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Huawei Technologies Co. Ltd.
华为技术有限公司
Company typePrivately-held company
IndustryTelecommunication
Founded1988
FounderRen Zhengfei
Headquarters
Longgang District, Shenzhen
,
People's Republic of China
RevenueIncrease $23.3 billion USD (2008)
47,515,000,000 renminbi (2016) Edit this on Wikidata
Increase $1.15 billion USD (2008)
Total assets443,634,000,000 renminbi (2016) Edit this on Wikidata
Number of employees
95,000 (June, 2009)
Websitewww.huawei.com

Huawei Technologies Co. Ltd. (Chinese: 华为技术有限公司; pinyin: Huáwei Jìshù Yǒuxiàn Gōngsī) is the largest networking and telecommunications equipment supplier in the People's Republic of China. It is headquartered in Longgang District, Shenzhen, Guangdong.[1]

Established in 1988 by Ren Zhengfei, Huawei Technologies is a private high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, and providing customized network services for telecom carriers.[2] Huawei serves 45 of the top 50 telecoms operators and puts 10 per cent of revenue into R&D each year.[3] In addition to the R&D centers in Shenzhen, Shanghai, Beijing, Nanjing, Xi'an, Chengdu, and Wuhan in China, Huawei also has R&D centers in Stockholm, Sweden; Dallas and Silicon Valley, U.S.; Bangalore, India; Ferbane in Offaly, Ireland; Moscow, Russia; Jakarta, Indonesia; and Wijchen, Netherlands.

Huawei has within a short period of time seen a rise to become the world No. 2 company in the mobile equipment industry behind Ericsson.[4]

Name

(Chinese: 华为; pinyin: Huáwei) officially transliterates in English to Huawei (pronounced as "wow-to-the-way" in English). The character 华 means Chinese, also can be used as adjective to mean splendid, magnificent. The character 为 means action or achievement. The two characters combined (Huáwei) variously translates as "achievement", "magnificent act", "splendid act" or "China can".

History

Huawei was founded by Ren Zhengfei in 1988,[5] 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 a 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 with IBM for management consulting, and underwent significant transformation of its management and product development structure. After 2001, Huawei increased its speed of expanding into overseas 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.[6]

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.[7]

In May 2008, Huawei joined Optus in developing a mobile innovation centre in Sydney, Australia, aimed at accelerating the adoption of high-speed mobile and wireless broadband.[8]

In March 2009, the Wimax Forum announced four new members to its Board of Directors including Thomas Lee, the Vice Director of the Industry Standards Department at Huawei.[9]

Grameenphone Ltd. and Huawei won the Green Mobile Award at the GSMA Mobile Awards 2009.[10]

In July 9, 2010, Huawei reached Global Fortune 500 2010 published by the U.S. magazine "Fortune" for the first time with the annual sales of 21.8 billion U.S. dollars and net profit of 2.67 billion U.S. dollars[11].

Huawei is planning to invest around $500 million (Rs 2,200 crore) in setting up a telecom equipment manufacturing facility in Tamil Nadu, India. [12]

Timeline

  • 1988 - Ren Zhengfei founds Huawei as distributor of imported private branch exchange PBX products
  • 1993 - Introduces its first major product, a digital telephone switch with large capacity of over 10,000 circuits
  • 1996 - Wins first big overseas contract for fixed-line network products from Hong Kong's Hutchison Whampoa
  • 2003 - Forms joint venture with 3Com to build Internet protocol-based routers and switches
  • 2004 - Overseas sales surpass domestic sales for first time
  • 2009 - Is named world's top patent seeker, becoming the first Chinese company to head the United Nations World Intellectual Property Organization (WIPO) list.
  • 2009 - 2008 contract orders rose 46 percent to $23.3 billion (75 percent of which came from overseas) and expects orders to reach $30 billion this year.
  • 2009 - Overtakes Alcatel-Lucent to become world's No. 3 mobile network gear maker, doubling its market share from a year ago, according to researcher Dell'Oro
  • 2009 Q3- Huawei passed Nokia Siemens Networks for the No. 2 position in the global mobile infrastructure equipment market in the third quarter, according to research firm Dell'Oro—a sign of the changing fortunes of the two vendors.
  • 2009 Q4- Nokia Siemens Networks passed Huawei for the No. 2 position in the global mobile infrastructure equipment market in the 4th quarter, according to research firm Dell'Oro - a sign of winning back through Nokia Siemens Networks

