Huawei carrier services revenues doubled to $12bn

12 April 2016 | Jason McGee-Abe


Huawei has announced financial results for 2015. Its carrier services unit generated $12.06 billion in annual revenue worldwide, with a CAGR increase of 19% in the past five years totaling 33% of the carrier business group revenues.

Huawei, which also predicts that by 2020 it will make carrier revenues of around $80 billion, claims that its efforts in establishing a digital business ecosystem through open collaboration and user experience has made it many carriers chosen partner in helping them achieve vital infrastructure restructuring to keep them ahead.

By the end of 2015, Huawei had constructed or supported the operation of more than 30 Service Operation Centres (SOCs) globally with the HUAWEI SmartCare CEM solution, providing services to 14 of the world's top 30 carriers. Huawei also claims that it provided the Indoor Connected Solution to more than 40,000 hotspots for 120 carriers in 75 countries.

Huawei also reported data centre integration services for 255 cloud data centres, and helped many carriers consolidate and migrate large-scale data centres.

In NFV/SDN integration services, Huawei implemented over 70 commercial NFV and SDN projects worldwide. Huawei managed services helped carriers rapidly transform towards ICT converged operations and create more value.

Huawei has announced that it will also invest more than $350 million in service research and development to continue building its solution capabilities in the areas of industry standards, ecosystems, business models, processes, tools, and platforms, to consolidated its capabilities in consulting and system integration services. This will be done through concrete action, and turning carriers' digital business blueprints into deliverable and viable solutions.

Weibing, chief marketing officer, Huawei Global Technology Services said: “Carriers are currently in a critical period of new service development and business transformation. New services such as video, the cloud, and IoT have entered the fast lane, imposing completely new requirements on networks and operations. Software-defined networking, cloud migration, and agile operations are driving this new round of network transformation.

“Huawei will work with carriers and the entire industry to re-architect their operations and infrastructure through consultation and system integration. We will fully cooperate with industry partners, and provide a win-win solution to facilitate carrier transformations.”

Responding to questions following a presentation about the company's product and business strategy, Eric Xu, one of the company’s three CEOs said that he expects the business to business units (combined Carrier and Enterprise groups) to generate revenues of up to $80 billion by 2020, double 2015's total. This would compare to their reported $60.8 billion in revenue and $7 billion in operating profit in 2015 which itself represented a revenue increase of 37% on 2014.

Huwei is concentrating on the software-defined future. Referring to Huwei’s ambitions Xu said: “Why can’t the telcos compete with the Amazons? Why can’t they use an online system? It’s very tough for telcos to meet the needs of consumers and compete with OTT players.”