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HUAWEI's entry into the U.S.: the U.S. government is worried about national security risks

via:新浪科技     time:2018/1/10 12:53:41     readed:206

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In some circles in Washington, HUAWEI may be considered a monster in the global telecommunications industry. But in Mountain View, Wyoming, HUAWEI is a hero.

This is the joint radio operators (Union Wireless) headquarters. The joint radio has 103 years of history, 5 states in the western United States to provide telephone and wireless services. Combined with wireless customer relationship manager Brian Woody (Brian Woody) said that 4 years ago, before the joint wireless telecommunications equipment supplier failed to complete the key the network upgrade, the company has found a HUAWEI.

Woody said that HUAWEI "first concerns the solution of the problem and then pays attention to payment." This is very important for a family - operated mountain telecom operator. "We have a lot of suppliers over the years, and HUAWEI treats us better than other companies."

6 years ago, the U. S. Congress issued a ban on HUAWEI equipment on the grounds of national security, which led to HUAWEI's inability to get business from the mainstream American operators. Without any law, operators can't cooperate with HUAWEI, but the political cost is likely to be high.

However, this is not the case for small operators such as joint wireless. Joint wireless is not a national operator in the United States. In the rapidly shrinking market of telecom equipment dealers, HUAWEI has provided the company with the necessary equipment options. 4 years ago, Woody said he had about 5 suppliers in addition to HUAWEI, and only 2 at the moment.

At present, the US telecom industry is in trouble. Many executives in the US telecom industry say HUAWEI has become the leading company in the future global telecom network, which poses serious challenges to Finland's NOKIA and Sweden's Ericsson and other companies. According to Accenture's data, US operators plan to invest about $275 billion in the next 7 years to build the 5G network. Such networks will carry large amounts of data, including mobile video and unmanned vehicle communications. The pilot deployment of 5G technology will be launched later this year.

Since 2012, HUAWEI's business has expanded from 140 countries to 170 countries, and 45 of the top 50 mobile operators in the world are HUAWEI's customers. HUAWEI also has a hot smartphone brand, with a mobile phone revenue of $75 billion in 2016. In addition, HUAWEI's revenue of about $26 billion comes from telecommunications equipment and software services. According to IHS Markit, a market research firm, HUAWEI has been the leader in the world's $126 billion telecommunications equipment market a year.


2012-2016 years, HUAWEI revenue and profit

HUAWEI's leading position has once again raised concerns about Washington security and intelligence experts. They worry that the mainstream American operators will also turn to HUAWEI.

Last month, members of the US Senate and House Intelligence Committee sent a letter to the Federal Communications Commission (FCC), asking for an assessment of the relationship between us company and HUAWEI, and asked FCC to understand the ban issued by Parliament in 2012. The mail also expressed concern about HUAWEI's fast - growing smartphone business. HUAWEI is now the third largest smartphone brand in the world, second only to Samsung and apple.

Such political pressure may have had an impact. Huawei had planned to announce at CES on Tuesday that it was working with AT

AmazonAnd best buy and other retail channels to sell mobile phones.

Such a situation is disappointing to HUAWEI. One of the 3 HUAWEI rotating CEO Hu Houkun recently said in an interview, HUAWEI is not a security threat. He points out that HUAWEI's "global business proves the fact that HUAWEI is not a tool for any government or institution to monitor other countries".

The suspicion of HUAWEI is partly due to the company's history of entrepreneurship. Ren Zhengfei, who founded HUAWEI in 1987, now has 3 CEO turns, but Ren Zhengfei, 73, is still the vice president of the company and the de facto boss.

At the age of 43, Ren Zhengfei founded HUAWEI with $3200, when he was engaged in a resale business of a telephone switch. In his early years, Ren Zhengfei told employees that the company would be one of the biggest telecom equipment suppliers in China, which was a shock to employees.

HUAWEI did do this. After success in China's rural areas, HUAWEI has marched into underdeveloped markets, such as Africa and Latin America, ignored or avoided by European and American companies.

To boost HUAWEI's global expansion, Ren Zhengfei began to learn from Western business management experience, part of it from IBM. At that time, IBM was trying to open up the Chinese market. IBM helps HUAWEI to learn the general principles of product development and financial management. These capabilities and constantly optimized technologies have helped HUAWEI into the European market. In Europe, HUAWEI's main customers include Vodafone in the UK, Orange in France and German Telecom in Germany.


