Tough Time Ahead for Huawei

Apparently Huawei is not having good time around. ProPakistani has mentioned before about its tough conditions, the bad news is that situation continues to remain the same and following are some of the reasons

  1. Nokia Siemens Network got Telenor’s 3G contract, which was huge blow for Huawei’s future financial spreadsheets.
  2. Background interaction with higher officials has revealed that NSN has offered free swap of 2G to 3G for 5 years.
  3. Warid is not clearing their payments as Warid is facing problems with their BSCs and BTSs.
  4. And finally Ufone is already on deferred payment of 3 years.

These all activites are bringing negative financial growth to the future endeavors.

For those who don’t know, swap is the term used when a company needs to change the infrastructure provider. To give you an example, let’s suppose Telenor gave a contract to Huawei to develop BTSs. But after few months, Telenor feels like changing the vendor, due to any reason then they ask some other company (let’s suppose Ericsson) to do the installation at all site. So, the Telenor infrastructure will be swapped from Huawei to Ericsson.

Note: We were unable to get official viewpoint on any of above mentioned facts

  • And are you aware of the number of contracts they are winning (on almost a daily basis)? You’ve mentioned well-known, yawned over and settled under piles of dust issues, but you didn’t state the massive penetration Huawei has made into the Telecom sector by securing Telenor’s MS contract for all (6500+?) BTS sites. This, is the biggest ground breaking industry news at the moment (I believe, if I’m wrong, please feel free to correct me.

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