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Huawei Hits Back

Ray Le Maistre
10/30/2012
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The recent U.S. House Permanent Select Committee on Intelligence report, which concludes that Huawei Technologies Co. Ltd. and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) are a security threat, is a case of "Americans being Americans," according to Huawei's vice president for Western Europe. (See US vs Huawei/ZTE: The Verdict.)

Speaking to the media in central London following a morning of broadband market discussions and debate, Tim Watkins said the report was "unbalanced. This is the Americans being Americans. The amount of data requested was absurd. We are very disappointed with the outcome, especially after the considerable efforts we went to" in trying to convince the U.S. investigating team that Huawei is an independent company with technology that is safe to deploy. (See Huawei Responds to U.S. Investigation.)

Watkins added that Huawei had been selected by Tier 1 operators in the U.S. but had then been "prevented from doing that business. But the Tier 2 operators are customers. We generated revenues of $1.3 billion in the U.S." in 2011.

Despite the loss of those potential deals, the Huawei man also claimed that the decision had made little difference to Huawei's overall business, though he added that the run-up to the U.S. report's findings had possibly had "some influence" on decisions made in other markets. (See Huawei Denied German Bid and Australia's (Safe) Bet Against Huawei.)

As for any operators that may have left Huawei out of their shortlists because of the U.S. investigation, Watkins noted that "there's always going to be one or two who might make life easier for themselves" by not inviting the Chinese vendor into contract tender processes, though he didn't elaborate on that statement.

Watkins was talking at the end of a morning industry debate that involved senior executives from major U.K. operators, analysts, economists and Ed Vaizey, the U.K. government's Minister for Culture, Communications and Creative Industries. (See EIU Reports on Superfast Britain.)

Vaizey (unintentionally) raised the biggest laugh of the morning by admitting that while the current U.K. government has targets for downstream broadband speeds (2 Mbit/s available for everyone by 2015), it doesn't have a target for uplink speeds because that would be "too complicated."

It seems one broadband target at a time is enough to cope with.

— Ray Le Maistre, International Managing Editor, Light Reading

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DCITDave
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DCITDave,
User Rank: Light Beer
12/5/2012 | 5:18:27 PM
re: Huawei Hits Back


Who else would the Americans be? 

billy_fold
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billy_fold,
User Rank: Light Beer
12/5/2012 | 5:18:26 PM
re: Huawei Hits Back


When they lifted the Cisco code, was that just Huawei being Hauwei?


--billy

digits
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digits,
User Rank: Light Beer
12/5/2012 | 5:18:26 PM
re: Huawei Hits Back


I have met quite a few who told me they were Irish!

krishanguru143
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krishanguru143,
User Rank: Light Beer
12/5/2012 | 5:18:24 PM
re: Huawei Hits Back




Of course not, that was just the Chinese being Chinese.  How much IP has China stolen?  Piracy is pretty much par there.  The Chinese government will also protect Chinese companies when they do steal IP.

 



Now when the Chinese company tries to use it outside of China, that is a different story.







JohnVoda
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JohnVoda,
User Rank: Light Beer
12/5/2012 | 5:18:24 PM
re: Huawei Hits Back


I also personally find it hard to trust them, in light of their prior actions.  As Billy_Fold noted, they (and their country) don't instill a lot of trust regarding the protection of intellectual property rights.

maxwell.smart
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maxwell.smart,
User Rank: Light Beer
12/5/2012 | 5:18:23 PM
re: Huawei Hits Back


Chinese government bans Facebook. Google, Twitter, Ebay all having problems/ censorship in China. In this case Huawei is not officially banned, just a security warning is provided based on prior track record and other reasons like lack of transparency. US is still far far more open to Chinese companies than China is open to US companies. There is no comparison.


 

danielngoo
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danielngoo,
User Rank: Light Beer
12/5/2012 | 5:18:23 PM
re: Huawei Hits Back


Disappointed of how Huawei fight back. Nothing is shown beside just blamming others. This is not professional at all.


 


Admit it, fix it, move on!

paolo.franzoi
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paolo.franzoi,
User Rank: Light Sabre
12/5/2012 | 5:18:22 PM
re: Huawei Hits Back


I believe if you do some looking that you will find that the US Government has stepped in and blocked such moves in the past (like Huawei buying Tellabs at the height of BPON rollouts).


seven

shygye75
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shygye75,
User Rank: Light Sabre
12/5/2012 | 5:18:22 PM
re: Huawei Hits Back


If Huawei can't break into certain sectors and markets under its own brand, it can try to do so through acquiring a trusted incumbent supplier. That would make things a lot more interesting.

shygye75
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50%
shygye75,
User Rank: Light Sabre
12/5/2012 | 5:18:21 PM
re: Huawei Hits Back


If at first you don't succeed ....

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