The ability for Republicans and Democrats to work together to form new policies and legislation in the US Senate and House of Representatives has been at an all-time low during the Trump administration.
The decision by the US to ban ZTE and Huawei from being involved in the rollout of 5G networks has drew bipartisan approval with both Republicans and Democrats voicing their concerns that both companies close association to the Chinese government was a huge threat to domestic security.
Warren, who announced she’d be seeking the Democratic nomination for the US Presidential election in 2020, denounced the US senator for acting as a lobbyist for the Chinese telecommunications behemoth on Twitter.
Warren tweeted, “ZTE is a giant foreign telecoms company that’s close with the Chinese government. They’ve violated serious US sanctions in Iran and North Korea. Their lobbyists keep blocking accountability. And today former senator Joseph Lieberman joined them. Should that be legal? No.”
Warren is an outspoken politician and is known for being a firebrand. She has faced the wrath of US President Donald Trump who has repeatedly ridiculed her claims that she was Native American.
She said that there should be a lifetime ban on members of congress working as lobbyists to make sure they only serve the public. Warren added, “We need a ban on foreign lobbying so countries like China, Russia and Saudi Arabia have to conduct their foreign policy out in the open.”
Bloomberg reported that Lieberman, who was a vice presidential nominee in 2000, began working for ZTE in November. According to a lobbying registration form submitted to the US Senate, he is conducting an assessment of the concerns members of the US Congress, the executive branch and US businesses have about national security risks around ZTE products.
The form also states Lieberman will not be advocating for ZTE, and he had been appointed in the interest of transparency and caution.
The Chinese telecom company will cease to maintain mobile operator O2’s network in Germany – a subsidiary of Spain’s Telefonica – as of next year.
Chinese media outlets have launched a scathing attack on the United States for its role in the arrest and subsequent detainment of Huawei’s CFO in Vancouver earlier this week.
Chinese telecommunications behemoth ZTE has seen its share price plummet by a whopping 39% following the resumption of its trading on the Hong Kong stock exchange. The Chinese vendor was able to resume trading after it reached a resolution agreement with the United States.
ZTE looked set to go out of business following the decision by the US Commerce Department to prohibit American companies from selling crucial hardware and software components to it for a period of seven years.
US officials implemented the ban after it claimed ZTE had failed to make the changes to its Board of Directors after being found guilty of trade violations with Iran and North Korea in 2016. However, following protracted negotiations between Beijing and Washington a settlement deal was finally reached which allowed ZTE to resume business in the United States.
The telecommunications colossus may have been saved but that didn’t stop its share price from nosediving by 39.22 to HK$15.56 during Hong Kong morning trade - while it also plunged by its 10 percent daily limit to 28.18 yuan in Shenzhen.
Fiscal analysts have predicted that whilst the nightmare for ZTE may be over with the US, the company will have to deal with the consequences of that saga for a significant period of time.
Analysts Edison Lee and Timothy Chau said, “While the nightmare is now over, ZTE will likely have to deal with many changes. We expect significant near-term selling pressure and a volatile stock price."
The ZTE crisis was a major issue during trade talks between the US and China, and the Trump administration were able to use that as leverage in the discussions. The ZTE settlement came just days after Beijing offered to increase purchases of US goods by $70bn in an effort to cut the yawning trade imbalance with the US.
It has been reported that Trump has demanded a $200 billion reduction in its trade deficit with China over two years.
“The US agreement with ZTE with fine and change of management, in other words, is a political deal," said analyst Dickie Wong at Kingston Securities. "If the US didn't 'free' ZTE in this way, US companies would find it very difficult in any moves in China, including decisions on mergers and acquisitions," Wong added.
Chinese telecommunications vendor ZTE has announced that it has reached a deal with the US Commerce Department over the trade sanctions that threatened to put the powerful conglomerate out of business.
ZTE has vowed to clean up its act in light of the decision by the US after weeks of protracted talks between officials in Beijing and Washington. In April, the US Commerce Department prohibited the sale of crucial US components to ZTE for a period of seven years. It had found that the Chinese telecommunications colossus had failed to take the appropriate actions against its staff in relation to the trade violation it engaged in with Iran and North Korea.
ZTE chairman Yin Yimin said the company had to start holding the relevant people to account for the trade violations in 2016, and said the ban imposed in April highlighted the issues within its internal management systems.
In a statement released to Bloomberg, the chairman said, “We must deeply realize that this issue in essence mirrored problems in our compliance culture and management. We should hold relevant people accountable and avoid similar issues in the future."
It has been disclosed that part of the deal agreed between the US and ZTE will see the Chinese vendor pay a $1bn penalty, with another $400m in escrow to cover possible future violations. In addition to this, ZTE will also be forced to overhaul its entire board of directors and must hire outside legal compliance specialists who will in turn report directly to the Commerce Department for 10 years.
Once ZTE has executed these changes Washington will strike the company from a sanctions list. China's foreign ministry on Friday offered a muted response to the ZTE deal, but a spokeswoman added the following statement, "We also hope the US can provide a fair, equal and friendly atmosphere for Chinese enterprises' investments and operations there.”
Shenzhen-based telecom vendor ZTE recently launched its Artificial Intelligence (AI) Solution to help operators build next-generation highly-intelligent and cost-effective automated AI networks. From platform, services, network and chip aspects, the solution fully elaborates on future-oriented AI end-to-end architecture, applications, as well as typical scenarios.
With a unified AI platform, ZTE's AI Solution can provide diversified applications, for cloud service, intelligent network, as well as chip and terminal.
AI-based cloud service application can provide voice and video services which are based on face recognition, human and vehicle identification, speech recognition and Natural Language Processing (NLP) technologies.