2012-2016 years, sales of different communications equipment providers

Some European mobile operator executives say that HUAWEI can provide a wider range of products and first-class customer services than competitors.

Small operators in the United States have similar feelings. In 2010, when the newly rising mobile operator Clearwire chose HUAWEI as the main supplier, HUAWEI arranged nearly 800 engineers for the project, people familiar with the matter said. The problem of equipment found in the previous day was solved in second days, unlike other equipment vendors, who usually had to discuss who was wrong before fixing the problem.

In 2012, Sprint bought Clearwire, and the U.S. Congress released a ban on HUAWEI equipment in that year. Subsequently, the US government asked to remove HUAWEI's equipment from the Clearwire network. The company finally found alternative options, but it was also regrettable.

The source said: "I think HUAWEI's design cycle and innovation cycle are faster than all the other companies that I have seen, because they have R & D resources to invest in these projects."

In the early years of development, HUAWEI was "notorious" for reverse engineering and imitation of competitors' products, the most famous event in 2003. At that time, CISCO sued that HUAWEI would copy CISCO's router code into the same type products, so as to facilitate customers to replace expensive CISCO devices to cheap HUAWEI devices. The case was finally reconciled, and HUAWEI did not admit to its own misconduct, but agreed to stop selling related router products.

At the same time, HUAWEI has also increased its investment in research and development. HUAWEI's R & D expenditure reached $11 billion 800 million in 2016. In contrast, Ericsson and NOKIA's R & D expenditure was $3 billion 800 million and $5 billion 900 million, respectively. The two companies do not have a HUAWEI - like business at the moment.

HUAWEI began to compete with the American Technology Corp for talent and set up a huge headquarters in Shenzhen, south of China. It looks like Silicon Valley, and employees are going to work in T - shirts and sneakers.

Combined wireless, the company learned about HUAWEI from another small operator. Last September, at a mobile trade show in San Francisco, HUAWEI also sponsored the "rural Wireless Association" network lounge.

A former US telecoms executive said HUAWEI engineers and executives will also visit us operators regularly to show new technology. The potential cost savings are "very obvious", and at some time it can reduce the price to half of the competitors.

At the time of August 2016 , it appeared that Huawei appeared to be making a breakthrough in the U.S . market . At that time , AT

However, sources said that in the next few weeks, the United States Congress personnel and AT

People familiar with the matter said. Michael Rogers, director of the National Security Agency, and James Comey, then director of the Federal Bureau of investigation. James Comey) personally with AT

Huawei denies reports of the company and AT

FBI spokesman and Komi's lawyer declined to comment. NSA has not responded to this.

This has caused a dilemma for Industry and users. Stephen Gerard, executive director of.IHS Markit research, said that it is difficult for HUAWEI to participate in the US market because of the fact that it is difficult for the us to participate in the US market, and that the reason why the US mobile communication service is expensive is the reason why it is difficult for us to participate in the Stephane Teral.

According to IHS Markit, American wireless services are priced at an average of $41 per user per user, next to Canada on the global scale. Canada also repels HUAWEI's equipment. In the UK, HUAWEI is allowed to operate under strict supervision, and the average local service price is $23 a month.

At the same time, the rival's territory is shrinking. France's Al Carter and Lucent in the United States merged in 2006, and in 2016 NOKIA bought the merged Al Carter lucent. In 2009, the north electric declared bankruptcy, the largest enterprise bankruptcy in Canada.

Both NOKIA and Ericsson warned that 2018 would be a challenging year. Ericsson replaced CEO, cut thousands of employees, and warned that some orders might be cancelled, in addition to the pressure of radical investors. Ericsson and NOKIA's current revenue combined is lower than HUAWEI.

The United States national security officials and telecommunications industry executives on the current market situation also expressed concern. Members of Congress had served as chairman of the House Intelligence Committee of the United States, 2012 report co-author Mike Rogers (Mike Rogers) said: "taking into account the current trend of the market, it is difficult to imagine, HUAWEI in the next 10 years will not be the only the choice of" (Wei Jin).

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