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An interview with Luo Zhongsheng, General Manager
of ZTE’s TD-SCDMA handset product line
Issue 3 2008
CONTENTS
December 2008
Information Rounder
03
05
News
Handset Showcase
ZTE MF662 & ZTE MF645
ZTE E160 & ZTE F280
Focus
07
Change Communications,
Change Life
In Commemoration of ZTE’s 100
Millionth Handset Sales Record
Cover Figure
15
Yin Xiaotian
a “Yin-Style Good Man”
Character
19
21
23
Interview
Creating More Success in
the Handset Market
An interview with Luo Zhongsheng,
General Manager of ZTE’s TD-SCDMA
handset product line
ZTE World
Walking into Africa
Brand Road
BMW, a Logo Bearing Bavaria’s Blue
Sky and White Clouds
05
19
Creating More Success
in the Handset Market
An inter view with Luo Zhongsheng,
General Manager of ZTE’s TD-SCDMA
handset product line
07
Change Communications,
Change Life
In Commemoration of
ZTE’s 100 Millionth
Handset Sales Record
Issue 3 2008
Issue 3 2008
CONTENTS
Perspective
25
26
27
Service
Strong Support for
Overseas Market
Forging the No.1 Brand in
After-Sales Service
ZTE’s Innovative Team
Ensures Quality Supply
Tech Frontier
The Battle for Mobile Music
in the 3G Era
23
Information Rounder
News
December 2008
B M W, a L o g o B e a r i n g
Bavaria’s Blue Sky and
White Clouds
Fashion
29
31
China’s Top Legislator Inspects ETC Project
Wu Bangguo, chairman of China’s National People’s Congress (NPC) Standing Committee,
Easy of Use: A Key to
Google’s Success
Save Energy,
Cope With Financial Crisis
visited Ethiopian communication network data center, in the country’s capital of Addis Ababa
on Nov. 9, 2008, to inspect a nationwide network project constructed by ZTE for Ethiopia
Telecommunications Corporation (ETC), during his official goodwill visit to Ethiopia.
ZTE’s chairman Hou Weigui and executive vice president Qiu Weizhao accompanied Wu
Sponsor
ZTE Corporation
Editorial Board
Editors-in-Chief Gu Yongcheng, Xiong Hui
Deputy Editors-in-Chief Huang Xinming, Wang Yong
27
The Battle for
Mobile Music in
the 3G Era
in the inspection. Wu met Chinese and Ethiopian engineers and encouraged them to work hard
and build the ETC project into a sample project of China in Africa.
ZTE USA Unveils New
Handset with MetroPCS
ZTE USA, Inc., a subsidiary of ZTE
Corporation, announced on Dec. 10,
2008 the general availability of the ZTE
C78 handset offered by MetroPCS, the
nation’s leading provider of unlimited, flatrate wireless communications service,
ZTE, China Telecom Ink 1.33 Billion RMB Deal
ZTE announced on Nov. 19, 2008 the signing of a 1.33 billion RMB contract with China Telecom
Corporation Limited for the first phase of a CDMA network construction project commencing in 2008
that will cover both wireless and service networks.
to subscribers in its U.S. markets.
This marks the third handset ZTE has
launched with MetroPCS in 2008.
ZTE’s handsets have won numerous
Under the agreement, ZTE will provide China Telecom with CDMA wireless equipment, technical
design awards, and its flexible product
Editorial Director Zhao Lili
documentation and services worth 1.27 billion RMB and service network equipment, technical
design and manufacturing cycle enables
Executive Editor Liu Yang
documentation and services valued at 60 million RMB.Other contracts for the construction of the core
ZTE USA to quickly deliver affordable
network and for the provision of additional telecom equipment are expected to be agreed upon by the two
products to customers.
Editor Olga Saprykina
Circulation Manager Wang Pingping
Editorial Office
companies soon.
ZTE, Qualcomm and Aircell Collaborate on Industry-first
ZTE USA, Inc. a subsidiary of ZTE Corporation, and Qualcomm Incorporated announced on
Marketing system
Nov. 18, 2008 their collaboration with Aircell to create the networking platform for Aircell’s new Inflight
11F, R&D Building, ZTE Plaza, Hi-tech Road South, Hi-
Air-to-Ground (ATG) service relies on ZTE’s EV-DO Rev. A base stations and IP switching platform and
tech Industrial Park, Shenzhen, P.R. China
Qualcomm’s aircraft-mounted modems. ZTE, Aircell and Qualcomm’s R&D group worked closely to
Postcode 518057
Tel +86-755-26776663
Fax +86-755-26775217
Internet service, Gogo, which first began service in August on select American Airlines flights. Aircell’s
engineer a custom solution that would maximize the performance of the in-flight service.
ZTE Wins Special Contribution Award for Earthquake Relief
ZTE was honored with Special Contribution Award for earthquake relief efforts at Shenzhen’s first philanthropy conference on Oct. 29, 2008.
Having donated 130 million yuan since 1998, the company was also among China’s top three philanthropic enterprises. After the earthquake in Sichuan
Website www.zte.com.cn/magazine/English
Province in China on May 12, 2008, ZTE immediately set up a disaster relief command office and an emergency repair team, who helped the quake-hit areas
Email [email protected]
make the first call to the outside world 36 hours after the disaster occurred. Meanwhile, ZTE and its employees donated a total of 13.83 million yuan to the
quake-affected areas in Sichuan, and ZTE established a 10-million-yuan “ZTE’s Caring for Children” fund together with Children’s Foundation of China.
Issue 3 2008
Issue 3 2008
Information Rounder
Information Rounder
News
Handset Showcase
Yin Yimin Among the Most Influential
Telecom Leaders
Smart PCS Selects
ZTE USA’s CDMA
Products
ZTE MF662
ZTE USA, Inc., a subsidiary
HSDPA+ data card, offering consumers
of ZTE Corporation, announced
enhanced data speeds. Dimensions of the
on Dec.17, 2008 that Smart
MF662 HSPA+ data card are 69 x 27 x
PCS, an unlimited no contract
12mm. The MF662 has been specifically
pre-paid carrier, selected
designed for HSPA+ networks — the
ZTE USA as the key CDMA
evolution of the current HSPA-based 3G
infrastructure and device vendor
network technology — meaning users will get
partner to support its initial
access to a much faster mobile broadband
service launch. ZTE USA’s
connection. The adaptor offers download
ZTE Wins CMPak’s Capacity Expansion Project
mobile softswitching equipment
and upload rates of up to 21.6Mbps (up
and All-IP CDMA2000 1xEV-
from 14.4Mbps on HSPA) and 5.76Mbps
subsidiary (CMPak) to help them expand the capacity of their GSM infrastructure as part of Phase 2 project.
DO base stations are being used
respectively.
Yin Yimin, president of ZTE, featured in the list of the
world’s 100 most influential telecom leaders publicized on Nov.
10, 2008, by Global Telecoms Business, an industry magazine.
Also included in the list were Simon Bereesford Wylie, CEO of
Nokia Siemens Networks, and Vittorio Colao, CEO of Vodafone.
According to the Global Telecoms Business, “Yin has
led ZTE on a dynamic growth pat: sealing a partnership deal
with France Telecom, opening offices in the U.S., and winning
business across the world — most recently a worldwide
network equipment deal with Vodafone. This Vodafone deal is
particularly important in India.”
ZTE announced on Dec. 3, 2008 the signing of a US$100 million contract with China Mobile’s Pakistan
ZTE recently unveiled MF662, a compact
The project covers central Pakistan, where the highest GDP in the country is produced and more than half of
to construct the networks in the
The emergence of high-bandwidth
the country’s population resides, hence becoming the main source of most operators’ voice data service profits.
initial markets the carrier will serve,
services such as mobile TV, downloading of
The central Pakistan territory comprises of eight cities and regions, including Multan, Faisalabad and Lahore,
which include northwest Georgia
music TV and film clips, 3D interactive games
Pakistan’s second largest city.
and Tennessee, as well as future
with multiple players, and large volume mail
markets to which the carrier will
services is placing significant strain on network
expand. Smart PCS also chose
speed and capacity. HSPA+ will address this
ZTE USA’s data cards and high
challenge by providing high download and
quality, feature-rich handsets to
upload links and greater capacity.
ZTE WiMAX 16e Terminals Launched in U.S.
Several types of ZTE’s self-developed WiMAX 16e terminals appeared on the U.S. market on Oct. 15.
As one of core partners of U.S.-based telecom carrier Sprint, ZTE’s latest WiMAX products will be sold at sales
outlets of Best Buy, a consumer electronics and home appliance retailer in the U.S
ZTE TU25 is the first WiMAX USB Modem that has passed the certification of Sprint and has been used by
offer its new subscribers.
Sprint in its XOHM network.
ZTE Bags US$400 Million Contract from Maxis
ZTE has been selected by Maxis, the largest mobile telecom operator in Malaysia
to help one of its subsidiaries in India, Aircel, to expand GSM coverage in the country.
The deal, which is worth US$400 million, will help Aircel to establish one of the most
sophisticated GSM network infrastructures in India.
India is one of the markets with the fastest growing mobile user base in the world.
