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DWDM

Huawei Gains Optical Ground in North America

Huawei Technologies Co. Ltd. has cracked the North American optical transport market and could be poised to attract business in larger and larger carriers, according to a new Heavy Reading report.

Huawei has had its share of wins in developing countries but "has been a non-factor in North America to date," analyst Sterling Perrin writes in the report, "Optical Networking for Tier 2/3 Operators in North America."

That status has changed in the past two years, though. Thanks in particular to long-haul DWDM work, Huawei has crept up to become the No. 7 supplier of optical gear to the Tier 2 and 3 North American camp.

Competitors tend to dismiss Huawei's North American prospects, but Perrin believes the company's standing is no fluke.

"Once the door is opened (and it has), it is not difficult to imagine Huawei working its way into bigger networks over time," he writes.

"Over time" could be a shorter period than some think. Infinera Corp. (Nasdaq: INFN), which didn't have a product on the market five years ago, ran away with nearly 60 percent of the Tier 2/3 long-haul DWDM business in North America in the first half of this year, Perrin writes.

The report summarizes market-share figures and profiles three major operators in the North American Tier 2/3 category: AboveNet Inc. (NYSE: ABVT), Mid-Atlantic Broadband Cooperative , and SureWest Communications (Nasdaq: SURW). It also includes profiles of 10 optical vendors.

— Craig Matsumoto, West Coast Editor, Light Reading

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acohn 12/5/2012 | 3:25:47 PM
re: Huawei Gains Optical Ground in North America A carrier doesn't need to purchase from them, just bring them into the bidding process on a RFx and watch the other vendors drop their prices faster than GOOG stock price.
Mostly Harmless 12/5/2012 | 3:25:49 PM
re: Huawei Gains Optical Ground in North America Don't get me wrong. I think Huawei is a force to be reckoned with alright.

They have good products, and the ability to discount very heavily. They also have the backing of the Chinese Army to tide them over the current financial crisis!

I'm sure that Huawei could have a great 2H08, and perhaps that was what you were implying in your proverb.

The point of my post is that I thought the Light Reading headline was very misleading compared to the content of this particular report.

My remarks were specific to the data in the report, and are not a comment on Huawei's performance in other markets.

By the way, I agree with Stirling's opinion that any significant presence of Huawei in the N.American market is cause for surprise, and remark by general observers, and for sheer terror by Huawei's competitors :-)
nodak 12/5/2012 | 3:25:49 PM
re: Huawei Gains Optical Ground in North America Ok, if it is just a matter of time before Huawei wins a Tier 1 contract, have they even begun the stringent 3rd party testing the Bells (only Tier 1s really worth considering) require of all of their vendors?
[email protected] 12/5/2012 | 3:25:49 PM
re: Huawei Gains Optical Ground in North America To Mostly Harmless> "Huawei: Small, and Getting Smaller".

Russian proverb says: chikens should be counted in autumn.
paolo.franzoi 12/5/2012 | 3:25:50 PM
re: Huawei Gains Optical Ground in North America
I am saying the US Auto sales of all are the same. The difference is that GM, Chrysler and Ford are hung with horrible union obligations (particularly health care) which go away in 2010. Note that is already negotiated.

If you look outside the US you will find that all these companies (Chrysler is the exception and may not be worth saving), compete effectively.

Here for example is Brazil...remember where they have the whole sugar fuel thing:

Fiat, the market leader, sold 40,764 cars and trucks in November, a 23.6 percent drop from the previous month. Volkswagen sales fell 23.8 percent to 37,466 units, GM sales plunged 32.5 percent to 29,702 vehicles, and Ford sales slumped 29.4 percent to 15,943 cars and trucks. (Reporting by Alberto Alerigi Jr., Writing by Todd Benson; Editing by Derek Caney and Lisa Von Ahn) (from 12/4)

Do a google on automobile sales from various regions and you will find the word "crash" in most of them for November.

So, what you have is an industry trying to reorganize itself from heavy structural issues and a big sales collapse. This has some regional variation and is not specific to US automakers.

seven
malibu 12/5/2012 | 3:25:50 PM
re: Huawei Gains Optical Ground in North America seven,

So you're saying Toyota is in the same shape as GM, Ford and Chrysler?

malibu
paolo.franzoi 12/5/2012 | 3:25:50 PM
re: Huawei Gains Optical Ground in North America
oops forgot to say those are the November sales numbers for Toyota in the US.

seven
cw.774 12/5/2012 | 3:25:50 PM
re: Huawei Gains Optical Ground in North America Walmart and Toyota? Huawei and what? ALU? NT? Come on. China is beginning to look more like a free market than NA in my opinion... but who cares?

The same moral and ethical delimas and implications of markets, those deamed free or otherwise, continue on for every single industry. What's new here?

Scientifically proven: The universe is reletive to those observing/measuring it.

To be debated for infinity: A nation with dissolute culture (who quanitifies this and how?), no pride of it's own origins (judged by whom?), and decreasing understanding of it's citizens or the property of those citizens, intellectual or otherwise (again...says who?), is a nation that has no political party, no national policy and no government of value accept for those that get into governing to protect themselves. "power corrupts, absolute power corrupts absolutely"

Can we please move on? Where's that #2 data point anyway?
paolo.franzoi 12/5/2012 | 3:25:50 PM
re: Huawei Gains Optical Ground in North America
No, actually I have not described the US Auto industry. If the US auto industry followed those guidelines, it would do the smart thing and instantly shutter all US operations. They make a lot of money on all their foreign operations. US consumers are not choosing to buy Toyota's because of slave labor in Detroit. in fact (if you actually analyzed the situation) you would see the following:

All Vehicles 130,307 197,189 -33.9%
Domestic Car 43,648 66,029 -33.9%
Domestic Truck 28,281 43,929 -35.6%
Import Car 33,306 47,612 -30.0%
Import Truck 25,072 39,619 -36.7%
Dom+Imp Cars 76,954 113,641 -32.3%
Dom+Imp Trucks 53,353 83,548 -36.1%
Domestic Vehicles 71,929 109,958 -34.6%
Imported Vehicles 58,378 87,231 -33.1%

seven
malibu 12/5/2012 | 3:25:51 PM
re: Huawei Gains Optical Ground in North America seven,

What you've just described is the United States automobile industry. And if Carriers/Telco's use the same logic, they'll end up at the same table, sitting next to bankruptcy attorneys and facing lawmakers.

malibu
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