ZTE scoops Venezuelan TV deal

Chinese Vice-President Xi Jinping holds aloft the ZTE cell phone while talking with Venezuelan President Hugo Chvez during his visit to the country to discuss future deals in February 2009.

The ZTE Corporation, a Shenzhen-based provider of telecommunications equipment and network solutions, has recently clinched a high-profile deal to provide Internet Protocol Television services (IPTV) to CANTV, one of the largest telecommunications companies in Venezuela.

Under the terms of the deal, ZTE will be providing on-line television services to CANTV's customers in what has been hailed as the largest project of its kind in South America.

The ultimate aim is to provide services throughout the region, a potential target market in excess of 126 million viewers.

Bidding for the hugely lucrative contract began back in July 2008 and attracted tenders from IPTV suppliers across the globe. Many were lured by the huge value of the contract and the potentially vast size of its subscriber base.

During the initial phase of the project, ZTE will work alongside CANTV to promote its ZXBIV IPTV Eyewill system, a software package offering some 140 channels to ZTE's existing 67,090 subscribers.

The project will provide hundreds of thousands of families with access to TV, Internet, visual communications and long-distance education services.

These services will offer local residents with more opportunities for learning and creative activities and provide them with a life that is easier and more exciting.

Commenting on CANTV's decision to back a Chinese supplier, Cherles Chimaras, ZTE Venezuela's vice president for sales and marketing, said: "Despite ZTE's technological advantages and in-depth IPTV experience, we had a large number of obstacles to overcome before winning this contract. Ultimately, however, we won the business because of our experience as the IPTV market leader throughout China and the Asia Pacific region and because of our record for reliability."

The appointment is something of a milestone for both the carrier and for South America in general.

It is expected to trigger a wave of large-scale commercial IPTV initiatives by other carriers throughout the region and will see ZTE building CANTV's market penetration over the next five years.

For ZTE the contract marks yet another important staging post in the company's on-going success story.

According to a global survey conducted by MRG, a leading IPTV market research company, ZTE now has the number one slot in terms of market shares in both China and the Asia Pacific region.

Cell phone project

On top of its successes in IPTV sector, ZTE has also had a considerable impact on Venezuela's cell phone market.

To mark its success in the region, earlier this year ZTE held a ribbon-cutting ceremony for the launch of its state-of-the-art production base in Venezuela, which is a successful cooperation with the Ministry of Science, Technology and Industry Intermediates of Venezuela.

As part of the event both the Chinese Vice President, Xi Jinping, and Hugo Chvez, president of Venezuela, tuned into the ceremony via the company's direct broadcasting links.

During the ceremony, the Venezuelan minister of industry arrived to extend his congratulations.

As part of a demonstration of the high quality of ZTE's China-manufactured IT products, Xi conversed with the Minister by ZTE A933, ZTE's first mobile phone and one that was ultimately presented to President Hu Jintao as a gift.

The high quality of the signal and the subsequent ease of communication was unanimously approved by the leaders of both countries.

In addition, the ZTE C366 model cell phone is produced in Venezuela and has a complete functions of camera, video, WAP Internet surfing, FM, MP3 and MP4. As cheap as $15, it soon hit the market after its debut. This indicates ZTE's sound market presence in the country.

Profile

ZTE, established in 1985, is a world-leading comprehensive communications equipment manufacturer and a global communications network solution provider.

It provides quality, cost-effective products and services to more than 500 communications operators in 140 countries and regions.

It was listed on the Shenzhen Stock Exchange in 1997 through the issuance of A-shares. It also had H-shares listed on the Hong Kong Exchange and Clearings in December 2004.

ZTE's first foray into Venezuela dates back to 2001. It subsequently established a subsidiary there in 2004, which has now launched a number of hugely successful telecom projects.

Chief among these was its implementation of a 7,300 km fiber-optic communication network, which was jointly launched with the CADAFE and became the largest infrastructure project in the country's history.

After five years of consistent hard work, ZTE's Venezuela branch has become an established, reliable and reputable company in Venezuela.

(China Daily 06/29/2009 page8)