Huawei Pumps Up Its APAC Biz
The giant Chinese vendor says the value of its contract sales -- not actual revenues, but the value of signed deals -– in Asia/Pacific (excluding China) hit $2.5 billion in 2007, up 25 percent from $2 billion in 2006. With the total global value of Huawei's contract sales in 2007 reaching $16 billion, that means APAC accounted for nearly 16 percent of the vendor's business last year. (See Huawei Sets Bumper Sales Target.)
Now that level of growth is set to more than double. Huawei says it expects the value of new contracts signed in APAC during 2008 to grow year-on-year by 56 percent to $3.9 billion.
Huawei also told Light Reading it expects its total global contract sales value to reach $23 billion in 2008, up nearly 44 percent compared with $16 billion in 2007. That 2008 estimate is $1 billion higher than previously reported.
If that annual target is reached, the APAC business should account for about 17 percent of the vendor's total contract sales value this year, a slightly higher proportion than in 2007.
The sharp rise in the value of its APAC business is, according to Huawei, due to the number of "network transformation" projects in the region, particularly among mobile operators that are upgrading their 3G networks to HSPA (High Speed Packet Access) technology.
Huawei says that, just like in Western Europe, it's starting to win more Tier 1 operator business in markets such as India, Singapore, and Australia that have previously been "dominated by Western vendors," such as Alcatel-Lucent (NYSE: ALU), Ericsson AB (Nasdaq: ERIC), and Nokia Networks . (See MTNL Uses Huawei for MPLS, Reliance Shifts Expansion Strategy, StarHub Picks Huawei for HUSPA, and Reliance Borrows $750M for Huawei Gear.)
To bolster its image with the region's carriers, Huawei has one of the largest stands at this event, beaten for sheer scale only by fierce domestic rival ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), Ericsson AB (Nasdaq: ERIC), handset giants LG Electronics Inc. (London: LGLD; Korea: 6657.KS) and Samsung Corp. , and local big hitters Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY) and the Infocomm Development Authority of Singapore (IDA) . (See Singapore Unveils Digital Hub Vision.)
Huawei is highlighting two technologies it sees as key to large operators with major fixed and mobile access transformation projects -– its multiservice (2G, 3G, WiMax, and LTE, or 4G, base station) and its fiber-to-the-whatever (FTTx) gear. (See Huawei Launches FTTx Products.)
Huawei has reported FTTx success with Etisalat in the Middle East and BT Group plc (NYSE: BT; London: BTA) in the U.K. (See Huawei Wins FTTH Deal and BT Goes With Huawei for FTTH .)
The company is already leading the APAC market in terms of DSL port shipments. (See Huawei Rivals AlcaLu for DSL Crown.)
While there seemed to be limited interest in the FTTx solutions on Huawei's stand when Light Reading dropped by (on a number of occasions), Huawei's WiMax and optical transport products appeared to be attracting visitor attention, while the vendor's HSPA and LTE presentations were also drawing some crowds.
Notably, Huawei is promoting an MPLS-based fixed broadband aggregation solution, and not one based on PBB-TE, a technology for which it had voiced support when customer BT was still planning its carrier Ethernet revolution. (See PBT Sidelined at BT and Huawei Joins PBT Fan Club.)
"MPLS is what we're pushing. That's what people are interested in. We can do PBB-TE when someone wants it," stated one Huawei staffer on its stand.
— Ray Le Maistre, International News Editor, Light Reading