Science and Technology Review

February 19 night, according to foreign media reports, Huawei has decided on Saturday to accept the request of the U.S. Committee on Foreign Investment to revoke the acquisition of 3Leaf Systems patented technology transactions.

This global expansion of Chinese enterprises and some skepticism among national governments, the dramatic recent changes in the conflict. Government is worried that some countries allow Chinese enterprises to enter, make them an increasingly powerful China by rival attacks.

Huawei Saturday morning said it was a difficult decision. However, we have decided to accept the recommendations of the U.S. Committee on Foreign Investment to revoke the acquisition of specific assets 3Leaf applications.

This position statement four days, compared with Huawei is a surprising turn. Huawei said at the time it will not accept the recommendations of CFIUS, to give up last May’s 200 million acquisition of 3Leaf patent transactions.

Huawei’s refusal to compel President Obama to personally make a decision on this transaction. Obama in 15 days to rule on the deal. Huawei’s approach to surprise some observers, because most of the Committee on Foreign Investment in the United States pointed out that the proposed transaction may be rejected, have chosen to voluntarily exit.

Huawei did not immediately comment on the matter.

Some legal experts pointed out that Huawei has not been very good advice, without first seeking approval from the U.S. Committee on Foreign Investment will complete the transaction. Some say calmly refused to withdraw the Huawei transaction approach is wise.

The incident is the latest Huawei to enter the North American episodes. In 2008, because the United States Foreign Investment Committee does not approve, Huawei had to give up the acquisition of 3Com.

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.

According to the British “Financial Times” reports, to consider the acquisition of sensitive U.S. government agencies are debating on how to deal with Huawei, the Chinese government security experts, this family of software and telecommunications equipment manufacturers have strong suspicions.

Informed sources said last week, despite Huawei’s bid higher than competitors, Huawei bid for U.S. private broadband Internet software provider 2Wire’s efforts are narrowly lost, 2Wire was Britain’s Pace to buy 475 million U.S. dollars.

This month, Huawei, Motorola mobile networks on the acquisition of the infrastructure sector has not succeeded, this piece of business was 1.2 billion Nokia Siemens to buy.

According to informed sources introduced in these two transactions, one of the Huawei can win regulatory approval of a serious problem, both in the bidding process play a role, forcing Huawei proposed a higher premium. Both transactions must be approved by CFIUS, which is a point of view of national security to consider foreign acquisitions of inter-departmental group.

Foreign Investment Committee’s deliberations are highly confidential, and for Huawei in the U.S. in the future, the U.S. government refused to give his thoughts. But people familiar with related processes of the sources said, in view of the stated intention of Huawei in the U.S. market expanded Ye Wu, Ge Zhengfujigou Zhengzaijinhang preparations Yipianweilai the start Shen Yi Gong Si.

There are two factions within the U.S. government point of view. Pragmatic view, the Foreign Investment Committee shall approve a future transaction, as it will allow the Government to negotiate the so-called a mitigation agreement, which set strict conditions and security requirements, has the potential to operate US-Fang Duihua to gain valuable internal insight. Some people claim that Huawei’s close ties with the Chinese military, but Huawei denied that.

Those who believe that the future shall release a transaction involving Huawei officials pointed out that the company has with the Motorola brand sold to U.S. customers of about 800 million U.S. dollars of products. Huawei and Motorola had a long-term business relationship, this relationship has recently broken.

Foreign Investment Committee and other non-American companies – such as Alcatel Lucent – moderated negotiated agreement, including screening of employees and third-party audit requirements.

Huawei negotiations with any ease agreements may be made more stringent requirements, such as forcing the Chinese firm to the U.S. to turn over their source code, which is expected to enable the U.S. to insight into China’s communications networks.

But others strongly oppose this attempt to force Huawei abide by the rules of practice. One familiar with the Foreign Investment Committee procedures that a former official in the George W Bush in power, the government in the U.S. technology group Huawei, 3Com launch joint bid, it had also launched a similar debate.

Huawei eventually forced to give up bid, because the situation has become very clear: the company will be the United States on national security grounds, stop the acquisition.

“At that time, the conclusions of the majority of national security agencies are, even if the government got the source code, so that we can not have enough insight into the usefulness of Huawei window and are difficult to Dingli enough to ensure safety procedures,” the former official said.

While the U.S. government failed to completely prevent Huawei to enter the U.S. market (the company has signed contracts Clearwire and Leap), but most experts agree that the Government has successfully prevented a large U.S. telecommunications companies – such as AT & T and Verizon – to buy Huawei’s equipment .