ZTE MF645
Together with MF662, ZTE also launched MF645 as
Being the fifth largest mobile telecom operator in India, Aircel is also one of the best
part of its High Speed Packet Access (HSPA) product
performed privately-owned telecom carriers in India.
family. The MF645 is a USB TV data card, allowing
viewers to watch digital TV from a laptop over the mobile
ZTE Successfully Tests End-to-end WiMAX and
IMS System at GMI 2008
ZTE announced on Dec. 18, 2008 its successful participation in the Global MSF
Interoperability (GMI) 2008 event held by the MultiService Forum (MSF) to advance the
development of next generation networks (NGN). ZTE provided its next-generation
equipment to the test sites of some of the world’s leading global operators located
in UK, China and USA, working closely with the operators and participating vendors
to verify its end-to-end WiMAX plus IMS, IPTV and TD-SCDMA technologies in six
network test scenarios defined by the MSF.
Issue 3 2008
broadband connection.
With the 93 x 28.8 x 12.9mm dimensions, the
MF645 is the world’s smallest TV data card, and is
believed to be the world’s first plug-and-play data
card. With this USB modem, consumers can watch
digital television on a computer or laptop over a 3G
connection. As the MF645 supports a download rate
of up to 7.2Mbps, it enables a user experience that is
similar to traditional TV sets.
Issue 3 2008
Focus
Information Rounder
Handset Showcase
ZTE E160
In late 2008, ZTE released a series of medium- to high-end business
handsets, among which, the leading product was ZTE E160.
With dimensions of 106×46×15.8mm, the handset has a moderate
size and weight. The E160 comes in a stainless steel shell. Its wearresistant steel plating offers a good feel and luster. Moreover, the 2.4 inch,
262,000-color, QVGA touch screen enables outstanding display.
As a GSM dual SIM card and dual standby handset, the E160
features an extra-long standby time. It also offers some supplementary
functions, like displaying the city name of the incoming call and querying
ZTE F280
For the mature CDMA network, ZTE has recently launched a
new handset, ZTE F280.
home locations of numbers. Tailored for business people, the E160 is
The biggest highlight of F280 is practicality. The handset looks
designed with a built-in incoming call firewall, and only defined call can
compact and chic with the 97.8×46.5×14.3mm dimensions, slide
come in.
design and a 1.8 inch, 65,536-color screen. It is equipped with
The E160 has a 32MB memory, ensuring smooth operation while
a wide range of services, including hand-free voice recording,
laying a foundation for extended functions. It provides all mainstream
enhanced schedule, incoming call firewall, and power-on/off alarm,
functions of business smartphones, including GPRS, WAP 2.0, Bluetooth
satisfying the needs of various people.
wireless transmission, and microSD card expansion. It also offers rich
As for entertainment, the F280 supports MP3 music and
entertaining functions, including MP3/MP4, FM radio, mobile QQ, digital
MP4 video playback. It also supports the FM radio function. The
video camera, electronic book, and many built-in games. Additional
300,000-pixel CMOS camera is more than enough for creating big
features include alarm call, calculator, calendar, stopwatch, and ZTE hearty
head stickers and multimedia messages, and the users can also
service hotline.
enjoy its video shooting function to record exciting moments in life.
Issue 3 2008
Change Communications,
Change Life
In Commemoration of ZTE’s
100 Millionth Handset Sales
Record
By Li Mengsi, Gai Zhenyu
S
ince ancient times, convenient communications have been a dream of human beings.
Nowadays, telecommunications have made the world a global village. Simply by dialing
several digits, you can talk with people at the other side of the earth. Think about how difficult
communications were in ancient times: People had to use homing pigeons to deliver letters. The origin of
marathon comes from the story of a soldier who ran from Marathon to Athens to announce the victory news
and died from exhaustion. After all the painful even tragic experience, human beings are now enjoying the
tremendous changes in life brought by telecommunications.
Great changes have taken place in China’s telecom industry over the past 30 years. From analog to
GSM mobile phones, from 2G to 3G networks, we have seen many milestones in China’s communications
history. What will be the next milestone in the telecom industry? We are looking for the answer in the
currently stagnant handset market. Possibly we can find a clue in the recent news of ZTE, which celebrated
100 millionth handset sales record in September 2008.
Issue
Issue 33 2008
2008
Focus
Focus
From Zero to
100 Million
Since China began the reform and opening policy 30 years ago,
the Chinese handset market has grown a few tens times to a system
of diversity and hierarchy. Now China is the fastest-growing mobile
communications market with the largest number of mobile subscribers.
100 million handsets.
The first all Chinese handset Motorola CD928+
Motorola CD928+ was the first all Chinese handset. It provided
Chinese characters input support for text messaging and contact
naming. The CD928+ was of great significance in China’s handset
history.
The first flip handset Motorola 8900
handset that entered
the Chinese mainland
market, Motorola 3200
enjoyed a dominant
position in the market
from the late 1980s to
The first flip-top handset Motorola 328C
The flip-top handset was inspired by the flip
Motorola’s brick-like 8900 model was introduced in
handset, and Motorola 328C was a classic among flip-
China in late 1980s and sold at a price as high as 30,000
top handsets at that time. The 328C was small in size
to 40,000 yuan. Though big and heavy, the 8900 was the
and convenient to carry.
first flip handset in China. Compared with previous bar
handsets, it was a significant improvement.
The first GSM handset on the Chinese
mainland market Ericsson GH337
The first handset with two displays
Samsung SGH-A288
As the flip-top handset became popular, its
shortcomings became more and more obvious. When
Shortly after the launch of the first GSM digital mobile
the handset was folded, the user could not see the
telephone network in Guangdong Province in December
display. This was changed by Samsung SGH-A288.
1994, Ericsson GH337 landed on the Chinese mainland
With two displays, the SGH-A288 enabled the user
market. Being a digital handset, the GH337 enabled faster
to identify incoming numbers without unfolding the
connection speed and better signal receiving sensitivity
handset.
than analog handsets.
ZTE D90 is the world’s clamshell handset featuring
frequency GSM handset with self-owned intellectual property right.
a full QWERTY keyboard. Designed for use on EV-DO
Designed with some innovative ideas, ZTE189 enabled flexible
networks, the ZTE D90 can support access to an array of
handover between GSM900MHz and GSM1800MHz networks.
advanced voice, data and multimedia applications including
Starting from August 1999, ZTE189 was under Full Type Approval
full track music downloads, video downloads, location-
(FTA) tests in German ETS Company and finally passed all 600
based services and messaging services including email,
tests.
IM, text messaging, and multimedia messaging.
On January 8, 2002, China Unicom commenced
On March 26, 1994, the Mobile Communications
Being the first analog
ZTE 189 was launched in 1999. It was China’s first dual-
The first CDMA handset with detachable
Corporation (China Mobile) was officially established. SIM card ZTE 802
In October 2000, China Unicom announced it would
ZTE 802 launched in Beijing in 2001 was the world’s first
start constructing a CDMA network. In November 2000, CDMA handset with detachable SIM card.
China Mobile launched Mobile Internet (Monternet).
past and recollect the past events before ZTE reached a sales record of
The first handset
introduced into the
Chinese mainland
Motorola 3200
The world’s first clamshell handset with
QWERTY keyboard ZTE D90
On April 20, 2000, China Mobile Communications
At this time when various handsets are available, let’s look back at the
Bureau was established under the former Ministry
of Posts and Telecommunications. On July 19,
1994, China Unicom was founded. In October 1994,
the first provincial digital mobile communications
network was deployed in Guangdong Province.
China’s first dual-frequency GSM handset with
self-owned IPR ZTE 189
CDMA services at a formal ceremony held in
Beijing. On March 5, 2002, China Mobile signed
the GSM-CDMA automatic roaming agreement
with South Korea’s KTF. On April 8, 2002, China
Unicom officially launched its CDMA service under
the brand “New Horizon”. In May 2002, China
Mobile interworked SMS with China Unicom. On
May 17, 2002, China Mobile’s GPRS service came
into commercial use.
The device has typical TD-SCDMA 3G
functions and EDGE capability. Users
can gain Internet access via EDGE
when the TD network is unavailable.
data download.
In October 2005, China Mobile and China Unicom eliminated the price difference between the two
networks. As a result, the mobile tariff rates in China were further decreased.
In 2007, China Mobile conducted large-
scale TD-SCDMA equipment bidding and
network construction. The total value of the
tender is 26.7 billion yuan.
The world’s first TD-SCDMA HSDPA handset ZTE U990
The U990 handset runs on Windows Mobile 6.1 operating system and is
the first ZTE handset integrated with the Microsoft OS. The U990 indicates a
Mobile closed the analog
Remember the first handset with
Bluetooth was at first an optional
On April 1, 2008 , China Mobile started its
network and analog
embedded games? It was Nokia 6110. It had
component of Ericsson handsets. In
handsets represented by
three embedded games, Snake Xenzia, Beach
August 2001, Ericsson released the
Motorola 3200 quit the
Rally, and Soccer League. Snake Xenzia has
T39mc, the first handset in the world
historical stage.
become a classic mobile game.
that had a built-in Bluetooth chip.
TD-SCDMA trial operation. A total of 20,000
“friendly users” were provided with free TDSCDMA test handsets and data cards.
