The world, as well as the information industry itself is becoming increasingly flatter as a result of fast evolving information technologies. Blurring initial borders, telecom networks, Internet, digital media and consumer electronics industry are rapidly converging in the same direction. This trend exposes the conventional telecom industry to unprecedented challenges and forces operators to reconsider and transform their business operating models in order to maintain position in the industry chain.

Huawei will continue to advocate a corporate culture of dedication, and encourage employees to devote themselves to creating long-term value for customers through consistent hard work and innovation. Working together, we will all succeed in enriching life through optimizing communications across the world.

Message from Huawei EMT

Dear Colleagues: In 2007, Huawei realized global contract sales of USD16 billion, an increase of 45% over 2006. International markets accounted for 72% of all sales revenues. Huawei achieved growth of more than 150% in developed markets such as Europe, the United States and Japan, while maintaining strong growth momentum in emerging markets including the Asia-Pacific region, Latin America, the Middle East and North Africa. Backed by several years of steady growth, Huawei has now become an undisputed industry leader. For this success, we gratefully credit our customers, our partners and our employees. Thank you all for your long-term trust and unflagging support.

The world, as well as the information industry itself is becoming increasingly flatter as a result of fast evolving information technologies. Blurring initial borders, telecom networks, Internet, digital media and consumer electronics industry are rapidly converging in the same direction. This trend exposes the conventional telecom industry to unprecedented challenges and forces operators to reconsider and transform their business operating models in order to maintain position in the industry chain.

All-IP based FMC has become the consensus among most operators as the solution for continued transformation. All-IP architecture and convergence across every network layer will help operators simplify network structure, save transmission and operating costs and enable a wide variety of innovative applications. End users will be able to enjoy consistent communication experiences anytime, anywhere via any terminal.

In developed markets, more and more convergencebased services are marketed every month. Operators hope to gain new revenue streams through developing all-IP broadband services while enhancing profitability through optimizing competitive cost structures. Meanwhile, in many emerging markets, billions of people are still unable to access basic communication services. Operators are focusing on rapid coverage of low ARPU (Average Revenue Per User) areas. To succeed in this new industry environment, a demonstrated reliable equipment supply partner, capable of ensuring future-oriented transformation and providing ontarget solutions based on deep understanding of real world challenges, becomes essential.

Globally, nationally or regionally, Huawei is just such a proven partner. Providing critical support for operators in this age of all-IP convergence, we have established comprehensive strengths in all essential fields, from fixed and mobile network to continuous data communication technological innovation.

Furthermore, we continuously introduce on-target and highly competitive products and solutions designed to enhance operators’ profitability and Total Value of Ownership (TVO). Universally, Huawei is committed to cooperating with industry chain partners to build a winning business ecosystem with operators at the core to ensure long-term competitiveness for all parties.

In retrospect, we truly understand your continued success is at the heart of our sustained growth. Going forward, Huawei will continue to advocate a corporate culture of dedication, and encourage employees to devote themselves to creating longterm value for customers through consistent hard work and innovation. Working together, we will all succeed in enriching life through optimizing communications across the world.

Executive Management Team
Huawei Technologies Co., Ltd.

Download Huawei Annual Report 2007

PDF format, 1.8MB, 44Pages.

Business Focus 2007:
Enhanced Mobile Service

In 2007, Huawei was awarded 45% of all new UMTS/HSPA contracts, garnering the company the prestige of global category leadership. Huawei has also become one of the top three suppliers in the global GSM market. In 2007 alone, 700,000 carrier frequencies of base station were shipped. The aggregate total is serving over 300 million GSM users worldwide. Most notably, China Mobile awarded Huawei a 23.6% slice of a GSM group purchase project. In addition, Huawei’s marketleading mobile softswitches now serve more than 670 million subscribers.

Winning 44.8% of all new contracts in 2007, Huawei has also earned leadership of the global CDMA category. Besides, the company has deployed 12 commercial WiMAX networks around the world.