Even if the U.S. government in such equipment negotiations and no formal say, but it closely Huawei is well known, the government of many large telecommunications companies major clients, which makes the purchase decisions in business very influential.

Huawei settle down, in the United States to identify new acquisition targets occasion, the company’s future in the United States will ultimately depend on which faction concept (school of pragmatic, ideology means darker faction) prevail.

Nokia Siemens Networks and Huawei to intense competition in the world’s second largest wireless equipment manufacturers, when the title, Noci yesterday suddenly announced a 12 billion acquisition of Motorola’s wireless network assets in the news, according to media reports, and Noci competition is Motorola’s wireless assets Huawei, Nokia Siemens Networks Huawei’s defeat means victory, and this long coveted Huawei North American market, no doubt, is a major blow.

Yesterday, both Noci or Huawei do not want to make a further response to this argument. Media, Huawei for this bid, had hired local experts in the United States to lobby the government, but until Nokia Siemens announced the acquisition of results, Huawei and Motorola did not formally recognize Huawei whether to participate in bidding, quotations, and ultimately why the exit.

Motorola has flown to North America, the assets involved in the integration Noci Zhang Zhiqiang, President Greater China, yesterday received the “First Financial Daily” in a telephone interview, he said, to income, Noci acquisition of Motorola’s wireless assets, to consolidate its global infrastructure facilities in the field of the status of the second-largest maker. According to 2009 income, Huawei revenue of 21.5 billion U.S. dollars, Noci 176 dollars, Huawei for the first time beyond the Noci, topped second place, but Noci has been for the caliber of other statistical data to prove they are still the second largest equipment manufacturers .

Motorola completed the acquisition of wireless assets, Noci’s total sales volume is expected to reach 17.6 billion +37 100 million U.S. dollars, which is 21.3 billion U.S. dollars, 21.5 billion U.S. dollars with Huawei comparable, but the acquisition needs to be completed by the end of 2010, not will affect the financial results of Nokia Siemens Networks in 2010, so in a short time can not see exactly who is superior Noci and Huawei.

Pattern or change equipment manufacturers

To be sure, if excluding the acquisition and integration risks, Noci is being acquired in this way the rise of a strong return to the road. This will also affect the competitive landscape throughout the equipment manufacturers. So far, the top three in the North American market, equipment manufacturers: Ericsson, Alcatel-Lucent and Nokia Siemens Networks will complete the transaction, are all ways to enter through the acquisition of Huawei and other Chinese equipment manufacturers in the North American market has been hovering outside the door, how to broke into the house and to no avail.

Had an advantage in North America into recession, Motorola have other equipment manufacturers “route through” the last chance to enter North America, the acquisition is completed, the pattern of the North American market will re-enter a tripod for steady state, Huawei and other Chinese equipment manufacturers hope to gradually win the way one by one operator, “self” to enter, to pay the costs and difficulties will be much larger.

In addition, Nokia Siemens Networks won the Motorola wireless assets, its “consolidation of the world’s second largest equipment manufacturers,” the throne also kill two birds with one stone meaning. According to report, Motorola is a significant part of the North American market of wireless equipment, Huawei’s products are OEM.

Yesterday, Noci do not want to evaluate competitors, but has repeatedly stressed that Noci in production and R & D has a comprehensive product line. Shows that Huawei will be affected multiple. Huawei has had an internal article points out that Huawei has just narrowed the gap with competitors, but the industry’s largest merger so that the gap has narrowed it suddenly widened, Huawei has to be straight backs, patted the soil body and began the long arduous more trek.

Bargain sale?

By The campaign, like Ericsson, Nokia Siemens Networks as the purchase method to successfully enter the North American market. According to Zhang Zhiqiang introduced before the North American market share of Motorola is 8%, 6% Noci, acquisition, Noci to 14% of the share of North America’s third-largest wireless equipment manufacturers.

Year to 1.13 billion U.S. dollars, Ericsson won the Nortel beat Noci when Noci executives had “sour” to express, Noci offer very reasonable, not necessary at all costs in the final process. The implication is that Ericsson 1.13 billion bid is too high, Noci final offer, and 6.3 billion dollars. But after one year, Noci showed the more generous on – 12 million. Simply to enter the North American market as the price of view, or the acquisition of Motorola’s acquisition of Nortel’s wireless assets can get the North American market share, compared with Nortel’s share of the North American market that year was about 12%, higher than the Motorola’s 8 %.

