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Huawei

Huawei Technologies Co. Ltd. (/hwwe/) is a Chi- 2.1 Early years


nese multinational networking and telecommunications
equipment and services company headquartered in
During the 1980s, China's government pressed forward
Shenzhen, Guangdong.* [4] It is the largest telecommuni-
a multi-pronged strategy to modernize the country's un-
cations equipment maker in the world, having overtaken
derdeveloped telecommunications infrastructure. A core
Ericsson in 2012.* [5]
component of the telecommunications network was tele-
Huawei was founded in 1987 by Ren Zhengfei, a for- phone exchange switches, and in the late 1980s several
mer engineer in the People's Liberation Army. At Chinese research groups endeavored to acquire and de-
the time of its establishment Huawei was focused velop the technology, usually through joint ventures with
on manufacturing phone switches, but has since ex- foreign companies.
panded its business to include building telecommuni-
Ren Zhengfei, a former deputy director of the People's
cations networks; providing operational and consulting
Liberation Army engineering corp, founded Huawei in
services and equipment to enterprises inside and out-
1987 in Shenzhen. Rather than relying on joint ven-
side of China; and manufacturing communications de-
tures to secure technology transfers from foreign com-
vices for the consumer market.* [6]* [7] Huawei has over
panies, Ren focused on indigenous research and devel-
140,000 employees, around 46% of whom are engaged
opment to produce the switches. At a time when 100%
in research and development (R&D).* [8]* [9] It has 21
of China's telecommunications technology was imported
R&D institutes in countries including China, the United
from abroad, Ren hoped to build a domestic Chinese
States,* [10] Canada,* [11] UK,* [12] Pakistan, France,
telecommunication company that could take on foreign
Belgium, Germany, Colombia, Sweden, Ireland, India,
competitors.* [19]
Russia, and Turkey,* [13]* [14] and in 2013 invested
US$5 billion in R&D.* [15] The company reports that it had RMB 21,000 in regis-
tered capital at the time of its founding. The Far Eastern
In 2014, Huawei recorded prot of 34.2 billion CNY
* Economic Review also reported that it received an $8.5
(5.5 billion USD). [16] Its products and services have
million loan from a state-owned bank, though the com-
been deployed in more than 140 countries and it cur-
pany has denied the existence of the loan.* [6]* [20]
rently serves 45 of the world's 50 largest telecoms op-
erators.* [17] During its rst several years the company's business
model consisted mainly of reselling private branch ex-
change (PBX) switches imported from Hong Kong.
1 Name Meanwhile, it was reverse-engineering imported switches
and investing heavily in research and development to
manufacture its own technologies.* [6] By 1990 the com-
Huawei is the ocial English transliteration of the
pany had approximately 500 R&D sta, and began its
rm's Chinese name (simplied Chinese: ;
own independent commercialization of PBX switches tar-
traditional Chinese: ; pinyin: Huwi). The origin
geting hotels and small enterprises.* [21]
etymology and character meansower(as suggested
from its logo, see also Names of China), it can also mean The company's rst major breakthrough came in 1993,
splendidormagnicent, but nowadays mostly prefer when it launched its C&C08 program controlled tele-
to China/Chinese, it was not uncommon for a Chi- phone switch. It was by far the most powerful switch
nese company to use such prex, one such example is the available in China at the time. By initially deploying
Taiwanese company Asus (, literally means The in small cities and rural areas and placing emphasis on
eminent of/by Chinese) that was founded back in 1989. service and customizability, the company gained market
*
The character means actionor achievement, share and made its way into the mainstream market. [22]
thus Huawei literally meansChina's achievement. The The company also developed collusive joint venture rela-
company suggests that its name be pronounced wah- tionships with local authorities, whereby it would provide
way.* [18] dividendsto the local ocials in exchange for their us-
ing Huawei products in the network. Ahrens writes that
these methods wereunorthodox, bordering on corrupt,
2 History but not illegal.* [6]
Huawei also gained a key contract to build the rst na-

