

Since our October 2008 profile update, ZTE has commercialized several new
optical products, in all three segments: aggregation (ZXCTN, optimized for
mobile backhaul), bandwidth management (ZXONE 5800), and the iWDM series
(M720, M820, and M920). It has also made tangible progress, both on the R&D
and sales/marketing fronts, in the convergence of its optical and datacom
divisions into a single “Bearer Network” group. Now that it has a
more complete product set, a broadening range of customer relationships, and
much bigger scale globally, ZTE must leverage these to better penetrate the
more picky tier-1 and tier-2 accounts in order to overcome its corporate image
as a technology laggard.
Executive summary
In a nutshell
Ovum view
Market position
Key changes affecting ZTE since the last update
Analysis of competitive
position
Corporate
Optical
Strategy definition and execution
Product line management
2009 product line additions
Globalization
Solutions selling
SWOT analysis
Despite growth of
domestic market and product enhancements, ZTE’s SWOT metrics remain the
same
Strengths
Corporate strengths
R&D
Optical product
strengths
Solution strengths
Weaknesses
Corporate
Optical
product
Solution
Opportunities
Threats
ZTE’s ON
ratings
Not much change; ZTE’s challenge is executing R&D plans,
building local offices, and winning contracts
Broadest portfolio is in
aggregation products
Products
Many new products introduced in last 12
months
Key product series: ZXCTN
China Mobile’s needs drive
ZTE’s ZXCTN product line for mobile backhaul
ZTE’s ZXCTN
series for mobile traffic backhaul and aggregation
Regional market data
by product segment
Aggregation and backbone WDM driving growth
Highest rank is in backbone WDM segment in AP
Marketing strategy
Messaging
Channel strategy and partnerships
Acquisitions
List of Tables
Table 1: Ovum’s overall rating of
ZTE
Table 2: ZTE’s key strengths, weaknesses, opportunities, and
threats
Table 3: Mapping of ZTE’s products to Ovum’s
segmentation
Table 4: Technical specifications of ZTE’s
6100/6200/6300 products
Table 5: ZTE’s regional ON revenues by
product segment, 3Q08-2Q09 (US$M)
Table 6: ZTE’s regional market
share and rank by product segment (rolling 4Q, 3Q08-2Q09)
List of Figures
Figure 1: ZTE’s ON ratings (as
of October 2009)
Figure 2: ZTE’s product competitiveness by
product segment
Figure 3: ZTE’s aggregation and bandwidth
management products
Figure 4: ZTE’s WDM/OTN products
Figure
5: PTN trial at China Mobile
Figure 6: ZTE’s three ZXCTN products