Denmark

When ZyXEL, a Taiwan-based internet communications company, decided that it wanted to set up a regional European headquarters in northern Europe it did not have to look far. ZyXEL, a manufacturer and supplier of Internet access solutions such as modems, routers, firewalls, VPN gateways, ISDN terminal adapters and DSL broadband access solutions needed to be where the technology was cutting edge, and where there was a high density of internet usage.

"In terms of Internet usage, there are some countries in the world that are far ahead of others," explains Justin Kuo, general manager of ZyXEL Communications A/S- the regional head quarters of ZyXEL in northern Europe. "The USA and the Nordic countries (Denmark, Sweden, Norway and Finland) have the highest density of Internet penetration. They are the top five internet-using nations in the world. Therefore as an Internet access vendor, this is an ideal market for us."

Being where the latest technology is introduced and used is critical for ZyXEL, which has in the past few years moved from analog and ISDN access products to firmly establishing itself as a global leader in the provision of secure broadband internet access solutions. The Nordic markets, like Japan, have adopted this new high-speed technology eagerly, and it is proving a very receptive market.
Justin Kuo, general manager of ZyXEL, sees Denmark as an ideal launch pad for Europe-wide penetration.

From almost nowhere ZyXEL has thus catapulted itself onto the global scene. It supplies its products to a long list of blue chip companies such as Telia, Swiss Com, Telenor, Deutsch Telekom, Nokia and Telefonica. One factor giving it such success is its relentless focus on research and development, as well as its innovative bent. Over 10 percent of annual company turnover is reinvested, and over 25 percent of its staff work in research and development.

Kuo emphasises the point: "When you look at these products, such as VDSL (very-high-speed DSL), ADSL (Asymmetric Digital Subscriber Line), and G.SHDSL (single-pair high-speed DSL) you see that companies such as Cisco, 3Com and Alcatel lead in terms of new product launch. We are at the point where we are coming out with the new technology before them. Our R&D focus is clear, and so is our focus is innovation."

ZyXEL has grown tremendously in its 12 years of existence. Sales in 2000 leapt by 120 percent to $121 million. Growth has been most rapid in the growing broadband segment, DSL. In the short time since this technology has appeared, ZyXEL has quickly positioned itself as one of the pre-eminent providers globally.

"We are a communications company focused on secure Internet communications," Kuo concludes. "So, whatever device you need for securely accessing the Internet - we have it. From traditional analog modems to ISDN to cable modem to DSL to VPN firewall, we have all the technology you need."

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