Huawei reports strong growth, not barred by German regulator's new rules
Written by: Sam Fenwick | Published:
Edward Deng, president of Huawei's wireless solution, launched a range of new products and solutions at the Global MBBF event in Zurich

In the first three quarters of 2019, Huawei generated CNY610.8 billion in revenue (£66.9 billion), up 24.4 per cent year-on-year, while its profit margin in this period was 8.7 per cent.

Huawei has so far signed more than 60 commercial 5G contracts with mobile network operators (MNOs) and shipped more than 400,000 5G massive MIMO (M-MIMO) active antenna units – this figure is predicted by the company to rise to 600,000 by the end of this year. The company has also announced that its consumer business’s smartphone shipments exceeded 185 million units in the first three quarters of 2019, up 26 per cent year-on-year, with rapid growth also seen in other areas such as PCs, tablets, wearables and smart audio products.

In related news, Reuters has reported that draft rules published by the German federal network regulator, BNetzA, that will set out the security requirements for the operation of telecommunications systems, are not targeted at specific vendors but will require them to guarantee that no information is shared with foreign governments.

Dmitry Kurbatov, CTO at Positive Technologies (a cyber security company), said: “Despite the controversy which continues to bombard the headlines, banning a telecoms vendor as major as Huawei in the launch of 5G would result in a massive cost for most countries. The reality is that Huawei is already embedded into the 5G ecosystem, mainly because many mobile network operators have already purchased or ordered Huawei technology. In Germany’s case, all major operators are already using Huawei equipment.

"This issue can’t be solved with a solution as idealistically simple as just swapping it for an alternative vendor immediately. There is also the additional cost of delaying deployments, as companies had already tested 5G equipment, chosen Huawei, and were ready to buy. If Huawei is taken away as an option, this whole process – including testing – would have to be started all over again. Ultimately any country that does that is facing a more expensive network and a delay that could result on its national infrastructure being inferior compared to other countries.”

Victor Zhang, president of global government relations, Huawei Technologies, said: “Huawei’s third-quarter results today demonstrate that consumers, telecoms operators and European policy makers continue to choose Huawei based on the efficiency and high-quality of our products and services…

“Separately, we also welcome the German government’s decision this week on the outline of its 5G deployment plans. Germany’s evidence and standards-based approach and commitment that it ‘will not take a vendor-specific approach’ is to be welcomed, as opposed to politicising crucial decisions on 5G that only hinder technology development and economic progress. By driving competition and creating a level playing field for all 5G network vendors, Germany is ensuring consumers and businesses will benefit from high security standards and an advanced digital economy.”

Speaking at the 2019 Global Mobile Broadband Forum today (16 October), Edward Deng, president of Huawei's wireless solution, launched a wave of new 5G infrastructure products, algorithms and network automation solutions. The former included the third generation of its 5G massive MIMO range, which uses 7nm chips and new compound material to offer superior performance when compared with Huawei’s previous models. The range supports up to 400MHz bandwidth, up to 320W transmit power and weighs 25kg (enabling it to be deployed by a single person in most scenarios).

Deng also announced a range of products designed for installation in a range of scenarios, including BladeAAU, which can be installed on a single pole and supports all sub-6GHz bands and features integrated passive and active antennas. He also unveiled Huawei’s 5G LampSite indoor coverage range, which supports 400MHz bandwidth, sub-3GHz frequencies and 5G New Radio operating in the 3.5GHz band.

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