Products and product deployment

Huawei E220 HSDPA USB modem

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, TD-SCDMA, a full series of routers and other LAN equipment. Huawei manufactures also mobile phones [13] such as the Vodafone 710 and 716, 3G HSDPA cards (Huawei E620[14] HSDPA Card is being offered by e.g., Vodafone in the United Kingdom and Telia in Sweden), 3G HSDPA USB modem, Huawei E220.[15] and 3G HSUPA modem stick Huawei E172[16].

In 2005, Huawei was selected by BT as a preferred supplier of communications equipment for BT’s 21CN network strategy, however TalkTalk deployed Hauwei MSAN's before this as part of their 21CN network.[17] In the same year, Huawei signed a Global Framework Agreement with Vodafone for mobile network infrastructure.[18] In 2006, Motorola signed a deal[19] with Huawei where Motorola distributes and installs Huawei's 3G equipment. On November 15 (2006), Huawei signed a deal[20] worth 30 million euros (38.4 million USD) 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.[21] Huawei replaced Alcatel/Motorola in Romania, and Nortel in Belgium.

Vodafone awarded Huawei 2007 Global Supplier Award for Outstanding Performance in June, 2007.[22]

On October 29, 2007, Huawei announced a WiMAX product.[23]

Huawei E960 HSDPA supports two working modes of the wireless gateway and USB modem . It includes four LAN interfaces for the RJ-45, WLAN, telephone interface for the RJ-11, USB interface. The power is supplied through the USB from the PC or power adaptor[24].

Huawei pushes (broadband) Fixed Mobile Convergence (FMC). Leading the company's FMC initiatives is the new Huawei HG553 VoIP home gateway, currently available through Vodafone. The device combines a standard ADSL2 + Wi-Fi-enabled four port router with a pair of phone sockets for VoIP calling and a dockable USB mobile broadband dongle, giving the user a backup option of 3G data should the fixed-line service fail. Being removable means that the owner can take the mobile broadband service with them when necessary[25].

The Huawei U121, Playset and the Vodafone 716 are 3G mobile camera phones designed and manufactured by Chinese telecommunications equipment supplier Huawei. The phone is most common in its Vodafone UK form, where it is branded as a Vodafone product, and sold as a budget pay as you talk phone. It's also sold by Polish Play network as Playset.

Huawei cheap Android smartphone

In September 2010, Huawei and Google have announced the Huawei IDEOS cheap smartphone (not more than 129₤). It has a Qualcomm 528 MHz processor, Android 2.2 OS preinstalled, 2.8in QVGA capacitative touchscreen, supports HSDPA tethering to act as a modem connecting to computer, 3.2MP camera, A2DP bluetooth, 512MB internal memory plus acceptance of microSD cards up to 32GB and has its own media player. IDEOS natural rivals are the HTC Desire and Legend.[26]

Competitive position

Huawei's global contract sales for 2006 reached 11 billion USD (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 products. In Feb 2009 CTS (Gibraltar) Ltd is due to launch a 3G mobile network. This network is an end-to-end 3G service provided by Huawei.[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).[27]. By the end of 2008, global contract sales of Huawei Technologies, China's largest telecoms gear maker, jumped 46 percent to 23.3 billion USD.[28]. Huawei also forecast sales of more than 30 billion USD in 2009.[28].

Huawei Technologies was included in the World's Most Respected 200 Companies list compiled by Forbes magazine in May 2007,[29] one of the six from the telecom industry.