Issue 3 2008
supporting both TD-SCDMA and EDGE.
dual mode. Apart from high-quality voice communication, it can also provide video phone capability, multimedia play, and high speed
time. In June 2001, China
standby intelligent handset in the industry,
In 2004, ZTE launched the F808, the smallest 3G handset in the world. Weighing only 104g, the F808 supports WCDMA/GSM
The first handset with embedded
games Nokia 6110
tag of social status at that
ZTE U980 is the first dual-mode dual-
The smallest 3G handset in the world ZTE F808
The first handset with
built-in Bluetooth function
Ericsson T39mc
the mid-1990s. It was a
The world’s first TD-SCDMA/
EDGE dual-mode dual-standby
handset ZTE U980
new benchmark of China’s high-end TD handsets and symbolizes that China
has entered the 3.5G era.
The history of China’s telecom industry is
composed of many milestones. ZTE’s sales
milestone of 100 million handsets will be written
into China’s telecom industry forever.
Issue 3 2008
Focus
After 30 years of
Hou Weigui, chairman of ZTE, opens the 100 millionth handset sales ceremony with other guests
ZTE Announced 100 Millionth
Handset Sales Record
Popularize Handsets
The telecom equipment market in China, which was once dominated by the
market opening and
multinational magnates, was very expensive. Since the establishment of joint and wholly
reform, China has become
owned telecom companies in the early 1990s, people in China had the chance to
one of the most competitive
experience the latest telecom technologies. Some Chinese companies, a representative
communications markets
of which is ZTE, gradually built up their production lines and started overall competitions
in the world. During the
with foreign peers. With strenuous efforts, a couple of Chinese companies won the
competitions between
market bit by bit and are now playing dominant roles in the Chinese market. The
Chinese and multinational
rise of Chinese vendors has helped to decrease China’s investments on telecom
vendors, new miracles
infrastructures and the expenses of ordinary users on handset terminals.
With flexible policies and efficient marketing, Chinese vendors intensified market
● In 1998, ZTE won two turnkey projects for switching
legends passed away. The
competitions, of which consumers became the largest beneficiaries. At present,
systems in Bangladesh and Pakistan. The Pakistani
latest miracle was released
consumers can buy high-quality handsets and enjoy better network services at much
project was worth US$97 million and was the largest
on September 25, 2008,
lower prices.
turnkey project that Chinese telecom equipment vendors
when ZTE held the 100
“This accomplishment, the 100 millionth handset sales, is a new starting point for
millionth handset sales
ZTE. We’ll strive to become one of the top three handset manufacturers in five years,”
● In December 2005, 300,000 F866 WCDMA handsets
ceremony in Shenzhen.
said Hou Weigui, chairman and co-founder of ZTE.
customized for Hutchison 3G were shipped to Britain
and sold into the British market. This was a major
away the depression in
breakthrough of ZTE in the high-end overseas market.
China’s handset market,
● In 2006, ZTE broke into North America with first
but set a milestone for
shipment of 3G terminals for Canada.
ZTE’s entry into the “first
● In February 2006, ZTE launched MF330, the world’s
camp” of global handset
first 3.6M HSDPA data card, and supplied batches of the
manufacturers.
MF330 cards to major European operators.
● In 2006, ZTE cooperated with BT and TIM and
released Mobile TV 3G handsets based on the DABIP technology and the DVB-H technology respectively.
handset sales volume increased from 12 to 16 million sets. In 2007, ZTE sold 31.06 million handsets and became the sixth largest handset
● In May 2007, Vodafone announced in Britain that it
manufacturer in the world. In 2008, ZTE became the first Chinese handset manufacturer with accumulative sales volume reaching 100 million units.
launched two types of ZTE-manufactured handsets in the
From commencing handset manufacturing to the 100 millionth handset rolling off the production line, Nokia used nearly eight years, and Sony-
world’s emerging markets.
Ericsson used seven years. ZTE, which fulfilled the same achievement in 10 years based on self-developed technologies and marketing efforts,
● In July 2007, ZTE signed a WiMAX terminal contract
cannot be put into shade by any other member of the “100 million club”.
with Sprint Nextel. This was a major breakthrough of ZTE
The sales of 100 million handsets produced by ZTE were nearly 1/10 of the predicted global handset sales volume in 2008. This number might
in the U.S. market.
be ordinary for the industry leader Nokia. For any other handset manufacturer, however, ZTE has created a miracle.
● In August 2007, ZTE and Telus jointly launched the D90
Drive the Growth of the 3G Market
handset in North America. The D90 won the prestigious
ZTE’s 100 millionth handset, the U990, can be regarded as a new benchmark in
Children dressed like angels hold a crystal ball that encloses the 100 millionth handset (L)
Chen Weihong from the CCTV hosts the ceremony (R)
China’s high-end TD-SCDMA terminals. Being the first TD HSDPA handset in the world,
the U990 not only showed ZTE’s confidence in the take-up of China’s 3G market. It also
Red Dot Design Award of 2007.
● In 2008, ZTE signed a global framework agreement
with Vodafone on spanning ZTE’s entire product portfolio,
indicated that ZTE would focus on promoting China’s domestic 3G market.
including GSM, UMTS, and optical transmission.
In cities covered by TD-SCDMA networks, people can use the U990 to enjoy highspeed data and multimedia mobility services. The U990 with built-in Bluetooth chips and
mini camera allows users to enjoy pictures, video clips and make video calls. Its HSDPA
speed is capable of reaching 2.8Mbps for downlink transmission. Meanwhile, the U990 has
inherited ZTE’s unique Enhanced Video Phone (EVP) technology and effectively decreased
According to Gartner, Nokia, Samsung, Motorola, LG and Sony-Ericsson were the
● In July 2008, ZTE entered into strategic alliance
top five handset manufacturers in the second quarter of 2008. Sony-Ericsson, which
with Mobile Virtual Network Operator (MVNO) Japan
ranked No.5, sold 22.95 million units, and fourth placed LG sold nearly 26.7 million
Communications to supply Japan with WCDMA
handsets. ZTE’s sales volume was close to that of LG, Sony-Ericsson and Motorola.
terminals, hence penetrating into Japan’s market.
We are confident that ZTE will further develop itself to challenge the top five vendors.
the mosaic effect and delays during video communications. The U990 with perfect
Issue 3 2008
had ever won in the international market.
This event not only drove
Despite the downturn in the global handset industry in 2005, ZTE saw an incredible boom in handset sales. From 2005 to 2006, its annual
10
Milestones of ZTE
in International
Marketing
were created and old
Establish a New Benchmark for China’s Homegrown Handsets
software and hardware combination enables users to enjoy high speed 3G services.
TIPS
ZTE U990 guarantees high-speed Internet surfing experience
Issue 3 2008
11
Focus
China’s telecom industry has
witnessed many legendary moments in
the past 30 years. Behind each legendary
moment, there always were some stories.
When ZTE edged out domestic and
foreign handset manufacturers in China
and shipped its 100 millionth handset in
2008, what story can we find behind it?
ZTE’s handset test lab
Key Factors Behind
ZTE’s Sales Record of
100 Million Handsets
Early Opportunities Brought by Technology
initiative in competition and seize early opportunities. ZTE has
“If a country or a nation wants to have a firm stand in the world and win
established partnerships with well-known telecom operators,
respects from the international society, it must achieve a leading position in the
such as Vodafone, Hutchison Whampoa and Telefonica,
high-tech field,” said Hou Weigui, chairman and co-founder of ZTE. Hou’s opinion
further developing its businesses in high-end markets
was the basis for ZTE’s innovation strategy. In 1986, ZTE set up its first R&D
including Europe, North America and Japan. So far, ZTE’s
team and developed its first product — an analog space-division PBX. In 1987,
handsets have been sold to over 100 countries and regions.
this product passed the technical authentication and got the network entry permit
As the saying goes, “good luck goes only into ready hands.” This applies
ZTE Witnesses Reform
Compared with the long history of China, the past 30
perfectly to ZTE.
years of reform and opening in the country were as short
A review on ZTE’s history shows that the company has held a different idea
as a blink. However, the three decades have brought about
from other Chinese handset manufacturers concerning business operation of
tremendous changes to China and the life of Chinese
handsets. While most of its Chinese competitors focused on sales and marketing
people. Looking back on the reform and opening process,
years ago and neglected successive investments on technologies, ZTE dedicated
we could not help being amazed by the arduous efforts and
itself to the R&D of handset technologies. The efforts were all paid off: the
accomplishments.
company made breakthroughs in overseas markets when China’s homegrown
In the past 30 years, China experienced quick
handset vendors suffered a wintertime in the domestic market in 2004. Today,
development in all aspects, including education,
being the top Chinese handset brand, ZTE is competing with international handset
transportation, and communications. In 1978, the college
brands at home and abroad, while the other Chinese handset manufacturers are
entrance examination system was restored and changed
struggling for survival in the home market.
the life of later generations. In 1999, Chinese universities
Chinese handset manufacturers will be faced with rare opportunity when the
and colleges enlarged enrollment, which improved the
Chinese Goverment issues 3G licenses, which will cover WCDMA, CDMA and TD-
overall competence of the Chinese people. The reform and
SCDMA modes. Having enjoyed a high reputation among international 3G operators,
opening stimulated the development of the traffic industry
ZTE, capitalizing on its technology accumulation, will expand into China’s high-end
while helping people getting rich. Earth-shaking changes
handset market. At the grand ceremony celebrating the 100 millionth handset sales
have also taken place in the communications industry.
