Light Reading

Huawei Gives Up on US Telecom

Craig Matsumoto
News Analysis
Craig Matsumoto
4/23/2013
50%
50%

Huawei Technologies Co. Ltd. has officially given up on the U.S. telco market -- or, at least, that's what is implied by the literal wording of one executive's "exasperation." "We are not interested in the U.S. market anymore. Generally speaking, it's not a market that we pay much attention to," said Eric Xu, a Huawei executive vice president, as quoted by Reuters. Xu, speaking at Huawei's annual analyst event in Shenzhen, China, was responding to a question about last year's congressional report that pegged Huawei and ZTE as security risks for U.S. companies. The Financial Times took the statement at face value, while Reuters left room for the possibility that Xu was just being a bit dramatic. Xu's statement doesn't appear to apply to the handset market, where Huawei assumedly still has high hopes in the United States. Reuters reported that Xu didn't respond to a question about that. Why this matters
The U.S. government has made it clear that Huawei's equipment won't be allowed in AT&T or Verizon networks -- which would relegate Huawei and ZTE bit players, at best, in U.S. telecom. For Huawei to give up on the U.S. telecom market, then, would make a lot of sense. Saying so out loud seems a little unusual but is hardly surprising. For more

— Craig Matsumoto, Managing Editor, Light Reading
(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Gene Jaleski
50%
50%
Gene Jaleski,
User Rank: Light Beer
4/25/2013 | 7:16:39 PM
re: Huawei Gives Up on US Telecom
As usual the big Corps screw the US backward cellular system, while keeping competition out and user costs high. Uncle Sam should be on trial for financial rape of it's own people.
upand2theright
50%
50%
upand2theright,
User Rank: Light Beer
4/24/2013 | 8:20:17 PM
re: Huawei Gives Up on US Telecom
Hmmm ... Without politics and security concerns, I also see no reason why Northern Ireland can't be joined with Republic of Ireland, Palestine can't merge with Israel, and Taiwan can't be integrated with mainland China. -áC'mon Ray-á
Ray Le Maistre
50%
50%
Ray Le Maistre,
User Rank: Light Sabre
4/24/2013 | 8:20:10 AM
re: Huawei Gives Up on US Telecom
On the other hand.... Ericsson's Q1 results today show that it generated revenues of $2.4 billion from North America (mainly USA) in the first three monmths of this year, so that's a run rate of nearly $10 billion in a year. Huawei is challenging Ericsson globally, so under level playing field conditions there would be no reason why Huawei could not build a business worth billions of dollars per year in North AMerica (without handset sales) -- that's what Huawei has been chasing.
Without the politics and security concerns I see no reason why Huawei would not have been a significant player in N American networks sector. It's no surprise it feels it can put its resources to better use elsewhere.
chuckj
50%
50%
chuckj,
User Rank: Light Sabre
4/24/2013 | 2:04:09 AM
re: Huawei Gives Up on US Telecom
This has nothing to do with the U.S. Government posturings, it is just common sense. How much is the total annual telco capex? $60, $80 billion? -áhow much of that is actually for hardware? $20, $30 billion? -áHow many suppliers are there? -á6, 7, 8, 9? -áIs there a sense of urgency with any of the carriers to upgrade their network? -á Are the carriers the kind of customers who take hardware with no fuss without a long-áqualification-ácycle, without demands for-áfree $million hardware samples?

There are folks in the US who run rural operations and they will buy from huawei and they are far better customers than the Telco's, all the while the Telco suppliers are too busy fighting each other on being short listed on RFQs that take two years to come to fruition, most of which don't.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
Is FCC Weighing Net Neutrality Changes?
Mari Silbey, Independent Technology Editor, 2/25/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.