ZTE UK Innovation Center Interpretes the DRA Concept
ZTE Innovation Center housed alongside QiComm’s core interconnects and data centre, a position will enable ZTE to run any of its infrastructure products in a live network environment.
Strategic siginficance of the cooperation between ZTE and Qicomm
QiComm is a leading independent provider of voice and data systems, information technology solutions and technical outsourcing. The cooperation between ZTE and Qicomm include softswitch, transmission, IP and billing system. ZTE and Qicomm deployed the NGN network in the 1H 2011.
Qicomm System Integration Product Dirctor Iain Brotherston said that there are many reasons to cooperate with ZTE, including the high-quality products and services. The one-year cooperation between the two parties shows that ZTE product quality is good and the system operation is stable.
When asked whether the price is the main reason that Qicomm chose ZTE, Iain repled that ZTE's price is not the lowest, it could only be regarded as competitive when compared with other providers. Iain said, the confidence Qicomm has torwards the providers, the quality of the products, and the scalability of the equipment are the first factors that help Qicomm make the decision.
Iain added that the high efficiency is also one of the reasons they have chosen ZTE as the partner. The general delivery time for most operatos will be as long as 9 months, but ZTE only takes 3 months to deliver the project. Also Qicomm expects to transfer to a moible operator via the cooperation with ZTE.
When asked whether ZTE could reveal the financial specifics between the two parties, ZTE system product director, Bob Charles said, "How much money the cooperation between the two parties has reached is not important. The most significant thing lies in that the cooperation sets an example for the future cooperations between ZTE and other UK operators. ZTE hopes to crack the door of other UK operators using the example of the cooperation with Qicomm.
ZTE Innovation Center carries multiple roles
Bob said, ZTE Innovation Center is housed alongside QiComm’s core interconnects and data centre, with the purpose of using Qicomm network to operate ZTE system equipment and showcase ZTE's technology strength. ZTE Innovation Center is not only a R&D center, but also a window that enables clients to know about ZTE and Qicomm.
Bob introduced how ZTE innovation center works. According to Bob, ZTE engineers based at HQ in China will frequently come to work at the innovation center to analyse the requirements from the clients. Bob said, the operators' requirements keep changing, therefore, vendors' innovations have to be updated accordingly. Several top UK operators are quite good at grasping the most edge-cutting technologies and the requirements from the consumers. ZTE must keep in step with them.
The concept of DRA
Regarding those operators that have never cooperated with ZTE before, ZTE innovation center bears the role of showing ZTE's strength to operators, said David Dai Shu, general director of ZTE's corporate branding and communications department. He said, from the perspective of R&D, to establish the local innovation center will enable ZTE to get closer to their clients. Consequently, ZTE could better understand their clients, which is exactly the way ZTE interprete the DRA concept.
(D)--Demand, demand from users' experience) will be transferred to（R)-Requirement for product research and development and finally resulting in the establishment of specifications and ( A)--Architecture.
David said , ZTE will estabish 10 innovation centers and is considering tranferring more R&D centers to the front.
It is time for ZTE UK to enter the market
The 9-year development mechanism. The operator will investigate, examine and test the providers in multiple sectors in the first 3-year period. In the 2nd 3-year period, only small projects will be symbolically arwarded. The core projects are generally awarded in the 3rd 3-year period.
According to David, the technology strength might not be the only key to open the door of operators either. The traditonal operators like BT(British Telecom) will take the corporate social responsibility (CSR) as the priority in investigating a potential partner. ZTE CSR was authenticated by BT in 2003. This becomes the golden key to enable ZTE to break throgh the top international operators. Afterwards, ZTE signed 3G VAD services, R&D cooperation agreement with BT.
Bob said, the investigation on the providers will last a very long time, which is the process that the emerging providers have to experience as well.
At last, ZTE was acknowledged by Qicomm. We feef confident of UK market. Besides the complete product protfolio, excellent delivery capabilities and stable financial support, It is good time for ZTE to enter the UK market.
Bob said, telecom industry has experienced a big change in the past 10 years. 10 years ago, UK had only one operator providing broadband services, but today the mobile operators need fixed network services as well. The top 4 UK operators EE, O2, Hutchison and Vodafone are alll considering the broadband services. Broadband services might be the entry to ZTE UK market.
UK telecom market trends
According to the independent regulator and competition authority for the UK communications industries Ofcom, broadband and mobile services will become the leading tendency in the UK telecom market.In the past two years, UK fixed line services revenue and users began to fall down.
UK mobile operators , like fixed line operators are facing the challenges from voice services growth slow-down.
Regarding the hot investment in cloud computing and FTTH in China, Bob said the UK operators have noticed it but they still appear cautious.
Though the ultra high speech coverage rate is increasing but its percentage accounting for the broadband access share is still low. Ofcom report shows that only 2% residents and middle/small enterprises will use the broadband in the name of the high speed of 24Mbit/s or above.
Small mass LTE user market
Compared with North European operators, UK LTE network construction is slow. Though several UK mobile operators have tested LTE networks, Ofcom Chairman predicted that the large scale LTE deployment will not come until 2014.
Inform reprot shows that if the UK operators deploy the LTE network before 2015, it won't benifit the development of UK economy. There is not any practical ecnomic solutions yet. Neither is there a mature users structure. Large scale deployment of LTE network will cerate extra burdons in terms of mobile broadband network development, affecting the development of UK economy .
Bob has joined ZTE for 6 years. He said he had felt most the sense of achivement in the past 18 months. Besides the cooperation between Qicomm and BT, ZTE has also started the partnership with a lot of channel distributors as well. And ZTE is one of the companies that still recruit new employees. We recruit new people based on the feedback and requirements from the operators. Bob said.