TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

5G Evolution

5G Evolution

Despite restrictions, ZTE continues to grow

Ray Le Maistre
By Ray Le Maistre

Mar 9, 2022

  • Chinese vendors have pariah status in many markets
  • Huawei and ZTE have a smaller global addressable market due to trade restrictions and sanctions
  • But they are not going away
  • ZTE grew its business in 2021, and not just in China

In the face of trade restrictions and being branded as a security threat by the globally influential US authorities, Chinese network equipment and device maker ZTE not only refuses to give up and go away, it continues to grow. And that’s going to be an irritation for those who fear China’s influence in the global communications sector, as well as for its rivals.

ZTE has just announced full year revenues for 2021 of RMB 114.5 billion (US$18.1 billion), a 12.9% year-on-year increase, despite the pressures of doing business during the ongoing Covid-19 pandemic and what the vendor describes as a “complex external environment,” which is a somewhat oblique way of referencing the shackles imposed mainly (but not only) by the US authorities – ZTE is on the US Entity List of companies deemed to be a security risk, which means it cannot buy or use US-made technology unless granted a special license.

Currently, ZTE can be grateful that China’s network operators are pumping so much capex into their 5G and fixed line networks, providing it almost guaranteed business: In 2021, its revenues from customers in China hit RMB 78.1 billion ($12.4 billion), up by 14.7% and accounting for almost 69% of its total sales.

But while it’s true that the majority of ZTE’s business comes from its home market of (as is also the case for its larger peer and rival Huawei), its international sales are also growing. Revenues from international markets totalled RMB 36.5 billion ($5.8 billion), up by 9.1%.

The vendor’s network infrastructure business lines (aka ‘operator networks’) generated revenues of RMB 75.7 billion ($12 billion), up 2.3%, so limited growth for that part of the business. 

But it’s still a significant player in the overall mobile network infrastructure market, albeit some way behind the top trio of Ericsson, Nokia and Huawei: According to Mobile Experts, ZTE commanded a 14.5% market share of the circa $45 billion global radio access network (RAN) market in 2021. (See What’s up with... RAN market shares, Vodafone UK, Bharti Airtel.)

But the vendor’s consumer line of devices (mobile phones and home devices) ramped its sales by 59.2% to RMB 25.7 billion ($4 billion), with the home devices line increasing year-on-year sales by 80% and mobile devices by 40%.

Sales to enterprises and government customers came in at RMB 13.1 billion ($2.1 billion), up 16% year-on-year. 

Huawei has taken the brunt of the global squeeze on Chinese vendors. It is yet to publish its annual report, but earlier in the year it announced that its full year 2021 revenues were expected to be around RMB 634 billion ($100 billion), down by about 30% year-on-year. But it’s still the biggest vendor in the global network infrastructure market, according to Dell’Oro, and while its market share is shrinking it still commands more than a quarter of the entire sector.

- Ray Le Maistre, Editorial Director, TelecomTV

Related Topics
  • 5G Evolution,
  • Access Evolution,
  • Analysis & Opinion,
  • Asia-Pacific,
  • Global,
  • Huawei,
  • News,
  • Telecoms Vendors & OEMs,
  • ZTE

More Like This

5G Evolution

Ericsson and Ooredoo Qatar provide artificial intelligence solutions for customer experience leveraging Microsoft Cloud Datacenter

Feb 1, 2023

Digital Platforms and Services

What’s up with… Orange, BT, TelcoDR and STL

Jan 31, 2023

Open RAN

Vodafone lays ground for Open RAN RFQ

Jan 31, 2023

5G Evolution

What’s up with… Samsung, M&A in Canada, Orange and Telenet

Jan 30, 2023

5G Evolution

BT takes to the skies for remote coverage trial

Jan 30, 2023

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

0:46

The Cloud Native Telco Summit returns this September!

8:32

Azita Arvani on Being a Female Leader at Rakuten Symphony

16:19

AT&T Amy Zwarico on securing telco applications in the public cloud

1:44

Join us for the greatest industry debate of the year!

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).