The major communication method between people has
changed from letters to telephone calls, to online chatting.
Convenient communications have made the world a global
village. Recognized as a milestone in China’s handset
industry, ZTE’s 100 millionth handset sales record was an
evidence of the reform and opening achievements. With
powerful strength, ZTE will make greater contribution to the
development of China’s communications industry.
issued by the former Ministry of Posts and Telecommunications. This was how
ZTE started its own R&D. Later on, the company made a series of changes in the
3G to Dominate Future Chinese Market
company strategy and changed itself from a technical follower into a renowned
telecom solution provider with profound R&D strength. The technical advantages
Over the past years, many countries have deployed
obtained by ZTE have improved its competitiveness with other handset vendors
3G networks, while China’s mobile communications market
and laid a foundation for today’s success.
remained in the 2G era. In this situation, ZTE with 3G
expertise shifted its focus to the international market in 2004.
After four years, China’s handset market is evolving from the
Continuous Large-Scale Production
A handset is not only a product for personal consumption, but also a
2.5G to the 3G mode. Related data shows that by late 2007,
device correlated with the operator’s network and services. With such an
the number of 2G handset users continued to increase,
understanding, ZTE worked out a marketing policy centered on operator
customization, which finally leads to ZTE’s 100 millionth handset sales. Relying on
operator customization, ZTE has decreased business risks and achieved stable
development, despite less gross profits. Such stability results in a stable capital
chain, which guarantees benign cycling in the company’s development. Even
in the “wintertime” for Chinese handset manufacturers in 2005, ZTE maintained
stable development, while many manufacturers experienced huge losses.
International Marketing
especially in such new markets as Asia, Africa and Latin
ZTE’s handset exhibition hall
ZTE showcased its strength in the turnkey project in Pakistan
and won a WiMAX network equipment contract from Sprint
Nextel, the third largest U.S. wireless operator.
ZTE's success was not the result of luck. In fact, it has
been making and implementing effective marketing policies,
which ensured stable, large-scale development. Reaching
the 100 millionth handset sales milestone is truly a stunning
Being one of the earliest enterprises that “went out”, ZTE began the
feat. It is far more than just a sales figure, but a proof of
internationalization strategy early and shortened its distance maximally with
ZTE’s success in finding a proper road in getting win-win
multinational handset manufacturers. This strategy enabled ZTE to have the
results with global operators and consumers.
12
Issue 3 2008
America. But the number of 3G handset users increased at a
faster speed. In 2007, the sales of 2G handsets increased by
21%, while the sales of 3G handsets increased by 273%.
ZTE,
a Witness to China’s
Communications Reform
Issue 3 2008
13
Focus
Cover Figure
record, ZTE launched the U990, the world’s first phone to
ZTE Geared Up for New Reform
come with both HSDPA and TD-SCDMA connectivity. The
The sales of 100 million handsets can be regarded as
new release not only showcased ZTE’s technical strength,
a miracle in China’s handset industry. Standing at a new
but its ambition in winning bigger market shares. With
height, ZTE aims new records in the marketplace. The
proactive R&D in various 3G modes, ZTE is confident in
next record might occur in five years, when the company
playing a big role in the upcoming 3G era in China.
becomes one of the top three handset brands in the world.
China’s opening and reform promotes the widespread
use of handset. The next goal for ZTE is to popularize 3G
Self-Owned IPR a Key to Success
14
Issue 3 2008
handsets among Chinese users.
During the 2008 Beijing Olympic Games, 3G
The upcoming 3G wave will bring about a new reform
handsets made by Chinese manufacturers were trialed
in China, as the 3G technology will completely change
in six cities, namely Beijing, Shanghai, Tianjin, Shenyang,
the country’s communications life. Apart from high quality
Qingdao and Qinhuangdao. Users could use these
voice service, Chinese people will be able to experience
handsets to watch games and send emails. Such perfect
multimedia communications: they will write and draw on
scenery is enabled by TD-SCDMA standard, which China
the touch screen, access the Internet at any time and any
has self-owned IPR for.
place, and make video phones easily. At that time, our
For the 2G handsets used by most people, China
communications life will be more smooth and diversified.
has no IPR and has to pay high patent use fees to foreign
China that once relied on handset technologies from foreign
communications vendors or organizations. A long-time
companies will develop independently.
dream of the Chinese communications industry is to
F ro m t h e u s e o f b r i c k - s t y l e p h o n e s t o t h e
own key technologies in the upcoming 3G era. The TD-
introduction of GSM handsets, from the launch of first
SCDMA standard, initiated by China, is a great innovation
homegrown handsets to the release of homegrown
of the Chinese mobile communications industry and a
handsets with self-owned IPR, to the trial of TD-SCDMA
contribution to the global 3G industry. So far, the standard
handsets, and to ZTE’s sales of 100 million handsets,
has been approved as one of the mainstream 3G
China’s communications industry has experienced
standards. It can be predicted that China’s fast growing
many milestones. We look forward to more milestones
TD-SCDMA market will present ZTE and other TD-
in the future, and we look forward to more 100-million-
SCDMA handset manufacturers unlimited opportunities.
handset-sales celebrations.
Yin Xiaotian
a “Yin-Style Good Man”
By Li Ting, Hong Dou
F
rom Han Ding, a lawyer who devotes his heart to
his lover in “How Could I Save You, My Love”
(2002), to Li Bolin, a doctor who turns to be a
model to commemorate his deceased model girlfriend in
“Talented Girl, Handsome Guy” (2005), Yin Xiaotian
has built up his good man image among the audience.
Even when he plays negative roles, such as Nian Lilun, a
wild, short-tempered playboy in “One Meter Sunshine”
(2004), he still appears to be a lovely bad boy. However,
the 30-year-old Yin, who is called one of the four most
recognized young male actors in China, always attempts
to overturn his idol image. In “Children from a Military
Compound”, a popular TV series in 2008, he appears as
Qiao Nianchao, an army man loyal to his post. In “Happy
Perfection”, he plays the role of Chen Dahu, an army man
with a high-ranking father; this character features rich
personality and gives Yin an unforgettable experience.
Issue 3 2008
15
Cover Figure
Yin Xiaotian defines the concept of “Yin-style good
man” through his own behavior…
16
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Issue
Issue332008
2008
After successfully creating some
army men characters, Yin looks forward
to something different. “I’ve been reading
many scripts and I want something
new,” he said. He still keeps his next
role in secret, saying that he would try
challenging roles to show his capabilities.
Yin has impressed the audience with
his “Yin-style” characters, who are seen
as passionate and affectionate. He has
interpreted many good man characters.
His “good man” image is now more and
more linked with trust and confidence,
rather than sympathy and pity in the past.
“Work diligently and live
honestly”: Yin’s work ethic makes us
see the strenuous efforts this initially
“effeminate boy” made during these
years in transforming from a sentimental
youngster to an iron man.
In real life, this “army iron man”
likes various types of digital products.
Mobile phone plays an indispensable
role in his life. “I can’t live without
a mobile phone,” he told us. When
buying a mobile phone, he normally
chooses products providing complete
functions and convenient Internet access.
The appearance of a mobile phone is
definitely another major consideration.
The ZTE D800 Yin took pictures with
this time meets his requirements. The
product supports QWERTY keyboard
input and convenient operations and
offers powerful functions and a handsome
look. Yin has lots of fun with it.
Issue
Issue332008
2008
17
17
Character
Cover Figure
Interview
Z
TE held a grand ceremony in Shenzhen
on Sep. 25, 2008, to celebrate the 100
millionth handset sales. ZTE is the first
Chinese handset manufacturer whose accumulated
sales volume exceeded 100 million sets.
The event set a milestone for ZTE’s entry into
the “first camp” of global handset manufacturers.
“This accomplishment, the 100 million handset
sales, is a new starting point for ZTE. I am hopeful
we will be in the world’s top three within five
years,” said Hou Weigui, chairman of ZTE.
The 100 millionth handset announced by
ZTE was the U990, the world’s first high-end
TD-SCDMA HSDPA intelligent handset. During
the ceremony, the reporter interviewed Luo
Zhongsheng, General Manager of ZTE’s TDSCDMA handset product line.
Seizing New Opportunities
To date, ZTE’s cumulative handset sales have
topped 100 million. Faced with such golorious
achievement, Luo first introduced the development
of ZTE in the TD-SCDMA market. The 100 millionth
handset, ZTE U990, set a landmark in ZTE’s history.
The global 3G market, especially China’s
3G market, is ready to take off. This brings great
opportunities for ZTE, which has been successful
in China’s 2G market. In the TD-SCDMA handset
purchase before the 2008 Olympics, ZTE won the
orders to supply 61,000 TD-SCDMA handsets,
accounting for 30.5% of the total. Of the 61,000 TDSCDMA handsets, 50,000 were used in Beijing. The
complicated and concentrated application environment
was a huge test for ZTE’s TD-SCDMA handsets.
