ZTE's Shutdown Effect on Kenya


#1

Following the announcement by ZTE that they have ceased all operations thanks to sanctions by the US government, it hit me that this one will affect us more than we might think.

There are a number of companies that USE ZTE as an OEM and also use the companies technologies. One such Kenyan company is JTL. Faiba 4G’s infrastructure is by ZTE and also, the new good looking MiFi device is by ZTE.

I am not sure whether Telkom still use ZTE tech but I am curious to know what you guys think will be the effect of ZTE’s shutdown on our market.

Read more about the shutdown:


#2

Hawa kwisha. nawahurumia sana. Now Google and Sapdragon are going to be compelled to push software updates to shutdown ZTE phones from functioning that depend on the two. Hii kichapo ni kali.

Moving forward, this push will make tech companies that depend on U.S. software and hardware to rethink their strategy. An alternative mobile OS needs to come up. I wonder where Tizen is right now. For other hardware itabidi pia wajipange.

I thought they were fined $800M a few months ago for this vice. Naona hapa plus other extras it totals to $1.2 billion

I hope for Telecoms equipment (Towers mostly) ZTE does not depend on U.S. companies juu sasa that will affect them bigtime juu phone is just a minor division of ZTE’s business.

I’m not sure about 4G but I’m sure about 3G


#3

Sure Telkom use ZTE on some devices… 3G in particular mostly


#4

just like that a company is dead​:worried::worried:


#5

trust me ZTE cannot “die.” Chinese government has majority shares in the company (through other SOEs). The most likely scenario is the Chinese govt making deals with other allies and also pumping cash for inhouse or local SoC being developed. Huawei can also intervene with its tech. Also, I dont think ZTE will cease operations in other countries, only that none of the US organisations will be allowed to deal with it. Otherwise, the issue will be political, and we can guess who will win. ZTE knew what it was doing when it sold products in Iran against the law.


#6

I don’t think they will but they might spin off some operations. For example, what will happen to their phones that use Android and Snapdragon? They can source processors from other OEMs but without Android their smartphone business is dead. In fact, it is the selling of smartphones to Iran and North Korea that got them to these murky waters.

The article I have tagged above also mentions something to do with telecommunication equipment. Hopefully, there is an alternative to this because it will be the biggest blow for the company if core components depend on software or hardware that belongs to U.S. companies.

The thing ZTE can do right now is try and push for purchase of shares from the U.S. companies that they largely depend on, which might not be approved anyway. But this should serve as an eye opener to tech companies. They seriously need to look for alternatives should things get thick with U.S. authorities they’ll remain with alternatives.


#7

No, not really.

Android Open Source Project (AOSP) is available for anyone to do with what they wish. They can still use Android, they just won’t have access to Google apps and services.

Custom ROM + Third Party App Store could work (in China and other markets that block Google services)


#8

But si they can act as if they have ceased operations for a while, play down, rebrand and come up again as another company … for Jtl I think they will have to source for other mifi manufacturers like Huawei .


#9

Quick question. Since Google owns Android, can they just wake up one day and determine who can or cannot use it?


#10

Nobody owns Android per se. Google is just the largest contributor.

Hypothetically, if they did own Android then did this, a lot of manufacturers would start making their own operating systems.

Google would lose a lot.


#11

Had to research this and here is what I found. Google bought Android and launched the Open Handset Alliance to be part of the Android team.

The thing that makes Android an open source software is that is core parts are available for anyone to acquire and use.

Well, ZTE can build Android phones. So now ni kusaka suppliers of parts.


#12

Yup. If google went this route they’d have to fight every carrier and handset maker on the planet. Google makes too much money from serving mobile ads, crowd sourcing traffic data by determining how many stationary android phones are on the highway, and using android users to improve machine learning on their google products. They’re not going to risk it by being dictators.

Samsung and Huawei want to make their own operating systems outside android to usher in their IoT ecosystem. Samsung already has the electronics figured out, they just need to get the software right. Google has software working, they just need hardware. Huawei has to fight both battles but they have the possible backing of the 2nd largest government in the world so there’s that.

Maybe Google should buy Samsung (or LG) and shave off 10-15 years from their IoT roadmap

Check out this video from the Verge with a brief line on why Google is in a tough spot with Android


#13

:blush::blush:


#14

They bought part of HTC’s hardware division, which comes bundled with a ton of engineers.

Samsung has Tizen and it runs on most of their IoT devices phones excluded (the Z series only).


#15

WHAT??? Its like saying Tesla should buy Toyota! How can a company with less than $200 billion in assets buy Samsung with over $700 billion total assets? Maybe I don’t know how finances work out but from my point of view, this is even illogical to consider.

Also, their core businesses are totally different. Google just needs someone to make smartphones for them while Samsung, through one of its subsidiaries, just needs android. Samsung might be interested in buying Google (not whole alphabet) for software needs, but their finances and antitrust regulations would never allow. Same rules apply to google if it was interested in Sammy (electronics subsidiary).


#16

Sammy is a jerk-off all trades. Google might be interested in the phone business but that’s not an easy buy. Samsung only sales divisions that are not competitive enough like the printer business to HP and hard disk division to Seagate.


#17

Hawa watu ni vichwa ngumu

In March last year ZTE paid nearly $900 million in penalties for exporting US technology to Iran and North Korea in violation of sanctions.

In April this year, the Commerce Department found ZTE had violated the terms of last year’s settlement and banned US companies from providing exports to ZTE for seven years. As a result, ZTE suspended its main operating activities earlier this month


#18

Obama Vetoed Apple when they were found guilty of infringing on Samsung’s hardware patent and Samsung had requested for a total export and import ban on Apple iPads and select iPhone models; a request that was granted. Well,

Trump to the rescue
ztrump


#19

Chinese phone companies need to start investing in their own tech. They rely too much on US companies.

This whole ZTE thing should serve as a wake-up call.


Can you imagine if China banned Apple in retaliation? Apple would lose over $50 billion dollars in revenue. Maybe even more if you factor in the cost of setting up new factories and what not.

80-90% of Apple products are assembled in China.


#20

But these ZTE Guys…
You pay a hefty fine (Ok)
You are told to reduce commission and repremand staff ( Not Okay).
You are told to stop supplying someone (Not Okay)

I really don’t see why ZTE couldn’t meet the remainder of the terms or how not honoring an agreement was bound to signficantly benefit them…