My recent readings and thinkings are regarding the Hi-Tech and Telecommunication industries. Meanwhile a China’s leading telecoms-equipment manufacturer named Huawei is agressively pushing into international markets. In December, Huawei won an estimated $100m contract to build a third-generation (3G) wireless network for Telfort, a Dutch operator that has always used gear from Ericsson, the world’s largest telecoms-equipment firm. In January, Huawei won a $187m order for another 3G network, in Thailand, beating Ericsson and Motorola with a bid 46% below the operator’s original estimate.
Last week came evidence that Huawei can compete on more than just price. A report based on a survey of over 100 telecoms operators worldwide, carried out by Heavy Reading, a market-research firm, found that Huawei ranked eighth among wireline-equipment suppliers, up from 18th last year. (Cisco came top.) Most strikingly, Huawei ranked fourth in service and support. The report calls Huawei’s ascendancy “astounding” and says it has already surpassed several incumbent vendors in perceived market leadership.
I foresee great challenges and opportunities in this industry as we entering the “21st Century Network”. It will be an upbeaten “fight” which company can set the pace of technological innovation and which suppliers can follow. Moreover, some Chinese’s companies are pursuing to compete on quality rather then price, like Huawei and Haier, and in a broader range of industries as initially.
I’m particulary interested in how the developed-world rivals, meanwhile, are responding to the threat from Huawei and others. Finally, the outlook looks promising to keep watching closely.
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