Yin favors most the mobile phones that support high-speed Internet access. During breaks in
shooting, he likes surfing the Internet via his mobile phone, to know more about his fans and to
relax. While talking about the popular 3G technologies, Yin was as excited as a boy. He expressed
strong interest in the ZTE U990, which incorporates 3G technologies and enables high-speed
Internet access. Being a hit in the market after ZTE reached 100 millionth handset sales record, the
U990 is really a must-have.
Of course, we have to admit that the sincerity and purity behind this “army iron man” is
unchanged. This is in fact an important part of his “Yin-style good man” image: sunny, intimate
and gentle. This man that is a little effeminate, lovely and sincere, after experiencing much, is
getting mature and steady. Regarding the recent boom of weddings of many entertainment stars, he
confessed that he believes in destiny — quite a calm attitude towards life and love. We expect the
same calmness in him in the future.
Yin also believes in a better future.
18
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Issue 33 2008
2008
However, ZTE’s handsets sustained the test and
Creating More
Success in the
Handset Market
An interview with Luo Zhongsheng,
General Manager of ZTE’s TD-SCDMA
handset product line
By Zhao Lili
received no major complaint during the Olympics.
Based on such achievement, ZTE is confident
about playing a major role in China’s 3G market.
Recently, China Mobile has been exploring the
applications of the TD-SCDMA network. The results,
once formed, can be referred to by WCDMA and EVDO networks and will drive the overall development of
China’s 3G industry. For the global 3G market, in Japan,
90% of mobile subscribers use 3G services. In Europe,
20% of mobile subscribers use 3G services, but 3G
terminals account for 60~70% of total terminal sales in
the market.
Issue 3 2008
19
Character
Character
ZTE World
Interview
Faced with a huge 3G market, ZTE should seize
Walking
into Africa
the opportunities. Having a complete set of products,
ZTE is able to provide handsets to meet the
requirements of different markets. “The 100 million
handset sales is really an accomplishment. In the
future, we’ll sell 1 billion handsets. We are confident
that by 2011, the handset sales will command 50%
of the company revenue,” said confident Luo.
By Li Hebing
Overall Advantages Ensuring the
Lead
To be a leader among homegrown handset
manufacturers, especially in the TD-SCDMA field,
ZTE should get ready for the emergence of any new
problems. Luo introduced ZTE’s advantages in the
following aspects:
The first advantage lies in product technology.
The recently launched U990 supports HSDPA and
boasts of a downlink rate of 2.8Mbps, the fastest
transmission speed among the TD-SCDMA terminals
available in the market. The U990 comes with a
host of high-end technologies, such as the Flash UI,
better catering to consumer’s needs. In terms of user
experience, it adopts touch-screen technology which
leads to similar operation experience as the iPhone.
Having used many new technologies, the U990
was an important attempt of ZTE in catering to new
markets and new user groups. “We’ve been studying
and improving,” said Luo.
The second advantage is ZTE’s continuous,
large-scale investments. ZTE pays great attention
to handsets and has been investing continuously to
ensure sustainable development of the products.
Moreover, with the company’s scale and profitability,
on both the operator’s market and the channel market.
Constant Innovations to Meet Market Challenges
At the end of the interview, Luo introduced the prospect of China’s 3G market.
After years of development, the TD-SCDMA terminal industry chain is gradually
becoming complete. In future, China’s domestic 3G market will see diversified TD-SCDMA
terminals, the trend of mobile interconnection, and the growing importance of data
B
eing one of the cradles of modern civilizations, Africa has remained a popular
destination for explorers, who traversed this vast, magic land to explore
humanistic and geographical treasures. This continent is also a source of
numerous legendary stories, which impress the readers with mystery and risks.
Nowadays in Africa, there are more and more “explorers” from ZTE, who, with
enormous efforts and devotion, are drawing a new digital map of the continent. Now
let’s take a closer look at their life in Africa and share all their pains and pleasures.
services. From a global perspective, while the HSDPA/HSUPA technology gets mature, 3G
networks used as broadband transport channels will become a key application. Hence,
TD-SCDMA terminals will appear in various modes: data cards, Internet-enabled handsets,
family gateways, and built-in applications of laptop. Innovations in user experience and
the Internet-enabled handsets will be the two key elements in driving TD-SCDMA terminal
development.
ZTE, a leader in the TD-SCDMA terminal industry, will invest in data and family
products, as well as entertaining and mass-market handsets, apart from high-end Internetenabled handsets.
With user experience as the highest priority, ZTE has made many innovations on TD-
At the Airport
“Vegetable Engineers”
It was just another of my trips to Africa.
The food on the airplane is always unpleasant for me. “Wait until I arrive at the
SCDMA terminals. For different development phases of TD-SCDMA, it launched diversified
The spacious check-in area at the Hong Kong
representative office, where I’ll enjoy the delicacies cooked by our Chinese chef,” I
products. In the future, ZTE will give more thorough consideration to user experience and
International Airport is not strange at all. Instead of
constantly tell myself. It is a dream for many Chinese working in Africa to eat food
inject continuous investments, to develop high-quality TD-SCDMA terminals.
searching for the counter information on the airport
prepared by Chinese chefs. This dream comes true at ZTE’s representative office in
bulletin, I directly went to the counter with many
Malawi.
“We appreciate the opportunity given to our team, and we’ll work harder. We also
appreciate the efforts from other departments in the handset system,” said modest Luo.
bags in front of it. These bags were mostly goods
Malawi is very similar to malaria in spelling. In fact, due to the high incidence rate of
purchased from the mainland by African travelers,
malaria in the country, Malawi is regarded by some people as the origin of malaria. Mr.
In addition to the strong R&D, ZTE’s handsets
who find a huge market for Chinese products in
Hao, ZTE’s chief representative in Malawi, who just recovered from his second bout of
are supported by strong overseas marketing. For the
Africa. These people always look different from other
malaria this year, picked us up at the airport. Seeing a still weak Hao at the airport, we felt
overseas market dominated by operators, ZTE can
travelers — even in very hot days, they might wear
very moved. During my stay there, Mr. Hao, who always works under big pressure, got
well adapt to operator handset customization mode.
sweaters and leather coats. It was said that such
malaria again but he behaved as if he had just caught a common cold. “I’ve over-fulfilled
So far, ZTE has been winning bigger and bigger
a dress code was for economic considerations —
the quota of getting malaria in our representative office, so no one of you should get
shares from the overseas market. In China, ZTE also
they put on heavy cloths to avoid extra expenses
this again this year,” he joked. While being hospitalized, he took little rest and continued
has good cooperation with major Chinese operators,
for heavy luggage. This might explain why the price
working. We were all impressed by the scene where he made calls with one hand and
which leads to breakthroughs in the company’s
During our interview with Luo, we found his strong confidence in fulfilling the strategic
level in Africa is always 3-4 times higher than that
received injection on the other hand.
handset sales. Meanwhile, ZTE has not overlooked
objective unveiled in the 100 millionth handset ceremony. We also hope that ZTE can further
in China. While waiting for check-in, I talked with
After about 30 minutes’ drive on the grassland in the dry season, we arrived at a villa.
the channel market, especially channels in China. For
develop technologies and channels to maintain its leading position in the TD-SCDMA field.
some Africans, who proudly called themselves
“Here we are,” said Mr. Hao. “This is where we work, eat and sleep.” I looked around. The
‘businessmen’.
villa is just an independent building with a big courtyard. Enclosed by walls at medium
the handset product line is backed with a benign
capital chain.
the sales of TD-SCDMA handsets, ZTE should focus
20
Issue 3 2008
ZTE’s Shanghai R&D center
Issue
Issue 33 2008
2008
21
Character
Character
Brand Road
ZTE World
height, the courtyard comprises dry grassland and
some vegetable fields. Life abroad is a little boring,
so almost everyone in the representative office would
a Logo Bearing Bavaria’s
Blue Sky and White Clouds
water and fertilize the vegetables in spare time.
“Look! The watermelon seeds have sprouted.”
“The watermelon I planted has a third leaf today.”
“The leaves of crown daisy are enough for a dish.”
“The cucumber seedling is on the frame now.”
We can have surprises and good news from the
vegetable fields almost every day. We once joked
that ZTE’s engineers in Malawi were now vegetable
experts. I once went to the local vegetable market
ZTE’s staff at the Malawi representativey office
with our Chinese chef, Mr. Tu. It is interesting that in
Malawi, vegetables are not sold by weight, but by
quantity. For example, potatoes are sold by barrel,
tomatoes are sold by pile, cauliflower is sold by
piece, and fowls are also sold by number.
A Trip to the City
One day, I suggested to my colleague Dongyi
that we should make a weekend trip to the city.
“Why? We are staying in the city area,” he said. I was
quite shocked. Surrounding our villa is a rural scene,
with some small roads and some buildings similar
to ours. Is this really the urban area — in the capital
city Lilongwe? Dongyi said in the downtown area,
there are several stores run by Indians and Pakistanis
and a supermarket. This sounds good. It seems that
most Africans are still poor. The men who guard our
building do not wear shoes — not because they do
not like shoes, but because they cannot afford buying
ZTE’s Malawi representative office
F
o r a lot of people, Bavaria is
an unfamiliar name. However,
Bayerische Motoren Werke AG
(BMW) based in Bavaria is a household
name. As it is known to all, it is a renowned
auto company and a leader in the luxury
auto industry. Since it was founded in 1916,
BMW has developed from an aircraftengine factory into a group producing highend auto cars, airplane engines, jeeps and
motorcycles. It has been promoting “ultimate
driving experience”, which is as natural and
sincere as the sky and clouds presented on its
blue and white logo. Nowadays, we can find
the BMW logo everywhere in the world.
