Huawei and ZTE's Key Development Strategies for 2008

SUMMARY

The last few years have seen a new wave of M&A activity in the global mobile communications industry, including the merger between Lucent and Alcatel, Nokia's acquisition of Siemens' network equipment division, and Ericsson's acquisition of Marconi. One of the key factors driving this trend has been the emergence of major new players such as Huawei and ZTE in the global mobile communications equipment market. By 2007, overseas sales accounted for over 50% of total sales for both Huawei and ZTE. In 2008, the two companies have been restructuring their network equipment businesses, while also allocating more resources to mobile phone production and working even more actively to develop overseas markets. This report will examine the business strategies that Huawei and ZTE are adopting in 2008.

TABLE OF CONTENTS

List of Topics

Analyzing Huawei and ZTE's business and product strategies in 2007 as well as both companies' market development plans in 2008; presenting market opportunities and future challenges for Huawei and ZTE in the mobile communications industry.

• Huawei's Business Strategy
  • Transforming into Supplier of Both Products and Services
  • Seeking to Dominate the Post-3G Era
  • Increasing Resources on Developing Terminal Business
  • Strengthening its Position in Emerging Markets
• ZTE's Business Strategy
  • Focusing on TD-SCDMA in the Network Equipment Business
  • Aggressive Development of the Mobile Phone Business
  • Expanding Presence in Emerging Markets
• MIC Perspective
• Appendix
• Research Scope
• Glossary of Terms
• List of Companies

Aircell, Alcatel, Algeria Telecom, Antel, Arobase Telecom S.A, AZ COM, Baikalvestcom, BeiCei JV, BSNL, BT, BT Movio, BTC, Calcomp, CAMTEL, Canar Telecom, CAT, CAT Telecom, Celcom, Celltel, China Netcom, China Telecom, Chinguitel S.A., COLT, CoTeCal, CTBC, Datang Mobile, Digicel Caribbean Aruba, Digicel Caribbean Barbados, Digicel Caribbean Cayman Islands, Digicel Caribbean Jamaica, Digital Telecommunications Phils, Digitel, DVCOM, Econet, eMobile, Emtel, Enisey Telecom, EOCG Wireless Aruba, Ericsson, Etapa Cuenca, Etisalat, Evoxus, Excelcom, FiberNet, Foxlink, FT, Gambia Telecommunications Company, Globacom, Globe Telecom, G-Mobile, HaiTel S.A., HFCL Infotel, Huawei, Hutchison, Indosat, Inventec, Itisaluna Iraq, IUSACELL, IZB, JTL, Kaluga Cellular Communications, Korea Telecom, KPN, KPN Mobile, Leap Wireless, Libyana, Lucent, Marconi, Megafon, Mobilkom A.S., Mobily, Morocco Telecom, Movilnet, M-TEL, MTN, MTS, Multi-Media Telephony, Mundo Startel, National TeleCom, Natrindo, Nepal Telecom, Neuf, Nigerian Telecommunications, Nokia, Nortel, NTCH Inc, NTS, Oasis S.P.R.L., Oman Telecommunications, Optus, Orange Poland, P4, PBTL, PCCW, Peoples Telecommunication & Information Services, PGH, Potevio, PT Indosat, PT Smart Telecom, PTCL, Radiomovel Telecommunications S.A., Reliance, Rostelecom, Saudi Telecom Company, Siano, Siemens, Skylink, SkyTel, Sotelma, Sprint Nextel, Starcomms Limited, Starcoms, StarHub, Suburban Telecom, Sudatel, Sun Cellular, Sunday, Suntel, TATA, Tatem Telecom, TD-Tech, Telecom Argentina, Telecom Fiji Limited, Telecom Malagasy SA., Telecom Namibia, Telefonica, Telefonica Argentina, Telekom Baltija, Telemar/Oi, Telemobil, Telepon Selular, Telesystems of Ukraine, Televork, Telfort, TIM, Tiscali, TM, Togo Telecom, Transtelecom, True Move, Viatel, Vimpelcom, Visafone, Vmobile, Vodafone, VPT, Wana, Zamtel, ZTE

List of Tables

• Table 1: Huawei's Main Customers for 3.5G and WiMAX Products
• Table 2: Huawei's Mobile Communications Network Equipment R&D Facilities
• Table 3: Huawei's Mobile Phone Contract Manufacturing Partners
• Table 4: Contracts Secured by Huawei for WCDMA/HSDPA Network Equipment as of December 2007
• Table 5: Contracts Secured by Huawei for CDMA2000 EV-DO Network Equipment as of December 2007
• Table 6: Huawei's Main Customers in Overseas Markets
• Table 7: ZTE's Mobile Communications Network Equipment R&D Facilities
• Table 8: ZTE's Customers for WCDMA Network Equipment, as of December 2007
• Table 9: ZTE's Customers for CDMA2000 EV-DO Network Equipment, as of December 2007

List of Figures

• Figure 1: Huawei's Revenue and R&D Spending, 1999 -2006
• Figure 2: Huawei's Revenue by Target Market, 2002 - 2007
• Figure 3: Huawei's Technology Development Roadmap
• Figure 4: Huawei's Mobile Terminal Product Shipment Volume, 2004 -2007
• Figure 5: Huawei's Mobile Terminal Product Line-up
• Figure 6: ZTE's Revenue and R&D Expenditure, 1H 2005 -1H 2007
• Figure 7: ZTE's Sales Revenue by Region, 1H 2005 -1H 2007
• Figure 8: ZTE's CDMA Product Roadmap
• Figure 9: ZTE's TD-SCDMA Product Roadmap
• Figure 10: ZTE's WiMAX 802.16e Technology Roadmap
• Figure 11: ZTE's Mobile Phone Shipment Volume by Target Market, 3Q 2005 -3Q 2007