Huawei sales spike, preps MBMS-based mobile TV

By Cai Yan
Electronics Supply & Manufacturing
(02/12/2007 8:27 AM EST)

http://www.my-esm.com/showArticle.jhtml?articleID=197005129

Strong overseas sales helped Chinese telecom equipment provider Huawei Technologies rake in revenue of $11 billion in 2006, up 34 percent from the year before. The company estimates contract sales will total $15 billion this year.

The overseas market accounted for 65 percent of total contract sales in 2006, compared with 58 percent the year earlier, the company said.

Orders from developed regions, such as Japan, North America and Europe increased, but it's uncertain whether expansion in those markets contributed to Huawei's bottom line as much as its traditional, developing markets sales in the Middle East, Southeast Asia, Russia and Africa.

The company didn't release 2006 profit figures. However, in 2005, profits totaled $643 million, a slight increase over $625 million in 2004, according to government statistics.

Huawei is China's largest telecom gear provider and is aggressively expanding in developing markets. The company said growth is being fueled by a wide range of products, including mobile networks, next generation networks, software and applications.

Huawei is looking to mobile TV as another growth driver and intends to show off its Multimedia Broadcast Multicast Service (MBMS) technology at the 3GSM World Congress this week in Barcelona, Spain.

"MBMS service will allow carriers to upgrade their pre-existing UMTS/HSPA networks with 3G mobile TV services to further differentiate their wireless offerings and gain additional revenue opportunities," said Yu Chengdong, president of Huawei's wireless network product line, in a statement.

"We expect MBMS service will be widely adopted by operators this year, with more equipment and handsets becoming available over the next several months," he added.





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