By Li Mengsi
On Sept. 18, 2008, BMW held a global
media conference for the launch of its fifthgeneration BMW 7 Series in Dresden, Saxony
State in Germany. Being a representative of
BMW’s new generation luxury sedans, the new
7 Series boasts a host of new technologies. It
is equipped with a V8 engine, which produces
400hp. In addition to faster speed and better
driving control, BMW puts more humanistic
features into the car for more comfortable,
safer driving experience. For example, the new
7 Series features night vision and adaptive
cruise control. Thanks to BMW’s energy saving
“EfficientDynamics”, the new 7 offers an average
fuel consumption of 7.2 liters per 100 km.
All engines comply with the Euro V emission
standards. The new 7 not only brings about
“ultimate driving experience”, but highlights
BMW’s humanistic approach in technology
development, environmental protection and new
energy usage.
them. Despite their inferior living conditions, the local
people seem quite optimistic. This can be proven by
a paragraph written by one of my colleagues: “I asked
a local person why they don’t have high buildings in
their country. He answered ‘we have a big land and a
small population. So we don’t need tall buildings. You
have too many people in China, so you have to live in
tall buildings.” I felt the pride he had for his country.”
Customer Segmentation
Being a luxury auto brand, BMW has
been known for its outstanding driving control.
Compared with other luxury cars, BMW is for
a younger generation with most of its buyers
being young people. However, BMW is not a
“brutal lad”, and it offers buyers a luxury feeling.
Lilongwe is very beautiful at the dusk: Some
Nowadays, the BMW 3, 5, 6 and 7 Series can
eagles fly in the blue sky. The setting sun makes the
often be seen. The BMW 1 Series launched in
world red. Ants are busy looking for food. Crickets
2007 has also impressed consumers with its
sing in the grass, echoing to my homesickness.
sheer driving pleasure. Among the busy traffic
flows, the BMW family is always eye-catching.
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Issue 33 2008
2008
Issue 3 2008
23
Perspective
Character
Service
Brand Road
BMW released different series for
Strong Support for
Overseas Markets
the new 3 Series for greater driving comfort.
different segments of the market: The
The BMW 5 Series, 36 years old, has used
BMW 3 Series, a compact sports sedan,
more innovative technologies. In 1991, the
is supposed to be a driver’s car; and the
5 Series diesel made a leap forward with the
backseat space is minimized. The BMW 5
introduction of an engine that adopts turbocharger
Series is a mid-size sedan. With advantages
and air cooling technologies. 1992 saw another
in both driving control and seating space,
breakthrough in performance with the introduction
the BMW 5 Series is good for both business
of the eight-cylinder models. In 2003, the 5 Series
and private uses. The BMW 7 Series
fitted with an inline 6-cylinder engine rolled off the
limousines bring drivers a top-class driving
production line. Valvetronic technology adopted in
experience and sumptuous luxury. In fact,
the following models improves the fuel efficiency
many car makers like Ferrari, Lamborghini,
without sacrificing the dynamic performance,
Jaguar and Mercedes-Benz offer similar
which helps deliver more driving pleasure.
products. For ordinary consumers, however,
BMW cars are also famed for luxury and
such luxury brands are unaffordable, and
comfort. The design of fifth-generation BMW
the speed and passion promised by these
7 Series is more evolution than revolution. It
names are merely a dream. Fortunately, this
comes with a slew of innovations, including
dream is finally realized by BMW, a logo of
dynamic driving control, night vision, and stop-
blue sky and white clouds.
go traffic identification. The innovations in BMW
Forging the No.1 Brand in
After-Sales Service
By Bu Xiangting
A
s ZTE celebrated 100 millionth handset sales record in September
2008, the company proudly announced that it had entered into the
"first camp" of global handset manufacturers. Such achievement is
attributed to the company’s strategies in technical innovations, customized
services and international marketing. Moreover, ZTE has established a
strong handset after-sales service system, which provides complete aftersales services to meet customer satisfaction. While ZTE’s front marketing
staff is exploring overseas markets, the handset after-sales service system is
making efforts to build a top brand.
Multi-Mode Customized Service
Since 2007, ZTE has been providing operators with customized services. So far,
addition to greater driving control.
ZTE has established partnerships with well-known telecom operators, such as Vodafone,
The birth of the first-generation BMW
3 Series in the 1975 kicked off the era of
Hutchison Whampoa and Telefonica, further developing its businesses in high-end
New Energy
markets including Europe, North America and Japan. So far, ZTE’s handsets have been
the most successful BMW cars. The first
The world nowadays is more and more
sold to over 100 countries and regions. In parallel to the widespread handset sales points,
BMW 3 Series cars used BMW’s 4-cylinder
challenged by environmental problems, and
ZTE’s handset after-sales service system also reaches every place where ZTE handsets
engine, which was later replaced by the
environment protection becomes urgent. As
are on sale.
6-cylinder engine. BMW launched the
automobiles have become a part of modern life,
In 2008, ZTE’s handset after-sales service system proposed the customized service
second-generation BMW 3 Series cars in
the essential solution to this problem is not to stop
mode, which means designing after-sales service plans according to different needs of the
late 1982. The 3 Series created many firsts
or decrease using automobiles but optimize auto
operators. In orientation to different requirements, the handset after-sales service system
at that time: the 324d was the first BMW car
fuels.
is able to provide three after-sales service modes. Upon receiving an after-sales service
using diesel oil; the 325ix was the first BMW
Different from Toyota and Honda, which
training requirement from the overseas sales department, the handset after-sales service
car equipped with a real-time 4WD system;
launched fuel-saving hybrid electric vehicles, BMW
system can immediately work out a specific training plan and dispatch training engineers
the 325 Convertible was the first convertible
tries to solve the root of the pollution problem.
to the specific country or region.
car produced by BMW.
As new energy source becomes a new topic for
In 1998, BMW introduced its fourth-
the auto industry, BMW has taken some active
generation 3 Series. The 320d made
actions, including developing of the 12-cylinder
its debut as the first BMW with a direct-
hydrogen concept engine, researching on
injection diesel engine enabling a top speed
hydrogen-powered vehicles and clean energy.
of 207 km/h and a fuel consumption of
BMW is committed to the dual-mode
5.7 liters. The BMW 320d was a huge
drive, which makes use of the existing internal
To satisfy consumer’s demands for
commercial success due to its outstanding
combustion engine technology to cope with gas
driving control and pleasure, BMW
performance. In early 2005, the BMW E90,
shortage. For example, he BMW Hydrogen 7
has been sticking to innovations and
the fifth-generation 3 Series was launched.
runs on both gas and hydrogen. Considering that
customer-oriented approach. It is due
The E90 features an ultra-light aluminum-
hydrogen is extracted from natural gas, BMW has
to the same reason that BMW has
magnesium alloy engine. In addition to
been striving to produce hydrogen from water,
maintained its solid reputation.
lighter weight, BMW also incorporated an
hence protecting the environment and saving
active steering system and run-flat tires in
energy.
24
Issue 3 2008
The increase of product sales normally leads to more user
complaints. To avoid this phenomenon and to facilitate handset
repair in local areas, a lot of engineers are dispatched overseas
to provide handset after-sales service, and mature overseas
technical support processes have been established.
To cope with the increasing demands for overseas technical
support, ZTE’s handset after-sales technical support department
has launched effective measures. Permanent technical managers
were assigned to different regions of the world to take charge of
after-sales technical support. A strong upgrade team was set up
to guarantee fast, timely upgrade to meet the requirements of
overseas markets.
Integrated Global Logistics Service
The fast-increasing international business has posed huge
challenges for ZTE’s international logistics support. ZTE has made
technologies ensure greater safety and fun in
Continuous Innovations
Fast Response to Technical Support
Group photo of trainees who graduated from a 3G service training held by ZTE in Islamabad, Pakistan
great efforts to improve overseas logistics support. In 2005, ZTE
set up the company’s first overseas handset after-sales logistics
center in India. Later on, ZTE built an international logistics
transfer platform in Hong Kong, which, together with the Chinese
mainland and India, formed an integrated global logistics service
network.
So far, ZTE has established a complete, efficient logistics
system, and the international forward logistics have covered more
than 40 countries. The average logistics period from Shenzhen
to the destination port is only 4.3 days. The average reparation
period (excluding the transportation duration and customs
clearance duration from Hong Kong to the destination port) is
29.8 days. To trace and process information in time, ZTE is now
planning to set up a new logistics center in Europe.
ZTE’s logistics center in Hong Kong
While ZTE is expanding its international business footprint and aiming to become operators’ best handset
customization partner, ZTE’s after-sales service system is striving to provide overall services to global handset users.
Issue 3 2008
25
Perspective
Perspective
Service
Tech Frontier
ZTE’s Innovative Team
Ensures Quality Supply
By Wu Ming
W
h i l e achieving the sales record of
100 million handsets, ZTE focuses
on quality management and has set
up a supplier on-site quality control management
team. This company-level team is trying to make
breakthroughs from inside ZTE and has significantly
improved product quality.
