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Summary:

Regular readers very well know that Huawei is an emerging telecom powerhouse, a bit of a problem for the US vendors, and a threat to the established telecom order. More recently it is being perceived as a bit of a security risk. This week’s Newsweek International […]

Regular readers very well know that Huawei is an emerging telecom powerhouse, a bit of a problem for the US vendors, and a threat to the established telecom order. More recently it is being perceived as a bit of a security risk.

This week’s Newsweek International does a great job of stringing together the fascinating tale of company that has/had ties with the Chinese government, and how it has become a major migraine for rest of the telecom industry. It is by far the most comprehensive story on Huawei, and I urge you to read this if you have any interest in the telecom hardware landscape.

The telecom giant is either a security menace or a real comer—or it could be a house of cards. Or all of the above. ….more than $4 billion in the first half of 2005, 85 percent higher than the same period a year before ….In 2004, Huawei got a $10 billion credit line from the state-owned China Development Bank and $600 million from the Export-Import Bank of China to fund its global expansion. That, analysts say, has helped Huawei undercut competitors’ bids by as much as 70 percent and offer vendor-financed loans.

Bonus: DFJ VC Steve Jurvetson’s Huawei factory tour photos and impressions!

  1. Huawei has had a tough time in India. They were awarded a huge contract for CDMA lines by BSNL. They could not deliver and got kicked out. Huawei’s main chinese rival ZTE got the contract instead.

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  2. ya as moo quoted the company had a bad experience in india.

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  3. [...] Huawei is known for creating controversies around the world. They first stole CISCOs IP and later agreed to co-operate under pressure. In India they are part of bigger controversy. In 2001, they were suspected by the Government of India for spying; their close ties with Chinese Military and our neighbor Pakistan had put the company under Indian intelligence radar before clearing their proposals for expansion. Now they joined hands with Himachal Futurustic Comunications Ltd, which has equally bad reputation in India for rigging telecom licenses during Narsimha Rao’s period and looting investors like Kerry Packer during the 2000 boom. Huawei & HFCL failed to supply BSNL’s CDMA equipment order and thus got themselves automatically disqualified for BSNL’s larger upcoming tender of 60 million GSM lines. Hope Dayanidhi Maran is listening. [...]

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  4. I did a short blurb on Huawei after my factory tour…

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  5. Here’s the simple answer to your question “What is Huawei?”
    Huawei = Shrewd business sense + Cheap products + some innovation + Typical “Guan Xi” + Operator’s response to established vendors’ greed + ..(well all others are minuses :-)

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  6. Om, I consider the 28 july, 05 wsj article to have provided a better insight about huawei than the newsweek one. Newsweek is pretty much stating what is already public knowledge about the company.

    A Chinese Telecom Powerhouse Stumbles on Road to the U.S.
    http://online.wsj.com/article/SB112250344291097987.html

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  7. you are right about that, but newsweek story captures it all for a non-biz/not tech audience. i thought it was worth reading etc. that doesn’t take anything from the merits of the WSJ piece.

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  8. what is huawei and 3g umts

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