In December 2008, BusinessWeek magazine included Huawei in their inaugural list of 'The World's Most Influential Companies' in collaboration with an advisory board of 14 academics, consultants, and industry leaders worldwide, including Shelly Lazarus, Chairman and CEO of Ogilvy & Mather Worldwide and Jim Collins, author of Good to Great [30]. [31]

In the end of 2008, Huawei has successfully shipped over one billion licenses for its All-IP based mobile softswitch. This significant milestone was reached only five years after Huawei shipped the industry's first mobile softswitch and it is the first time any manufacturer has reached this level. Huawei softswitches are speeding the transformation of mobile networks to All-IP in more than 100 countries. Huawei launched its IP-based mobile softswitch product in 2003 and, in the same year, installed the world's first 3G mobile softswitch with separate architecture in the United Arab Emirates. In 2004, the company created the world's largest IP mobile softswitch network in China.[32] [33].

According to the World Intellectual Property Organization (WIPO) on 27 January 2009, Huawei was ranked as the largest applicant under WIPO's Patent Cooperation Treaty (PCT), with 1,737 applications published in 2008. Overall, the total number of international patent filings under WIPO's PCT for 2008 represents the highest number of applications received under the PCT in a single year and China improved its ranking by one place, to become the sixth largest user of the PCT, with 6,089 filings.[34]

In 2010 Fast Company ranked Huawei the fifth most innovative company in the world.[35]

In 2010 The Economist recognizes Huawei with its Corporate Use of Innovation Award. [36]

Criticisms and controversy

Technology theft

In February 2003 Cisco Systems filed motion for preliminary injunction[37] against Huawei Technologies, quoting the defendant to be "engaged in blatant and systematic copying of Cisco's router technology". Cisco examined Huawei's operating system (VRP) and "found telltale signs that it was developed using Cisco's source code". To support their case, Cisco also presented additional evidence, including declaration of a former Huawei employee[38] detailing a list of "inappropriate" practices utilized by FutureWei Technologies, a US-based subsidiary of Huawei.

In July 2004 Cisco, Huawei and 3Com filed a stipulation and order of dismissal with prejudice in the lawsuit filed by Cisco against Huawei in the United States District Court, Eastern District of Texas, Marshall Division, which means that Cisco can't bring another lawsuit against Huawei asserting the same or substantially similar claims.[39][40][41]

Huawei Technologies became the focus of a major intellectual property scandal again later in 2004, when Yi Bin Zhu, a Huawei employee, was caught afterhours in a competitor's booth at the SuperComm tradeshow, "examining circuit boards taken from the vendor's displayed gear and taking photographs" [42]

In July 2010, US-based mobile vendor Motorola Inc have filed an amended complaint against Huawei claiming loss of confidential information to Chinese company. Motorola also maintained that "Huawei and its officers knew they were receiving stolen Motorola proprietary trade secrets and confidential information without Motorola's authorization and consent".[43]

Customer relations

US government's Strategic Studies Institute report on Argentina published in September 2007 describes Huawei as "known to bribe and trap clients". The report further details unfair business practices, such as customers framed by "full-paid trips" to China and monetary "presents" to be offered and later used by Huawei as "a form of extortion"[44].

In February 2009, President of Indonesian mobile carrier Excelcomindo Pratama confirmed a data theft attempt by visiting Huawei employee who "snuck in to General Manager's Network Planning Office".[45][46]

Security concerns

In 2005, the possibility of Huawei's bid on British telecommunications company Marconi has triggered a request from Conservative Party to UK government to "consider the implications for Britain's defense security".[47]. Marconi was later acquired by Swedish telecommunications giant Ericsson. In March 2009, Alex Allan, the Chairman of Joint Intelligence Committee, has briefed members of UK government about the "threat", allegedely imposed by Huawei's equipment in British national telecom network BT.[48]

In 2008 Military Report to the Congress,[49] Pentagon stated that Huawei "maintains close ties" to Chinese People Liberation Army (PLA). In the same year, the proposed merger of US-based communications company 3COM Corp by Huawei met with US Congress investigation[50] and subsequent determination by Director of National Intelligence that "3Com-Huawei merger would undermine U.S. national security".

