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Huawei, ZTE defensive onslaught force: 1.3 billion large unit to conceal weakness - Huawei, ZTE, CD by sgbvdf asga
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Huawei, ZTE defensive onslaught force: 1.3 billion large unit to conceal weakness - Huawei, ZTE, CD by SGBVDF ASGA
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| Article Posted: 02/28/2011 |
| Article Views: 99 |
| Articles Written: 2044 - MORE ARTICLES FROM THIS AUTHOR |
| Word Count: 700 |
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Huawei, ZTE defensive onslaught force: 1.3 billion large unit to conceal weakness - Huawei, ZTE, CD |
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Business,Business News,Business Opportunities
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After the first round of restructuring in the telecom equipment manufacturers Tender Results of the mystery, but failed to restore Gaokaidizou fate.
ZTE said on November 13, and China Telecom Group signed a mobile network construction of China Telecom (2008 a) wireless network engineering and business equipment purchase contracts ZTE network contracts, total contract value of about 1.331 billion yuan.
However, the tragic day stock movements, may mean that it will face the test.
According to the announcement, ZTE and China Telecom C network in 2008 a wireless network construction, signed 1.27 billion of equipment and services contracts at the same time, China Telecom signed C network in 2008 a business network contract to provide 061 million dollars of equipment and services.
Reporter was informed that the release of C network 1 is including Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen Telecom 3G Business development strategy, including 81 Highland City, a total of 250 000 carrier frequency of the tender results.
"The successful outcome of this argument is very subtle, only that it maintained a market share of the original C network." Researcher at a Shanghai brokerage, told reporters that day, ZTE's announcement did not disclose in the tender in the process of winning the actual market share, also did not disclose the actual area where the subject contains the actual network frequency and unit price bid.
However, the researcher privately told reporters, "The (ZTE) actually lost a point or large."
A reporter from the parties concerned the information obtained, the C network of China Telecom in a tender, ZTE total of 21 cities, a total of 35,000 the number of carrier frequency, base station about 9248. Its largest rival?? Huawei Has received, including Beijing, Guangzhou and Shanghai, including 20 mature, containing a total of 74 000 frequency, 14 779 base stations.
This calculation, the tender, if their access to the carrier frequency is calculated, only received 14.2% of its share, but if calculated according to their access to the city, its market share of about 25.9%.
"To protect margins, they must sacrifice the market." The researcher told a Shanghai brokerage.
"1.27 billion estimated by the amount bid, the company average price per carrier frequency of about 3.6 million, representing an average 20% higher in price." Bank of International Exchange of Hong Kong Communicate Industry analyst Li Zhiwu analysis, ZTE and few other companies do not compete under the pressure of cheap, pure pursuit of market share, but to stabilize the gross margin for the bidding strategy. Since
Recently, ZTE frequently in public, the executives said the company will not blindly price war. Secretaries to directorate Feng Jianxiong said recently that the company gross margin was maintained at 35%, cheap not return for market share.
"As the telecom reorganization, this time in the telecom market is equivalent to starting a new round of re-classification, but this time, how much market share to determine its future in the telecommunications market share level, this situation, ZTE by Paul Gross margins at the expense of market share strategy does not seem wise. "a telecommunications equipment industry veterans believe that the tender results ZTE appears the main reason for this is" C net business profit as the main plate, ZTE, Huawei, in the face of and many other low-cost strategy of pressure from competitors, ZTE current financial strength, can not support its confrontation with Huawei and other businesses. "
The industry believe that Huawei's "Wolf" policy by restructuring the telecommunications market, major reshuffle, to the time that ZTE has brought unspeakable fell. Huawei violent "attack", the ZTE into a defensive state.
So, how to understand the ZTE to maintain the existing market share of C network?
"Notice of claim is too vague understanding of the market share of the different, the conclusions are also different." Zhi-Wu Li told reporters, one obtained from the bidding cities, this market share is stable . I am China Toys Suppliers writer, reports some information about turquoise gems , precious gem stones.
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