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Chinese Huawei Takes on U.S. Telecom Market

ChipGuy writes "With funds on loan from the Chinese government, Chinese equipment giant, Huawei is undercutting big rivals like Cisco and Nortel, and is using money to buy its way into the U.S. market. Overseas in Europe and Asia it already has become a major force. There are parallels with auto industry and home appliances. It took a little while before prices became a determining factor and shifted growth away from North American vendors. Telecom will go through the same curve. Huawei is curently selling EVDO phones for about $130 and WCDMA phones about $250 which is about 30% than everyone else on the market. Huawei's agenda is pretty clear - get business and sales at any cost. And that means bad news for already struggling telecom industry."

16 of 398 comments (clear)

  1. 30%? by NETHED · · Score: 4, Informative

    30% less?
    30% of?
    30% more?
    30% crappier?

    Come on!

    --
    --sig fault--
  2. Clarification... by EntrancedX · · Score: 4, Informative

    As some have noticed... There was a lack of one word "LOWER" in the post. Here: "Huawei is curently selling EVDO phones for about $130 and WCDMA phones about $250 which is about 30% LOWER than everyone else on the market.

  3. Huawei equipment is junk by BigIrv · · Score: 3, Informative

    I have seen first hand the junk that is Huawei, most of it blatently (and poorly) copied from Ericsson.

    At [carrier in S Asia] they failed for 3 weeks in a row to roll out one HLR only to barely succeed with thousands of CSR calls. But since they're cheap, the customer stuck with'm.

    Can't wait for the junk to go turtle in the US.

    --

    --Good morning fellas; Hand me that thing; Boy, this work's hard; Guys, break's over.
  4. US Telecom's? by Jonny_eh · · Score: 4, Informative

    FYI, Nortel, which is mentioned in the summary, is a Canadian company, not a US company. Canada != U.S.

    1. Re:US Telecom's? by Anonymous Coward · · Score: 1, Informative

      Nortel is a tri-corporate structure consisting of Bell-Northern Research, Bell Canada, and Northern Telecom. The Bell System has ties to the U.S.

    2. Re:US Telecom's? by Anonymous Coward · · Score: 2, Informative

      No, that only used to be the case. Today BNR doesn't really exist. Bell's (BCE's) stake in Nortel was diluted by the Bay Networks purchase and then they sold all but a small portion of their remaining 35% stake in May 2000 (pretty smart timing don't you think?).

      Not sure what you mean by "The Bell System" having ties to the U.S. but if you mean BCE (Bell Canada Enterprises) they don't have any major US holdings.

      Nortel has extensive US operations including R&D in Santa Clara, Boston, RTP NC and Richardson TX

  5. Re:If you are concerned about overspending... by Thanatopsis · · Score: 2, Informative

    Both Gore & Kerry advocated a "pay as you go" approach. In other words, unless you had money for it, you couldn't not spend money on a program. This may strike you as strange but it's the reason we stopped running deficits and started running surpluses. George Bush has just over seen the largest expansion of Medicare in 35 years. He has never vetoed a single spending bill. Never. The Medicare expansion also forbid Medicare to negotiate a volume discount on drugs. In other words in a total sell out to big pharma, the government will be purchasing billions of dollars worth of drugs AT FULL RETAIL. Simply saying Kerry would have wasted more money simply isn't true, nor does it justify the HUGE expansion of the deficit under George Bush. He may be many things but he is NO small government conservative.

  6. Huawei = Thiefs by Anonymous Coward · · Score: 1, Informative

    Huawei have had representatives sent to Ottawa, Canada to recruit Nortel Networks employees (existing and laid off) of Chinese origin. One of their requirements for hiring you was that you would bring some knowledge and material (eg. manuals, data etc) from Nortel over to Huawei. This is plain and simple thievery.

  7. Didn't Huawei steal Cisco software? by nixman99 · · Score: 3, Informative

    Is this the same Huawei that stole Cisco's software and sold it as their own? I guess that's one way to jump start your business.

  8. Re:If you are concerned about overspending... by bit+trollent · · Score: 2, Informative

    The military is only a small percentage of the total federal budget.

    Please Consult this pie chart before speaking out of your ass.

