Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  ZTE Corporation    000063   CNE000000TK5

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

China's ZTE to "curtail" business in Iran

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/23/2012 | 06:23pm CEST

ZTE Corp, China's second-largest telecommunications equipment maker, said it will "curtail" its business in Iran following a report that it had sold Iran's largest telecom firm a powerful surveillance system capable of monitoring telephone and Internet communications.

Reuters reported Thursday that Shenzhen-based ZTE had signed a 98.6 million euro ($130.6 million) contract with the Telecommunication Co of Iran in December 2010 that included the surveillance system. (http://link.reuters.com/teb37s)'>http://link.reuters.com/teb37s)

"We are going to curtail our business in Iran," ZTE spokesman David Shu said in a telephone interview on Friday.

The article also reported that despite a longtime U.S. sales ban on tech products to Iran, ZTE's "Packing List" for the contract, dated July 24, 2011, included numerous American hardware and software products.

The U.S. makers of those products - which include Microsoft Corp, Hewlett-Packard Co, Oracle Corp, Cisco Systems Inc, Dell Inc, Juniper Networks Inc and Symantec Corp - all said they were not aware of the contract, and several said they were investigating the matter.

Shu said ZTE had decided "some time ago" to "shrink" its business in Iran, although he said the company had not yet decided on the details. "It's still being discussed," he said. He also said he did not know the reason for the decision. Until the Reuters article was published, ZTE spokesmen had declined to discuss the company's business in Iran with the news organization.

"Right now we cannot release more information," Shu said.

A spokesman for Iran's mission to the United Nations in New York could not immediately be reached for comment.

ZTE's action would mark another blow to Iran, which is under global sanctions because of allegations it is trying to develop nuclear weapons - something the country denies. Current sanctions have not targeted Iran's telecommunications sector. But several other major equipment makers previously have announced they were going to cut back their business there.

They include European firms Ericsson and Nokia Siemens Networks, a joint venture between Nokia and Siemens, as well as China-based Huawei Technologies. The actions have not meant an immediate end to all Iranian business, however, as some firms continue to honor existing contracts that can last for years.

But on Friday, European Union governments agreed to ban the sale to Iran by European companies of telecommunications equipment that could be used for repression, including to monitor or intercept internet and telephone communications. The ban takes effect Saturday.

Shu described ZTE's business in Iran as much smaller than that of other equipment makers. Asked about the TCI contract, which included a large amount of networking gear along with the surveillance system, Shu said it was not yet completed. He said he did not know how it might be affected by ZTE's decision to curtail its business in Iran.

TCI is owned by the Iranian government and a private consortium with reported ties to Iran's elite special-forces unit, the Islamic Revolutionary Guards Corps. The company has a near monopoly on Iran's landline telephone services, and much of Iran's internet traffic is required to flow through its network.

TCI officials in Tehran either didn't respond to requests for comment or could not be reached.

ZTE is publicly traded, but its largest shareholder is a Chinese state-owned enterprise. It says it sells equipment in more than 140 countries and reported annual revenue of $10.6 billion in 2010.

Like most countries, including the United States, Iran requires telephone operators to provide law enforcement authorities with access to communications. Human rights groups say they have documented numerous cases in which the Iranian government tracked down and arrested critics by monitoring their telephone calls or internet activities.

Another ZTE spokesman said Thursday, "ZTE always complies strictly with all U.N. regulations, as well as local laws and regulations of the country we operate" in.

(To read the original Reuters special report "Chinese firm helps Iran spy on citizens," click here: http://link.reuters.com/teb37s)'>http://link.reuters.com/teb37s)

(Reporting by Steve Stecklow in Acton, MA, additional reporting by Justyna Pawlak in Brussels; Editing by Michael Williams and Claudia Parsons)

By Steve Stecklow

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ZTE CORPORATION
07/25 ZTE H1 Russia Market Share Doubles
07/22 ZTE : USA) Assigned Patent
07/21 ZTE : Spud Webb, Melvin Ely, Satnam Singh and Other Legends Visit Las Vegas for ..
07/21 ZTE : Patent Issued for Global Synchronization Method and System Based on Packet..
07/21 ZTE : vertical broadband solution unveiled at C2C Summit
07/19 ZTE : vertical broadband solution unveiled at the C2C Summit
07/19 ZTE : Completes U.S.$37 Million Telecoms Project
07/19 ZTE rolls out budget phone for $99 in mid-market push
07/18 ZTE : Defies Expectations with the $99.00 ZMAX PRO Phone Arriving at MetroPCS on..
07/18 ZTE : nuevo patrocinador del Club Pumas
More news
Sector news : Communications & Networking - NEC
07/27DJRenault Board Cuts CEO's 2016 Pay After Spat With Shareholders
07/27DJGARMIN : Shares Soar on Strong Earnings
07/26DJQUALCOMM : to Pay to Settle Claims of Bias Against Women
07/26DJQUALCOMM : to Pay $19.5 Million to Settle Claims of Bias Against Women
07/26DJJUNIPER NETWORKS : Reports Lower Profit
More sector news : Communications & Networking - NEC
News from SeekingAlpha
06/28 WALL STREET BREAKFAST : VW Agrees To Largest Auto Settlement In U.S. History
06/28 ZTE's temporary sanction relief extended by the U.S.
06/16 FORM HOLDINGS : Fli Charge On Track To Break Records After Successful Product La..
05/27 ZTE to open 23 retail stores to boost phone sales
04/28 Zte reports Q1 results
Advertisement
Financials ( CNY)
Sales 2016 109 968 M
EBIT 2016 3 257 M
Net income 2016 3 978 M
Finance 2016 6 193 M
Yield 2016 1,68%
P/E ratio 2016 15,42
P/E ratio 2017 13,59
EV / Sales 2016 0,46x
EV / Sales 2017 0,39x
Capitalization 56 378 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 16,4  CNY
Spread / Average Target 13%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Xian Ming Zhao Chairman, President & Chief Executive Officer
Da Xiong Xie Chairman-Supervisory Board
Zai Sheng Wei Chief Financial Officer & Executive Vice President
Yi Min Yin Executive Director
Li Rong Shi Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ZTE CORPORATION8 464
CISCO SYSTEMS, INC.13.28%154 714
QUALCOMM, INC.25.06%92 118
TELEFONAKTIEBOLAGET LM..-22.96%24 990
ALCATEL LUCENT-4.66%13 668
MOTOROLA SOLUTIONS INC1.18%12 093
More Results