Security concerns on Huawei are repeatedly expressed by U.S. lawmakers. In a letter to FCC chairman sent on Oct 20 2010, a group of U.S. senators expressed an opinion that Huawei "would pose a threat to national security if there was manipulation of switches, routers or software embedded in American telecommunications network" [51]. The letter became the second such request lawmakers have made to the Obama administration within just two months.

In September 2009, Australian security agency ASIO started investigating the alleged links between local Huawei employees and Chinese military.[52]

In October 2009, Indian Department of Telecommunications reportedly requested national telecom operators to "self-regulate" the use of Chinese-made equipment (including ZTE and Huawei), quoting security concerns.[53] Earlier, in 2005, Huawei was blocked from supplying equipment to India's national network BSNL.[54] In 2010, Indian security intelligence (CBI) insisted on canceling the rest of the Huawei contract with BSNL and pressed charges against several top BSNL officers regarding their "doubtful integrity and dubious links with Chinese firms".[55][56] In April 2010, Sistema Shyam Teleservices Ltd., the Indian unit of Russia's AFK Sistema, didn't get clearance to buy Huawei equipment.[57]

Workforce treatment

In October 2007, 7,000 Huawei employees have resigned and then rehired on new contracts, that they would not be bound by the unlimited contract provisions of the new Labour Contract Law. The company denied it was exploiting loopholes in the law, while the move was condemned by local government and trade unions.[58][59] Huawei's workforce treatment in Guangdong Province in Southern China also triggered media outcry after a 25 year-old software engineer by the name of Hu Xinyu, who worked for Huawei Technologies, died in May 2006 from what has been believed to have been "extreme fatigue caused by overwork". The cause of death listed by the hospital was bacterial encephalitis.[60][61] Before joining Huawei, Hu Xinyu was described as "an athlete and sports enthusiast".

