ZTE predicted to be biggest winner in China Telecom's IPTV tender

August 28, 2008 - ZTE is expected to win a large part of the recent tender by China Telecom for IPTV system platforms and set-top boxes in which it is competing with ten other companies, Interfax China reports quoting an industry insider.

China Telecom has shortlisted 11 companies to supply 574,000 IPTV set-top boxes, comprising 536,000 standard-definition and 38,000 high-definition units. "China Telecom will allow its local branches to select from the [shortlisted] companies," said Zhang Yanhong, founder of Chinese portal LMTW.com and an industry expert that works closely with China Telecom.

According to Zhang, China Telecom's local subsidiaries are now submitting the number and types of systems and terminals they wish to purchase from the companies to China Telecom's head office. "ZTE is very likely to win the largest share in the tender. China Telecom's local branches in Shanghai Municipality and Jiangsu Province will purchase ZTE's systems," he added.

Companies shortlisted to supply standard-definition IPTV set-top boxes are ZTE, UTStarcom, Coship, Motorola, Huawei, Postcom, Sunniwell, Alcatel-Lucent, Yuxing, 30 Kaitian and Changhong; suppliers shortlisted to supply high-definition set-top boxes are ZTE, UTStarcom, Alcatel-Lucent, Postcom and Changhong; and suppliers of systems platforms are shortlisted as ZTE, UTStarcom and Alcatel-Lucent.

ZTE is thought to currently hold the largest market share of China's IPTV system and terminal market, and has supplied systems and terminals in a number of regions, including the provinces of Shaanxi, Jiangsu and Guangdong, as well as Beijing and Shanghai.