Vodacom Group Ltd., South Africa’s subscriber company’s largest telecommunications company, said on Monday that it will no longer sell handsets manufactured by ZTE Co., ZTCOY (ZTE) after existing inventory is sold out.
The above decision of Vodacom was announced after ZTE announced the suspension of operations. Prior to this, the US Department of Commerce issued a ban to prevent US companies from selling ZTE products.
Vodacom's chief executive said that before the above issues are resolved, the company will stop selling more ZTE equipment. This will cause problems, but there are still other suppliers.
Vodacom is a subsidiary of Vodafone in South Africa, with operations in South Africa, Tanzania, Democratic Republic of the Congo, Lesotho, and Mozambique. Vodafone holds more than 65% of Vodacom's shares. The Congo Vodacom network has a wide range of business and small capacity. , Capacity expansion and development of new services are costly and slow. They cannot meet the needs of the rapid development of mobile data services in South Africa.
Public information: ZTE Corporation and Vodacom jointly announced in November 2011 that the converged service platform solution provided by ZTE Corporation was officially put into commercial use in the Congo-King mobile market. The capacity of commercial services has rapidly increased by more than 10 times. Relieved the existing network traffic congestion situation and brought new service experience to users. Its service users had reached more than 3 million.
Vodacom today announced the suspension of the sale of ZTE's mobile phone products, which will, to some extent, adversely affect ZTE's business development in South Africa's communications market.