Huawei News|Week at a Glance,June 23 2010

Published on July 23, 2010 by brooks | This story has been viewed 253 times

MOTOROLA TARGETS HUAWEI IN LAWSUIT

Motorola has named an alleged spy as a co-defendant in a lawsuit against Chinese telecoms group Huawei over the alleged theft of trade secrets.

In the civil lawsuit, Motorola alleged that Huawei had knowingly taken trade secrets from a company employing a dozen former employees of the US group, including Jin Hanjuan, who faces criminal charges of economic espionage in the US.

The civil case comes at a sensitive time for Huawei, which has expanded rapidly to become one of the world’s largest telecom equipment suppliers. It already faces fierce opposition in the US and other countries because of suspected ties to the Chinese military, which the company consistently denies.

In an amended lawsuit filed last week in a Chicago court, Motorola alleges Huawei and its founder Ren Zhengfei, a former officer in the People’s Liberation Army, began working with Chinese-born Motorola employees as early as 2001.

In the lawsuit, the company accuses a dozen former employees of setting up Lemko, a rival company, in 2002 while they were still employed by Motorola, and stealing trade secrets over the next five years, some of which they allegedly transferred to Huawei. Motorola claimed Ms Jin was secretly employed by Lemko in 2005 while still an employee at Motorola. Her criminal indictment alleges Ms Jin obtained Motorola trade secrets that “would benefit a foreign government, namely the People’s Republic of China, specifically its military”.

According to an affidavit from the US Federal Bureau of Investigation, Ms Jin was caught at O’Hara airport, Chicago, in 2007 carrying Chinese military catalogues and stolen Motorola technology. Her criminal indictment alleged that she was also employed around the same time by a company referred to only as “Company B”, which was based in China and “contributed to the Chinese national defence and developed telecom technology and products for the Chinese military”.

Her indictment also alleges that she was introduced to “Company B” and its representatives by Pan Shaowei, a former Motorola employee and chief technology officer of Lemko.

Motorola has alleged in the lawsuit that he was the main interface between Lemko and Huawei and transferred trade secrets to the Chinese company. The US Attorney’s Office in Chicago which is prosecuting the case has refused to identify “Company B”.

Huawei refused to comment on the criminal case but issued a statement saying Motorola’s complaint was “groundless and utterly without merit” and it would “vigorously defend itself against baseless allegations”.

Lemko said: “We believe Motorola initiated this litigation against Lemko and its employees to financially weaken the company.”

Alcatel, Ericsson, Nokia submit bids for BSNL line tender

NEW DELHI: State-owned BSNL on Thursday said it has received bids from Alcatel-Lucent, Ericsson and Nokia Siemens Networks for acquiring 5.5 million lines to expand its GSM operations.

“Yes, we have received bids from three foreign vendors — NSN, Alcatel-Lucent and Ericsson,” BSNL Chairman and Managing Director Kuldeep Goyal told PTI.

The telecom operator had earlier called for a 93 million line tender, which was later cancelled.

The PSU has not included Chinese equipment players like Huawei and ZTE for the current tender.

Huawei was the winner in one of the regions under the earlier 93 million line tender.

BSNL had earlier cancelled 93 million line tender amid controversies that the process lacked competition and also the PSU did not require that kind of capacity addition at one go.

Leading vendor Nokia-Siemens, which was disqualified from participating in the financial bid, had also challenged the decision of the telecom PSU in the court.

Due to cancellation of the tender, the PSU has been facing a severe capacity shortage.

DCC partners with Huawei Symantec – expands storage and security offering

Distributor Drive Control (DCC) has signed an agreement with Huawei Symantec, a joint venture between Huawei Technologies Co and Symantec Corporation, to distribute its range of storage and network security solutions. This range augments DCC’s existing offering and provides its resellers with a wider storage solutions product selection.

This relationship is built on a strong mutual respect. Edmont Rao, Regional Director of Sub-Saharan Africa, Huawei Symantec says: “South Africa is an important strategic market for Huawei Symantec.  With South Africa’s IT spending expected to increase by 10% to $11.6 billion in 2010 according to IDC, Huawei Symantec’s new distribution partnership with DCC allows us to leverage DCC’s expertise and network among resellers to expand the availability of our complete portfolio of innovative network security and storage solutions. In this fast changing information world, Huawei Symantec’s solutions help Small to Medium-sized Businesses (SMBs) and enterprises keep pace with evolving risks and increased availability requirements.”

The deal also adds considerable value to DCC’s offering. Comments Raul Del Fabbro, Solutions Division Manager at DCC: “DCC was looking to enhance its storage product range for SMBs and Huawei Symantec’s product range, which includes storage sub-systems that are ideal for this market segment and extends to enterprise class solutions for the corporate enterprise, provided the perfect solution. The broad range offers seamless scalability, allowing organisations – and fast growing SMBs – to upscale without a huge investment or the requirement for a ‘forklift’ upgrade. Resellers are thus able to ‘future proof’ their clients’ investment with Hauwei Symantec solutions.”

