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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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sigint 12/5/2012 | 2:05:24 AM
re: Huawei Builds Euro Backbone Now if you are in india and are offered 3x india
wages to work huge amounts of hours to a point
where you have no life, its not worth it. If
you are obsessed with money and willing to work
unlimited hours, there are better situations
out there. And probably better careers.
__________________________________________________

3x salary markups were primarily for folks that had been involved in Cisco IOS testing at services companies like Cisco, Infosys and HCL.

Culturally, I'm told, this company was very different from American or even home-grown Indian companies. There was no need to tolerate dissent, it was unheard of!

The company did toss bucketloads of cash into the employment market at that time (height of the bubble), but I don't think they made much headway. The preferred destination remained the US for the average engineer, the H1-B the magic wand that delivered you misery.
truelight 12/5/2012 | 2:05:33 AM
re: Huawei Builds Euro Backbone
Huawei is just "cheap" on all accounts. This is their culture. It is an illusion that they are quality and pay anyone well.
coreghost 12/5/2012 | 2:05:34 AM
re: Huawei Builds Euro Backbone Well, we are talking about 3 times, not 30% more! Think about this, if a small no name company pays you $300K, while Intel pays you $100K, where do you go ? do you care about Intel's famous name ? Plus, how would Huawei constantly threating its employees not to slow up


Well, first its three times more in India. Or
it was actually at first. Now its like 20% more
according to one report at least.

Now if you are in india and are offered 3x india
wages to work huge amounts of hours to a point
where you have no life, its not worth it. If
you are obsessed with money and willing to work
unlimited hours, there are better situations
out there. And probably better careers.

If your talking 3x american wages, its a
different calculation. But Huawei isn't out
offering 3x to anyone in NA.
Indy_lite 12/5/2012 | 2:05:43 AM
re: Huawei Builds Euro Backbone If they pay you 3X and then demand 3X the work
with the threat of being discarded if you even
think of slowing up, its not worth it


Well, we are talking about 3 times, not 30% more! Think about this, if a small no name company pays you $300K, while Intel pays you $100K, where do you go ? do you care about Intel's famous name ? Plus, how would Huawei constantly threating its employees not to slow up
coreghost 12/5/2012 | 2:05:44 AM
re: Huawei Builds Euro Backbone Vow, I would work for any company if it pays 3X compared to competitors ... be it Cisco or 3COM, Yahoo or Google, Oracle or Siebel


If they pay you 3X and then demand 3X the work
with the threat of being discarded if you even
think of slowing up, its not worth it.

Its also doesn't work it if they make it clear that
they are using you, have no respect for you,
don't trust you to make decisions, watch you
closely all the time and would never promote
you.


Indy_lite 12/5/2012 | 2:05:47 AM
re: Huawei Builds Euro Backbone When they came in 2000 they paid 3x as none wanted to work for them. Lots of people joined/left in 3-6 months.

Vow, I would work for any company if it pays 3X compared to competitors ... be it Cisco or 3COM, Yahoo or Google, Oracle or Siebel
truelight 12/5/2012 | 2:05:51 AM
re: Huawei Builds Euro Backbone Camster nice post on the "real" company situation.
camster 12/5/2012 | 2:05:52 AM
re: Huawei Builds Euro Backbone
I am in a very opportune position to speak on Huawei, being a former employee, and also very knowledgeable of its intricacies

Let's have a clearer picture of Huawei...

Founded in 1988 by Ren Zheng Fei with USD 1000, it begn by reselling PABX systems in China, and only entered the international market in 1998. So, the 2003 revenue of USD 3.83 billion is indeed remarkable.

Huawei has a great pricing strategy, and is willing to make changes to accomodate customer requests, which makes it very attractive, coupled with Huawei'd modus-operandi of providing free trials...i.e. test trials with no cost whatsoever, and also willing to build up the infrastructure for the operator first, with repayment kicking in once the operator reports revenue or profit.

As you can see, there are many plus points of Huawei.

Only it has an equally ugly dark side. For one, it treats it's foreign employees terribly (mind u, I was based in China), the management not at all trusting their sub-ordinates. Examples of this can be seen in th closure of the Iran office.

Then there is the products... mostly sent out to the customer sites without much testing... much to the chagrin of the technical support engineers... having to be "marketeers" to sweet talk the operators/customers.

To keep it short(having talked too much already), Huawei has the potential to become world-class, but first they have to completely discard their current mentality, realise that their employees (not only Chinese) are their greatest assets and keep up the fairly good work.

yamdoot 12/5/2012 | 2:05:53 AM
re: Huawei Builds Euro Backbone Huawei doesn't sell much in India
but has a large dev centre - software.

When they came in 2000 they paid 3x
as none wanted to work for them.
Lots of people joined/left
in 3-6 months. Lots of reasons
why. Most didn't like the inflexible
working hours. Biggest reason of all was
that nothing went into the system
unless a chinese signed off saying
he had understood what the indian
engg had done. Imagine what
that does to cycle time ...

Now they pay 20% above mkt, have a large
team but also large turnover. They like to
hire even the most inept from the big
names like motorola/lucent/cisco/sun.
truelight 12/5/2012 | 2:05:56 AM
re: Huawei Builds Euro Backbone shen good balanced post. Huawei reputation as viewed from the west needs to improve somewhat.

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