Meanwhile, the acquisition of Nortel, Ericsson, consolidated the leading market share in Korea, while Nokia Siemens Networks will become Japan’s largest foreign supplier of wireless equipment. Noci concerned, due to different periods have different marketing strategies, new CEO Sullivan in Noci after taking office, Noci has the United States, Japan, India and China identified four strategic markets, the acquisition of two direct stability major strategic market share.

Slightly Unfortunately, Noci won the Motorola-related business development, production, sales and service, the acquisition does not cover intellectual property.

Zhang Zhiqiang, said the acquisition, Noci CDMA and WiMax will be two new business and enhance the LTE, GSM, WCDMA market share and size. He also stressed that this part of Motorola’s acquisition of the asset itself is profitable, will Noci bring positive cash flow and higher income.

This was Ericsson, Nortel won in contrast to the assets, then Nortel has been plunged into a loss of assets. According to report, Noci won the Motorola wireless assets in 2009 sales revenue of 3.7 billion, a slight profit.

Nokia Siemens Networks said the acquisition be funded out of themselves, including the cooperation with banks and financial groups, parent does not need to pay, but it will enable Nokia Siemens Networks continue to integrate, or even financial loss on the road traveling.

Noci 2009, only 12.574 billion euros revenues, loss of 1.639 billion euros, excluding one-time write-off if the cause of the loss of intangible assets, Noci first profit 28 million euros, while Motorola’s acquisition of the assets, will result in 1.2 billion U.S. dollars to re- the debt burden.

“Fortune” magazine published a Global 500 list in 2010, the Chinese telecommunications equipment provider Huawei newcomers to 21.8 billion U.S. dollars and net profit of 2.67 billion U.S. dollars annual sales of No. 397.

Ranking the top ten enterprises of this, a total of three selected Chinese companies, including China Petroleum & Chemical Corporation ranked 7th highest among the Chinese State Grid No. 8, China National Petroleum Corporation No. 10.

The list, a total of 54 Chinese companies the list, including China Mobile ranked 77, sales of 71.749 billion U.S. dollars. China Telecom ranked No. 204, sales of 35.557 billion U.S. dollars.

Huawei’s overseas market is suffering from the problem, within one month of the Indian Ministry of the Interior asked Huawei disclose full details of company ownership.

A time when 3G licenses will soon release a local occasion, Huawei India is caught in a trouble, a few months ago that the company thought it a winner. This incident shows that, despite Huawei’s overseas strategy of targeting the rich had achieved remarkable results, but the road to the future and more difficult challenges.

Inventory of more than 60,000 employees of Huawei’s ownership structure is not an easy thing, Huawei said the company now owned by the employees, the world’s 95,000 employees in nearly 2 / 3 held by the Company.

Huawei India is the most important overseas in the Asia Pacific market. Huawei last fiscal year in global revenue, India contributes about 1.4 billion U.S. dollars, accounting for 11%, more than doubling the previous year.

Huawei Technologies India to ease deep-rooted suspicions against Huawei in India, the charm offensive, the staff sent to India, India is now fashionable to take the name of the Indian clothing. YAO Wei-min, vice president of Huawei has also taken the “Rajeev (Rajeev)” as his Indian name.

Huawei made a landmark in the overseas market breakthrough in 2005, the Love for the first time overseas sales of domestic contracts. Meanwhile, after nearly three years of continuous observation, Huawei Vodafone preferred supplier of communications equipment. This three-year study project complicated but long, including not only the situation of Huawei’s operations, management, service response time, also includes all aspects of daily life, and the staff.

Prior to working with Vodafone, Huawei has always been the situation in Europe can not be opened, with a British veteran operators of this recognition, as to get a letter of recommendation from the aristocracy, Huawei in the European market stopped heel.

Ericsson’s project manager then often complain that, if the customer’s project services we sent four engineers, Huawei will be sent to the 40. Huawei patiently eroding edge of telecommunications equipment in Europe, not only has the price advantage, but also by sea of strategy. The end of 2007, Huawei has become Europe’s leading operators of all partners.

But the North American market, Huawei is still a problem, it is important Huawei has always wanted to enter the overseas market. Zhengfei early in his speech said the internal Huawei, Huawei has been serving the world’s 50 carriers in 45, but which lack the four major U.S. carriers. As the impact of Vodafone in Europe, not the cooperation of these four, which means Huawei could not be recognized in the North American market.