AI-based intelligent network application, which is based on precision algorithms, can provide intelligent network operation & maintenance (O&M) solution, intelligent network optimization solution, as well as intelligent network operation solution and more.
In chip and intelligent terminal perspective, the solution can provide self-research AI chip, self-research robot module, and self-research intelligent terminals such as smart phone and smart home terminals.
Complemented with high computing power, precision algorithm and data analytics capability, AI technology will lead to the evolution of highly intelligent autonomous, automatic, self-optimizing and self-healing networks.
At this stage, operators and vendors are still proactively exploring and seeking more efficient, stable and accurate AI algorithms and solutions to reduce the operation labor cost and effectively improve operating income.
Presently, ZTE has taken the lead in collaboration with a number of leading global and domestic operators. Through joint R&D design, joint field tests, actual network data acquisition, training and optimization, algorithm and solution iteration as well as commercialization processes have been expedited.
In addition, this helps operators introduce new technologies and build next generation intelligent network more conveniently amidst the ongoing advancement of AI technologies.
Chinese telecommunications colossus ZTE has attributed its first-half net profit success to its investment in 4G infrastructure and handsets. The world’s fourth-largest vendor of smartphones has hit its projected first-half net profit target forecast of 30%.
Analysts said that domestic telephone network providers continued to invest in 4G infrastructure provided by ZTE, and the firm also enjoyed a significant growth in the sales of its mobile devices. ZTE’s profit was $344M, whilst revenue rose by 13% which incidentally was also ZTE’s projected target.
In a statement released to the press, ZTE acknowledged that the organization has been presented with many new opportunities and expressed its vision to deploy 5G products and services. 5G standardization is expected to be established in 2018.
The statement read, “Looking to the second half of 2017, the company faces new opportunities," ZTE said in a statement in Chinese. "4G users and traffic will enter a peak period and pre-5G products will have more application, while 5G's standardization, technology and testing will experience a breakthrough."
ZTE reported more growth in relation to its telecom equipment sector, disclosing that revenue in that business grew by 13%. Its telecoms sector focus primarily on constructing infrastructure such as communications towers and accounts for 60% of overall revenue. ZTE’s remarkable financial results were cemented with the fact that its consumer business had also increased by a whopping 24%.
In March of this year, ZTE was left reeling after it was found guilty by the US Commerce Department for breaching US trade rules. It was fined almost $900M for breaking exports regulations. It’s the only smartphone vendor with a real presence in the US, and it has recovered well since that setback earlier this year, remaining the fourth-biggest vendor in the US after Apple, Samsung and LG.
ZTE executives have insisted they will continue to aggressively invest in wireless and 5G technology, whilst also revealing it aims to invest more in international marketing in the second-half of 2017. Revenue from ZTE’s smallest business area which is government and enterprise services has declined by 18%.
In addition to this, ZTE confirmed that it has agreed to sell 10.1% of its smartphone subsidiary Nubia for 727 million Yuan. That will reduce its equity in the company to 49.9%.
South Korean multinational conglomerate Samsung and Chinese vendor ZTE have both adopted aggressive strategies in relation to investment for 5G infrastructure – and many analysts are predicting that this approach will both disrupt and threaten the traditional trio of networks players which include Nokia, Ericsson and Huawei.
ZTE has focused largely on the development of 5G specifications in the last twelve months, which is much more than any of it previous forays in relation to mobile technology. The Chinese telecommunications equipment and systems colossus has doubled its R&D spending on 5G in 2016 to $400m – and has assigned 1,600 employees to work on the technology at four dedicated research facilities located in China, the US and Europe.
Director of Wireless Standardization, Wang Xinhui has claimed that ZTE’s inactivity with 2G, 3G and 4G was down to the fact that it lacked maturity, and declared it was now much better equipped for the forthcoming era of 5G. At a 5G Summit in Tokyo in May, he told Mobile World Live: “In the past we were simply less mature. With 2G and 3G, and even with 4G, we weren’t that big. But in the era of 5G, we were well prepared. We’ve spent a huge amount of money and devoted so much human resources, particularly towards the New Radio specifications.”
Chief analyst at Global Data Technology, Peter Jarich said it made perfect sense for an entity like ZTE to attempt to penetrate the 5G market, as the technology will require new expertise and infrastructure. He feels it’s a natural and logical progression from ZTE to invest heavily in 5G, as they recognize it as a phenomenal opportunity.
South Korean smartphone giants Samsung have also adopted a similar approach, and have been working on 5G since 2012, when it started its first mmWave research and development. It has previously stated that it firmly believes that strong 5G infrastructure will help ensure Samsung executes its mission which is to ‘connect everything’.
Samsung has boldly set its sights on becoming a top-three player in the 5G infrastructure market, and it has estimated that network equipment sales will treble to $8.6 billion in 2022. It has been disclosed that Samsung, which is the world’s largest smartphone maker plans to accumulate market share by moving swiftly and targeting the US market.
The reason behind its strategic targeting of the US market is that its Asian competitors such as Huawei and ZTE may face a ban on selling networking gear due to security concerns which have been raised by the government. In May, Samsung publicly announced that it had conducted the world’s first field trial of a multi-vendor, pre-standard 5G network with US telecommunications firm Verizon. In addition to this, more recently Samsung and UK communications firm Arqiva announced it had conducted the first field trial of 5G Fixed Wireless Access Technology in Europe that went live in Central London.
VP of next-generation business and products at Samsung Networks, Woojune Kim, has expressed his confidence they can become a top tier network player in 5G, citing the fact that its Finnish and Swedish competitors are currently struggling. This stark assessment of its rivals was evidenced by the CEO of Nokia, Rajeev Suri conceded that the fact 5G was accelerating much faster than originally expected, would almost inevitable create some near term risks for his company, with the timing and completion of certain projects now uncertain.