ZTE's Interoperability Testing Pushes TD-LTE Technology Closer to the Mainstream

Event Summary

July 11, 2011―ZTE announced that it had completed interoperability testing of a multimode device that can support handovers between a TD-LTE network and CDMA, GSM, WCDMA, and LTE networks. The multimode device used in the testing is a prototype and is not yet commercial. ZTE claims this interoperability test is a market first.

Analytical Summary

Perspective: moderate

Current Analysis has a moderate outlook for ZTE’s multimode TD-LTE device that can support network handover between TD-LTE networks and GSM, WCDMA, CDMA EV-DO, and LTE networks. By successfully managing network handovers between TD-LTE and other networks highlights, ZTE demonstrates the growing maturity of its TD-LTE solutions.  ZTE has helped raise interest in TD-LTE by showing operators how TD-LTE can be integrated into their existing networks.

Vendor importance: high

ZTE is looking to maintain its TD-LTE momentum by expanding its 25 network trials and deployments. Expanding the market for TD-LTE will require the technology to support handover between TD-LTE and traditional FDD-based wireless technologies. Handover is needed to support carrier-to-carrier roaming and to ensure established mobile operators can integrate TD-LTE with their previously deployed networks.

Market impact: high

ZTE’s impact in the wireless infrastructure market will be high. TD-LTE interoperation with GSM/WCDMA/CDMA EV-DO could greatly increase the interest of mobile operators in TD-LTE. Established mobile operators will be more likely to deploy TD-LTE if it can interoperate with their existing networks. ZTE’s test also shows how a vendor can benefit from having both device and infrastructure assets, especially in driving development of new markets.

Competitive Positives

• Signals growing maturity of ZTE's TD-LTE solution
• Should help expand operator interest in TD-LTE
• Interoperability includes both 3GPP and 3GPP2 networks
• Highlights that ZTE is both a device and infrastructure vendor
• Points to the company's overall momentum with TD-LTE