In case anyone is doubting that the shakeout in the telecommunications world will continue even as demand for broadband (and bandwidth) skyrockets, consider Huawei’s reported 2009 revenue of $21.5 billion and contract sales of more than $30 billion. The Chinese telecommunications equipment vendor told Light Reading that it grew contract sales by almost 29 percent and saw revenue growth of 17.5 percent, during a year when most of its competitors have been reporting lowered sales.
Huawei is on a tear, although it expects its contract sales growth to slow in 2010 to about 20 percent, reaching $30 billion. Its competitors, meanwhile, have been cutting their work forces and trying to figure out ways to bolster non-equipment aspects of their businesses as the tectonic shifts in the telecommunications industry ripple through the ecosystem.
Nokia (s nok) Siemens (s si) Network is cutting employees while Alcatel-Lucent (s alu) and Ericsson (s eric) are trying to derive other forms of revenue from services plays. Meanwhile, Nortel’s assets are in the final stages of getting sold off and Motorola’s (s mot) equipment arm is touting its WiMAX gear while desperately hoping for some big LTE wins.