ZTE, Huawei face competition from international vendors in digital mobile TV handsets in South America

China-based ZTE and Huawei Technologies, which have offered handsets and network interface cards for mobile ISDB-T TV services in Brazil, Argentina and Chile, and will launch in other South American countries, could see their market positions challenged by Samsung Electronics, LG Electronics and Sony Ericsson, according to sources from Taiwan's handset makers.

The international brand vendors are expected to break into the market with high-end models initially, and work their way down with products at lower price points, the sources said.

ISDB-T TV services, which are already popular in the three mentioned markets, are expected to soon reach other countries on the continent including Uruguay, Paraguay, Peru and Venezuela with potential market size estimated at 300 million subscribers.

In Brazil, which was the earliest of the South American countries to adopt the technology, more than 40 cities and 70 million users are currently mobile digital TV ready.