Huawei

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Huawei Technologies Co. Ltd.
华为技术有限公司
Type Privately-held company
Founded 1988
Founder Ren Zhengfei
Headquarters Shenzhen, China
Industry Telecommunication
Revenue 16 billion USD (2007)
Net income 512 million USD (2006)
Employees 70,000 (2007)
Website www.huawei.com

Huawei Technologies Co. Ltd. (Chinese: 华为技术有限公司; pinyin: Huáwei Jíshu Yǒuxiàn Gōngsī) in Shenzhen, Guangdong, People's Republic of China is the largest networking and telecommunications equipment supplier in China, and the Top 3 world leaders in this industry.

Established in 1988 by Ren Zhengfei,[1] Huawei Technologies is a private high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipments, and providing customized network solutions for telecom carriers. Huawei serves 35 of the top 50 telecoms operators and puts 10 per cent of revenue into R&D each year.[2] In addition to the R&D centers in Shenzhen, Shanghai, Beijing, Nanjing, Xi’an, Chengdu, and Wuhan in China, Huawei has also R&D centers in Stockholm, Sweden; Dallas and Silicon Valley, U.S.; Bangalore, India; Ferbane in Offaly, Ireland; Moscow, Russia.

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[edit] Huawei

(Chinese: 华为技术有限公司; pinyin: Huáwei Jíshu Yǒuxiàn Gōngsī) officially translates in English to Huawei Technologies Co. Ltd.. The character 华 means the country of China, also can be used as adjective to mean splendid, magnificent. The character 为 means action or achievement. Huáwei itself variously translates as "achievement", "magnificent act" or "splendid act". Such a translation is an etymological curiosity, not to be used generally.

[edit] History

Huawei was founded by Ren Zhengfei in 1988,[3] as a distributor of imported PBX products, with an initial registered capital of 24000 RMB. By 1989, Huawei started developing and later marketing its own PBX. After accumulating knowledge and resources on PBX business, Huawei achieved its first breakthrough into mainstream telecommunication market in 1993, by launching C&C08 digital telephone switch, which had a switching capacity of over 10K circuits. Until that time, Chinese domestic telecom companies were not able to build switches with such capacity. Huawei's switches were first deployed only in small cities and rural areas. It eventually gained market share and made its way into major city switch offices and toll service. Other Huawei products also likely have such a history for their adoption, against the competition of then dominating foreign telecom equipment manufacturers.

In 1994, Huawei established long distance transmission equipment business, launched its own HONET integrated access network and SDH product line. In 1996, Huawei captured its first overseas contract, providing fixed-line network products to Hongkong's Hutchison-Whampoa. Later, in 1997, Huawei released its GSM product and eventually expanded to offer CDMA and UMTS.

From 1998 to 2003, Huawei contracted IBM for management consulting and undergone significant transformation of its management and product development structure. After 2001, Huawei increased its speed of expanding into oversea market. By 2004, its overseas sales had surpassed that of the domestic market. Huawei has a joint venture with Siemens for developing TD-SCDMA products. In 2003, Huawei entered into a joint venture named Huawei-3Com with 3Com for Internet Protocol-based routers and switches, eventually selling its 49% stake to 3Com in 2007 for $US 882 million.[4]

Huawei and American security firm Symantec announced in May 2007 the forming of a joint-venture company that will develop security and storage appliances to market to telecommunications carriers. Huawei will own 51% of the new company, to be named Huawei-Symantec Inc. Symantec will own the rest. The joint-venture will be based in Chengdu.[5]

[edit] Products and product deployment

Huawei E220 HSDPA USB modem, Huawei E220
Huawei E220 HSDPA USB modem, Huawei E220

Huawei provides fixed network, mobile network, data communications, optical network, software & services and terminals, including modems --- ranging from switching, integrated access network, NGN, xDSL, optical transport, intelligent network, GSM, GPRS, EDGE, W-CDMA, CDMA2000, a full series of routers and other LAN equipment. Huawei manufactures also mobile phones [6] such as the Vodafone 710 and 716), 3G HSDPA cards (Huawei E620[7] HSDPA Card is being offered by e.g., Vodafone in the United Kingdom and Telia in Sweden) and 3G HSDPA USB modem, Huawei E220.[8]

In 2005, Huawei was selected by BT as a preferred supplier of communications equipment for BT’s 21CN network strategy.[9] In the same year, Huawei signed a Global Framework Agreement with Vodafone for mobile network infrastructure.[10] In 2006, Motorola signed a deal[11] with Huawei where Motorola distributes and installs Huawei's 3G equipment. On November 15 (2006), Huawei signed a deal[12] worth 30 million euros (US$38.4 million) with German operator Versatel Holding Deutschland GmbH. Huawei will build a fibre-optic communication network based on Internet protocol (IP) for Versatel, Germany's third largest fixed-line operator. On February 1 (2007), Forbes reported that France Telecom has selected Huawei to supply UMTS mobile equipment for its third generation network.[13] Huawei replaced Alcatel/Motorola in Romania, and Nortel in Belgium.

Vodafone awarded Huawei 2007 Global Supplier Award for Outstanding Performance in June, 2007.[14]

In October 29, 2007, Huawei offers a WiMAX Solution [15]

[edit] Competitive position

Huawei's global contract sales for 2006 reached USD11 billion (a 34% increase from 2005), 65% of which comes from overseas market. Huawei has now become a leading vendor in the industry and one of the few vendors in the world to provide end-to-end 3G solutions.[citation needed] In 2006, Huawei ranked No.1 in the global NGN market (Infonetics), No.1 in Mobile Softswitch (In-Stat), No. 2 in Optical Network (Ovum-RHK), No.1 in IP DSLAM (Infonetics), No.2 in broadband convergence routers (Gartner), and No.1 in MSAN market (Infonetics).[16]

Huawei Technologies was included in the World's Most Respected 200 Companies list compiled by Forbes magazine in May 2007,[17] one of the six from telecom industry.


[edit] See also

[edit] External links

[edit] References

  1. ^ Ren Zhengfei - Modeled After Mao. Time Magazine. 2005.
  2. ^ China's technological challenger. The New Zealand Herald. March 15, 2007.
  3. ^ http://www.huawei.com/corporate_information/milestones.do Major events on Huawei official website
  4. ^ 3Com's Big China Venture. Forbes. Nov 29, 2006.
  5. ^ Huawei, Symantec form joint venture. ZDNet Australia. May 22, 2007.
  6. ^ Vodafone, Huawei sign deal for 3G handsets. ZDNet News. February 15, 2006.
  7. ^ iSuppli Analyses Huawei 3G HSDPA Card. 3G.CO.UK. November 8, 2006.
  8. ^ Vodafone Mobile Connect super 3G USB modem. The Register. November 21, 2006.
  9. ^ Huawei Picked for BT's 21CN. Light Reading. APRIL 28, 2005.
  10. ^ Huawei Meets Vodafone's Needs. Light Reading. NOVEMBER 22, 2005.
  11. ^ Motorola exec's domain is profitable, if not sexy. Chicago Tribune. November 12, 2006.
  12. ^ Huawei wins first major German deal. China Daily. November 16, 2006.
  13. ^ France Telecom adds China's Huawei to pool of UMTS equipment suppliers - report. AFX News Limited. February 1, 2007.
  14. ^ Vodafone awards Huawei 2007 Global Supplier Award for Outstanding Performance. Huawei Press Releases. June 13, 2007.
  15. ^ webitpr | Huawei Launches New Generation WiMAX Commercial Solution
  16. ^ Huawei Financial Highlights. Huawei Corporate Information. 2007.
  17. ^ List on Forbes website