Science and Technology Review

According to foreign media reports, U.S. Commerce Secretary Gary Locke (Gary Locke) admitted in an interview Tuesday, he had the third largest U.S. mobile operator Sprint Nextel CEO Dan Jose (Dan Hesse) call, the Chinese telecommunications equipment manufacturer Huawei to upgrade network equipment involved in procurement of Sprint Nextel, “expressed deep concern.”

Sprint Nextel announced Monday that in the next 3 years to 5 years, up to $ 5,000,000,000 investment to upgrade the network. The company also announced that it has with Alcatel – Lucent, Ericsson and Samsung Electronics to reach equipment purchase agreement. Huawei had also participated in the bid for Sprint Nextel’s equipment procurement, but ultimately failed to short-listed. Locke said in an interview Tuesday, “We want to know more of their transactions, in the hope that they can work with our intelligence officers sit down and talk, make them aware of Huawei, which may be involved in what kind of impact.” Locke admitted that he did call to Jose, the expression of Huawei equipment related to Sprint Nextel bid, led defense officials and some members of Congress’s attention.

Huawei was founded in 1988, the U.S. government on Huawei’s telephone network may be brought to the country’s internal security problems, in the past ten years time, Huawei’s expansion in the U.S. market has been very difficult. Some members of Congress and national security experts have worried that Huawei close ties with the Chinese military might to interfere in the American telecommunications equipment in China. Previously, Connecticut Senator Joseph Lieberman (Joseph I. Lieberman) and three other members of Congress, sent a letter to the Federal Communications Commission Chairman Julius Sige Na Koski (Julius Genachowski), proposed the sale of equipment manipulation of the Chinese government may make some communication networks, making it possible to damage or intercept telephone and Internet mail.

Locke said that “Wall Street Journal” reported that Sprint Nextel Huawei procurement bidding out two days before the news came out, he had Jose call. Locke said, “We want to engage in a dialogue with Sprint Nextel, do understand the company’s procurement transactions will be involved in anything, and to seek ways to ease those concerns.” Locke said, however, Huawei has not been banned from entering the U.S. market, the company is on the U.S. market equipment.

Huawei has hired Washington lobbyists, lawyers, consultants and public relations firms to help them win the U.S. business. Huawei has also helped create Amerilink Telecom – Huawei products, the U.S. distributor, and its strong team, including former representative Richard Gephardt (Richard A. Gephardt), former World Bank President James Wolfensohn ( James D. Wolfensohn) and Nortel Networks, former CEO William Owens (William A. Owens).

Huawei is China’s first truly indigenous multinational corporations, so the company’s strategy in the United States is very important. Some analysts believe the rise of Huawei other enterprises seeking to become internationally competitive template. Huawei is currently the world’s second largest telecom equipment supplier, second only to Sweden’s Ericsson. Because the Chinese government support, Huawei’s major operations in Asia, Africa and Latin America. Huawei beat Ericsson in the European market has started to provide equipment to large carriers.

In climbing the peak of world-class enterprise on the road, Huawei also get rid of a big rival. According to market research firm Dell’Oro has recently released data show that in the global telecom equipment market, Huawei has surpassed the Nokia Siemens, and into the second-largest telecom equipment supplier. As of the end of the third quarter of this year, Huawei’s share of 11% from the same period last year rose to 20%, jumping to second; and Ericsson continue to dominate the first-place position, a share of 32%.

At present, Huawei’s objective is aimed to send competitors strength of Ericsson. In the telecom equipment vendors, Ericsson, not only in revenue and market share for many years maintained a boss position, but it is also the most profitable. However, Huawei’s development momentum of view, Ericsson, Huawei, from the scale may be just around the corner beyond. Huawei’s growth in recent years has been higher than Ericsson, Huawei’s sales revenue to continue to make close to Ericsson: Huawei’s 2004 sales of 3.827 billion U.S. dollars, Ericsson of SEK 132 billion (according to calculation by the end of 2008 the exchange rate of about 17.16 billion U.S. dollars ), to 2008, Huawei’s sales revenue of 18.33 billion U.S. dollars, Ericsson revenues of 208.9 billion Swedish kronor (about 27.16 billion U.S. dollars). If both sides at the current rate of growth, Huawei will be able to take two years and then the income scale than Ericsson.
Of course, Ericsson will not wait to catch up with Huawei, Ericsson and Huawei’s “tug of war” will become more intense. Ericsson has recently completed a 1.13 billion acquisition of Canada’s Nortel Networks has been an insolvent company’s assets, CDMA and LTE transactions, and further strengthen its market leading position. Huawei put the next-generation LTE mobile networks as a strategic focus, to Ericsson to launch an offensive. Huawei beat Ericsson has recently won the building in Norway, the fourth generation mobile network contract to Ericsson and Nokia Siemens to replace the old building of networks. The deal is so far the largest European market, LTE transactions.

