ZTE and Axiata Group Berhad, one of Asia’s largest telecommunications companies have signed a five-year strategic global framework agreement on Thursday at CommunicAsia2011 Singapore.

This global framework arrangement will serve as a common platform for purchases of telecommunications and other products as well as the provision of related services by ZTE for Axiata and its group of companies (“Opcos”). Given the requirements under the framework agreement, the strategic effort will be mutually beneficial for both parties by realising business efficiencies and competitive advantages through cash flow improvement and timely purchasing.  

The cooperation will enhance the engagement and strengthen the relationship between the two parties across the region where both companies have presence. In addition, it will enable ZTE to create value both technically and commercially in its products, solutions and services towards improving business penetration for Axiata through a streamlined procurement platform to achieve time and cost savings. 

By providing a common platform, the framework agreement will improve engagement with a regular exchange of information on technical and technology areas on products, works and services purchased by Axiata and the Axiata Companies. Axiata will therefore have better visibility of ZTE’s technology roadmap and be able to leverage off this knowledge base and target its spending more efficiently. 

President and Group Chief Executive Officer of Axiata, Dato’ Sri Jamaludin Ibrahim said “This partnership will allow Axiata to streamline our procurement process, through modernization and rationalization. The agreement will realise synergies across our Group for global procurement translating into faster time to market which will benefit customers. We look forward to working closely with ZTE, towards a mutually beneficial agreement”. 

“We are glad to get this acknowledgement from Axiata. It marks the continuation of the cooperation between both parties”, said Dr. Pang Shengqing, SVP of ZTE Cooperation, “We always pay close attention to Axiata’s business development in Asia, through our cooperation, we can demonstrate our ability to create more value for our clients”.