ZTE signals to double revenues by 2011

Written by Rachana Khanzode | Mumbai | Updated: Jul 3 2010, 04:55am hrs
Chinese equipment vendor ZTE is expecting its revenue from India to touch $3 billion (around Rs 14,000 crore) by the end of 2011. ZTE Telecom India chairman & managing director DK Ghosh said, We are expecting our India revenues to grow by 30-50% this year and double by 2011-end if there are no further regulatory hurdles. ZTE's India revenues as on December 31, 2009, stood at $1.5 billion.

ZTE is expecting the growth to come from 3G and BWA roll outs that are believed to happen within the next two years. Telecom service providers are going to be aggressive due to roll out of 3G and BWA/LTE services and this is reckoned to push our growth, Ghosh said.

The new multi-vendor strategy, which is picking up in the industry, is going to open up a number of managed services contracts. It is going to be big for us, he said. ZTE claims Sistema, Stel and a number of new GSM operators to be its clients.

However, Chinese vendors ZTE and Huawei in India have been facing issues on the back of security concerns, resulting in loss of business and market share.

State-owned BSNL was earlier directed by the security agencies that they cannot buy equipment from the two Chinese vendors for the 93 million GSM lines contract. This was later scrapped. BSNL had also banned the duo from bidding in the new 5.5 million GSM lines contract.

According to media reports and industry insiders, the government is expected to set up a certification lab that would certify Chinese equipment before they are deployed, which might bring a relief for the two providers in India.

Ghosh said the firm has undergone numerous certifications and that the equipment manufactured in China by the company are sold across the globe. ZTE also has been trying to go local in a bid to convince the government on security concerns. Last year, we added 1,000 people, of which about 500 were send to China for orientation and these were at different senior levels. We expect to continue the same, Ghosh said.