1
2 2 HISTORY

tional telecommunications network for the People's Lib- pany Hutchison Whampoa.* [22] Later that year, Huawei
eration Army, a deal one employee described as small launched its wireless GSM-based products and eventually
in terms of our overall business, but large in terms of our expanded to oer CDMA and UMTS. In 1999, the com-
relationships.* [20] In 1994, founder Ren Zhengfei had a pany opened a research and development (R&D) cen-
meeting with Chinese president Jiang Zemin, telling him ter in Bangalore, India to develop a wide range of tele-
that switching equipment technology was related to in- com software.* [21] From 1998 to 2003, Huawei con-
ternational security, and that a nation that did not have tracted with IBM for management consulting, and under-
its own switching equipment was like one that lacked its went signicant transformation of its management and
own military.Jiang reportedly agreed with this assess- product development structure. After 2000, Huawei in-
ment.* [6] creased its speed of expansion into overseas markets, hav-
ing achieved international sales of more than US$100
Another major turning point for the company came in
1996, when the government in Beijing adopted an ex- million by 2000* [23] and establishing an R&D center
in Stockholm, Sweden. In 2001, Huawei established
plicit policy of supporting domestic telecommunications
manufacturers and restricting access to foreign competi- four R&D centers in the United States, divested non-
core subsidiary Avansys to Emerson for US$750 million
tors. Huawei was promoted by both the government and
the military as a national champion, and established new and joined the International Telecommunications Union
research and development oces.* [6] (ITU). By 2002, Huaweis international market sales had
reached US$552 million.* [21]
In 2004 Huawei continued its overseas expansion with a
2.2 International expansion contract to build a third-generation network for Telfort,
the Dutch mobile operator.* [21] This contract, valued at
more than $US25 million, was the rst such contract for
the company in Europe.* [24]
In 2005, Huaweis international contract orders ex-
ceeded its domestic sales for the rst time. Huawei signed
a Global Framework Agreement with Vodafone. This
agreement marked the rst time a telecommunications
equipment supplier from China had received Approved
Supplier status from Vodafone Global Supply Chain. The
agreement established the terms and conditions for the
supply of Huawei's solutions to any one of the Voda-
fone operating companies worldwide.* [25] Huawei also
signed a contract with British Telecom (BT) for the de-
ployment of its multi-service access network (MSAN)
and Transmission equipment for BT's 21st Century Net-
work (21CN), providing BT and the UK telecommunica-
tions industry with some infrastructure necessary to sup-
port future growth as these companies are multi vendor
infrastructure.* [26]
Huawei oce in Voorburg, Netherlands
In May 2008, Huawei and Optus developed a mobile in-
novation centre in Sydney, Australia, providing facilities
for engineers to develop new wireless and mobile broad-
band concepts intoready for marketproducts.* [27] In
2008, the company embarked on its rst large-scale com-
mercial deployment of UMTS/ HSPA in North America
providing TELUS's new next generation wireless network
and Bell Canada with high-speed mobile access.* [28]
Huawei delivered one of the worlds rst LTE/EPC
commercial networks for TeliaSonera in Oslo, Norway
in 2009. The company launched the world's rst end-to-
end 100G solution from routers to transmission system
that same year, to help meet the rapid growth of network
trac and enhance router eciency and reliability.* [21]
Huawei Oce in Ontario, Canada
In July 2010, Huawei was included in the Global Fortune
* 500 2010 list published by the U.S. magazine Fortune for
In 1997, Huawei won its rst overseas contract, [23] pro-
the rst time, on the strength of annual sales of US$21.8
viding xed-line network products to Hong Kong com-
2.4 Recent performance 3

billion and net prot of US$2.67 billion.* [29] In late 2010 51% of the new company, named Huawei Symantec Inc.
it was reported that Huawei is planning to invest around while Symantec owned the rest. The joint-venture was
US$500 million (Rs 2,200 crore) to set up a telecom based in Chengdu.* [38] In March, 2012, Symantec an-
equipment manufacturing facility in Tamil Nadu, India nounced the sale of its portion of the joint venture to
and $US100 million to expand its R&D center in Banga- Huawei.* [39]
lore.* [30]* [31] Grameenphone Ltd. and Huawei won the Green Mo-
In October 2012, it was announced that Huawei would bile Award at the GSMA Mobile Awards 2009.* [40] In
move its UK headquarters to Green Park, Reading, Berk- March 2009, the Wimax Forum announced four new
shire.* [32] The company also, in an eort to increase its members to its Board of Directors including Thomas Lee,
prominence in the United States, became the main spon- the Vice Director of the Industry Standards Department
sor of the Jonas Brothers' 2013 summer tour.* [33] at Huawei.* [41]
In September 2013, Huawei opened a new Canadian of- In 2008, Huawei launched a joint venture with UK-based
ce in Regina, SaskatchewanHuawei had collaborated marine engineering company, Global Marine Systems,
with the local carrier SaskTel to build its HSPA+ and to deliver undersea network equipment and related ser-
LTE networks. The company also announced that Sask- vices.* [42]
Tel would carry its new Ascend Y300 smartphone.* [34]
In October 2013, Huawei has been selected by TDC
A/S as a sole vendor to modernize the nationwide
GSM/UMTS/LTE network in Denmark and provide 2.4 Recent performance
managed services over a six-year period. The value of the
contract is over $700 million over the term of the agree- In April 2011, Huawei announced an earnings increase
ment.* [35] As per the latest mandate of The Economist, of 30% in 2010, driven by signicant growth in over-
Huawei is the number one Telecom Vendor in the world. seas markets, with net prot rising to RMB23.76 billion
(US$3.64 billion; 2.23 billion) from RMB18.27 billion
in 2009.* [43] In 2010 sales outside China continued to
2.3 Investment and partnerships be the main driver of Huaweis business. Overseas
revenue rose 34% to RMB120.41 billion in 2010 from
Huawei has focused on expanding its mobile technology RMB90.02 billion in 2009, fueled by regions including
and networking solutions through a number of partner- North America and Russia. Revenues from China rose
ships. In March 2003, Huawei and 3Com Corporation 9.7% to RMB64.77 billion, as the country's big telecom
formed a joint venture company, 3Com-Huawei (H3C), operators reduced their investment last year.* [44]
which focused on the R&D, production and sales of data Huawei's revenues in 2010 accounted for 15.7% of the
networking products. The company later divested a 49% $78.56 billion global carrier-network-infrastructure mar-
stake in H3C for US$880 million in 2006. In 2005, ket, putting the company second behind the 19.6% share
Huawei began a joint venture with Siemens, called TD of Telefon AB L.M. Ericsson, according to market-
Tech, for developing 3G/ TD-SCDMA mobile communi- research rm Gartner.* [44]
cation technology products. The US$100 million invest-
Huawei is targeting a revenue of $150 million through
ment gave the company a 49% stake in the venture, while
its enterprise business solutions in India in the next
Siemens held a 51% stake.* [21] In 2007, after Nokia and
12 months. It denied using Chinese subsidies to gain
Siemens co-founded Nokia Siemens Networks, Siemens
global market share after being recently accused by US
transferred all shares it held in TD Tech to Nokia Siemens
lawmakers and EU ocials of unfair competition at
Networks. At present, Nokia Siemens Networks and
best.* [45]* [46]
Huawei hold 51% and 49% shares of TD Tech respec-
tively.* [36]
In 2006, Huawei established a Shanghai-based joint
R&D center with Motorola to develop UMTS technolo-
gies.* [21] Later that year, Huawei also established a joint 3 Corporate aairs
venture with Telecom Venezuela, called Industria Elec-
tronica Orinoquia, for research and development and sale Huawei classies itself as a "collective" and does not re-
of telecommunications terminals. Telecom Venezuela fer to itself as a private company. Richard McGregor,
holds a 65% stake while Huawei holds the remaining 35% author of The Party: The Secret World of China's Com-
stake.* [37] munist Rulers, said that this is a denitional distinction
Huawei and American security rm Symantec announced that has been essential to the company's receipt of state
in May 2007 the formation of a joint-venture company support at crucial points in its development.* [47] Mc-
to develop security and storage solutions to market to Gregor argued thatHuawei's status as a genuine collec-
telecommunications carriers. Huawei initially owned tive is doubtful.* [47]
4 5 PRODUCTS AND SERVICES

