ZTE goes after double dongle share

ZTE goes after double dongle share

Chinese manufacturer ZTE is gunning for 30% of the dongle market and plans to take share from arch rival Huawei.

Its ambition for 2010 is 45%, marking a significant increase from its level at the start of 2009 of around 20%.

Unit prices for dongles have plummeted from Euro100 to Euro30 over the last two years, allowing operators to give them away for free on affordable contracts, and operators are increasingly offering them on prepay.

The dongle market grew 28% from Q2 this year compared to the same period last year, with 570,000 dongles sold in the period between April and June, according to GfK.

ZTE’s director of mobile devices for the UK, Wu Sa, said wholesale dongle prices had ‘bottomed out’.

Sa said there would be growth through more fixed-line broadband providers adding a dongle component to a mixed offering.

‘Mobile broadband has gone from premium enterprise to consumer residential in a very short space of time. That is a very encouraging trend,’ Sa added.
GfK said dongle sales were plateauing but the main trend was increasingly moving away from contract sales and onto prepay.

Around 20% of dongle sales in Q2 last year were on prepay. That figure has now jumped to over 50% for the same period this year.

ZTE is now looking to take more market share by demonstrating that its mobile broadband units are more reliable and that it can meet demand better than its closest competitor, Huawei. It said: ‘You can’t afford to tell the operators “we don’t have stock”.’

Written by Mobile Today
Mobile Today

Comments

Please wait...


Please write code to prove you're human