Huawei said revelations that the U.S. National Security Agency had worked to crack into its servers and network gear and spy on the company will not have a negative impact on its business, according to acting CEO Eric Xu. However, the reports, which surfaced in March, have led Huawei executives and workers to engage in time-consuming damage control.
Huawei executive vice president, Eric Xu, said the company will end its practice of rotating its CEO as part of changes to the management structure designed to prepare the company for the departure of founder, Ren Zhengfei.
The U.S. Trade Representative (USTR) Michael Froman has branded calls for a domestic European communications network "draconian", and said the proposal could breach global trade agreements and laws.
Huawei reported its full-year 2013 results in its annual report, and noted that higher sales of network gear drove record revenue and net profit last year. However, while Huawei also reported an increase in smartphone sales in 2013, it again missed its own targets for growth in smartphones.
China was Huawei's strongest market for sales growth in 2013, despite Europe, Middle East, and Africa (EMEA) being the company's top revenue-generating region last year.
The European Commission has dropped its threat to launch an investigation over alleged dumping by Chinese mobile equipment manufacturers, although the European Union's (EU) executive body said it still needs more time to determine if an investigation into illegal subsidies is required.
.ZTE reported a net profit for all of 2013 thanks to the strength of its LTE network projects. This is a welcome change of pace for the company, which posted its first ever yearly loss for 2012.
UK operator EE turned up the heat on its rivals by detailing plans to launch the UK's first sub-£100 (€119/$165) LTE smartphone, and confirming it has taken Vodafone's place as the mobile virtual network operator for incumbent BT.
Mobile deployments are driving growth in the policy management software market, which is expected to become a $2.5 billion market by 2018, according to Infonetics Research. Voice over LTE (VoLTE), in particular, "continues to be a major driver behind policy management growth as operators seek to ensure quality of service (QoS) for voice traffic," the firm said.
In a twist, U.S. officials, which have long branded China's Huawei a security threat, have been spying on the company via so-called "back doors" into the company's servers in Shenzhen, China, according to reports from The New York Times and Germany's Der Spiegel.