3.1 Leadership Clearwire* [58]

Ren Zhengfei is the president of Huawei and has held the In May 2011 Huawei won a contract with Everything Ev-
title since 1987.* [48] Huawei disclosed its list of board erywhere, the UKs biggest communication company,
of directors for the rst time in 2010. Ms. Sun Yafang is to enhance its 2G network. The four-year deal represents
board chair. As of 2011, the members of the board* [49] Huawei's rst mobile network deal in the UK.* [65]
are Ms. Sun Yafang,* [50]* [51] Guo Ping, Xu Zhijun,
Hu Houkun,* [52] Ren Zhengfei,* [53] Xu Wenwei, Li Jie,
Ding Yun, Meng Wanzhou, Chen Lifang,* [54] Wan Biao,
Zhang Pingan, and Yu Chengdong.* [49] The members 5 Products and services
of the Supervisory Board are Liang Hua, Peng Zhiping,
Ren Shulu, Tian Feng, and Deng Biao.* [55] Richard Yu Huawei is organized around three core business segments:
Chengdong is the Chairman of Huawei Device, its mo-
bile phone division.* [56] On 1 July 2013, Huawei Device 1. Telecom Carrier Networks, building telecommuni-
announced former head of Nokia Colin Giles joined the cations networks and services
company as Executive Vice President of Consumer Busi-
ness.* [56] 2. Enterprise Business, providing equipment, software
and services to enterprise customers, e.g. Govern-
ment Solutions* [66] etc.
3.2 Ownership
3. Devices, manufacturing electronic communications
Huawei describes itself as an employee ownedcom- devices* [7]
pany, partly as a means of counteracting perceptions of
Chinese government involvement. However, the actual
Huawei announced its Enterprise business in January,
ownership structure is opaque and surrounded by a cul-
2011 to provide network infrastructure, xed and wireless
ture of secrecy.* [6] According to Caixin magazine,even
communication, data center, and cloud computing so-
long-time employees admit the [shareholding] system is
lutions for global telecommunications customers.* [67]
nearly impossible to understand.* [57] Employees re-
Huawei has stated that it aims to increase enterprise sales
ceive no information about their holdings, and their shares
to US$4 billion in 2011 and $15 billion within three to
do not entitle them to any voice in management decisions.
ve years.* [68]* [69]
The company's 50,000+ employees outside China are
not given shares.* [6] Richard McGregor, author of The
Party: The Secret World of China's Communist Rulers,
5.1 Telecom networks
said that the majority of shares are likely owned by Ren
Zhengfei and Ren's managers, though the company states
Huawei oers a variety of network technologies and
Ren directly owns less than 1.5%.* [47]
solutions to help telecommunications operators ex-
pand the capacity of their mobile broadband networks.
Huaweis core network solutions oer mobile and
4 Partners and customers xed softswitches, plus next-generation home location
register and Internet Protocol Multimedia Subsystems
As of the beginning of 2010, approximately 80% of (IMS). Huawei assists content service providers look-
the world's top 50 telecoms companies had worked with ing to migrate from copper to ber with solutions that
Huawei.* [58] Prominent partners include: support xDSL, passive optical network (PON) and next-
generation PON (NG PON) on a single platform. The
BT [59]
* company also oers mobile infrastructure, broadband ac-
cess and service provider routers and switches (SPRS).
Vodafone* [60]* [61] Huaweis software products include service delivery plat-
forms (SDPs), BSSs, Rich Communication Suite and dig-
Motorola* [62]* [63]
ital home and mobile oce solutions.* [70]
Orange* [64] In 2010, revenues for Telecom Networks were US$18.79
T-Mobile billion.* [71]