Leading Telecom Acknowledgment

Huawei has now been selected by a who’s who of global leading operators, including Vodafone, British Telecom, Telefonica, France Telecom/Orange and China Mobile, as a trusted partner for futureoriented network transformation.

As a singular mark of recognition by the world’s leading mobile operator, Vodafone awarded Huawei a 2007 Global Supplier Award citing delivery of highly competitive products and services across the group’s network. Huawei was the only network equipment supplier to be awarded this specific accolade.

Professional Services

Huawei has attached strategic importance to Professional Services. We have established a specialized professional services team and seven managed services centers across the world. Allowing customers to focus on their core business, Huawei now provides professional services and solutions in support of all aspects of network management, planning and optimization, as well as consultation and managed services. Huawei’s services are specifically designed to help operators innovate business models and sharpen their competitive edge.

Huawei has achieved rapid growth in Managed Services, with 34 such contracts awarded by Vodafone, China Mobile, Etisalat, MTN, Warid and other international telecom incumbents in 2007.

Environmental Protection and Energy Conservation

Huawei emphasizes the value of “green” in network deployment, power supply and product development. The policy of “green” is no longer solely an aspect of social responsibility; it has become a proven effective and practical means for operators to cut operating expenditure and maintain price competitiveness.

By the end of 2007, Huawei had deployed over 100,000 GSM green base stations, saving approximately 570 million kilowatt-hours (kWh) or 170,000 tons of coal.

Visit Huawei Technologies Official Website

Huawei Technologies Co. Ltd. (Chinese: 华为技术有限公司; pinyin: Huáwei Jíshu Yǒuxiàn Gōngsī) in Shenzhen, Guangdong, People's Republic of China is the largest networking and telecommunications equipment supplier in China.

Established in 1988 by Ren Zhengfei, Huawei Technologies is a private high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipments, and providing customized network solutions for telecom carriers. Huawei serves 35 of the top 50 telecoms operators and puts 10 per cent of revenue into R&D each year. In addition to the R&D centers in Shenzhen, Shanghai, Beijing, Nanjing, Xi’an, Chengdu, and Wuhan in China, Huawei has also R&D centers in Stockholm, Sweden; Dallas and Silicon Valley, U.S.; Bangalore, India; Ferbane in Offaly, Ireland; Moscow, Russia.

HISTORY:

Huawei was founded by Ren Zhengfei in 1988, as a distributor of imported PBX products, with an initial registered capital of 24000 RMB. By 1989, Huawei started developing and later marketing its own PBX. After accumulating knowledge and resources on PBX business, Huawei achieved its first breakthrough into mainstream telecommunication market in 1993, by launching C&C08 digital telephone switch, which had a switching capacity of over 10K circuits. Until that time, Chinese domestic telecom companies were not able to build switches with such capacity. Huawei's switches were first deployed only in small cities and rural areas. It eventually gained market share and made its way into major city switch offices and toll service. Other Huawei products also likely have such a history for their adoption, against the competition of then dominating foreign telecom equipment manufacturers.

In 1994, Huawei established long distance transmission equipment business, launched its own HONET integrated access network and SDH product line. In 1996, Huawei captured its first overseas contract, providing fixed-line network products to Hongkong's Hutchison-Whampoa. Later, in 1997, Huawei released its GSM product and eventually expanded to offer CDMA and UMTS.

From 1998 to 2003, Huawei contracted IBM for management consulting and undergone significant transformation of its management and product development structure. After 2001, Huawei increased its speed of expanding into oversea market. By 2004, its overseas sales had surpassed that of the domestic market. Huawei has a joint venture with Siemens for developing TD-SCDMA products. In 2003, Huawei entered into a joint venture named Huawei-3Com with 3Com for Internet Protocol-based routers and switches, eventually selling its 49% stake to 3Com in 2007 for $US 882 million.[4]

Huawei and American security firm Symantec announced in May 2007 the forming of a joint-venture company that will develop security and storage appliances to market to telecommunications carriers. Huawei will own 51% of the new company, to be named Huawei-Symantec Inc. Symantec will own the rest. The joint-venture will be based in Chengdu.

(From wikipedia, the free encyclopedia)

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