  9. Reports on current slave labour in China by AtariAmarok · · Score: 2, Informative
    "But back that up with facts that it is happening right now in China."

    Here are views from different sides:

    UAW report, from the left.

    This report, from a fringe right-wing guy.

    This report, from Jim Hightower, also on the left.

    Cache of Bob Johnson campaign site, right-winger. Relevant quote: "in dealing with the slave labor camps in Red China, we have to rmember that about 5% of China is in slave labor camps, amounting to 50 million Chinese working"

    Indian NGOs site. See part about Chinese slaves making footballs(soccer balls).

    Chinese human rights group site

    Another Laogai article

    --
    Don't blame Durga. I voted for Centauri.
  10. Re:Shouldn't this be what the WTO covers? by Anonymous Coward · · Score: 5, Informative

    Just exactly what rules in the WTO are they breaking?

    I'm amazed someone would think such a statement needs backing up.

    Steel tariffs, tax subsidies, Gambling, Cotton. All kinds of stuff.

  11. Re:I hate Huawei by r_cerq · · Score: 2, Informative

    I work for an European telco, and we're also switching to Huawei equipment;

    Yes, they've blatantly copied other vendors (mostly Cisco and Nortel, but you can find references or behaviour matching almost every other vendor), but when you look at the price and performance... well, who cares if it's a copy?

    We completely disregarded their USB modems; they're crap. Their ethernet modems, however, are pretty decent, and cheap as rainwater. And the added bonus is: no drivers to mess with. Even if you want to add home routers/switches/modems to your portfolio, their offer is pretty good (ask them for a few Aolynk units to test).

    I do have to agree with another poster when it comes to support: it's terrible. But what they lack in expertise, they compensate with manpower; if you come up with a problem and press them hard enough, a couple of days later you'll have a working solution.

  12. AU market too by jonbrewer · · Score: 2, Informative

    Looks like the first large-scale Huawei ADSL deployment will be in Australia:

    http://www.redherring.com/Article.aspx?a=11321&hed =Huawei+snags+Optus+deal/

    Optus will be deplying ADSL 2+ (24/3.5mbps) in 300 exchanges. Nice to see that the Aussies have granted competitive access to their copper. Too bad the fuckwits in New Zealand can't follow a good example.

  13. Re:Shouldn't this be what the WTO covers? by cdsr · · Score: 3, Informative

    In addition to the other response:

    Tariffs imposed on Canadian softwood lumber.. the WTO has ruled against the US several times over several years but the US refuses to abide by the WTOs decision.

    That and the closed border to Canadian beef is seen as one possible reason for Canada rejecting missle defense.

    Also, the EU and Canada have just imposed retaliatory tariffs on various US products because of unfair US trade policies (Byrd ammendment).

    It's sad that two of the US's biggest trading partners have to resort to retaliation as the US seems to feel they are above international law (including war crimes tribunals).

  14. i use hauwei's oc-48 sonet platform. good stuff. by Anonymous Coward · · Score: 2, Informative

    first i would like to say, many slashdotters must not buy sonet gear. If you did, you would have used luminous, whiterock, lucent, etc...

    Hands down, Hauwei put them to shame. a 4U OC48 solution with the ability to take many different cards.

    Now some people would say, heck, when you pull out a card, i actually droppped a packet. Well, they all did. Even the good old DDM-2000 OC3 dropped a packet on failover tests when yanking out a card to simulate it dieing.

    my point i want to make, is that whiterock and luminous, both American companies offer pathetic products. pathetic, i mean it. Who wants an OC48 that can only have 3 DS3 ports? laugh. software updates that would choke while using the sonet dcc channel.

    so before you laugh at Hauwei, best not until you use their gear. Because when your boss visits us down the street, showing off our 20,000 dollar OC48 solution, he will ask why did we pay 100,000 for nortel.

    the chinese kid they sent to us was educated, polite, smart, and knowledgable about the gear. he spoke english just fine. Considering my boss is from Turkey, who am I to complain about proper english to him. It is a small world now. I welcome the diversity.

    I cannot wait to take shipment of more Hauwei gear, so I can light up the fiber we leased. It will be really sweet when our backbone is up. TDM and ethernet. nice. OC192 upgrade path. nice.

    so. any of you people pretending to be a network engineer like me? Life at a CLEC is strange.