Chinese vendors shine in early LTE trials, Intel stresses WiMAX lead
Published: 22 June, 2009
READ MORE: Intel | LTE | WiMAX
The Chinese vendors have labored too long under the market perception that they deliver low cost equipment, but can't do cutting edge. To fight this image and enhance their position among tier one carriers, Huawei and ZTE are throwing everything - including their huge credit lines for vendor financing - at gaining early LTE trials, which puts them in the spotlight even if commercial roll-outs are often two years or more away. The latest points go to ZTE, which has won field trial contracts with Telefónica in Spain and CSL in Hong Kong.
This comes shortly after Huawei highlighted its LTE deal with Netcom of Norway, and the Chinese duo are, early market estimates indicate, coming close to Ericsson in terms of their penetration of stage one LTE trials - and ahead of Alcatel-Lucent and Nokia Siemens.
Telefónica confirmed reports by Light Reading that ZTE's trial will take place in the third quarter. While success at the Spanish firm may not translate into meaningful revenue any time soon (and Ericsson has already conducted LTE trials with Telefónica too), it will still be a major boost for the vendor. It has not been as successful in getting tier one western carrier deals as its compatriot - although its overall wireless equipment market share grew at a similar rate to that of Huawei in the past 12 months, its base is far more concentrated on the lower margin developing markets.
By contrast with Telefónica, CSL is already a major customer for ZTE and one of the first commercial users of its software defined base station platform, which it is currently rolling out in an IP-based HSPA+ network across Hong Kong. In a recent interview with Telecoms.com, Tarek Robbiati, CEO of the Telstra subsidiary, said: "Further consolidation will come in the next three to five years. In the end there will be only three [infrastructure vendors] left, and two of them will be Chinese. The European vendors are just too slow."
With LTE firmly at the top of the hype curve in 2009, WiMAX is somewhat overshadowed in the headlines, but did make a strong impression at last week's CommunicAsia show in Singapore, highlighting how the technology has gained a higher profile in Asia than in Europe - because of the importance of the Taiwanese ODMs and vendors like Samsung, as well as a large number of deployments in countries like Japan, Vietnam, Korea and Taiwan.
Speaking on a panel at the show, Garth Collier, Intel's WiMAX chief in Asia, said the chip giant will continue to champion the technology, even in a multi-technology 4G world. "We're pragmatic about this, of course, but this directive is from the CEO: we're not blinking on WiMAX," he said, emphasizing that 802.16e was ahead of LTE in the process of real world trials and roll-outs. "A lot of that has been doing what LTE's going to be doing as well - sorting out standards, testing, network trials and deployments. We've gone through that learning curve."
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