To find out how ZTE achieves quality assurance, the
A: The team’s ultimate aim is to improve the quality of the supplier’s incoming
Mobile World interviewed the supplier on-site quality control
materials. Although it has been established only for several months, the
management team.
incoming material quality keeps improving: the batch passing rate was
The
in the 3G Era
increased from 97.68% in 2007 to 98.1% in Q3, 2008; the number of
Q: Why did ZTE set up the supplier on-site quality
control management team?
A: The major task of the supplier on-site quality control
management team is to integrate and efficiently use existing
resources and to establish a set of field quality control
management mechanisms and methods, hence effectively
monitoring the supplier’s production procedure and improving
the quality of the supplier’s material.
Q: What existing problems can be solved by the
team?
A: The team focuses on the key procedures and techniques
of each supplier. Based on the characteristics of the supplier’s
procedures and features of materials, it worked out monitoring
checklists for various materials and for the in-house staff. This
is very important for refined management of suppliers. Such
work methods also pose big contrast to ZTE’s previous supplier
management scenarios, in which ZTE adopted the same
template, and the criteria were similar for different materials.
Q: Can you describe the work of the team?
A: The work of the team combines field inspection, routine
auditing by the in-house staff, with supplier representative
management, with a focus on working out personalized
monitoring checklists for various materials. For key materials
and key suppliers, the team dispatches outside inspectors and
optimizes the check mode, so that the in-house staff can focus
on supplier field management. Meanwhile, the team strengthens
management on the quality representatives so that they can work
more efficiently. The team has formed a whole set of supplier
process management specifications, like the Specifications for
Process Management on Handset Material Suppliers.
Q: Can you introduce the progress made by the
team?
26
Issue 3 2008
Battle
for Mobile Music
By Xu Songfeng, Qin Lin
T
rejected parts per million was decreased from 1924 in 2007 to 993 in Q3,
he music record industry is experiencing the longest
winter in 20 years,” said a senior songwriter in
Beijing known by his pseudonym Wang Yin.
“The CD sales, copyright income, number of new songs and new
singers, and the performance market — everything about the
industry is decreasing. Most record companies had to take holidays
during the Beijing Olympics,” he said.
In fact, record companies in China are in the middle of a
longer winter than they had ever expected. The reason is that the
music industry is under transformation and upgrading, and the
traditional CD market can no longer meet the demands of users.
As the 3G era has arrived, the mobile music market is ready to
enter a new growth phase. Mobile operators are faced with a huge
mobile music market. Are they ready for the competitions in the
market?
2008; the average number of outstanding quality accidents per month was
decreased from 8 to 5, and it keeps decreasing.
Q: The team was closed on October 30, 2008. What will be
the major tasks of the team later on?
A: The primary task is training management, including training management
of suppliers and trainings for ZTE’s internal inspectors and the in-house
staff.
The second task concerns the materials the purchase of which is given
special approval. The team has made in-depth analysis on the quality data
of these materials, and has asked relevant departments to make further
analysis and work out correction or prevention measures.
The third task is to complete the mechanism of quality problem analysis,
processing and correction, with a focus on improving the supplier’s
response and problem processing capability.
Q: What objective will ZTE fulfill through the team?
A: Although the team as a project has been closed, the team’s
operation mode and tasks will go on. We aim to implement finer supplier
Trend of Mobile Music
In a competitive industrial environment, mobile operators have
In the 3G era, when mobile music download becomes a new profit
management, provide timely quality warnings and constantly improve the
to compete with not only other operators, but also various service
growth point, a universal concern is whether mobile operators can create
supplier’s material quality.
providers. How can they retain their advantages in this competition?
another miracle like the CRBT. Operator’s success with the CRBT service
How will 3G influence their existing operation modes? We need to find
can be attributed to such fact: users can only open the CRBT service
answers.
through the operator. As a result, mobile operators become dominant in
Mobile music refers to the digital music service provided to users
the mobile music industry chain.
through mobile communications networks and terminals. It includes
With the arrival of 3G mobile, download speeds have increased
handset ringtones, Color Ring Back Tone (CRBT), mobile music on
tremendously, lowering the threshold of mobile music providers. Many
demand, music download, and music radio services.
websites and handset vendors, including Google, baidu.com, A8.com,
The mobile music service enables users to play and download
Apple and Nokia, made their way into the mobile music market. Chinese
music at any time and any place. As mobile networks have been
search engine website baidu.com is entering the market of mobile MP3
continuously upgraded and mobile terminals supporting mobile music
search; traditional Internet music providers, such as A8.com and 1ting.
have been increasingly popularized, the mobile music market keeps
com, have launched the mobile music download service; iPhone users
expanding. The worldwide mobile music revenues were expected to
can buy music in Apple’s iTunes music store; etc. Faced with such
reach US$3.31 billion in 2008 and will exceed 13 million by 2012. This
challenges, can mobile operators keep a firm stand and play a dominant
giant market has attracted many vendors.
role in the market?
Issue 3 2008
27
Perspective
Fashion
Tech Frontier
Easy of Use:
A Key to
Success
Success Road of Mobile Music
As 3G usage increases, mobile operators see decreasing revenues in the mobile phone ringtone download
service. However, SK Telecom’s ‘MelOn’ mobile music service, a wired and wireless integrated music portal
launched in 2004, has been a big success in South Korea.
MelOn firstly introduced the monthly rental concept in South Korea. The service is akin to a rental service,
’s
By Li Mengsi
T
h e year 2008 was, in many ways, quite unusual. Count
the unusual events: the Beijing Olympics, the economic
crisis resulted from a global financial crisis, what else?
Instead of using your brain, why not find an answer through
Google? As a matter of fact, Google is a part of our life. This
largest search engine celebrated its 10 th birthday in September
2008. But there was no joyful music or celebrity party at Google’s
headquarters in Mountain View, California. Just like Google’s lowkey establishment 10 years ago, the company remained quiet when
celebrating its glorious 10th anniversary.
with users “renting” tracks for use in PC or handset. The operator also developed the software MelOn Player,
which can easily manage and synchronize music on different terminal devices. To further strengthen its position,
Purchases Leading to Expansion
SK Telecom acquired 60% shares of YBM Seoul Records in 2005. In addition to gaining support from handsets
As early as in 2001, Google was Yahoo!’s purchase target, but
like SKY, LG and Samsung, SKT cooperated with traditional MP3 player manufacturers. As a result, more than
in the end the purchase did not succeed. Thanks to Yahoo!’s failure,
80% of the music players in South Korea are compatible with the MelOn service.
we have had the chance to witness the miracle of Google. In fact,
Since its launch in 2004, the number of its subscribers has been constantly growing. So far, MelOn is
purchasing is a common rule in the business field, as purchases
ranked first among South Korea’s paid music sites. By integrating resources of record companies, channels and
can make already powerful companies even stronger. The growing
terminals, SKT provides one-stop service to users and dominates the mobile music market in South Korea.
Google obviously understood the practice. Although Google started by
providing Internet search service 10 years ago, it was not satisfied with
ZTE’s Active Efforts
The success of SKT shows that in the 3G era, mobile music will develop in the mode of “content + channel
+ terminal”. Basing on this idea, ZTE has developed a complete mobile music solution for operators.
Issue 3 2008
In February 2001, Google completed its first purchase. It acquired
Deja’s Usenet Discussion Service, which later becomes Google Groups,
ZTE’s mobile music solution has integrated major resources in the digital music industry chain, including
a directory of Internet forums. After this successful purchase, Google
digital music contents, value-added service platform, handsets, WEB 2.0 music portal website, and business
bought Outride, a spin-off from the Palo Alto Research Center (PARC)
planning and execution. The solution is applicable to all customers and users in the industry chain and meets
in September 2001. Using Outride’s core technology, Google created
requirements of the digital music market in different development stages.
personalized search service. The biggest gain from this purchase
ZTE is capable of providing customized terminals according to operator’s requirements, and offers built-in
was Outride’s online information retrieval technology and its research
digital music contents to consumers. Through providing rich, expandable contents, ZTE interacts with users and
achievements in information-associated fields. These two purchases
enhances user experience.
to some extent influenced Google’s successive development and
In January 2008, ZTE established partnership with The Orchid, the world’s largest independent digital music
28
providing a single service.
accelerated its expansion.
provider, paving the way for its exploration in the music market. Meanwhile, by building the WEB 2.0 music
A list of Google’s 52 purchases showed that Google may not launch
community, ZTE offers mobile music users with diversified, personalized digital music services, increasing user loyalty.
successful network services after each purchase. Some purchases were
Focusing on user experience, ZTE’s mobile music solution integrates contents, technologies, and products. With
proven to be failures, such as Google Accelerator, which claimed to be a
CRBT and built-in music service as the cutting points, the solution attracts users and cultivates their consumption
free tool that could accelerate web browsing, and Google Answer, which
habits. In the long run, ZTE aims to set up a new marketing ecology, where ZTE coordinates with content, equipment
was finally given up due to its pay mode. However, we have to admit
and operation companies, explores new modes in music composition, music propagation, music consumption, and
that most of Google’s purchases were quite successful and drove its
creates new service growth points in the mobile music industry chain, hence building a multi-win environment for the
phenomenal growth. Among the many purchase objects, what criteria
mobile music industry.
does Google use to identify its target?
