Telecom Equipment Makers Face Intense Competition from Manufacturers in China

Telephone service providers around the world have been facing vast changes in telecom technology. They have invested hundreds of billions of dollars in advanced switching equipment capable of providing ultra-fast internet service, wireless service and VOIP. Such investments involve massive purchases of state-of-the-art equipment. In the not-too-distant past, American companies were the world’s leading makers of telecom equipment. Today, however, there is intense global competition.

China-based telecom equipment manufacturers are booming. For example, Huawei Technologies Co., Ltd. has become a global leader. Chinese firms such as Datang Telecom Technology and ZTE Corp. are winning major contracts with telecom service providers around the world, including large sales of VOIP equipment, wireless infrastructure and network equipment. China has gained respect as a base for the manufacture of technology gear of very high quality. ZTE historically had sold to customers in China, elsewhere in Asia, and Africa. However, the firm is now aggressively marketing to telecom companies on a worldwide basis. ZTE has opened offices in U.S. cities and in Canada, as well as dozens of offices throughout Europe, Latin America, Africa and Asia/Pacific.

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Telecom Equipment Makers Face Intense Competition from Manufacturers in China, Business and Industry Trends Analysis

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