ZTE aims to bag $2B for 5G R&D - Mobile World Live

ZTE aims to bag $2B for 5G R&D

31 JAN 2018

ZTE revealed plans to raise CNY13 billion ($2.1 billion) through a share placement to fund its investments in 5G technology development.

The company said it will spend approximately CNY9.1 billion of the expected proceeds on “technology research and product development relating to 5G network evolution”, with the remainder allocated to replenishing working capital. ZTE also said it will spend a total of CNY42.9 billion on 5G over three years.

In filings with the Shenzhen and Hong Kong stock exchanges, ZTE said it will raise the funds by issuing no more than 687 million of its shares to not more than ten specific subscribers, with the pricing and issuance of the shares determined by China Securities Regulatory Commission.

ZTE is competing with domestic rival Huawei and other international vendors including Nokia and Ericsson for leadership in 5G ready network equipment.

The company said in its filing it aims to secure a leading position through the “continuous expansion of its investment in research and development as well as marketing for its core segments”.

“With the global leading position in 5G network sector, the company expects that 2018 to 2020 will be a crucial period for the formulation and industrialisation of the global standard for 5G technology,” ZTE added.

In another signal of 5G intent, Bloomberg reported earlier this month ZTE was pushing to release the first 5G-capable device as early as at the end of this year.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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