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Summary:

Technology Futurist: Huawei was picked for areas that have already been commoditized due to very high competitive pressures. These low-margin LOBs include broadband access and optical networking (as in the 21 CN case). However, other areas such as softswitching, network intelligence and routing are apparently safe […]

Technology Futurist: Huawei was picked for areas that have already been commoditized due to very high competitive pressures. These low-margin LOBs include broadband access and optical networking (as in the 21 CN case). However, other areas such as softswitching, network intelligence and routing are apparently safe thus far. However, that is how most new entrants in a market begin attacking the bases of older, more established vendors – first with the low-margin products, and then, moving up the value chain. So while the presence of Huawei in long-haul transport implies a potential margin erosion of vendors such as Ciena, the other vendors will be watching this development closely – because they know they can be next. What comes next? You know how I feel about it!

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  1. Om Malik’s Broadband Blog » Huawei takes over Europe Tuesday, May 10, 2005

    [...] some announcements, and baseball musings Huawei takes over Europe First they went out and snagged British Telecom, and today comes news that Huaw [...]

  2. Huawei’s Grand Ambitions Made Clear With BT CTO Hire Wednesday, September 30, 2009

    [...] Bross, whom I’ve met on a number of occasions, is an interesting guy. During the last bubble he worked at Williams Communications, which landed him in the pages of my book, “Broadbandits: Inside the $750 Billion Telecom Heist.” The last time I saw him was when I visited British Telecom in London while working on a story about the company for Business 2.0. Bross was working on BT’s 21st CN, a next-generation broadband network that would transition everything at BT to an all-IP infrastructure. Huawei, incidentally, has in the past been one of BT’s major suppliers. [...]

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