What is Huawei?

8 Comments

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!

8 Comments

Om Malik

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.

TelcoWriter

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 :-)

moo

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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