Talk Talk
5.2 Global services
Portugal Telecom
Cox Communications Huawei Global Services provides telecommunications
operators with equipment to build and operate networks
Bell Canada as well as consulting and engineering services to improve
5.4 Wearables 5

operational eciencies.* [65] These include network in- Huawei Mate 7


tegration services such as those for mobile and xed net-
works; assurance services such as network safety; and Huawei's Devices division provides white-label products
learning services, such as competency consulting.* [70] to content-service providers, including USB modems,
In 2010, Huawei won 47 managed services contracts to wireless modems and wireless routers for mobile
help improve network performance and eciency for wi,* [74]* [75] embedded modules, xed wireless termi-
customers, as well as reducing the costs of network op- nals, wireless gateways, set-top boxes, mobile handsets
erations and maintenance.* [72] In 2010 Huawei's global and video products.* [76] Huawei also produces and sells a
services revenues grew 28.6% to US$4.82 billion.* [73] variety of devices under its own name, such as the IDEOS
smartphones, tablet PCs and HuaWei Smartwatch . Re-
cent products include U8800, U8860, E220, Ascend,
U7519, Huawei Mercury M886, Huawei Honor 6* [77]
and U8150. On April 15, 2015, Huawei launched the
Huawei P8 and Huawei P8 Max, two high-end Android
smartphones.* [78] In 2010, Huawei Devices shipped 120
million devices around the world.* [7] 30 million cell
phones, of which 3.3 million units were smartphones,
were shipped to markets such as Japan, the United States
and Europe.* [79]

Huawei E220 HSDPA USB modem 5.4 Wearables


Huawei Talkband B1

5.3 Ascend smartphones and devices Huawei Talkband N1

Huawei Talkband B2

Huawei Watch

5.4.1 Huawei Talkband B1

The Huawei Talkband B1 functions as a tness tracker


and a Bluetooth earpiece. The earpiece is removable
from the band to answer calls. It tracks steps, calories
and sleep. The band can act as a morning alarm to wake
the wearer up by vibration when it senses the wearer
Huawei Ascend P6
to be lightly sleeping within a given time frame he/she
sets.* [80]
The Talkband B1 does not support text message notica-
tions.* [81]
The Talkband B1 is rated IP57 for dust and water re-
sistance and can be in a metre of water for up to 30
mins.* [82]
Although there is a 1.4inch OLED display, it is a non-
touch display. The Huawei Wear is the iOS and Android
Huawei Honor 6
app for the Talkband B1. The battery capacity of the band
is 90mAh.

5.4.2 Huawei Talkband N1

The Huawei Talkband N1 is set of Bluetooth earphones


that can count the steps wearers take, distance traveled
and calories burnt. It has got a 4GB of internal storage
for storing songs.* [83]
6 6 COMPETITIVE POSITION

The built-in microphone has noise cancellation.* [84]


There is no 3.5mm jack on the earphones so it can only
play music from its internal storage or from a Bluetooth
connection. The earphones has got AptX codec support.
The Talkband N1 is IP54 splash proof.

5.4.3 Huawei Talkband B2

Huawei Tecal servers

revenue,* [91] ranked second in the optical hardware mar-


ket,* [92] stayed rst in the IP DSLAM market,* [93] and
ranked third in mobile network equipment.* [94] In 2009,
Huawei was ranked No. 2 in global market share for ra-
dio access equipment.* [95] In addition, Huawei was the
rst vendor to launch end-to-end (E2E) 100G solutions,
enabling operators to establish enhanced ultra-broadband
networks, improving their service and simplifying their
network architecture.* [96]* [97]
According to the World Intellectual Property Organiza-
tion (WIPO) on 27 January 2009, Huawei was ranked
as the largest applicant under WIPO's Patent Coopera-
Huawei Talkband B2 tion Treaty (PCT), with 1,737 applications published in
2008. Overall, the total number of international patent
The Talkband B2 tracks wearers' steps, distance and lings under WIPO's PCT for 2008 represents the high-
estimated calorie burn. It monitors wearers' sleep as est number of applications received under the PCT in a
well.* [85] single year and China improved its ranking by one place,
to become the sixth largest user of the PCT, with 6,089
The band has got a phone nding feature as long as lings.* [98] As of February 2011, Huawei has applied
the wearer is in range and connected to his/her smart- for 49,040 patents globally and has been granted 17,765
phone.* [86] to date.* [99] In 2014, Huawei became the world's No.
The band does not have GPS. 1 applicant for international patents in 2014, with 3,442
patents.* [100]* [101]
There are 3 colors for the Talkband B2, black, silver and
gold. The black and silver variants come with a rubber
strap and are IP57 water and dust resistant. The gold vari- 6.1 Sales
ant, comes with a leather stitched strap and has a rating
of IP55.* [87] Huawei's global contract sales for 2006 reached US$11
The display is a 0.7 inch PMOLED touchscreen display. billion (a 34% increase from 2005), 65% of which
came from overseas markets.* [102]* [103] By the end
The battery capacity of the band is 95mAh.
of 2008, global contract sales of Huawei Technologies,
China's largest telecoms gear maker, jumped 46 percent
5.5 Tecal servers to US$23.3 billion.* [104] Huawei experienced sales ex-
ceeding US$30 billion in 2009,* [104]* [105] and global
sales increased by 24 percent to 185.2 billion yuan in
6 Competitive position 2010.* [106]

Huawei Technologies Co Ltd, is the world's largest tele-


com equipment maker* [5]* [88] and Chinas largest 6.2 Recognition
telephone-network equipment maker.* [89] As of 2008,
Huawei ranked rst in terms of global market share in Huawei Technologies was one of six telecom industry
the mobile softswitches market,* [90] tied with Sony Er- companies included in the World's Most Respected 200
icsson for lead market share in mobile broadband cards by Companies list compiled by Forbes magazine in May
7