A distinct benefit of Huawei Symantec’s SMB solutions is that they feature robust, tested carrier-class technology backed by the technological expertise of Huawei’s legacy in the telecommunications space.  The technology was developed for larger enterprises but now extends this technology including all the high end features and benefits to both market segments.

In addition, all Huawei Symantec products are green, intelligent and flexible.

“DCC will initially focus on Huawei Symantec’s storage solutions but will have access to the full product range, including security appliance solutions, to ensure the needs and requirements of all our resellers and their customers can be met,” says Del Fabbro.

Concludes Rao: “With Huawei Symantec’s expertise in storage and security solutions, and DCC’s reputation as a reliable and respected distributor in South Africa, the relationship between the two companies is sure to be a great success. In  the  forthcoming months, the focus will be on introducing and positioning the brand in the market.”

Huawei’s Pulse is a fingerprint magnet, save for the camera

From humble beginnings with the HTC Dream, Android is starting to gain traction in the marketplace.

A steady growth in the number of devices from HTC together with more and more manufacturers coming on board means Google’s entry into the mobile space is really making inroads.

The next year is going to be exciting for Android fans, with Motorola launching the CLIQ and the Sholes, Samsung following up their i7500 with the i5700 and Behold 2, Acer shifting focus from Windows Mobile to Android not to mention LG and Sony Ericsson shipping their first Android devices.

Amongst the larger players aiming for the higher end of the market comes Huawei, best known for its mobile broadband dongles, with the U8220 handset, known as Pulse in other markets.

What makes the Pulse particularly interesting is its price point.

While the Pulse doesn’t feature the Teflon coating or soft touch surfaces of the HTC Hero, the build quality impresses.

Despite shiny plastic in abundance, the Pulse manages to carry off a solidity that belies it’s budget price point.

The front of the device is pure shiny black plastic, with a lighter coloured edge, black sides and a faux-carbon fiber effect back. This device is a fingerprint magnet.

Tipping the scales at 130 grammes (or about 4.6 ounces), the Pulse feels solid but not heavy in the hand and the device is free of any creaks or loose fittings.

The buttons respond with a reassuring click, the trackball is comparable to that found on HTC’s Hero, and the battery cover snaps into the back of the device with a firm snap.

The device manages to hold its own from a build perspective when compared with the HTC Hero or the HTC Magic.

The Pulse is very similar in design— shiny black plastic —to the Samsung Galaxy, the Samsung just managing to exude a higher sense of style with it’s black brushed effect keypad.

The Pulse features a 3.5-inch HVGA screen —the first we’ve seen on an Android phone — and noticeably larger in use than the 3.2-inch unit seen on its peers.

The Pulse’s primary camera is a 3.2 megapixel autofocus unit paired with a forward-facing VGA camera.

The inclusion of a dedicated camera button (missing on the HTC Magic and Hero) is useful and while the included camera software is pretty basic, it does allow you to select the front camera for self portrait photos.

Video capture resolution is a weak (as on most MSM7200-based handsets) 352 x 288.

Sadly, the camera is pretty awful. In well lit situations it’s adequate at best, but in low light situations it’s atrocious.

We’ve included some sample snaps in the gallery but they are so poor that we’re not entirely sure the camera is working properly.

The left hand side of the device is home to the power button and externally accessible microSD slot, the right hand side of the device has the volume and camera keys and the top of the device has a small flap behind which lie the micro-USB sync and charge port and the 2.5mm headset jack. A 3.5mm adapter is included in the box.

On the front of the device are the usual send and end buttons, together with a trackball, a menu key and, unusually, a combined home or back key.

A short press goes back, a long press goes to the home screen.

The red key functionality can be remapped in software – we’ve mapped ours to function as a home button.

We weren’t sure what to expect from the Pulse, but we are pleasantly surprised.

IPWireless and Huawei Sign Co-operation Agreement over Integrated Mobile Broadcast Technology

IPWireless, a dealer in developing and designing 3G and 4G wireless broadband and broadcast solutions, and Huawei, a provider of next-generation telecommunications networks, announced a new collaboration on interoperable solutions for Integrated Mobile (News – Alert) Broadcast technology.

The companies will work together on interoperability testing and service provider trails, and the testing will include network infrastructure solutions and devices that use IMB chipsets.

Integrated Mobile Broadcast is a new 3GPP standard that was designed with the intention to accelerate the global adoption of mobile data and broadcast services. Both Huawei (News – Alert) and IPWireless through the co-operation agreement will work on the development of an IMB ecosystem and ensuring readiness of the technology for the market as quickly as possible.

