& cplSiteName &

Huawei Doubles Overseas

Light Reading
News Analysis
Light Reading

Huawei Technologies Co. Ltd. boosted its international sales by 110 percent to nearly $5 billion in 2005, according to fresh details from the Chinese vendor, which earlier this week announced total sales for the year of $8.2 billion. (See Huawei Beats 2005 Sales Target.)

According to a Huawei spokesman, the value of contracts won outside China in 2005 was $4.8 billion, or nearly 59 percent of total sales. That compares with $2.28 billion in 2004, or 41 percent of the year's total $5.58 billion sales. (See Huawei's Global Sales Hit $5.58B.)

2005 revenues were $5.6 billion, up 46 percent from $3.83 billion the year before, according to Huawei officials. (See Huawei Plans to Triple Euro Business.)

The spokesman notes that more than half of 2005's total sales were made to mobile operators.

And now it looks as if Huawei has a chance to boost its international presence in the mobile space even further, by getting in on the $4 billion-plus worth of GSM infrastructure deals set to be awarded by Indian operator Bharat Sanchar Nigam Ltd. (BSNL) . (See Mega BSNL Contract Looms.) BSNL had considered blacklisting the vendor from future business after it defaulted on a CDMA contract last year. (See BSNL Shuns Huawei.)

After much debate on the issue, and a little prodding from the Indian Prime Minister's Office, BSNL has decided to let Huawei participate in the bidding process after all, Indian media reports say. The government wants BSNL to involve as many vendors as possible to extract the most competitive deal. It's also one less thing for the carrier to worry about as it pulls together the details of such a huge tender -- for which it keeps overshooting its self-imposed deadlines.

Even with the official go-ahead though, Huawei still needs to find a partner that's got production facilities in the country, as the government has made having a local manufacturing presence a prerequisite for doing business with state-owned BSNL and Mahanagar Telephone Nigam Ltd. (MTNL) . Its own attempts to set up manufacturing operations in India have been delayed. (See India Blocks Foreign Telecom Gear.)

Motorola Inc. (NYSE: MOT)'s name has been floated as a potential partner, and Huawei is also in talks with vendors based in India. It's in the first year of a three-year partnership with Himachal Futuristic Communications Ltd. (HFCL) , but that vendor was one of its local partners in the CDMA spat and Huawei may not be keen on teaming up with it on this particular bid.

To judge from notes to their clients, Lehman Brothers analysts believe Huawei will get a "small allocation" of the contract, with the lion's share going to Ericsson AB (Nasdaq: ERIC), Nokia Corp. (NYSE: NOK), and Alcatel (NYSE: ALA; Paris: CGEP:PA). (See Mega BSNL Contract Looms.)

— Nicole Willing, Reporter, and Ray Le Maistre, International News Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 4:08:50 AM
re: Huawei Doubles Overseas
"total sales for the year of $8.2 billion. "(the year here is 2005, right?)

"2005 revenues were $5.6 billion"

what's the difference between "total sale" and "revenue"?

What's more, the editor seems to talk about off-topic stuff too much, almost 80% percent in this article is the India thing.
User Rank: Light Beer
12/5/2012 | 4:08:49 AM
re: Huawei Doubles Overseas
Hi Zher
The article is really talking abot Huawei and how it is doing outside China.

In Huawei's world

sales in 2005 = value of contracts signed in 2005
revenues in 2005 = recognized revennues in 2005

hence 'sales' are bigger than 'revenues'

we have to wait for the firm's annual report, and audited financials, for any further breakdown.

The BSNL situation is relevant to Huawei and its international sales.

User Rank: Light Beer
12/5/2012 | 4:08:49 AM
re: Huawei Doubles Overseas
UBS states that Huawei has made the short list at T-Mobile USA

User Rank: Light Beer
12/5/2012 | 4:08:46 AM
re: Huawei Doubles Overseas
Interesting weblog:
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Nokia Bell Labs & Verizon Stretch Fixed 5G to the Home
Dan Jones, Mobile Editor, 11/13/2017
Eurobites: Telefónica Reckons Plastic Is Fantastic for FTTH
Paul Rainford, Assistant Editor, Europe, 11/15/2017
Juniper's New Contrail VP Hails From Google
Craig Matsumoto, Editor-in-Chief, Light Reading, 11/15/2017
Animals with Phones
Why Cats Don't Run Tech Support Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives