BEIJING - Top
Chinese telecom-equipment manufacturer Huawei
Technologies announced it has secured a deal to
supply equipment to Vodafone Group's
third-generation (3G) mobile-telecom network in
Spain. The firm did not provide financial details
nor identify the cities in which it would install
the equipment.
Huawei beat Ericsson, the
world's top telecom-equipment maker, to win the
deal, which will see it deliver and install the
radio access part of Vodafone's 3G networks in
"certain key cities in Spain", the firm said in a
statement.
The deal represents "a major
breakthrough" for Huawei, which is seeking to
expand in Europe, one of the most competitive mobile
phone
markets in the world, company spokesman Fu Jun
said.
The firm, a latecomer to the global
telecom market, originally focused on developing
countries. But the Shenzhen-based firm has shifted
its attention to Europe in recent years, a market
dominated by established telecom-equipment makers
such as Alcatel, Ericsson, Nokia and Siemens.
The deal with Vodafone, the world's
largest mobile operator by revenue, underlines the
increasing recognition Huawei is winning from
major global operators.
In December 2004,
Huawei won a contract from Dutch operator Telfort
to build a 3G network in the Netherlands. Vodafone
chose Huawei as one of its five preferred
suppliers last year and awarded the firm a 3G
network-equipment supply contract in the Czech
Republic.
Vodafone Spain has more than 1.2
million 3G subscribers and is one of the most
important and strongest-performing operating
companies in the Vodafone Group, according to
Huawei.
Spain has one of the
fastest-growing 3G subscriber rates and highest
average revenue per user rates for operators, a
major benchmark in the telecom market.
"Huawei's innovative solution within the
radio access network, fully addresses our
requirements for deploying a world-class 3G
broadband network," said Helmut Hoffmann, Vodafone
Group's director of Global Networks.
"The
solution enables us to significantly reduce our
operating costs, maximize the benefits offered to
customers and improve our competitive position in
the marketplace."
So far, Huawei has
secured 30 commercial contracts based on the WCDMA
(wideband code division multiple access and HSDPA
(high-speed downlink packet access) 3G
technologies.
In February, Vodafone signed
a five-year global-supply deal with Huawei for
exclusive Vodafone-branded 3G handsets, which will
be sold by Vodafone in 21 countries.
"As a
strategic partner of Vodafone, Huawei will combine
its technological know-how and leading solutions
with its customer-driven service capability to
strengthen Vodafone's leading market position,"
Huawei Europe president William Xu said.
Company spokesman Fu Jun said Huawei is
currently discussing network equipment-supply
contracts with a host of European operators.
"The proven track record with the world's
top-tier operators will also give a boost to
Huawei's competitiveness in China's future 3G
market," Fu said.
Huawei recorded annual
sales of 45.3 billion yuan (US$5.6 billion) last
year, while its contract sales hit $8.2 billion.
Huawei expected its contract sales to reach $10
billion this year, Fu said.
(Asia Pulse/XIC)
