ZTE’s operating revenue grew by 13.8% to US$2.3bn for the first quarter of 2011 with net profit up by 15.8% to US$19.3m. Revenue generated via carrier networks grew 1.5% year on year due to the increase in sales of wireless systems, wireline switches and access systems.
However, the majority of revenue growth came from sales of terminal products, especially 3G handsets, GSM and CDMA handsets and data card products. Sales were up 51% compared with the first quarter of 2010.
ZTE has also made considerable progress in growing the managed services side of its business, which have risen by 60% in terms of contract value worldwide. In Europe, sales have grown by over 300%.
Recent awards include a six-year managed contract with Hi3G Austria for network operations and maintenance of 4,000 sites and the construction of a CDMA2000 1x/EV-DO network for Poland’s second largest operator Polkomtel, along with managed services for the whole of its network.
In a further development, ZTE is to provide network operator Hi3G with what it claims is the world’s first LTE TDD/FDD dual-mode network in Sweden and Denmark. The deal also involves equipment to upgrade the operator’s 3G network.
The new dual-mode LTE network will use ZTE’s Uni-RAN SDR (software defined radio) technology for the base stations. This will enable Hi3G to support all viable mobile standards and frequency bands on the same equipment, including the upgraded 3G network and the two versions of LTE: TDD and FDD.
The technology means Hi3G can perform upgrades of its infrastructure without the need to acquire new base stations. Peder Ramel, CEO of Hi3G said: ‘We have chosen ZTE for additional 3G 900.2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility of housing three different mobile standards in the same physical infrastructure and the low cost of ownership.’