Issue 3 2008
29
Fashion
Save Energy,
Cope With
Financial Crisis
Easy of Use
A classic marketing rule has in fact revealed
the secret to Google’s success: Any products
that can convenience consumers will have
better market performance.
Ten years ago, when Google’s two founders
established the company, their objective was
By Li Mengsi
T
quite simple. They simply wanted to organize
he global financial storm caused by the U.S. subprime
loan debacle is leading to a global economic crisis.
Many renowned enterprises have stopped production
or cut staff, intensifying the recession fears. The crisis has
warned consumers to tighten the spending. With the prices
keep soaring, consumers have learned to be cautious about
each purchase. We should observe the principle of “choosing
only the right thing” and buy energy-saving products. Energysaving, cost-effective products do not mean simplicity at all.
The following innovative products might bring you some new
experience.
the world’s information so that the information
can be easily used by human beings. “Free use”
and “fast speed” were their standards for “easy
of use”.
During the first three years, Google was
operated under venture capital. It aimed to
help users locate target web pages in the
shortest time when facing the Internet’s massive
information. Many search engines failed in
realizing the primary objective, as they placed
profits prior to user requirements. Google has
towards making money. This somehow explains
Three top executives of Google on the cover page of Time magazine
Sanyo Eneloop has been busy
developing gadgets that run on
renewable energy. Among the Sanyo
Flip Video Camcorder
been focusing on user requirements with an eye
Eneloop Solar Light and
Charger
Eneloop solar family, Eneloop Solar
Can you recognize this? It looks like a handset, but it is a digital
Light is eye-catching. The Sanyo
why users of other search engines turned to
user’s keywords. Such a business model is valuable for both users and advertisers and
video camcorder called Flip. It only has four basic buttons and four
has brought huge profits to Google.
Eneloop solar light combines a solar
Google.
mode setting buttons. There is no optical zoom — only a 2X digital
USB charger and a portable 9-bulb
zoom. The camera has a built-in USB plug to transfer your video
LED light. Although it takes hefty 15-30
to a PC. Having saved some professional configurations, Flip is
hours to charge fully, it can operate on
much cheaper than products of the same type. Hence, Flip is an
9 bulbs for up to 9 hours. This product
affordable video camera for most consumers.
is very useful in remote areas where
Opening Google’s stripped-down home
page, it is hard to understand why the search
The success in “keyword search” has strengthened Google’s belief in “easy of use”,
which also become the company’s principle in business development.
engine has attracted so many users. As a
Google then set its eyes on companies with more powerful technologies that ensure
matter of fact, the users came from other search
“easy of use” policy. In 2003, it purchased Kaltix, based on which, iGoogle, Google’s
engines. While other search engine companies
personalized portal, was built. In 2006, after purchasing several companies involved in
keep cramming ads on their web pages, they
PC and map services, Google incorporated historical maps in Google Maps. Later on,
always find that they have earned much less
it purchased YouTube, a U.S. video website, and bruNET GmbH, a German company
than the “lazy” Google, which offers only a
engaged in mobile software business. Such purchases opened door to different fields on
simple interface. “Simplicity is truth” applies
the Internet. By releasing the Android service and the online library restart plan, Google
perfectly to Google. Google always tries to link
showed determination to sticking to “easy of use”.
users with other websites as soon as possible.
This is the most important reason why users
love it so much.
The question is: how can Google
earn money? The answer is the invisible
People-Oriented Approach Driving the Future Growth
Through continuous R&D and purchases, Google made various information easily
accessible to users worldwide. Google has become a miracle in the Internet world and
Google is a miracle itself. In merely 10 years, the company’s staff grew from 3 to
technology was developed on the basis of
20,000 employees; the user number reached 650 million; and the market value increased
Google’s advertising platform, Adwords.
from US$100,000 to US$150 billion. Google’s success is both sophisticated and simple.
Adwords advertisers pay Google according to
It is sophisticated because the company has developed complicated technologies
the ad’s Click-Through Rate (CRT). The ad links
and now is providing services in various fields. It is simple because Google has been
will never repulse users as Google never sold an
observing the “easy of use” principle in all services. Either in the communications industry
ad space to the buyer offering the highest price,
or the fast-growing Internet, only companies that focus on users can finally succeed. For
but to the most relevant advertiser. The user’s
the 10-year-old Google, there are many opportunities for exploration. If it sticks to “easy
search query will only trigger ads relevant to the
of use”, the company can win more successes.
Issue 3 2008
Dell Studio Hybrid 140g
Let’s look at this desktop PC that won the IF Design Award China 2008. The Dell Studio
Hybrid 140g is Dell’s smallest and most environmentally friendly desktop PC. It is about 81 percent
smaller than the typical desktop minitower, and uses up to 70 percent less energy. From the CPU
to the chipset and memory, the Studio Hybrid uses laptop components. Features include a 2.5-inch
hard disk and a slim slot-load DVD drive. Because of its compact size, the product can be set up
in a vertical or horizontal position. It is touted as a “hybrid” due to its laptop/desktop design.
exemplified the Internet’s people-oriented principle.
advertisement, or the keyword search. The
30
power supply is not available.
Issue 3 2008
31
Fashion
Solar-Powered Laptop Bag
This laptop bag named “generator” features a water-
French Rabbit
Fashionable E-Bag
Solar-Powered Airplane
This E-bag is only a concept rather
Tetra packs, dubbed as
This airplane seems to have no
proof and ultraviolet-proof solar panel. In about 8-10 hours of
than a product. Otherwise, it might be
one of the 10 most important
fuel box. How can it fly in the sky? Well,
sunshine, the panel fully recharges an internal battery pack,
one of the best selling products of the
inventions in food industry of
this is the world’s first solar-powered
providing enough power to laptop and other digital gadgets.
year. The handbag by Hungarian Apor
this century, have replaced
airplane. The “sunshine power” airplane
The battery pack can also be charged from a wall outlet. It is
Puspoki is a cooler. The cooling energy
many traditional packing
sponsored by Omega aims to emit no
especially useful for people working outdoors.
is derived from swinging the bag as
methods. Besides ensuring
carbon dioxide in future flights. Maybe the
This has wasted energy and water. Now this new showerhead has a built-in sensor that
the user walks along. The cooling
the good quality, Tetra packs
power of the sun is infinite. In the future,
detects when the water reaches 95 degrees Fahrenheit (35 degrees Celsius), and then
action is derived through Peltier
are environmentally friendly.
we might be able to take emission-free
pauses the shower. After that, you can turn on the shower again. Obviously, this product
technology. It is a green product,
However, can you accept
airplanes at affordable prices.
as it does not consume any
wines in Tetra packs? Do
Water & Energy Saving Showerhead
In daily life, you have to wait for your shower to heat up after turning on the shower.
is applicable to electronic and solar water heaters, but not to gas water heaters.
Ravi Solar Generator
The Ravi solar generator is a design
power. This design thinking shows
you think wines should
that urban consumerism needs not be
only be contained in glass bottles? With the
wasteful and carbon-hungry.
slogan of “Savor the Wine, Save the Planet”,
by Leigh Ryan, a student at Monash
French Rabbit is recognized for its recyclable
University in Australia. It looks like a
packaging. In fact, you can savor more wine
flower with solar panels inside its three
due to the more cost-effective packaging.
petals. The Ravi solar generator absorbs
Zero-Pollution Car
energy through its petals during the day,
storing it in an internal battery, which can
Still worrying about gas prices? You may
be removed at night to power home
get rid of this problem in the near future if you use
appliances. It is named after a benevolent
the Zero Emission (Z.E.) concept electric vehicle
sun god from the Hindu faith.
of Renault. Based on the Kangoo Be Bop, the
Z. E. concept is powered by an electric motor
Pedal Powered Charger
In Japan where energy resources are in shortage and prices are high,
manual chargers are very popular. Here is a pedal charging device from Japan.
Without the bottom base, the product looks like an emergency light and the
user can recharge any digital devices through the USB interface provided.
When the power is not enough, the charger can be attached to a base with
two pedals, and you can use your feet or hands to pedal and recharge the
battery. At present, the product costs about 1,000 yuan.
with lithium ion batteries. The employment of
SolarRolls
solar panels in the roof and acid green-tinted
For backpackers and hikers, when their digital
glass contributes to the reduction of temperature
products are out of power, it is really difficult to find a
fluctuations and thereby reduces the load on the
recharging source. Fortunately, some vendors have
electrical power system.
seen the demand and launched some solar generators.
SolarRolls are solar generators with a unique design:
A High-Tech House
they can be easily rolled into a storage tube. To meet
In the solar energy community in Freiburg, Germany, there is a house sporting solar panels on the roof.
different requirements, the products come in different
Looking like an aerospace command post, the house converts solar power to electricity power, hence
lengths: 57 inches (1.45 meters), 40 inches (1.02
saving energy. With solar panels on the roof, an ordinary house becomes a high-tech property.
meters) and 22 inches (0.56 meters).
Camera Using No Battery
This is a battery-free digital camera
presented by Sony. The wheel of the device
is equipped with a generator and the camera
is charged by giving the wheel a spin. Even
when you are far from a power socket, you
can get the camera recharged easily.
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Issue 3 2008