After a record US$1 billion annual loss in 2018, ZTE – China’s second largest telecommunications equipment manufacturer is emphasizing its focus on 5G technology. In a statement, ZTE plans to boost investments in 5G research and development to improve on new networks.
To address security concerns, ZTE is planning to invest in 5G labs across Europe and China by the end of this year. Initially, ZTE will set up three cybersecurity evaluation centers in Belgium, Italy, and China. The Shenzen-based telecommunications equipment maker ZTE is following the Huawei’s path of operating under the supervision of the local government.
ZTE’s primary focus is to reassure the telecom operators and governments about the security of its 5G equipment, reveals people concerned about the matter. ZTE is returning to its normal working and seeks a comeback after such troubled times. However, the company secured six commercial 5G contracts and is working with three major telecom operators in China – China Mobile, China Unicom, and China Telecom. ZTE is continuously cooperating with telecom operators around the world on 5G research and development.
“In 2018, ZTE adhered to innovation drive and concentrated on efficiency improvement by focusing on value customers, core products and optimizing R&D structure. It has continuously concentrated on the core 5G technical fields and further intensified 5G R&D investment,” the company said in a statement.
The company is trying hard to put aside the allegations and refocus on 5G development. Last year, the US government fined ZTE for violating its sanctions against selling equipment to Iran. All the executives were replaced and the board was reshuffled in accordance with the agreement. Further, ZTE remained shut for around four months in the US, its share price fell to HK$9.56 in June and reported an annual loss of 6.98 billion yuan (US$1.04 billion).
(via)
