CTIA: ZTE releases first U.S. phone

ORLANDO--ZTE at CTIA Wireless unveiled its first handset targeted at the U.S. market, a CDMA EV-DO flip phone that features Digit Wireless’ Fastap 26-button keyboard. Though ZTE has not yet announced a carrier partner, it said the D-Series handset is the first phone it has built specifically for North America.

ZTE and its fellow Chinese vendor Huawei have had recent successes in Europe selling lower-cost GSM and UMTS phones to the likes of Vodafone and Telefonica. They haven’t yet carried that success to the U.S., though--the only device contract in North America either has won was a Telus deal for EV-DO PC cards in Canada. 2007 is expected to be the year the companies crack the market, though. Their strategy of producing mid-range and low-cost 3G phones has enamored them of European carriers, and U.S. operators may follow suit, especially if carriers can brand the devices.

Another Chinese company, TCL, also debuted in the U.S. bringing 30 GSM and CDMA phone models it is aggressively marketing to U.S. carriers. All of them are branded under the Alcatel name, which TCL has exclusive rights to use after purchasing the handset business from what is now Alcatel-Lucent. TCL is targeting the mid-range to low-cost market but focusing on developing a brand associated with fashion and style.

On the infrastructure side, ZTE also announced it has developed its All-IP CDMA base station for the 1700 MHz and 2100 MHz frequencies, spectrum that several U.S. carriers now hold after the Advanced Wireless Services auction last year.