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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truelight 12/5/2012 | 2:06:31 AM
re: Huawei Builds Euro Backbone Indy-lite = Chinese
rolostar_madam 12/5/2012 | 2:06:30 AM
re: Huawei Builds Euro Backbone So what if it is state run? That simply means the company is not in a hurry to meet some artificially set qtrly revenue goals/forecasts. They take their time to engineer the products, test them, and not cut corners. They are also not under any pressure to get extra greedy wrt margins, cost-cutting, layoffs, .....So they have ingredients of a good company unlike the blood sucking, unethical , borderline illegal practices of the likes of cisco et.al....I cannot believe that Cisco, Intel et.al. are even brazenly opposing expensing stock options. This is beyond greed and immoral.
optoslob 12/5/2012 | 2:06:30 AM
re: Huawei Builds Euro Backbone I've worked extensively with Huawei for about 3 years and have nothing but good things to say about the company.

Sure they are cost focused, but what's bad about that! especially when they pass these savings on to their customers. Compare this with Cisco where they beat up suppliers on costs and deliver no additional volume, Cisco has great gross margins Cisco suppliers don't.

Huawei is a very innovative company and has a clear idea of what a 21st century communications network should look like, fortunately it's customers are not RBOC's so it is free of the Class 5 baggage and any concept that Ma Bell is the source of all good ideas in telecom. If you think Cisco will just wake-up one day and stomp Huawei, like some little roach, than boy are you smoking something that you shouldn't be. Cisco can't defeat Huawei in any market place where price rules (read Asia and almost any emerging Telecom opportunity). As this article says it is cheaper today to Buy than Build Telecom capacity, so anyone that is building is looking for a bargain and talking to Huawei.


truelight 12/5/2012 | 2:06:18 AM
re: Huawei Builds Euro Backbone Pelease,

Huawei is no different than Cisco or Lucent except. The China market is protected there as heavily as Cisco protects else where.

The cost-cutting and lay-offs are not an issue in CHINA since the standards of living are low compared to the west and the ASIA market continues to grow. However unless your a Chinese engineer I don't see them employing many folks in the West do you ?

lite-brite 12/5/2012 | 2:06:17 AM
re: Huawei Builds Euro Backbone 'Cisco has great gross margins Cisco suppliers don't.'

A great truism!
vlady 12/5/2012 | 2:06:14 AM
re: Huawei Builds Euro Backbone I can see from your words that you've never worked for Huawei.
Why don't you try the slave way and send your CV to them?.
Also, Huawei says that they are big, that they have at least 12000 working for development, well, if you find more than 500 please let me know, the rest are partner companies that give confidential software developments illegally from other vendors.
Please, before to speak, investigate some more, try talking to some employee, and don't speak stupid things.
truelight 12/5/2012 | 2:06:14 AM
re: Huawei Builds Euro Backbone how true lets see Huwai attempt to gopublic and disclose what the GM really is. IMO its negative.
Indy_lite 12/5/2012 | 2:06:13 AM
re: Huawei Builds Euro Backbone I can see from your words that you've never worked for Huawei. Why don't you try the slave way and send your CV to them?

Straight fact - Huawei is one of the highest paying companies in its local cities(Shenzhen, Beijing, Bangalore, Richardson). But its employees have to work hard, or could be easily fired.

they have at least 12000 working for development, well, if you find more than 500 please let me know ... talking to some employee, and don't speak stupid things

I guess you think you know everything already!! (most of which are stupid things)
vlady 12/5/2012 | 2:06:13 AM
re: Huawei Builds Euro Backbone I was also working for Huawei for about 2 years and a half, and this take my good times with no improvement in my professional career, and not because of me.
Let me tell you something, when i tried to start my MBA studies to give to me and to the company added value, i receive a : it's not important for us. So, what the company really wants, just to win market with very low costs, doing poor quality equipments, stealing software developments, and paying very low costs in employees. So, for Chinese Huawei managers, the only important is to save costs, they don't care about the human quality, and good expertise and professionalism.
So, from your words, i can see that you are one of the low quality engineers/slave of Huawei, I'm sorry for that.
Also, of course all China says that Huawei is a private company, otherwise they could not win foreign market, but they have big credits from the chinese goverment, so, all chinese people are paying the near future bankrupt of their own goverment system.
Cisco is not a good example also, in fact, Capitalism is "out of service", we, the young engineers are responsible to change this world, and buying Huawei or Cisco is not the way.
rolostar_madam 12/5/2012 | 2:06:11 AM
re: Huawei Builds Euro Backbone FalseLight,
If you think your job is safe at Cisco then you are smoking you know what? You are more likely to get laid off at Cisco and other big unethical american companies. As for the state contracts for Huawei, the same applies to all big american companies who bribe local/city/state/national govt officials to win contracts. At least the CEO's and top exec's of Huawei are not stealing tens and hundreds of millions of dollars worth of inflated and hyped-up stock options ill-gotten gains.
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