China’s Huawei wants to increase revenue in Brazil by 30 pct to 50 pct

25 April 2006

Shenzhen, China, 25 April – Chinese telecommunications equipment company Huawei aims to boost revenues from its Brazilian operation by between 30 and 50 percent, Johnson Hu, Huawei’s vice president for international development told Macauhub Tuesday.

Hu said that the growth would come from the wireless telecommunications sector.

Speaking to Macauhub in an interview at company headquarters in the city of Shenzhen, which is next to the special administrative region of Hong Kong, Hu said it was possible that Huawei’s market share in the fixed line market could fall as it was currently so high but guarnteed that it would increase for mobile networks.

Brazil is the headquarters of Huawei’s operations in South America and the company’s turnover on the Brazilian market in 2005 totaled over US$200 million, almost double the US$105 million posted the previous year. Huawei has already invested over US$50 million in Brazil, Hu said.

Hu added that potential growth in Brazil was greater, “because our presence was originally pointed at fixed line networks, but now we have more businesses, we are actively promoting mobile networks and are working with an increasing number of operators.”

The company has contracts with fixed-line and mobile operators in Brazil, such as Telefónica, Brasil Telecom, Telemar, CTBC and Embratel and, in March, won a contract for the expansion of the Telemar/Oi GSM network.

“Huawei’s turnover will grow because we have a large market share, especially in broadband, where our share is 50 percent. Our market share is also very high in optic fiber networks,” Hu said.

In April Huawei said it had sold 1 million ADSL ports in Brazil.

“What we try to show is our capacity for quick innovation based on customer requirements, which is shown through third generation mobile networks where we are the only company to promote base stations, which allow customers to make operational savings,” said Hu.

Hu told Macauhub that Huawei had almost concluded its investment program in Brazil, a market it went into in 1999 and where it currently has three offices: in Brasilia, Rio de Janeiro and Sao Paulo, as well as a local production factory in Campinas, in the state of Sao Paulo.

Huawei, which is China’s largest telecom equipment company, posted an overall year on year turnover increase of 40 percent in 2005, at US$8.2 billion.

Sales on the international market reached US$4.8 billion in 2005, for the first time surpassing sales in the domestic market. (macauhub)