Network infrastructure partner ZTE said business with Telefonica generated revenue of $446 million in 2015
MADRID – Chinese telecommunications services provider ZTE Corporation expects 5G technical trial with Spanish telecommunications operator Telefonica to start within the next few months, ZTE General Director for the Telefonica Global Business Unit Ying Xue told reporters during a press conference.
“We are currently in preparation for the trial with Telefonica, she said, which will take place in Madrid and last “a couple of months,” she said.
The executive added these trials would be probably extended to Telefonica’s operations in Latin America in the future. “If Telefonica can obtain spectrum in certain markets next year, we may carry out a commercial pilot of 5G technology. However, we are not discussing this possibility yet as it is too early for that,” she said.
In June this year, Telefonica inked a memorandum of understanding with ZTE for the development of 5G technology and the transition from 4G to 5G. The agreement between the two companies will enable more opportunities for cooperation across different industries in areas such as advanced wireless communications, “internet of things,” network virtualization architectures and cloud.
“Over the last years we have seen an increase in our cooperation with Telefonica, especially last year, when we signed an agreement for the provision of services to Telefonica’s operation in Germany. This is so far our biggest contract with Telefonica,” the executive said.
“Telefonica is very important for ZTE as it is one of the biggest telecommunications operator in the world in terms of revenues and technology innovation.” The executive said that business with the Spanish telco generated annual revenues of around 400 million euros ($446 million) taking into account contracts in Europe and Latin America. “We have the aim of expanding the collaboration with Telefonica in the future,” she said.
The executive also said business outside China accounts for nearly half of ZTE’s overall revenues and that Telefonica is a key contributor to ZTE’s international business.
