Report: Under-fire Chinese telecom firm Huawei sees “exceptional” growth

Telecom firm Huawei may be subject to concerns over national security in Australia and investigation in the US, but that hasn’t stopped the Chinese firm continuing its impressive growth across the world.

Huawei’s infrastructure business, which sees it supply equipment to allow mobile operators, fixed-line ISPs and others to provide services, enjoyed an “an exceptionally good fourth quarter”, according to a new ABI Research report.

Such is its progress that Huawei is now ranked second in the industry, according to ABI, having overtaken Nokia Siemens Networks to take the spot. With a 20.9 percent market share, it remains behind long-term industry leader Ericsson, however, which holds 26.1 percent.

The Chinese firm posted preliminary quarterly results of US$2.53 billion for its wireless network business, that’s an impressive increase of 54 percent quarter-on-quarter, and 38 percent year-on-year.

Huawei’s development is all the more noteworthy when considering that operator investment in networks has slow down, as ABI’s Jim Eller explains is caused by global economic conditions:

Wireless network operators did not spend as much in the fourth quarter as they have in past years, presumably taking a cautious approach due to uncertainty of the macroeconomic situation.

When combined with fellow Chinese firm ZTE — which has withdrawn its controversial business in Iran — Huawei’s market share tops Ericsson business, which is an interesting fact to consider given the increased caution being shown towards both companies.

In Australia, where Huawei was barred from competing for a national broadband tender over security issues, the business has gone elsewhere and if other governments and firms follow suit, that could present opportunities to rivals.

The company is accustomed to pressure long before the issues in Australia, and it is under investigation in the US and has been accused of collaborating with authorities in Iran, something it denies.

While Huawei won’t lose its entire business it will certainly be interesting to see how it develops given the new focus and attention it has gained. One new set of projects that is likely to provide it with growth will be India’s upcoming 4G networks which, thus far, has not drawn the attention of the government.

Huawei is best know to consumers for its phones, which now include Ascend D Quad which the firm claims is the world’s fastest smartphone.