8/18/2008, A big rumor is circulating in China's mobile communication field. The rumor is about Huawei, but the result happens to ZTE.
It is said Huawei will get 70% share by using ultra low price strategy in the coming CDMA bid of China Telecom. ZTE and Shanghai Bell Alcater will only have the other 30%. Because of this news, ZTE's stock price has hit the 2 year low point recently.
Several security companies have confirmed that Huawei really would donate many CDMA equipments, but they denied that Huawei will get 70% market share by this. They pointed out ZTE was the dominator in 2007's CDMA market in China. ZTE even has 50% CDMA market share in the world. Compared to ZTE, Huawei's share is much lower.
Some media also reported that Huawei only gave a 600million target price in this 10billion bid. They said that Huawei would increase price after they got the order. This is a strategy that Huawei has adopted several times. Huawei has a good relationship with China Telecom, even they cannot get a 70% market share, their share must increase in this bid. Also Huawei's advantage is based on WCDMA. But that kind of market still isn't clear. It is sure thing that Huawei will try to increase their market share in CDMA market.
The bid result will be published as early as August 20th.
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