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Huawei posts firm results for 2008 as 3G contracts bloom

HUAWEI Technologies won the most new 3G-network contracts globally last year and its wireless division, including 2G and 3G equipment and services, generated revenue of US$10 billion last year, the country's biggest telecommunications equipment maker said yesterday.

The Shenzhen-based firm is expected to land many more deals this year as China only began 3G services in January.

In 2008, Huawei won 42 WCDMA (wideband code division multiple access) contracts worldwide, the top firm globally with a 40.4-percent market share of total new contracts, research firm In-stat said. WCDMA is the most widely used 3G technology in the world.

Huawei's wireless division generated revenue of US$10 billion in 2008, compared with a total contract income of US$23 billion, Huawei said.

"We have penetrated developed-world markets, especially Europe," Huawei said.

Huawei has signed contracts with top carriers such as Vodafone and T-Mobile and penned agreements with Vodafone on 3G networks in Africa and Europe, as well as co-development deals on 4G, the company said.

Globally, tight telco capital expenditure, weak handset demand and costly credit are forcing vendors to write down assets, announce layoffs, and hoard cash, said Matt Walker, principal analyst at research firm Ovum. But Chinese firms will benefit from increased domestic demand in 2009, analysts said.

China issued 3G licenses last month and the industry regulator expected 3G-related investment to hit 280 billion yuan (US$41.2 billion) over the next three years.



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