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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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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.
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.
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.
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