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Huawei Technologies Co. Ltd. is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong, China.

Huawei is the largest China-based networking and telecommunications equipment supplier and the second-largest supplier of mobile telecommunications infrastructure equipment in the world (after Ericsson).

The company was founded in 1987 by Ren Zhengfei and is a private company owned by its employees. Its core activities are building telecommunications networks; providing operational and consulting services and equipment to enterprises; and manufacturing communications devices for the consumer market. Huawei has over 140,000 employees, around 46% of whom are engaged in research and development (R&D). It has 20 R&D institutes in countries including China, Germany, India, Russia, Sweden and the United States, and in 2010 invested CNY 16,556 million in R&D.

In 2010, Huawei recorded profit of CNY 23.8 billion. Its products and services have been deployed in more than 140 countries and it currently serves 45 of the world's 50 largest telecoms operators.

History

Early Years

Huawei was founded by Ren Zhengfei in 1987, with an initial registered capital of RMB21,000. Established in Shenzhen, Huawei started off as a sales agent for a Hong Kong company producing private branch exchange (PBX) switches. By 1990, Huawei began its own independent research and commercialization of PBX technologies targeting hotels and small enterprises. After accumulating knowledge and resources on the PBX business, Huawei achieved its first breakthrough into the mainstream telecommunications market in 1992, when it launched its C&C08 digital telephone switch, which had the largest switching capacity in China at the time. By initially deploying in small cities and rural areas, the company gradually gained market share and made its way into the mainstream market.

Huawei Technologies China

Huawei Technologies China

In 1994, Huawei established a long distance transmission equipment business, and launched its own SONET integrated access network, combining broadband and narrowband services in a single platform, and SDH product line. Huawei generated sales of RMB1.5 billion in 1995, mainly derived from rural markets in China.

International Expansion

In 1997, Huawei won its first overseas contract, providing fixed-line network products to Hong Kong company Hutchison Whampoa. Later that year, Huawei launched its wireless GSM-based products and eventually expanded to offer CDMA and UMTS. In 1999, the company opened a research and development (R&D) center in Bangalore, India to develop a wide range of telecom software.

From 1998 to 2003, Huawei contracted with IBM for management consulting, and underwent significant transformation of its management and product development structure. After 2000, Huawei increased its speed of expansion into overseas markets, having achieved international sales of more than US$100 million by 2000 and establishing an R&D center in Stockholm, Sweden.

In 2001, Huawei established four R&D centers in the United States, divested non-core subsidiary Avansys to Emerson for US$750 million and joined the International Telecommunications Union (ITU). By 2002, Huawei's international market sales had reached US$552 million.

In 2004, Huawei continued its overseas expansion with a contract to build a third-generation network for Telfort, the Dutch mobile operator. This contract, valued at more than $US25 million, was the first such contract for the company in Europe.

In 2005, Huawei's international contract orders exceeded its domestic sales for the first time. Huawei signed a Global Framework Agreement with Vodafone. This agreement marked the first time a telecommunications equipment supplier from China had received Approved Supplier status from Vodafone Global Supply Chain. The agreement established the terms and conditions for the supply of Huawei's solutions to any one of the Vodafone operating companies worldwide. Huawei also signed a contract with British Telecom (BT) for the deployment of its multi-service access network (MSAN) and Transmission equipment for BT's 21Century Network (21CN), providing BT and the UK telecommunications industry with infrastructure necessary to support future growth.

In May 2008, Huawei and Optus developed a mobile innovation centre in Sydney, Australia, providing facilities for engineers to develop new wireless and mobile broadband concepts into "ready for market" products. In 2008, the company embarked on its first large scale commercial deployment of UMTS/ HSPA in North America providing TELUS's new next generation wireless network and Bell Canada with high-speed mobile access.

Huawei delivered one of the world's first LTE/EPC commercial networks for TeliaSonera in Oslo, Norway in 2009. The company launched the world's first end-to-end 100G solution from routers to transmission system that same year, to help meet the rapid growth of network traffic and enhance router efficiency and reliability.