William Jones, CEO of IPWireless, said that for IMB to achieve its full potential it is critical that solutions based on the technology are brought to market as quickly and easily as possible. As a leader in this industry, they are dedicated to the development of the ecosystem so that operators and their hardware partners are able to confidently and swiftly deploy IMB solutions. They are delighted to be working with Huawei in ensuring that the huge potential for mobile broadcast is realized.

Jiang Wangcheng, president of Huawei UMTS network, added that the company’s operator customers are seeing an explosive growth in mobile data traffic, driven by consumer appetite for multimedia on the move. IMB provides profitability to mobile broadband operators for their business and they are very pleased to partner with IPWireless to explore the approach of developing profitable mobile broadband network, and to promote the IMB technology to matureness and commercialization.

Operators can make use of the interoperability tests offered through the companies’ partnership to source IMB equipment from multiple vendors and assure handset developers that their devices will be fully compatible with all IMB networks.

Nokia Siemens-Motorola Deal Gives Huawei a Blow

SHENZHEN, Jul 21, 2010 (SinoCast Daily Business Beat via COMTEX) –The much-hyped success of Nokia Siemens Networks in the acquisition of wireless network assets from Motorola, Inc. (NYSE: MOT | PowerRating) will deal a blow to Huawei Technologies Co., Ltd., a telecom equipment maker that has been brewing an expansion in the north America market for a long time.

Nokia Siemens’ winning of the Motorola wireless network assets marks a failure of Huawei, which is reported as another bidder of the assets, although Nokia Siemens and Huawei both declined to make a comment on the saying, pointed out market observers.

There were widespread reports that Huawei, one of the top-ranking telecom equipment makers in China, has hired experts in the US to lobby the local government for the Motorola deal. However, neither the Shenzhen-based company nor the US-based company had confirmed a participation, offer, or quit of Huawei, even after the Nokia Siemens made its acquisition of the Motorola assets public.

Nokia Siemens is expected to consolidate its position as the world’s second-biggest infrastructure telecom equipment maker by revenue after taking over the wireless assets from Motorola, pointed out Zhang Zhiqiang, president for the Nokia Siemens greater China operation, yesterday.

Huawei pocketed USD 21.5 billion in revenue in 2009, surpassing Nokia Siemens as the No. 2 telecom equipment maker in the world for the first time. The Espoo-based company, which reported USD 17.6 billion in revenue for the entire 2009, has never stopped claiming itself as the second-biggest citing other statistics.

Nokia Siemens will possibly see its total sales revenue increase by USD 3.7 billion to USD 21.3 billion after the Motorola transaction, on a par with the USD 21.5 billion revenue posted by Huawei.

Nevertheless, the deal, not to come to an end until the end of 2010, will not have an immediate influence on the 2010 financial results of Nokia Siemens, according to market observers.

The deal will enable Nokia Siemens to emerge as the third-biggest wireless equipment maker in north America with a 14% share, predicted Mr. Zhang, noting that Nokia Siemens took 6% of the market before the acquisition while Motorola had 8% of the market.

The company will have two new businesses after the deal, namely CDMA and WiMax, beefing up its expansion in the LTE, GSM, and WCDMA segments, according to Mr. Zhang, noting that the newly-acquired assets will lift the revenue for the acquirer.

(USD 1 = CNY 6.83)

Huawei, Ericsson chosen as Vodafone LTE partners

Vodafone Germany has chosen Swedish vendor Ericsson and Huawei Technologies of China as its Long Term Evolution (LTE) upgrade partners. The German unit of UK-based Vodafone Group said it plans to upgrade all of its base stations to LTE, as well as extend network reach. This, the company said, would ensure broadband coverage is expanded to rural areas of the country – a condition of its 800MHz licence secured in Germany’s May 2010 digital dividend spectrum auction. Vodafone walked away with two paired blocks of 5MHz spectrum in the 800MHz band after bidding EUR1.21 billion (USD1.55 billion). According to the operator, LTE rollout will begin in September 2010, with a plan to upgrade around 1,500 base stations during 2011. In so-called ‘white spots’ (areas currently uncovered by a broadband network), the company has said that the ‘4G’ technology will be able to provide broadband speeds of up to 3Mbps, though faster download speeds will be available in towns and cities.

Huawei, in partnership with Safaricom, launches U8220 Android mobile phone

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, in partnership with Safaricom, the largest mobile operator in Kenya, has launched a U8220 mobile phone, which is powered by the Google Android operation system that will be able to support high-speed Internet access.

The phone, first of its kind in the market, has a 3.5–inch HVGA touch-screen, the largest among all Android phones. It also features an innovative canvas profile which enables users to switch freely between six default extended screens.