2007.* [107] In December 2008, BusinessWeek magazine de Ftbol Profesional (LFP) in Spain.* [118]
included Huawei in their inaugural list of The World's On 17 January 2014, Arsenal F.C. announced that
Most Inuential Companies.* [108] Huawei will become their ocial Global Smartphone
In 2010 Fast Company ranked Huawei the fth most in- Partner.* [119]
novative company in the world.* [109] The same year,
In March 2014, Huawei becomes the shirt sponsor of
Huawei received three honors at the Global Telecom Rayo Vallecano for two La Liga matches against Real
Business Innovation Awards including Green base sta-
Madrid and Athletic Bilbao.* [120]
tion innovation, Wholesale network innovationand
Consumer voting innovationawards with Vodafone, BT In April 2014, Huawei became theOcial Partnerof
*
and TalkTalk, respectively.* [110] In 2010 Frost & Sul- Paris Saint-Germain for the next three seasons. [121]
livan recognized Huawei as the 2010 SDM Equipment Huawei debuted to the eld of Cricket in April 2014
Vendor of the Year* [111] and in the contact center ap- by becoming the principal sponsor of Royal Challengers
plication market with the 2010 Asia Pacic Growth Strat- Bangalore, a domestic cricket team that plays in the
egy Leadership Award.* [112] On 29 July 2010, Huawei Indian Premier League.
was recognized by British Telecom with Best in Class
21CN Solution Maturity, Value, Service and Innovation Ghana Football Association announced Huawei as its
award, for its innovation and contribution in 21CN and sponsor for the Black Stars for the 2014 FIFA World Cup
Next Generation Access project.* [113] Also in 2010 The nals in Brazil. The one-year*
sponsorship deal was worth
Economist recognized Huawei with its Corporate Use of US$100,000 plus products. [122]
Innovation Award.* [114] In May 2011 Huawei won two On 12 September 2014, Galatasaray S.K. (football) an-
awards at the LTE World Summit 2011 for Signicant nounced that Huawei will become their journey sponsor
Progress for a Commercial Launch of LTE by a Vendor for one-year period in Turkish National Sper Lig.
and Best LTE Network Elements.As of May 2011,
Since October 2014 Huawei has been the main sponsor
Huawei has deployed over 100 SingleRAN commercial
of South African Premier Soccer League club Ajax Cape
networks, which are capable of evolving into LTE, and
Town.* [123]
of those that have deployed SingleRAN networks, more
than 40 operators have announced the launch or the im- On 4 January 2015 Huawei was announced as the main
minent launch of distinct LTE services.* [115] sponsor of the current champion of the Colombian First
Division Tournament, Independiente Santa Fe, for the
Huawei has been described as perhaps China's most
* next two years (2015 2017).* [124]
globally successful company. [47] In 2014, Huawei
was the rst Chinese company to join Interbrand'sBest As of 12 February 2015, Huawei was announced as an-
Global Brandsat the 94th most valuable brand at $4.3 other sponsor for Mexico's Liga MX, Club Amrica.
billion.* [116] They're on negotiation to being the main sponsor for
the following season in Mexico, replacing Grupo Bimbo
on the front part of the shirt, as of right now they'll
6.3 Sponsorship provide cellphone equipment to the team members and
will be part of the celebration for the centenary for the
club.* [125]
Huawei began also an extreme sports story in 2014: they
became partner of the FISE World Series. The rst event
supported was the FISE World Chengdu (China) where
the mountain bike competition was called the HUAWEI
MTB Slopestyle contest. At FISE World Malaysia 2014,
huawei continued to support the BMX and the mountain-
bike with a looping representing the Huawei Talkband
B1. In 2015, Huawei supported the largest action sports
event in the world: the FISE World Montpellier. With
the looping representing the Talkband B2.

Huawei sponsors Borussia Dortmund


7 Corporate social responsibility

Huawei sponsors Bundesliga club Borussia Dort- As part of its international support for technology
mund.* [117] On 15 September 2013, Huawei were and telecommunications education and training, Huawei
announced as the new shirt sponsors of A-League club has contributed funding and equipment to a number
Wellington Phoenix F.C. as well as the sponsor of Liga of universities and training centers in countries such
8 8 CRITICISM AND CONTROVERSIES

