With two decades of operations in Mexico, ZTE understands the market needs and now focuses on deploying infrastructure and fiber optic networks to improve user experience for businesses in the country.
Alfonso Zhu Wenqi, General Manager of ZTE Terminal Business in Latin America Region, spoke with Telecom Review Americas about the business solutions the company is offering in the country and the strategy to enhance connectivity in Mexico.
ZTE has many infrastructure solutions for telecommunications, but what is the focus in Mexico with operators?
ZTE is a manufacturer of technological solutions in the telecommunications sector. We offer network solutions and terminal equipment solutions, so we are quite strong in both sectors, competing actively in each.
We focus a lot on empowering our clients and partners in the market to help them develop their networks and provide better service to their customers at highly competitive costs. Also, addressing the need for sustainability, these factors typically draw much attention. One of the technological trends in recent years has been the development of fiber optic networks across the country and the entire region.
We see this as a very clear trend, and we work with various operators, including Telmex, Megacable, Izzi, and Totalplay, to help them build their networks and help the Mexican people enjoy much wider bandwidth.
Having much more powerful internet access using fiber optic technology, which is far better than cable, copper, or older technologies, is one of the trends. And we don’t just install the network; we also provide network solutions like Optical Line Terminal (OLT) in both active and passive equipment. For terminal equipment, we offer Optical Network Terminals (ONT) and TV set-top boxes.
Last year alone, in Latin America, ZTE deployed approximately 8 million ONTs, helping households migrate to fiber optics and improving families' experiences.
In Mexico, 90% of businesses are small and medium-sized enterprises (SMEs). How does ZTE help them with digital transformation, which can sometimes be complex and challenging for these businesses to start?
We work a lot with our partners. We might not directly work with them because we provide the equipment and solutions to carriers, but we have customizable solutions. For example, recently, we have been pushing our Fiber to the Room (FTTR) solution, which we see as very good for small businesses that need seamless internet access.
For events like Formula 1, we are working with Telmex to deploy WiFi throughout the GNP Seguros Stadium (formerly Foro Sol) to offer 10 GB of bandwidth for the entire Formula 1 event and upcoming events. We hope this can be a good showcase for the whole market and then apply it to the enterprise sector.
What is ZTE's perspective on the opportunities in the country, considering the recent government change, and changes might come? What opportunities do you see arising from this? Because the president has talked about digital transformation and emphasized digitalization, how could you collaborate?
We are in the part we call infrastructure, at the base of everything needed for this digital world. For example, now everyone talks about Artificial Intelligence (AI). With AI, many processes must be digitized, involving many data centers and requiring much better transmission networks, and we are at that layer.
With this technology, the country could digitize, automate many processes, and significantly improve productivity. We want to be part of this development, contribute our value to this process, and work with all partners who open the door for us to offer our solution in this wave. We see a lot of potential because, to be honest, this infrastructure still needs to be developed. For example, broadband penetration in Mexico still needs to grow, both fixed and mobile, so we see much more we can help with.
Are you working with this segment for fiber optic infrastructure deployment? Do you have solutions for that market?
We have a broad portfolio that meets almost all the connectivity needs a company might have in the telecommunications sector. It’s worth mentioning that annually, we sell about 3 to 4 million cell phones in the Mexican market, focusing on mid- and low-range sectors, offering highly affordable phones with powerful functions at the same price.
Through these market offerings, we see that we are helping many Mexicans enter a new era of digitalization faster and at a more affordable price.
You supported Izzi in implementing technology for its MVNO. Are you open to working with other virtual mobile operators?
Yes, indeed, we hope that the project with Izzi serves as a good example. We want to create much value for Izzi through this project and are open to collaborating with other MVNOs. If they need a technological solution, advice, or financial support, we can offer our support in all aspects.
What would be the short-term objective for ZTE in Mexico next year?
We expect stable growth in the market. We have positioned ourselves very clearly, know our place in the industry, and know whom to work with. We have a well-defined strategy, so we hope to continue growing, continue dominating in the CPE sector, for example, ONTs, TC2, being the leader in fiber optic access industry.
We also want to expand our market share in cell phones in all sectors where we already have a presence. We hope to continue growing and contributing more value to the Mexican people every day. We are not just here to do business; we are here to democratize internet access for everyone.