Speaking at the launch, Chief Operations Officer of Huawei Technologies Kenya, Radoslaw Kedzia, said: “We are launching the Huawei U8220 Android phone in the Kenyan market, making it the first to enjoy this hi-tech phone in the whole of Africa. Customers will use various applications freely powered by the Google Android software at an affordable price. The launch also reflects our long-term investment to develop hi-tech devices which will enable users to explore various unique applications that satisfy their needs.

“I believe that world-leading operators are looking for differentiated and innovative products to increase revenue from the increasingly saturated terminals market, hence the mutual partnership with Safaricom,” added Kedzia.

Safaricom’s Chief Executive Officer, Michael Joseph, said: “We take this opportunity to laud Huawei Technologies for taking the leadership to formally launch the first Android phone in Kenya. Safaricom and Huawei have been collaborating for several years now and this joint initiative is an example of cooperation between the most innovative companies in the fields; Safaricom is the Kenyan telecommunication arena. Safaricom is in the middle of revolutionising its use of the Internet to change people’s lives and Huawei is an important partner to the end.”

Presiding at the event, Dr Bitange Ndemo, PS Ministry of Information and Communications, said: “I would like to commend the efforts of Huawei Technologies and Safaricom in ensuring that Kenyans access innovative products. I am confident that as we work towards achieving Vision 2030, we will take advantage of collaborating with companies that are more innovative to improve our economic development. These include the recent arrival of fibre-optic cable into the Kenyan market and we are already launching a new innovative phone in sub-Saharan Africa, thus making a step into fulfilling our vision.”

Other features of the phone include sleek chrome cover, and HSDPA, WiFi, and GPS capabilities. The U8220 will be sold in all Safaricom outlets around the country with a retail price of around Kshs 27 000.

Microsoft profits up 48% to $US4.5 billion, but Nokia earnings fall by 40%

The information technology and telco sectors were hit with mixed financial results overnight, after software giant Microsoft posted a record quarterly profit up 48%, while handset manufacturer Nokia revealed its profits plummeted, once again, by 40%.The results come as a legal storm is brewing in the telco sector, with Chinese manufacturer Huawei preparing to defend itself against accusations from rival Motorola that it stole several secrets and patents.

Microsoft posted revenue of $US16.04 billion for the fourth quarter, which still keeps it above Apple’s $US15.7 billion even though the iPhone-maker maintains a higher market capitalisation.

Net income was $US4.52 billion, an increase of 48% from the previous corresponding period. The business division recorded revenue of $US5.25 billion, which Klein called a “very strong number” in a conference call.

The figures beat Wall Street predictions, with much of the boost was due to the company’s Windows 7 and Office 2010 platforms. The company’s shares rose over 3% after the results were announced.

The figures suggest Microsoft still plays a dominant role in software development and manufacturing, although Apple is steadily catching up and isn’t far behind.

Microsoft is also beginning to target the tablet sector, with Hewlett Packard confirming overnight that its Windows 7 tablet will hit shelves in the next few months and will target the enterprise market.

Over 175 million Windows 7 products have been sold, while the company also said its relatively new search engine, Bing, has increased its market share for 13 consecutive months.

“This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” chief financial officer Peter Klein said in an earlier statement. “The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”

But in the telco sector, things aren’t as rosy. Market leader Nokia recorded a 40% drop in profit to $US291 million, with the announcement coming just days after rumours suggest the board is looking for a new CEO to replace Olli-Pekka Kallasvuo.

Sources told the Wall Street Journal the board is searching for a new CEO as Pekka Kallasvuo struggles to keep up with rivals producing high-end handsets more powerful than Nokia can offer.

Sales for the quarter ending June 30 were up by just 1% to $US12 billion, while market share fell to 33% from 35% in 2009. While sales of mobile computer and smartphone gadgets gained 42% to 24 million units, the company’s overall share in that market remains steady at 41%.

“Nokia will make a comeback at the higher end of the smartphone market,” Kallasvuo reportedly told a group of analysts following the announcement.

“We are approaching the end of this painful product transition at the high end of our product portfolio. Delivering the N8, with a high-quality user experience, will mark the beginning of our renewal. We will achieve our potential and regain high-end leadership in our industry.”

Meanwhile, Huawei is preparing to defend itself against charges brought forward by Motorola regarding stolen tech secrets. Motorola says its employees worked with the company to obtain information about cell network equipment.

The case, which is being heard in the federal court in Illinois, targets a former Motorola employee who allegedly reported to Huawei founder Ren Zhengfei.

Huawei, however, says the charges are baseless and it will defend itself in court.

“Huawei will vigorously defend itself against baseless allegations,” the firm said in a statement.

“As an active and significant player in global standards-setting bodies, Huawei has great respect for the rights of intellectual property holders, and will with equal vigour protect its own hard-earned intellectual property rights.”

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