ZTE Plans 3D Digital-TV Boxes Operating Google’s Android

ZTE Corp. (763), China’s second-largest maker of telephone equipment, plans to release digital set-top boxes for 3D television services that will run Google Inc. (GOOG)’s Android operating system.

The boxes to be sold “in the near future” will allow video-calling functions, and support the HTML5 language for displaying Internet content, Shenzhen-based ZTE said in a statement today.

The announcement comes after ZTE reached agreement allowing the company access to the digital-TV systems of Kudelski SA (KUD)’s Nagra division, according to the statement. The agreement enables the Chinese company to sell intelligent set-top boxes to customers of Nagra, which has a 70 percent share of Europe’s market for cable-TV devices, and 18 percent globally, ZTE said.

ZTE plans to release a new mobile operating system for smartphones with Mozilla Corp., developer of the Firefox Web browser, to reduce reliance on Android, the Chinese company said Sept. 19. Android now accounts for about 90 percent of ZTE’s smartphone operating systems.

ZTE’s shares traded in Hong Kong fell 6 percent, the most since Aug. 27, to close at HK$12.60, while the Shenzhen-traded stock gained 2.6 percent to 11.45 yuan. A U.S. House intelligence committee report to be released today says the company poses a security threat and “cannot be trusted to be free of foreign state influence,” according to a draft provided by the panel.

To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at elococo@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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