Posted by: Bruce Einhorn on May 15, 2009
Here’s some news that should bring smiles to the faces of China’s leaders. Huawei Technologies, the Shenzhen-based company that is the largest maker of telecom equipment in China, has now grabbed the No. 1 spot globally in DSL equipment. According to research firm Ovum’s press release, “The buoyant domestic market in China has lifted Huawei to first place in quarterly DSL volume shipments for the first time ever,” said Ovum Analyst Kamalini Ganguly. The good news from Huawei isn’t just in China, though, as the company has also expanded shipments in Europe, the Middle East and Africa. In grabbing the top spot, Huawei pushes aside Alcatel-Lucent.
In third place is ZTE, China’s second-largest telecom equipment maker and an increasingly important player in cell phones. For a story about ZTE, I recently interviewed company chairman Hou Weigui at the Chinese telecom equipment maker’s headquarters in Shenzhen. I asked his thoughts about the the $586 billion stimulus plan Beijing is pushing to revive the Chinese economy. What sort of impact would that have on ZTE’s business? Hou replied that the real stimulus for the industry was China’s decision to move ahead with 3G at long last. That was delayed for years because of China’s attempts to develop its own 3G standard, but now that Beijing has finally given the green light, the big state-owned operators are spending heavily on improving their networks. As annoying as that delay was for ZTE, Huawei and many other Chinese companies, the lag in getting 3G started means the surge in business comes just as the global economy is in the dumps and Chinese companies really need the help.