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
09/30 ZTE : Farewells on Micro-blog
09/30 ZTE : intros first OTN-based quantum encryption transport solution
09/29 ZTE : Patent Issued for Method and Terminal for Acquiring Road Condition Informa..
09/29 ZTE : Patent Issued for Interface Expending Method and Device for Tablet Compute..
09/29 ZTE : Researchers Submit Patent Application, "Method and Device for Transmitting..
09/29 ZTE : Patent Issued for Terminal Communications Display Method and Terminal (USP..
09/29 ZTE : Patent Issued for Keyboard Type Terminal and Location Method for Electroni..
09/29 ZTE : Patent Issued for Information Processing Method and Communication System (..
09/29 ZTE : Researchers Submit Patent Application, "Method and Apparatus for Adjusting..
09/29 ZTE : "Shooting Method and Apparatus" in Patent Application Approval Process (US..
More news
Sector news : Communications & Networking - NEC
08:48aDJQUALCOMM : Chip Deal Would Shift Qualcomm -- WSJ
09/30DJNXP SEMICONDUCTORS : With NXP Deal, Qualcomm Would Add New Businesses and New Ri..
09/30DJNXP SEMICONDUCTORS : Auto Systems Appeal to Qualcomm as It Eyes $30 Billion Deal..
09/30DJQUALCOMM : Chip Giant Pursues $30 Billion Takeover -- WSJ
09/29DJNXP SEMICONDUCTORS : Qualcomm in Talks to Acquire NXP Semiconductors -- Update
More sector news : Communications & Networking - NEC
News from SeekingAlpha
09/14 Telecom firms combine patents in new company to ease licensing
08/19 WALL STREET BREAKFAST : Viacom Drama Comes To An End
08/19 ZTE gets reprieve on alleged Iran sanctions violations
06/28 WALL STREET BREAKFAST : VW Agrees To Largest Auto Settlement In U.S. History
06/28 ZTE's temporary sanction relief extended by the U.S.
Advertisement
Financials ( CNY)
Sales 2016 110 759 M
EBIT 2016 3 063 M
Net income 2016 3 950 M
Finance 2016 7 065 M
Yield 2016 1,62%
P/E ratio 2016 15,71
P/E ratio 2017 13,81
EV / Sales 2016 0,46x
EV / Sales 2017 0,39x
Capitalization 57 557 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 14,4  CNY
Spread / Average Target -2,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Xian Ming Zhao Chairman, President & Chief Executive Officer
Da Xiong Xie Chairman-Supervisory Board
Zai Sheng Wei Chief Financial Officer & Executive Vice President
Yi Min Yin Executive Director
Li Rong Shi Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ZTE CORPORATION8 631
CISCO SYSTEMS, INC.16.81%159 055
QUALCOMM, INC.37.04%100 945
TELEFONAKTIEBOLAGET LM..-26.37%24 095
ALCATEL LUCENT-4.11%13 922
MOTOROLA SOLUTIONS INC11.44%12 718
More Results