ZTE believes operators can generate additional revenues and combat customer churn by adding more applications on to the home gateway.
Telcos are spending a lot of money on their networks but are struggling to generate revenues, particularly now they are facing competition from cable operators, ISPs and over-the-top (OTT) players, ZTE vice president Li Ming told Total Telecom on the sidelines of Broadband World Forum this week.
By leveraging the home gateway, Li believes operators can "make new revenues" on top of their basic monthly subscription fees and "retain their customers". Operators can "catch money" using the home gateway, he said.
"We like to provide more applications [on the CPE]," such as home security or healthcare offerings, Li added.
ZTE on Tuesday unveiled a VDSL VoIP gateway that supports the 802.11ac WiFi standard and both the 2.4-GHz and 5-GHz spectrum bands. Essentially, it enables home networks to carry high-definition video traffic at gigabit speeds, the vendor said.
"We'll start [rolling it out] from Europe," where there are many old buildings that require wireless home networking solutions, Li said.
ZTE has yet to sign up any operator customers for the product, but a number are testing it, he confirmed.