In July 2010, Huawei was included in the Global Fortune 500 2010 list published by the U.S. magazine Fortune for the first time, on the strength of annual sales of US$21.8 billion and net profit of US$2.67 billion. In late 2010, it was reported that Huawei is planning to invest around US$500 million (Rs 2,200 crore) to set up a telecom equipment manufacturing facility in Tamil Nadu, India and $US100 million to expand its R&D center in Bangalore.

Products and Services

Huawei is organized around three core business segments: Telecom Networks, building telecommunications networks; Global Services, offering global equipment, operational services, and consulting services for enterprise customers; and Devices, manufacturing electronic communications devices.

In addition to its three core businesses, Huawei launched its Enterprise business in 2010 to provide network infrastructure, fixed and wireless communication, data center, and cloud computing solutions for global telecommunications customers. Huawei has stated that it aims to increase enterprise sales to US$4 billion in 2011 and $15 billion within three to five years.

As of the start of 2010, approximately 80% of the world's top 50 telecoms companies work with Huawei. Prominent partners include BT, Vodafone, Motorola, France Telecom, T-Mobile, Portugal Telecom, Cox Communications, Bell Canada, and Clearwire. In May 2011, Huawei was awarded a contract with Everything Everywhere, the UK's biggest communication company, to enhance its 2G network. The four-year deal is Huawei's first mobile network deal in the UK.

Telecom Networks

Huawei offers a variety of network technologies and solutions to help telecommunications operators expand the capacity of their mobile broadband networks. Huawei's core network solutions offer mobile and fixed softswitches, plus next-generation home location register and Internet Protocol Multimedia Subsystems (IMS). Huawei assists content service providers looking to migrate from copper to fiber with solutions that support xDSL, passive optical network (PON) and next-generation PON (NG PON) on a single platform. The company also offers mobile infrastructure, broadband access and service provider routers and switches (SPRS). Huawei's software products include service delivery platforms (SDPs), BSSs, Rich Communication Suite and digital home and mobile office solutions.

In 2010, revenues for Telecom Networks were US$18.79 billion.

Global Services

Huawei Global Services provides telecommunications operators with equipment to build and operate networks as well as consulting and engineering services to improve operational efficiencies. These include system integration services such as those for mobile and fixed networks; assurance services such as network safety; and learning services, such as competency consulting.

In 2010, Huawei won 47 managed services contracts to help improve network performance and efficiency for customers, as well as reducing the costs of network operations and maintenance. In 2010, Huawei's global services revenues grew 28.6% to US$4.82 billion.

Devices

Huawei's Devices division provides white-label products to content service providers, including USB modems, wireless modems, embedded modules, fixed wireless terminals, wireless gateways, set-top boxes, mobile handsets and video products. Huawei also produces and sells a variety of devices under its own name, such as the IDEOS smartphones and tablet PCs. Recent products include U8800, E220, Ascend, U7519, and U8150. In 2010, Huawei Devices shipped 120 million devices around the world. 30 million cell phones, of which 3.3 million units were smartphones, were shipped to markets such as Japan, the United States and Europe.

Huawei's Devices division grew 24.4% in 2010 to record US$4.7 billion revenue.

Competitive Position

Huawei Technologies Co Ltd, is the world's second-largest telecom equipment maker (as of 2010) and China's largest telephone-network equipment maker. As of 2008, Huawei ranked first in terms of global market share in the mobile softswitches market, tied with Sony Ericsson for lead market share in mobile broadband cards by revenue, ranked second in the optical hardware market, stayed first in the IP DSLAM market, and ranked third in mobile network equipment.

In 2009, Huawei was ranked No. 2 in global market share for radio access equipment. In addition, Huawei was the first vendor to launch end-to-end (E2E) 100G solutions, enabling operators to establish enhanced ultra-broadband networks, improving their service and simplifying their network architecture.

You can find out more about Huawei Technologies Co Ltd and its history here: http://en.wikipedia.org/wiki/Huawei.


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