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© photodynamx dreamstime.com Business | February 11, 2013

ZTE takes lead with 16% global market share

ZTE, with its strategic presence in DSL broadband and fast growing fiber broadband CPE market, took the top spot with 16% market share in the 3rd quarter of 2012, shipping 26.6 million devices.
Its dominant presence in the Asian Market, especially China (domestic market) has continued to fuel its growth; however it still struggles to find a foothold in North America.

ZTE and Huawei, two global telecommunications power houses from China, have faced heavy criticism in U.S. citing security threats due to each company’s close proximity to the Chinese government. After a yearlong investigation, The U.S. House Permanent Select Committee on Intelligence concluded in November 2012 that ZTE and Huawei are not ‘free of state influence’.

It recommended that private network service providers should consider the long-term security risks associated with doing business with either ZTE or Huawei and should strongly consider other vendors for projects. This was a major setback for ZTE which is a publicly traded company in China that’s been spending a lot of money to lobby its cause in the U.S. fearing its global impact on the brand.

Huawei took the lion’s share in the fiber ONT market beating ZTE to take the top spot again this quarter with its dominant role in the ‘Broadband China initiative’, China’s national program to deliver high-speed fiber-optic broadband with a target to reach 250 million homes by 2015. Cisco continues to dominate the cable CPE market with 21% overall market share. Its strong presence in the U.S. market with the largest cable broadband subscriber base has been pivotal for its success but Arris and D-Link are steadily gaining ground in the market.

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