Huawei Ups UK Spending Plan

9:45 AM -- Good news for British and Irish companies with a foot in the door at Huawei Technologies Co. Ltd. -- the Chinese vendor is planning to double its spending with local suppliers during 2012.

Huawei announced Thursday that it's increasing its U.K. and Ireland procurement budget from £40 million (US$65 million) in 2011 to £80 million ($130 million) in 2012 and that it will more than double its number of "core" suppliers from 9 to 22 by the end of next year.

This all makes sense, of course, as Huawei has just landed a major mobile infrastructure deal in the U.K., is expected to win further mobile network contracts, and is doubling its U.K. and Ireland workforce to 1,000. (See Huawei Lands First UK Mobile Deal , Huawei's Trojan Horse and Huawei to Hire 500 in UK.)

Huawei, of course, is already well entrenched in the U.K., as it has its access and transport equipment in BT Group plc (NYSE: BT; London: BTA)'s network as well as some of the other competitive operators such as TalkTalk .

And if the Chinese firm's growth plans are fulfilled, there should be further growth in personnel and spending in the coming years. (See Huawei Aims for $100B Annual Revenues.)

The question for suppliers such as telent plc (London: TLNT), the Marconi spin-off that specializes in network rollout and maintenance services, is whether Huawei's growth can make up for the cuts in spending that Huawei's rivals will no doubt have to make.

— Ray Le Maistre, International Managing Editor, Light Reading

Be the first to post a comment regarding this story.
Sign In