as Kenya,* [126] India,* [127] Indonesia,* [128]* [129] with Cisco. In response Cisco revealed parts of the in-
Bangladesh,* [130] and Nigeria.* [127] In the U.S., since dependent expert's report produced for the case which
2008, Huawei has sponsored MITs Communica- proved that Huawei had stolen Cisco code and directly
tions Futures Program, a research collaboration that copied it into their products.* [146]
studies the future of the telecommunications indus- In June 2004, a Huawei employee was caught after hours
try.* [131]* [132]* [133] diagramming and photographing circuit boards from a
In 2010, Huawei joined the Broadband Commission competitor booth at the SuperComm tradeshow.* [147]
for Digital Development, formed by the ITU and The employee denied the accusation, but was later dis-
UNESCO to support broadband deployment to develop- missed.* [148]* [149]
ing nations.* [134]* [135]* [136] In the same year, Huawei In July 2010, Motorola led an amended complaint that
joined the Green Touch consortium, an industry group named Huawei as a co-defendant in its case against
that aims to make communications networks 1000 times Lemko for alleged theft of trade secrets.* [150]* [151]
more energy ecient than they are today.* [137] The case against Huawei was subsequently dropped in
In June 2011, Huawei signed a ve-year agreement to April 2011.* [152]* [153]* [154] In January 2011, Huawei
contribute donated services, equipment and technical ex- led a lawsuit against Motorola to prevent its intellec-
pertise worth over US$1.4 million to Carleton University, tual property from being illegally transferred to Nokia
in Ottawa, Canada, to establish a research lab dedicated Siemens Networks (NSN) as part of NSNs
to cloud computing technology and services.* [138] The US$1.2 billion acquisition of Motorola's wireless net-
same month, Huawei published its 2010 Corporate So- work business.* [155]* [156]* [157]* [158] In April 2011,
cial Responsibility (CSR) Report.* [139]* [140] Motorola and Huawei entered into an agreement to set-
tle all pending litigation,* [153]* [159]* [160] with Mo-
torola paying an undisclosed sum to Huawei for the in-
tellectual property that would be part of the sale to
8 Criticism and controversies NSN.* [161]* [162]* [163]
In a further move to protect its intellectual property,
8.1 Intellectual property rights Huawei led lawsuits in Germany, France and Hun-
gary in April 2011 against ZTE for patent and trade-
In February 2003 Cisco Systems sued Huawei Tech- mark infringement.* [164]* [165]* [166] The following
nologies for allegedly infringing on its patents and il- day, ZTE countersued Huawei for patent infringement in
legally copying source code used in its routers and China.* [167]* [168]
switches.* [141] According to statement by Cisco, by July
2004 Huawei removed the contested code, manuals and
command-line interfaces and the case was subsequently 8.2 Security concerns
dropped.* [142] Both sides claimed success with Cisco
asserting that completion of lawsuit marks a victory
In the US, Huawei has been challenged due to
for the protection of intellectual property rights, and concerns of United States security ocials that
Huawei's partner 3Com (which was not a part of law- Huawei-made telecommunications equipment is de-
suit) noting that court order prevented Cisco from bring- signed to allow unauthorized access by the Chinese
ing another case against Huawei asserting the same or government and the Chinese People's Liberation
substantially similar claims.* [143] Although Cisco em- Army,* [169]* [170]* [171]* [172] given that Ren
ployees allegedly witnessed counterfeited technology as Zhengfei, the founder of the company, served as
late as September 2005,* [144] in a retrospective Cisco's an engineer in the army in the early 1980s.* [173] In
Corporate Counsel noted that Cisco was portrayed by the United Kingdom, the Conservative Party raised
the Chinese media as a bullying multi-national corpora- concerns about security over Huaweis bid for Marconi
tionandthe damage to Cisco's reputation in China out- in 2005,* [171] and the company's equipment was
weighed any benet achieved through the lawsuit";* [145] mentioned as an alleged potential threat in a 2009
however the same article that quoted the remarks of the government brieng by Alex Allan, chairman of the
Corporate Counsel also notes the remarks of Jay Hoenig Joint Intelligence Committee.* [174] In December 2010,
of Hill and Associates, a security and risk management Huawei opened a Cyber Security Evaluation Centre to
consultancy, who encouraged foreign companies to take test its hardware and software to ensure they can with-
greater advantage of civil litigation and said that it was stand growing cyber security threats.* [175]* [176] In the
hard to make the argument that China's civil system was U.S., some members of Congress raised questions about
ineectual if litigants did not pursue all of the legal reme- the company's proposed merger with communications
dies available to them.* [145] company 3Com in 2008,* [177] and its bid for a Sprint
Huawei's chief representative in the US subsequently contract in 2010.* [173] In addition, Huawei withdrew
claimed that Huawei had been vindicated in the case, its purchase of 3Leaf systems in 2010, following a
breaking a condentiality clause of Huawei's settlement review by the U.S. Committee on Foreign Investment
8.2 Security concerns 9

