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Avici Not in on China Deal

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News Analysis
Light Reading
6/30/2004

Huawei Technologies Co. Ltd. says its contract to build phase one of China Mobile (Hong Kong) Ltd.'s (NYSE: CHL) next-generation IP backbone is for its own core routers only and doesn't include gear from OEM partner Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7). (See China Mobile Picks Huawei.)

Avici had prospered from Huawei's other recent core router deal with China Telecommunications Corp. (NYSE: CHA). (See Huawei Partnership Boosts Avici .) In that deal, the Chinese vendor supplied 10 NE5000s, the name Huawei gives to Avici's SSR core router.

So when Huawei announced the deal with China Mobile, analysts wondered whether Avici would benefit again. But Huawei spokesman Richard Lee says, "In this deal, they are all Huawei high-end routers." He wouldn't disclose the value of the contract.

Avici wouldn't answer questions on the matter, saying it doesn't comment on other vendors' customer activity as a matter of company policy.

Analysts at Lehman Brothers, while unsure whether Avici was getting any of the action, stated in a research note that Huawei's deal could have more of an impact on Juniper Networks Inc. (Nasdaq: JNPR).

"We note that Juniper has been an incumbent core routing vendor to China Mobile, and we view this announcement may be perceived as an incremental negative for Juniper." But the analysts reckon Juniper's business is holding up in China, despite increasing competition from local vendors such as Huawei. "Our field checks suggest Juniper's business in China this quarter appears to be on track, helped by continued solid traction of its E-series edge routers."

Huawei, perhaps not surprisingly, has a strong supplier relationship with China Mobile, which earlier this year opted to deploy the Chinese vendor's softswitch (see China Mobile Picks Huawei Softswitch).

China Mobile had not responded to questions regarding the contract award by the time this article was published.

— Ray Le Maistre, International Editor, Boardwatch

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turing
turing
12/5/2012 | 1:29:27 AM
re: Avici Not in on China Deal
How odd. There were 2 messages in this article thread, and now they're gone. They're not even on the list of last 100 messages posted, even though they were posted in the last 20 or so. Hit too close to home for comfort LR? Can there be no criticism of LR in these posts?
nutTree
nutTree
12/5/2012 | 1:29:26 AM
re: Avici Not in on China Deal
Last time I counted, there were four msgs. Well, seems LR has a "controled mechanism" to screen out the messages that they don't want to see/ or be seen by other readers. I'm sure it's also true when it comes to reporting news! That's unfortunate. Doesn't really matter, people who read these stuff are normally educated enough to know what's really going on.

Just thought this was an open forum to voice different opinion. Well, I was wrong obviously.
nutTree
nutTree
12/5/2012 | 1:29:26 AM
re: Avici Not in on China Deal

No need to delete the posted messages (just because they don't seem to sound flattering), all you have to do is try to stick to sound principle.

Money can't buy everything. Being biased wouldn't pay for the long run for LR.
Scott Raynovich
Scott Raynovich
12/5/2012 | 1:29:26 AM
re: Avici Not in on China Deal
Sound principle dictates that we delete childish posts.

I've never been bought in my life

--Scott
turing
turing
12/5/2012 | 1:29:25 AM
re: Avici Not in on China Deal
"Sound principle dictates that we delete childish posts."
You must not be following the Huawei spying article threads then... :)

"I've never been bought in my life"
Sorry, didn't mean to say you've been bought. (not like Mier or Tolly reports anyway) Just influenced - influenced through commercial or social contacts. It is impossible to prevent (if someone doesn't talk to you, how would you know their spin? if you talk to someone everyday, then their spin will seep in). I'm not sure how that can be prevented, by anyone. The alternative would be to be to become too self-aware of the bonds, and to go the other way (ie, be too critical of familiar vendors) which would be just as bad (and worse from a business perspective).
nutTree
nutTree
12/5/2012 | 1:29:25 AM
re: Avici Not in on China Deal

Not sure which message out all 4 that were deleted is childish... May be all of them are - according to your "sound principle".

The truth of the matter is, as long as you are in the news reporting business, LR will be judged and criticized by the general public. Being fair and accurate is the key for long term success.
May be it's time for some of your staff to take reporting 101 to understand your basic responsibility.

No doubt that LR is providing ample Telecomm news, rumors, and gossips. But being the "Enquire" of the network world, will damage your public perception.
Scott Raynovich
Scott Raynovich
12/5/2012 | 1:29:24 AM
re: Avici Not in on China Deal
You know what, we'll leave this stuff up, but the main problem isn't just that it's false (which it is) .... it's just that this stuff gets real boring real fast and does not move forward the discussion about the real issues. As far as improving the quality of the boards, I think when such messages are deleted it does boost the quality.

This is one story about one deal between Huawei and Avici. Is the sky falling? Hardly. Because we reported on one deal with one OEM does it mean our entire body of coverage on Avici is biased? Do the search on the site under "Avici" and see what you come up with -- my take is that quite simply, we write more information about that company -- and just about any other company in this industry -- than any other publication. And we try to make it as accurate as possible.
Scott Raynovich
Scott Raynovich
12/5/2012 | 1:29:24 AM
re: Avici Not in on China Deal
yadda, yadda, yadda... thanks nutTree
turing
turing
12/5/2012 | 1:29:23 AM
re: Avici Not in on China Deal
Of course you write more about the industry vendors than anyone else - why do you think we keep coming back to this site? :) That and for the pictures of Hula girls.
And I wasn't talking about Avici - someone else said they thought you guys leaned toward Cisco and I said I thought you leaned toward Juniper. But indeed you must get this all the time and get annoyed with it, so here's an effort at moving forward - I think it may be because all your articles appear in the main window as equal fonts/spacing, so they appear to have equal weighting, even though clearly they're not. Like Cisco's acquisition of Procket is far more significant than your successful Supercomm billiards game (congratulations, BTW). But they show up the same size. We all have this newspaper mentality of front page/big font relating to importance of news. So have you thought of separating big headline stories from minor aricles? (or would that make matters worse?)
nutTree
nutTree
12/5/2012 | 1:29:22 AM
re: Avici Not in on China Deal
Talking about the quality of your news -

Reporting on a deal for Huawei's bid with China Mobile, you titled it "Avici not in on China Deal". Which "China deal" you are talking about!
What would you think if you saw some headline in the news like "Starbuck denied of Coffee Market in China?". Sounds ignorant and barbarian.

You must know by now there are at least four or five big carriers in China. When you report, be specific, be precise. My point is - you may or may not intentionally promoting the bigger fishes as you are funded and befriend with them. That's why the posts on this board earlier have to BE DELETED BY YOU. They are not music to your ears.

Frankly, I don't give a damn about Huawei or Avici on China M. deal. Just the fact that LR bothered to report something out of nothing suprises me.

My advise, get you fact straigt and understand the dynamics behind it before you publish your report next time.

Enough time wasted on this already...
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