Although the distance closer, but transcends it was not easy. The layout from a business point of view, a broader line of business of Huawei, which is conducive to seize more market opportunities, big scale of business. Such as Huawei and ZTE are three 3G standard, “takes all” vendors, in the snatch the Chinese 3G market, Huawei, Ericsson, more than a single WCDMA standard, Alcatel-Lucent is emphasis on CDMA, earlier withdrew from CDMA market, Nokia Siemens Networks, advantages – This is in a catch-up phase of Huawei is also very practical choice. But it also shows the gap between Huawei and Ericsson – not enough focus on business, specializing in business less prominent. Such as Ericsson in the higher-margin business and multimedia telecommunications services occupy the dominant position, which is Huawei’s need to make up the short board.

Moreover, compared to the 133-year history of the century-old Ericsson, Huawei in the management, brand and cultural heritage of comprehensive strength, and there is not a small gap. For example, from the staff and the per capita efficiency of view, only a 22-year history of the development of Huawei, number of employees nearly 9 million people, has more than 7.8 million people, Ericsson, Huawei, in 2008 the per capita productivity of 21 million / person less than the Ericsson’s 35 million / person. If Huawei Dengfeng mainly depend on products previously cost-effective and rapid implementation of the capacity invincible, then now, with Huawei Technologies and Ericsson to face more and more like the “peak” enterprise contest, from management, brand, and cultural dimensions, ” soft power “role was even more pronounced.

However, insiders view of Huawei, Ericsson, “sight”, Ericsson, Huawei is not difficult to achieve beyond the goal. Huawei’s ongoing financial restructuring, and so the internal management of change, precisely in order to “soft power” of the world-class companies such as Ericsson, par. If we say that beyond the short-term objectives Ericsson, Huawei, then catch up with Cisco’s long-term goal is to Huawei. Huawei within the end of 2007 “issued by the staff warned the book”, the proposed “annual income of 40 billion U.S. dollars” development goals – the equivalent of 40 billion U.S. dollars network communications giant Cisco’s current income scale.

At one time, Cisco from Huawei “very close” – Huawei to become a threat to Cisco, which is in January 2003 Cisco sued Huawei’s intellectual property rights infringement cases occurred in the context. At that time, Huawei was once called the “Chambers of the nightmare”; but now long out of Cisco’s Huawei to give the “nightmare”, jumped out of the profits to the traditional telecommunications equipment, successfully transition to high-margin territory. Cisco has across new areas of IT and telecommunications convergence, from a network equipment company is committed to turn out to consumers, service-oriented company. Cisco’s competitors are now no longer Huawei, but Microsoft, Google, Hewlett-Packard or IBM, and other new rivals. Huawei and Cisco’s business “intersection” fewer and fewer can be said that competition from Cisco and Huawei is not a level of – both from a business point of view or from the strength, such as Cisco’s 2008 fiscal year net profit of 8.1 billion U.S. dollars, net profit margin of more than 20%, while Huawei’s net profit was 11 billion U.S. dollars, net profit margin of only 6.1%.

General trend of convergence in the ICT, Cisco, Alcatel and other telecom equipment giants are already turned to look at industry, enterprise networking market; At the same time, Hewlett-Packard, Microsoft and other IT companies are to penetrate the telecommunications industry, and now it is based on HP’s acquisition of 3COM background. Two years ago, Huawei, Bain Capital tried to join forces with the U.S. 2.2 billion joint acquisition of 3Com Corporation, but in the end, because of U.S. concerns about national security and abortion. If the acquisition time, Huawei 3COM, Cisco may be able to narrow the distance, but unfortunately, the last 3COM received by IT giant Hewlett-Packard pocket. Huawei’s business focus is now also focused on the telecommunications line, enterprise networks business is very small. ICT integration in the path of development, the growing gap between Huawei and Cisco’s large, Huawei will be to recover Cisco, Lu still far too long.

Sony Ericsson Wednesday announced that next year, will the North American headquarters from the North Carolina Research Triangle Park, moved to Atlanta, and close six global offices.

Sony Ericsson spokeswoman Stacy Dost (Stacy Doster) said the company will shut down in Research Triangle Park, Miami, Seattle, San Diego, Kista, Sweden and India, Chennai branch, merger and consolidation of product development business.

She said that the closure of these sites in April this year announced 2,000 worldwide job cuts part of the plan, layoffs will be completed next year, there are still about 1,600 jobs to be cut.

Last year, hundreds of people laid off, the current Research Triangle Park, the existing staff of about 425 people. The Sony Ericsson North America’s business is mainly based customer support, customer service, sales, finance and research and development. Dost said it plans to close the other agencies do not know the number of people employed, it is not clear in the North American headquarters to Atlanta after the number of people employed.