(CFIUS).* [170] Agency.The action represents a concern that China and


In a 2011 open letter, Huawei stated that the security other countries may be using their growing export sec-
concerns are unfounded and unprovenand called on tors to develop built-in spying capabilities in U.S. net-
the U.S. government to investigate any aspect of its busi- works. The U.S. House Permanent Select Committee
ness.* [178]* [179] The US-based non-prot organization on Intelligence said it would investigate potential security
Asia Society carried out a review of Chinese companies threats posed by some foreign companies, and mentioned
trying to invest in the U.S., including Huawei. The or- Huawei specically. A spokesman for Huawei said that
ganization found that only a few investment deals were the company conducts its businesses according to normal
business practices and actually welcomed the investiga-
blocked following unfavorable ndings by the CFIUS or
had been given a recommendation not to apply, however tion.* [189]
all large transactions had been politicized by groups in- In 2001, it was alleged that Huawei Technologies In-
cluding the U.S. media, members of Congress and the dia had developed telecommunications equipment for the
security community.* [180] However, another article un- Taliban in Afghanistan, and newspapers reported that the
related to the report published by the Asia Society re- Indian government had launched a probe into the rm's
ported that,fear that the P.R.C. government could stron- operations.* [190]* [191] Huawei responded, stating that
garm private or unaliated Chinese groups into giving up the company did not haveany link with the Taliban, as
cyber-secrets is reected in the U.S. government's treat- its only customers are telecommunications carriers* [192]
ment of Chinese telecom company Huawei.* [181] and its facilitiesalways operate according to U.N. rules
In October 2009, the Indian Department of Telecom- and the local laws of each country.* [193] On 15 Decem-
munications reportedly requested national telecom oper- ber 2001, the Indian authorities announced that they had
ators to self-regulatethe use of all equipment from not found any evidence that Huawei India had any con-
European, U.S. and Chinese telecoms manufacturers fol- nection to the Taliban,* [194] although the U.S. remains
lowing security concerns.* [182] Earlier, in 2005, Huawei suspicious.* [195]
was blocked from supplying equipment to India's Bharat In March 2012, Australian media sources reported that
Sanchar Nigam Limited (BSNL) cellular phone ser- the Australian government had excluded Huawei from
vice provider.* [183] In 2010, the Indian Central Bu- tendering for contracts with NBN Co, a government-
reau of Investigation (CBI) insisted on cancelling the owned corporation that is managing the construction of
rest of the Huawei contract with BSNL and pressed the National Broadband Network,* [196] following advice
charges against several top BSNL ocers regarding their from the Australian Security Intelligence Organisation re-
doubtful integrity and dubious links with Chinese rms garding security concerns.* [197] The Attorney-General's
.* [184]* [185] In June 2010, an interim solution was in- Department stated in response to these reports that the
troduced that would allow the import of Chinese-made National Broadband Network is a strategic and signif-
telecoms equipment to India if pre-certied by interna- icant government investment, [and] we have a responsi-
tional security agencies such as Canada s Electronic War- bility to do our utmost to protect its integrity and that of
fare Associates, US-based Infoguard, and Israels AL- the information carried on it.* [198]
TAL Security Consulting.* [186] In July 2012, Felix Lindner and Gregor Kopf gave a
In October 2011, the Wall Street Journal reported that conference at Defcon to announce that they uncovered
Huawei had become Iran's leading provider of telecom- several critical vulnerabilities in Huawei routers (mod-
munications equipment, including monitoring technolo- els AR18 and AR29)* [199] which could be used to get
gies that could be used for surveillance.* [187] Huawei remote access to the device. The researchers said that
responded with a statement claiming the story misrepre- Huawei doesn't have a security contact for reporting
sented the company's involvement:We have never been vulnerabilities, doesn't put out security advisories and
involved and do not provide any services relating to mon- doesn't say what bugs have been xed in its rmware up-
itoring or ltering technologies and equipment anywhere dates, and as a result, the vulnerabilities have not been
in the world.* [188] publicly disclosed. Huawei replied that they were inves-
*
In December 2011, Bloomberg reported that the U.S. is tigating the claims. [200]
invoking Cold War-era national security powers to force On 8 October 2012, a US House Intelligence Commit-
telecommunication companies including AT&T Inc. and tee panel issued a report describing Huawei as a na-
Verizon Communications Inc. to divulge condential tional security threatdue to its alleged ties to various
information about their networks in a hunt for Chinese Chinese governmental agencies. The panel's report sug-
cyber-spying, with Richard Falkenrath, a senior fellow gested that Huawei should be barred from doing busi-
in the Council on Foreign Relations Cyberconict and ness with the US government, and additionally alleged
Cybersecurity Initiative, saying, This is beyond vague that the telecom manufacturer had committedpotential
suspicions...Congress is now looking at this as well, and violationsrelated to immigration, bribery, corruption,
theyre doing so based on very specic material pro- and copyright infringement.* [201] However, a subse-
vided them in a classied setting by the National Security quent White House-ordered review found no concrete ev-
10 9 SEE ALSO

idence to support the House report's espionage allega- cable] is not a reection of the truth as evidenced by Sa-
tions.* [79] faricom being a major purchaser of Huawei products in-
On 9 October 2012, a spokesman for Canadian Prime cluding all 3G, switching and the recent *
OCS billing sys-
Minister Stephen Harper indicated that the Canadian gov- tem upgraded over the weekend. [208]
ernment invoked a national security exception to exclude In May 2010, it was reported in the Times of India,
Huawei from its plans to build a secure government com- that security agencies in India became suspicious of Chi-
munications network.* [202] nese Huawei employees after learning that Indian em-
On 25 October 2012, a Reuters report* [79] wrote that ployees allegedly did not have access to part of Huawei's
according to documents and interviews, an Iranian-based Bangalore
*
research and development (R&D) oce build-
seller of Huawei (Soda Gostar Persian Vista) last year ing. [209] Huawei responded that the company employs
tried to sell embargoed American antenna equipment over 2,000 Indian engineers and just 30 Chinese engi-
(made by American company Andrew LLC to an Ira- neers in the R&D center in Bangalore, andboth Indian
nian rm MTN Irancell). Specically, the Andrew an- and Chinese sta have equal access rights to all our in-
tennas were part of a large order for Huawei telecom- formation assets and facilities.* [210] According to the
munications gear that MTN Irancell had placed through Times of India, the intelligence agencies also noted that
Soda Gostar, but the MTN Irancell says it canceled the Chinese employees of Huawei* had extended their stay
deal with Huawei when it learned the items were sub- in Bangalore for many months. [209] Huawei stated that
ject to sanctions and before any equipment was deliv- many of these employees were on one-and-a-half-year
ered.* [79] Vic Guyang, a Huawei spokesman, acknowl- international assignments to serve as a technical bridge
edged that MTN Irancell had canceled the order; Rick between in-market teams and China, and that all the
Aspan, a spokesman for CommScope, said the company Chinese*
employees had valid visas and did not overstay
*
was not aware of the aborted transaction. [79] . [211]

