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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