Dost says that he makes one of the reasons Atlanta is the city near the company’s largest customer, AT & T Inc., while the city is also the leading gateway to Latin America; headquarters relocation, product development, business will spread into California coastal mangroves, Sweden Lund, Tokyo and Beijing sector.

Last month, Sony Ericsson, said the release of quarterly report third-quarter loss widened to 1.64 billion euros (245 million U.S. dollars), revenue fell by more than 40%, the global mobile phone market share of around 5%.

Near the end of 2009, Huawei news of success in the European and American markets. Even from the 2009 year as a whole, the European and North American markets is also significant progress achieved in the internationalization of Huawei’s biggest bright spot this year.

For Huawei, the financial crisis, under the pressure and thrust, Europe and the United States than the market’s ability to achieve major breakthroughs can be achieved 30 billion U.S. dollars this year, sales are more important.

European and American markets fruitful

On the North American market, this year there are two “campaign” is known to enter the North American market, Huawei’s “milestone” in the meaning of time. First, in August of this year, selected the world’s largest WiMax operator Clearwire’s U.S. list of equipment suppliers, Huawei, as one of the major suppliers to help them deploy the first nationwide U.S. WiMax network.

President of Huawei Wireless Product Line, said Wan Biao, evaluation, Huawei selected a key supplier to Clearwire, which is Huawei’s entrance into the North American market, a key step for Huawei in terms of landmark significance.

The second landmark event is the Canadian carriers Bell offers HSPA + network, which is bankrupt, after Nortel, Huawei Hukouduoshi achieved a great victory.

To the November 10 date, Huawei for Bell to deploy HSPA + last 3 months ahead of schedule to achieve commercial.

Early in November, Huawei successfully once the largest U.S. cable operator Mediacom has deployed one of the OTN network. In this order, before the North American market, Huawei won a total of five contracts, coupled with this order, the number of contracts of Huawei in North America increased to six.

Compared with the progress of the North American market, Huawei’s success in the European market is more interesting and more exciting. Huawei to T-Mobile’s Android platform for customized mobile phone market less than a month, with shipments to more than 100,000.

November 10, Huawei announced the world’s largest telecom operator Telenor has selected Huawei as one of the group’s headquarters in Norway, the next six years, the sole supplier of the wireless side, removal, upgrade all of Telenor in Norway 2G/3G network eventually will be deployed throughout a coverage of Norway’s far Europe’s largest commercial LTE network.

This is Huawei’s LTE technology in a victory, because it is Huawei’s mobile communications in the Nordic origin of the world’s second deployment of the most cutting-edge commercial LTE network, but also for Huawei in the European market a major victory. Norwegian operator Telenor is to Ericsson and Nokia Siemens’s traditional customers, the Nordic market is seen as Ericsson’s “lair”, Huawei’s success as we penetrate behind enemy lines is considered to Huawei’s competitiveness has risen significantly in an important symbol.

The symbolic significance of this order is much greater than its actual meaning, Huawei announced the contract, the Ericsson’s shares fell 3%, which in large part because of this order is considered lost due to.

Tackling the North American market

However, if selected for England with Huawei Telecommunications network provider in the 21st century compared to the breakthrough of Huawei in North America and Europe are still only be considered negligible compared to the European market, Huawei’s total revenues in the accounting for about 10%, while in North America market is only 1%. If compared with the emerging markets, it is not worth mentioning.

Huawei in North America most in need of occupation, who are not currently occupying the last one market. Into the European and North American markets are low-cost equipment supplier Huawei to change the role of an important step.

Huawei began in 2003, the earliest through the sale of CDMA equipment in the U.S. market, but has been unable to flex its muscles. , Vice president of Huawei, said Charlie Chen, Huawei in 2008 in the North American market, sales of 250 million U.S. dollars, “We want 2009 to have a strong growth.” CBN reporter has learned of the data, Huawei in 2008 in the North American market grew by 58%, Charlie Chen said that in 2009 will increase by over 60%.

In July of this year, Huawei has established in North America, the world’s first LTE laboratory.

Huawei’s LTE will become an important opportunity to enter the North American market. North America is the world’s oldest markets in the world to deploy LTE, while Huawei’s goal has been to LTE is to become the world’s top two suppliers, neck and neck with Ericsson. While LTE is still at an early stage, due to the successful deployment of Huawei, the world’s first commercial LTE network, Huawei and Ericsson, through LTE allowed competitors to become two separate things.

From 2003 to date, Huawei has devoted himself for the North American market 6 years, Huawei is now in the global wireless market share has reached 17 percent, second only to 32% of Ericsson and Nokia Siemens 20%, more than Alcatel Lucent, Huawei obviously does not want to leave the North American market, Ericsson and Alcatel-Lucent.