On 19 July 2013, Michael Hayden, former head of U.S. In October 2007, 7,000 Huawei employees resigned and
were then rehired on short-term contracts, thereby ap-
National Security Agency and director of Motorola Solu-
tions, said he was aware of hard evidence of spying activ- parently avoiding the unlimited contract provisions of the
Labour Contract Law of the People's Republic of China.
ity by Huawei. Huawei and Motorola Solutions had pre-
viously been engaged in intellectual property disputes for The company denied it was exploiting loopholes in the
law, while the move was condemned by local government
a number of years. Huawei's global cybersecurity O-
cer, John Suolk, described the comments made by Hay- and trade unions.* [212]* [213]
den astired, unsubstantiated, defamatory remarksand Huawei's treatment of its workforce in Guangdong
challenged him and other critics to present any evidence Province, Southern China also triggered a media out-
publicly.* [203]* [204] cry after a 25-year-old software engineer, Hu Xinyu,
In 2014 the New York Times reported, based upon died in May 2006 from bacterial encephalitis, as a re-
documents leaked by Edward Snowden, that the U.S. sult of* what* is believed to have been work-related fa-
National Security Agency has since 2007 been operating tigue. [214] [215]
a covert program against Huawei. This involved break- In its 2010 Corporate Social Responsibility report,
ing into Huawei's internal networks, including headquar- Huawei highlighted the importance of employee health
ter networks and founder Ren Zhengfei's communica- and safety. In 2010, Huawei provided annual health
tions.* [205] checks to all full-time employees and performed 3,200
checks to employees exposed to occupational health
risks.* [216]
8.3 Treatment of workforce and customers Also, in 2011 Huawei initiated a Scholarship program,
Huawei Maitree Scholarship, for Indian students study-
A U.S. Army Strategic Studies Institute report on ing in China.* [217]
Argentina published in September 2007 describes
Huawei as known to bribe and trap clients.The re-
port details unfair business practices, such as customers 9 See also
framed by full-paid tripsto China and monetary
presentsoered and later used by Huawei as a form
Femtocell
of extortion.* [206]
According to a WikiLeaks cable, in 2006, Michael HSPA+
Joseph, then-CEO of Safaricom Ltd, allegedly struggled
Huawei E5
to cancel a contract with Huawei due to poor after-sales
experience, after which the Kenyan government pres- Shortest Path Bridging
sured him to reinstate the contract.* [207] When ques-
tioned regarding this incident, Joseph replied, It [the Huawei 4G eLTE in Africa Sub Sahara
11

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[205] David E. Sanger and Nicole Perlroth (22 March 2014).


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11 Further reading
Huawei probed for security, espionage risk, 60
Minutes, Sunday, 7 October 2012. An investigative
report on Huawei by Steve Kroft.
U.S. panel cites risks in Chinese Equipment 9 October
2012 New York Times

12 External links
Ocial website
17

13 Text and image sources, contributors, and licenses


13.1 Text
Huawei Source: https://en.wikipedia.org/wiki/Huawei?oldid=673410300 Contributors: Olivier, Delirium, Mac, Jpatokal, Darrell Green-
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Xyzzyva, 0x0077BE, TDC, Vk2tds, Edcolins, Richmd, Oneiros, Drjt87, Moxfyre, DmitryKo, Kate, O'Dea, Brianhe, Rich Farmbrough,
Agilxu, Pmsyyz, Fleung, Lachatdelarue, Bender235, Kwamikagami, Stesmo, Func, Chasmo, Polluks, Nk, Rje, Towel401, Walter Gr-
litz, Msylvester, Rwendland, Snowolf, GabrielF, TShilo12, Tristessa de St Ange, Woohookitty, Georgia guy, Guy M, Nfras, Wikiklrsc,
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HWDEF, VinayakaBhat, Altermike, Logan, Ikariam3944, Biscuittin, Simonches, Ponyo, Regregex, SieBot, Rimmington01, Purbo T,
Flyer22, Nopetro, Redvoler, Steven Zhang, Chadsnook, PalaceGuard008, Micrology, Int21h, Fratrep, Thuglife99, Wiknerd, Ps60k, Mar-
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Super48paul, HuaweiOZ, Dewritech, Edson.ajj, Toutvientapoint, , Mirguel, Pro translator, Kkm010, Strange Passerby, ZroBot, Ter-
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Mtsnowman, Hewei1973, Tpaine99, Rameshpathak75, Netgarden, ClueBot NG, Mechanical digger, Rag dog, Faizanalivarya, MIKHEIL,
S1010159, Catlemur, Thomas Vikanes, Shapetwisters, JesseW900, Jeremyjmitchell, Parjlarsson, Fibcom1, Widr, Rd321, Lordmat, Unim-
portant323, Helpful Pixie Bot, Tholme, Festermunk, BG19bot, Marsbesta, Bouteloua, Muleofatlantic, Phd8511, Kendall-K1, Kingabby,
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Kordel009, Dinopkk, John Stroject, ChamithN, Swati111, Aminerfan1376, 111, Swreynolds, Serbiti64, Sovereign Sen-
tinel, Damian at Ogilvy, Clement muriithi and Anonymous: 434

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18 13 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

File:Huawei_E220_HSDPA_USB_modem.jpg Source: https://upload.wikimedia.org/wikipedia/commons/8/8a/Huawei_E220_


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