INTERVIEW
partners and we feel the UK is a very open market.” What happens next in the Huawei
story can only really be appreciated by understanding how the group started out. Huawei was launched in the economic development zone of Shenzhen province in southern China in 1987 by entrepreneur Ren Zhengfei. It still employs 40,000 in Shenzhen,
working in R&D, global testing facilities and an executive training centre. At the time, orders for the lucrative urban network systems went to either state- owned companies or foreign fi rms. So Huawei, instead, focused on the challenging rural market. “Low tax rates created entrepreneurialism,” explains Zhang. “They encouraged people to come and do business, with not just tax freedom but freedom for businesses to develop differently from the rest of China. “That’s important, because it says a lot about the culture of Huawei in terms of innovative dynamism. It is a young company, less than 30 years old, where decisions are made quickly. “We focused on the rural telecommunications market and grew quickly on the back of that. We ended up doing our own manufacturing of switchers and routers, so it was classic
network telecoms equipment. Actual hardware, things you can kick.” Huawei launched its overseas operation in 2000, moving into Russia to sell telecoms equipment. The group now consists of three core divisions. The fi rst is focused on mobile networks and, by 2010, it had reached number two in the world after Ericsson in network/ fi xed line/mobile telecoms equipment. The devices division, making handsets and mobile phones, also boasts 55 per cent of the global market share in 3G dongles. The enterprise division supports major organisations, governments and server centres through the cloud/pipe device, and is heavily focused on ICT convergence.
BIG AMBITION Zhang says Huawei looks at all networks and the services needed to support them, serving 45 of the 50 biggest telecom operators. “That’s the business we are in,” he states. “We think we are leading in that space and we think we will be growing in scale, size and market. We’ve got quite ambitious targets for that.” In 2010, global revenues stood at $28bn, and the company predicts an aggressive expansion over the next 10 years to take the fi gure to $100bn.
Huawei’s relationship with the UK is
barely more than a decade old. In 2001, Huawei Technologies UK was launched in London, before relocating to Basingstoke two years later. In 2005, the group launched a UK customer training centre and a UK R&D and technical assistant centre was established. At the same time, major contracts were
agreed with BT and Huawei became an approved supplier for Vodafone’s global supply chain. The following year, Huawei and Vodafone launched the Vodafone- branded V710 3G handset, before the companies agreed a strategic partnership in 2009. The same year, Huawei announced a successful live trial with Telefónica O2 UK. Last year saw an even busier schedule,
with Huawei signing an agreement with Everything Everywhere to upgrade its 2G network and a UK Internal Audit Centre of Excellence opening in Basingstoke. A UK advisory board was also formed featuring former UK Trade & Investment chief executive Sir Andrew Cahn and Brian McBride, who has held a number of senior industry posts, including managing director of T-Mobile (UK). Huawei’s future in the UK looks very bright. Plans announced last year, to increase staff at the Basingstoke
18 | springboard |
www.ukti.gov.uk
OTHER CHINESE COMPANIES INVESTING
“HUAWEI’S SUCCESS IS A
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