Huawei in overseas markets mixed feelings

01 India

India’s state-owned operator BSNL Huawei three breach of contract, a total of nearly 10 billion U.S. dollars worth of items recovered were forwarded to the French and Indian joint venture company of Alcatel-ITI and Ericsson.

02 United States

The largest U.S. mobile operator Verizon announced 4G Long Term Evolution in the list of suppliers, Ericsson and Alcatel-Lucent selected as the initial LTE network in the United States to deploy the first equipment manufacturers project, Huawei is still unable to enter the U.S. mainstream mobile operators .

03 Africa

Huawei has obvious advantages in parts of Africa, southern Africa has the second largest integrated equipment suppliers, the largest CDMA product provider, the largest supplier of NGN products, largest supplier of transmission products, the third largest GSM products suppliers. Ericsson’s main rivals this year, revenue fell more obvious in Africa.

04 Europe

Huawei and Vodafone and other operators all have top-level European cooperation, but the European market is still dominated by Ericsson. In some areas can have equal shares, in the known potential of LTE 4G market, Huawei and Ericsson also announced that the Swedish operators shared the world’s first LTE TeleSonera commercial networks.

Beijing November 23 evening news, Huawei’s plans for next year in North America increased by 600 employees, in order to strengthen its presence in the world’s largest telecom equipment market.

Planned for next year increased by 600 employees: total number of employees will exceed 1,500 people in North America

Dow Jones Newswires quoted Huawei’s wireless product line, Chief Brand Officer Robert Fox as saying that the United States in terms of Huawei is a very important market, we are a local increase in staff to support the client’s business growth.

He said that Huawei’s plans next year in North America increased by 600 employees, so that the number of employees on the market of more than 1,500 people.

Huawei is currently in North America about 900 employees worldwide has more than 87.5 thousand employees. Company has in China and other emerging markets has laid a strong position, has been eager to provide operators with cost-effective products to the countries like Australia, Europe and North America developed markets to expand the scope of its operations.

In July of this year, Huawei in the United States Richardson, Texas City, LTE laboratory officially completed and formally opened.

Fox also reiterated that this year is expected to reach 30 billion U.S. dollars Huawei’s contract sales target of 2008 sales of 23.3 billion U.S. dollars on the basis of the contract increased by 29% – Huawei has always been to maintain a high performance growth for the industry which is rarely seen, especially in the economic downturn environment.

Front-line operators with the United States talks on cooperation in the United States will exceed 60% revenue growth

Fox explained that it is constantly Huawei line operators with the United States started a dialogue on cooperation, but he refused to disclose the operator’s name and any details of the talks.

Prior to stop at the North American market, Huawei past two years, an alarming development in the North American performance this year, in August, Huawei and the world’s largest WiMAX operator Clearwire signed an agreement to become one of its main suppliers to help their first nationwide deployment of the United States The WiMAX network.

According to Tim Watkins, vice president of Huawei in Western Europe this year, said in late August, as of August Huawei has won the North American market, including the deployment of Clearwire WiMAX, including more than 5 contracts.

Huawei is responsible for U.S. business, Charlie Chen, senior vice president, has revealed that Huawei’s revenue growth this year in the United States will exceed 60%. He said that Huawei’s sales in the United States last year, an increase of 60 percent to 2.5 billion revenue this year is expected to exceed this level.

Or will challenge the dominance of Ericsson North America

Huawei’s planned expansion and with the negotiations on cooperation between operators, or challenge the market in North America, Ericsson, the absolute superiority, although the size of the staff in the market it is still far less than Ericsson.

Ericsson has just recently announced the completion of Nortel’s North American CDMA and LTE for all acquisitions of assets after the merger the new entity began November 13, “Ericsson” operate under the brand.
Ericsson North America, Angel Ruiz, President and CEO to evaluate in a media interview, said its acquisition of Nortel’s North American assets in the U.S. wireless infrastructure equipment market is dominant.

Ruiz said that Nortel’s CDMA resources will be combined with Ericsson to become the current customer demand “better backing.” Nortel will also deal with Verizon, Sprint, US Cellular, Bell Canada, Telus, Leap transferred to a number of key contracts Ericsson CDMA.

According to Dell’Oro recently launched a quarterly market analysis reports, Huawei Nokia Siemens in the third quarter leap beyond the world’s second largest mobile communications equipment manufacturers, second only to Ericsson.

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.

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.