Innovating to compete

Show Daily: Faced with consolidation on both the operator and vendor sides, what are your plans for sustaining rapid growth‾ 
Dr. Xu Zhijun: Competition makes the world go around. World-class suppliers are both our friends and competitors. As integration deepens, the industry evolves into a new chapter. We believe that only those innovative manufacturers capable of fully meeting customers' demands and offering quality solutions for customers can achieve success in the market. Scale is not everything. Instead, for any enterprise, success lies with its competitiveness. 

What we have been doing and will continue to do is sharpen our competitive edge by improving our management, serving customers and responding to their demands, so as to better satisfy their demands. We also hope to join hands with other telecom suppliers to create a sound industry environment and share the benefits from the value chain.

What are your main objectives behind the formation of the UMTS/HSPA joint venture with Motorola‾
The cooperation between Motorola and Huawei will bring an enhanced and extensive portfolio of UMTS and HSPA infrastructure equipment to customers worldwide. By combining our expertise in UMTS, the two companies will meet the needs of mobile operators today and in the future. One of the keys to this venture is the creation of a joint R&D center in Shanghai, where employees from both companies will work on development of the architecture and a portfolio of products and services.

With continued downward pressure on costs, what are operators looking for and demanding‾
On the technology front, it is essential for operators to seek an optimum evolution approach by balancing present operations and future prospects based on the existing network infrastructure. Nowadays, most operators have strong demand for an all-IP based fixed-mobile convergence solution adapted to future network architectures, especially in developed markets.

All-IP and FMC help transform telecom networks from a multi-level structure into a flat structure, simplifying the network, shortening the time-to-market, increasing the operation efficiency, and thus reducing capex and opex from the perspective of the entire system.

Another major challenge facing operators is how to effectively integrate with the IT, Internet and entertainment industries - which are increasingly weakening the dominance of the telecom industry - to provide a wide variety of appealing and innovative services for end customers and thus gain higher returns.

More challenges and opportunities prompt network operators to reconsider their competitive partners. Undoubtedly, the customer demand-oriented vendors capable of technology integration and rapid and low-cost innovation will be highly competitive and the best choice for the network operators.
What technologies do you believe are likely to shape the future of the telecom industry for wireline and wireless‾ 
This is a big question involving four major aspects. In terms of service content, the digital media technology will shift the focus of telecom services from voice and private-line services to information and communication services in three major areas - multimedia communication, multi-play and ICT. 

In terms of network technology, IP and efficient modulation will have a far-reaching impact on network development.


IP technology has opened up the telecom industry, creating major disruption and challenges to the traditional business model. Meanwhile, IP technology drives the combination of various network technologies, which will simplify the network architecture and reduce costs.

As wireless frequency utilization bottlenecks the development of wireless and mobile networks, the efficient modulation will substantially leverage network development.  In terms of customer experience, fixed-mobile convergence and its supporting technologies will affect network operators' services, networks, technologies and even business models. The Internet-based technologies will have an influence on network traffic and topology.   

What has driven your progress in lucrative developed markets like Western Europe in the last two years‾
Today the technologies are increasingly diversified, with end customer demands all the more varying. All this has posed a greater challenge to network operators. The same is especially true for developed markets like Western Europe.

We think Huawei is distinguished by its quick response to these market trends as well as its readiness to work with customers for joint innovation and success. This well explains why many network operators are willing to choose Huawei as a strategic partner.

What are the key products Huawei is featuring at ITU Telecom World 2006‾
Huawei's theme for ITU 2006 is 'Mobile, All IP and Convergence'. We will showcase our full series of all IP-based FMC solutions, which can help all end-users to experience the same services at any time, any place and with any terminal.