ZTE is a subsidiary of ZTE's main private network cluster communication. ZTE has a strong broadband product strength. The current private network communication upgrade is slow, far behind the public network, so this time ZTE's alliance with the Motorola system can be said to be a major event in the private network communication industry.
In the field of public network communication, Huawei, ZTE, Ericsson, and Nokia's four major equipment vendors are fighting fiercely, and the field of private network communication is also in full swing. Recently, ZTE Corporation announced that it has signed a strategic cooperation agreement with Motorola Systems (China) Co., Ltd., and the two sides will be in terms of broadband integration and private network broadband.
The reporter learned from ZTE’s insiders that the two sides have signed a framework agreement and follow-up cooperation is being advanced. If the cooperation progresses smoothly, it may affect the pattern of China's private network communication industry.
At present, in the global private network communication market, the Motorola system is undoubtedly a "one brother", occupying nearly half of the market share, and Hainengda is the most important challenger, full of momentum. In the Chinese market, Motorola's market share ranks first with its first-mover advantage, but in the largest public security market, Hainengda is a big one, and it frequently challenges the traditional advantages of Motorola systems such as rail transit.
ZTE is a subsidiary of ZTE's main private network cluster communication. Backed by the strong broadband technology strength of the parent company, it is the first to propose a “2+4†private network solution, aiming at the intergenerational evolution of private network communication technology. The idea of ​​integration has become an industry consensus. In the context of the technological transformation of private network communication, ZTE has been a challenger in the domestic market and has demonstrated a good combat capability. In an interview with reporters, the company said that the company ranked first in the public security market in 2016.
It can be said that Hainengda, Motorola Systems, and Zhongxingda are the three most conspicuous suppliers in China's private network communication market. Now that two of them have announced cooperation, it is easy to understand that the gun is aimed at Hainengda. It should be known that Hyundai and the Motorola system have been "rewarding" for a long time. In March of this year, the Motorola system also sued Hynonda patent infringement in the United States and launched an off-site attack. As for ZTE, it seems that it will not cooperate with Hainengda. After all, Hainengda is determined to self-develop broadband products, and has recruited many talents from ZTE and Huawei.
However, this kind of purpose is obviously not up to the table, and it is by no means the main motive of the two cooperation. In the opinion of the reporter, the cooperation between the two sides is more of a market consideration, and ultimately achieves a mutually beneficial and win-win situation. Try to analyze the following:
From a product perspective, ZTE has a strong broadband product strength, which Motorola does not have; at the same time, Motorola's decades of deep accumulation in narrowband products is urgently needed by ZTE. The digital transformation of the industry market, from narrowband to broadband, for the two companies, through product cooperation, respectively to fill the short board.
From the market perspective, the two companies have certain competition, but the private network industry is scattered, the market overlap is not high, and cooperation is greater than competition. Moreover, under the background that China attaches great importance to information security, the information security of the private network industry must also be controlled. As a strong local manufacturer, ZTE is more likely to get opportunities in some projects. The cooperation between the two parties will help stabilize the Motorola system. Market share in China.
At the same time, the establishment of mutual trust relationship between the two parties can also help the product and system level interoperability. The private network communication upgrade is slow, far behind the public network. Ideally, product interoperability will help the customers of the two vendors to accelerate network upgrades and accelerate digital transformation, which is also a small promotion for the industry.
In a mature market, competition and cooperation between vendors is the norm, so it should not be over-interpreted. Private network communication used to be a small market. With the digitalization and broadbandization of the industry, the industry has shown great potential and is full of attractive opportunities. ZTE's alliance with the Motorola system will take full advantage of both sides and amplify its own strength, thus occupying a favorable position in the new market.
As for the new trend of Hainengda this year, on the one hand, we will strive to launch a mature commercial wide-narrowband product solution; at the same time, we will launch acquisitions abroad, expand the product line strength, and further challenge the Motorola system in the global market.
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