Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
5.1.5 The BRIC Countries 5.1.5.1 Huawei Investing $2bn in Indian R&D Centre
Huawei will invest over $2 billion in its R&D centre in Bangalore and a comprehensive strategy for partnerships in India in the next five years up to 2016. The R&D centre will focus in the areas of local R&D, local manufacturing, technology cooperation with Indian IT service companies, local sourcing, local employment, talent development, and supporting rural education and IT literacy in India. The multi-dimensional plan will also support local industrial and social-economic development in ICT infrastructure capacities and bridging digital divide, as part of Huawei's key initiatives to further cooperate with India.
Huawei has been in India for over a decade and is clearly building a long-term development and cooperation in this key developing market. The development of the new R&D campus in Bangalore will increase the current capacity to over 3000 R&D engineers. Additionally, in Q3 2011 Huawei started its first-phase local manufacturing in Chennai and is further exploring other forms of cooperation in local manufacturing companies. According to the plan, the local R&D and manufacturing are being developed with export capacities along with supporting India's local industry development.
Visiongains analysis of telecom operators' spending, which directly impacts supplier revenues, indicates that overall capital expenditure will remain stable at 0.7% CAGR between 2011 and 2016, with growth primarily coming from spending on equipment.
Wireless access infrastructure, already accounting for 43% of total telecom infrastructure capital investment, will increase its overall share as spending continues to shift away from fixed infrastructure. Emerging markets now outpace mature markets in all infrastructure categories, and are expected to account for 58% of overall revenues by 2016.
www.visiongain.com
Page 88
Huawei Report 2011: Securing New Markets and Gaining Competitive Advantage in the LTE Domain
The challenges faced by telecom operators open a number of new opportunities for suppliers, but will require a radical rethinking of their business models and offerings.
Suppliers and operators will need to work together more closely to manage the transition from growth to efficiency while maximising growth from emerging opportunities. Operators' models will change dramatically and suppliers must respond to this. For suppliers to capitalise on the changing telecoms market include mastering all wireless generations (2G, 3G, and 4G), and being equally strong in fixed and mobile core networking technology. Helping operators deploy HSPA+ versus LTE and push solutions to offload and prioritize traffic on wireless networks will be a key area of expertise for telecoms suppliers.
www.visiongain.com
Page 89
Huawei Report 2011: Securing New Markets and Gaining Competitive Advantage in the LTE Domain
Chart 5.5 Huawei and Key Competitors Network Infrastructure Market Forecast 2011-2016 (US$, Billions)
60 Total Revenue ($, billions)
50
40
30
20
10
The smaller companies who disappeared in 2010, most were acquired and the technology continues on as part of larger NEMs' portfolios. Rapid growth in HD video, wireless broadband, more symmetrical traffic patterns on the up and downstream, etc are all driving bandwidth demand and the resulting demand for infrastructure and integrations services at all points of the network.
Visiongain believes that all companies need to improve efficiencies and cut costs. Alcatel-Lucent particularly has struggled to find the synergy benefits promised at the time of the merger. Huawei and ZTE are obviously significant competitors. However, they must compete on technology, product quality and innovation. They also face barriers created by national security concerns and other, less open
www.visiongain.com
Page 90