See also

References

  1. ^ "Contact us." Huawei. Retrieved on February 4, 2009.
  2. ^ Ren Zhengfei - Modeled After Mao. Time Magazine. 2005.
  3. ^ Peter Griffin (2007). "China's technological challenger". The New Zealand Herald. Retrieved 2010-05-14.
  4. ^ Reuters
  5. ^ http://www.huawei.com/corporate_information/milestones.do Major events on Huawei official website
  6. ^ 3Com's Big China Venture. Forbes. Nov 29, 2006.
  7. ^ Huawei, Symantec form joint venture. ZDNet Australia. May 22, 2007.
  8. ^ Optus opens up mobile research shop with Huawei. ZDNet Australia. May 22, 2007.
  9. ^ 'Clearwire, Comcast, Huawei and ITRI join WiMAX Forum Board of Directors', Wimax News, Retrieved in March 2009.
  10. ^ "GP, Huawei win 'Green Mobile Award'". Retrieved 2010-01-29.
  11. ^ Huawei reached Fortune Global 500 first time in 2010 July 9, 2010. Retrieved July 9, 2010.
  12. ^ "Huawei plans to invest $500 mn in Tamil Nadu". business.rediff.com. Retrieved 25 Oct 2010.
  13. ^ Vodafone, Huawei sign deal for 3G handsets. ZDNet News. February 15, 2006.
  14. ^ iSuppli Analyses Huawei 3G HSDPA Card. 3G.CO.UK. November 8, 2006.
  15. ^ Vodafone Mobile Connect super 3G USB modem. The Register. November 21, 2006.
  16. ^ http://www.huawei.com/news/view.do?id=5402&cid=42
  17. ^ Huawei Picked for BT's 21CN. Light Reading. APRIL 28, 2005.
  18. ^ Huawei Meets Vodafone's Needs. Light Reading. NOVEMBER 22, 2005.
  19. ^ Motorola exec's domain is profitable, if not sexy. Chicago Tribune. November 12, 2006.
  20. ^ Huawei wins first major German deal. China Daily. November 16, 2006.
  21. ^ France Telecom adds China's Huawei to pool of UMTS equipment suppliers - report. AFX News Limited. February 1, 2007.
  22. ^ Vodafone awards Huawei 2007 Global Supplier Award for Outstanding Performance. Huawei Press Releases. June 13, 2007.
  23. ^ webitpr | Huawei Launches New Generation WiMAX Commercial Solution
  24. ^ http://www.huawei.com/policy/simpleres.do?id=1063&type=abouthw
  25. ^ http://identitymanagement.itweek.co.uk/vnunet/news/2230131/huawei-pushes-fixed-mobile
  26. ^ http://www.networkworld.com/news/2010/090210-huawei-and-google-launch-android.html
  27. ^ Huawei Financial Highlights. Huawei Corporate Information. 2007.
  28. ^ a b [1]. China Huawei 08 contract sales up 46 pct at $23.3 bln
  29. ^ List on Forbes website
  30. ^ [2]. Business Week Publishes First Annual List of 'The World's Most Influential Companies'.
  31. ^ [3] The World's Most Influential Companies
  32. ^ [4] Huawei records industry first, ships 1 billionth mobile softswitch license
  33. ^ [5] Shipment of Huawei Soft Switch Tops 1 Billion
  34. ^ http://www.wipo.int/pressroom/en/articles/2009/article_0002.html Wipo, January 27, 2009
  35. ^ http://www.financialexpress.com/news/huaweiranked5thmostinnovativefirm/596424/
  36. ^ http://www.economistconferences.co.uk/press-release/telecommunications-leads-way-corporate-innovation
  37. ^ [6] Cisco's Motion for Preliminary Injunction against Huawei Technologies, Inc
  38. ^ [7] Supplementing Cisco's Motion for Preliminary Injunction against Huawei Technologies, Inc
  39. ^ [8] LightReading: Cisco Drops Huawei Lawsuit
  40. ^ [9] Huawei Statement: Cisco Huawei lawsuit ends
  41. ^ [http://newsroom.cisco.com/dlls/2004/hd_072804.html>
  42. ^ [10] LightReading: Huawei in Spying Flap
  43. ^ [11] Reuters: Motorola sues Huawei for trade secret theft
  44. ^ [12] CHINA’S EXPANSION INTO AND U.S. WITHDRAWAL FROM ARGENTINA’S TELECOMMUNICATIONS
  45. ^ [13] Reuters: Excelcomindo Says Stops Huawei Man Stealing Data
  46. ^ [14] Crime: Excelcomindo Data Theft Attempt
  47. ^ [15] Newsweek: The Huawei way
  48. ^ [16] Sunday Times: Spy Chief fears Chinese Cyber Attack
  49. ^ [17] ANNUAL REPORT TO CONGRESS Military Power of the People’s Republic of China 2008
  50. ^ [18] Washington Times: Congress to Probe 3COM-Huawei Deal
  51. ^ [19] FierceWireless: Lawmakers ask FCC to probe security risks from Huawei, ZTE
  52. ^ [20] The Australian: Huawei in ASIO's net
  53. ^ [21] UPI Asia: India's Telecom Agency rises China spy scare
  54. ^ [22] Cellular News: BSNL cancels Huawei GSM tender
  55. ^ [23] Hindustani Times: CBI to probe BSNL's officers Huawei ink
  56. ^ [24] Hindustani Times: PMO Forced BSNL to remove top officials
  57. ^ [25] Bloomberg News: India Said to Block Orders for China-Made Telecom Equipment
  58. ^ Geoffrey Crothall (12 Nov 2007). "ABC Radio Australia: CHINA: Companies seeking loopholes in new labour laws". China Labour Bulletin. Retrieved 24 February 2010. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  59. ^ "Is corporate "wolf-culture" devouring China's over-worked employees?". China Labour Bulletin. 27 May 2008. Retrieved 24 February 2010.
  60. ^ Trevor Metz (12 Nov 2007). "CBC News: Stemming the brain drain". CBC News. Retrieved 20 April 2010.
  61. ^ Xu, Zhiqiang (2006-06-07). "Worked to Death in China". OhmyNews International. Korea: OhmyNews International. Retrieved 27 April 2010.
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