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Huawei Builds Euro Backbone

Huawei Technologies Co. Ltd. has struck again in Europe, this time with an unnamed carrier that has extended its network to 14 points of presence (POPs) in burgeoning central Europe.

The Chinese vendor has already had some foot-in-the-door success with operators in Western Europe, such as BT Group plc (NYSE: BTY; London: BTA) and Fibernet Group plc (London: FIB). And it claims to have equipment in use by all the major incumbent national operators in the region (see Huawei Gets BT's Blessing and Huawei Springs Surprises).

Now a source involved with this latest network says Huawei is the sole supplier of core switches for a 14-POP network expansion covering at least Austria, Germany, the Czech Republic, and Slovakia. The construction was completed by German integrator Vierling, which says the network is already live, and that the main POPS are in Frankfurt, Munich, Prague, Bratislava, and Vienna.

The identity of the carrier, though, has not been revealed, and Huawei declines outright to talk about the project.

Nick McMenemy, head of strategy and business-critical operations at pan-European operator Interoute Telecommunications, says his company isn't the buyer. He's been crawling over network assets and ongoing operations in that part of the world recently looking for network assets to buy on the cheap, a practice that has become commonplace in Europe (see Cogent Adds to Euro Empire, Linx Links the Baltics, and Interoute Acquires Ebone).

McMenemy says Interoute is only expanding through acquisitions, rather than new network expansion, as there are plenty of assets available to buy, it's cheaper, and it's a quicker way to get up and running in a new market.

McMenemy's comments, though, imply that whoever the carrier is, it is likely running a healthy business to be able to afford outright expansion. "It only makes sense to build out if you know you'll have revenues greater than the cost of building and running the network -- you have to make a profit," he says. "The days of build-and-they-will-come are over, thank goodness. It's about building to demand these days."

— Ray Le Maistre, International Editor, Boardwatch

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Indy_lite 12/5/2012 | 2:06:51 AM
re: Huawei Builds Euro Backbone Huawei, keep it going.

All other companies in the developing countries, Huawei sets a good model. Work hard, you can achieve it, just like Samsung did, LG did...
truelight 12/5/2012 | 2:06:44 AM
re: Huawei Builds Euro Backbone Idiot !
rolostar_madam 12/5/2012 | 2:06:43 AM
re: Huawei Builds Euro Backbone Huawei is giving Cisco and other greedy overpriced vendor's a run for their money. True capitalism is here now and it is good for all of us consumers. Better engineered products at lower price. I hope Huwaei kicks Cisco's you know what?:)
Indy_lite 12/5/2012 | 2:06:43 AM
re: Huawei Builds Euro Backbone TrueLight == true idiot!!
truelight 12/5/2012 | 2:06:40 AM
re: Huawei Builds Euro Backbone Really Indy you comment shows hoe much you do not know about the industry.

Out of the frying pan into the fire.

lite on knowledge and experience, lite on character and integrity.
truelight 12/5/2012 | 2:06:40 AM
re: Huawei Builds Euro Backbone If you know anything sensible about this company. you would not say. Huawei is a Chinese govt state backed company.
Johnny G 12/5/2012 | 2:06:36 AM
re: Huawei Builds Euro Backbone And the Boogie man still comes out after dark.

Any fool knows Huawei is a private company, where do you get these comments.

Its often best not to comment unless you have the facts.
Indy_lite 12/5/2012 | 2:06:36 AM
re: Huawei Builds Euro Backbone If you know anything sensible about this company. you would not say. Huawei is a Chinese govt state backed company.

If this statement shows anything about Truelight, it would be: http://www.lightreading.com/bo...

Jo-bar 12/5/2012 | 2:06:33 AM
re: Huawei Builds Euro Backbone Possibly GTS from Prague is the owner of the network.

Servus :)

Jo-Bar
truelight 12/5/2012 | 2:06:31 AM
re: Huawei Builds Euro Backbone It the chinese govt backing that is the interesting part. So is it private or is is state run ?
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