Huawei

Huawei Technologies Co. Ltd.

Huawei is a leading global information and communications technology (ICT) solutions provider. Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population. 

Huawei's vision is to enrich life through communication. By leveraging our experience and expertise in the ICT sector, we help bridge the digital divide by providing opportunities to enjoy broadband services, regardless of geographic location. Contributing to the sustainable development of the society, economy, and the environment, Huawei creates green solutions that enable customers to reduce power consumption, carbon emissions and resource costs.

wireless modem

server and switch

  mobile and tablet

How The Business Started / Profile of The Entrepreneur and the Business

Huawei was founded by Ren Zhengfei in 1987, with an initial registered capital of RMB21,000. Established in Shenzhen, Huawei started off as a sales agent for a Hong Kong company producing Private Branch Exchange (PBX) switches. By 1990, Huawei began its own independent research and commercialization of PBX technologies targeting hotels and small enterprises. After accumulating knowledge and resources on PBX business, Huawei achieved its first breakthrough into the mainstream telecommunications market in 1992, when it launched its C&C08 digital telephone switch, which had the largest switching capacity in China at the time. By initially deploying in small cities and rural areas, the company gradually gained market share and made its way into the mainstream market.

In 1994, Huawei established a long distance transmission equipment business, and launched its own HONET integrated access network, combining broadband and narrowband services in a single platform, and SDH product line. Huawei generated sales of RMB1.5 billion in 1995, mainly derived from rural markets in China.

Huawei (officially Huawei Technologies Co. Ltd.) is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong, China. It is the largest China-based networking and telecommunications equipment supplier and the second-largest supplier of mobile telecommunications infrastructure equipment in the world (after Ericsson).

 Ren Zhengfei

In 2010, Huawei recorded revenues of USD$28 billion.Its products and services have been deployed in more than 140 countries and it currently serves 45 of the world's 50 largest telecoms operators.

Vision & Mission

Vision

To enrich life through communication

Mission

To focus on our customers' market challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers.

Core Values

Our core values are deeply rooted in every aspect of our business. They are the internal driving force for the Company and are our commitments to the ecosystem. These values enable us to provide effective services to our customers and to achieve our vision of "enriching people's lives through communication".

Customers First

Huawei exists to serve customers, whose demand is the driving force behind our development. We continuously create longterm value for customers by being responsive to their needs and requirements. We measure our work against how much value we bring to customers, because we can only succeed through our customers'success.

Dedication

We win customers'respect and trust primarily through dedication. It includes every effort we make to create value for customers and to improve our capabilities. We value employees'contributions and reward them accordingly.

Continuous Improvement

Continuous improvement is required for us to become better partners for our customers, improve our company and grow as individuals. This process requires that we actively listen and learn in order to improve.

Openness & Initiative

Driven by customer needs, we passionately pursue customercentric innovations in an open manner. We believe that business success is the ultimate measure of the value of any technology,product, solution or process improvement.

Integrity

Integrity is our most valuable asset. It drives us to behave honestly and keep our promises, and, thus, win our customers'trust and respect.

Teamwork

We can only succeed through teamwork. By working closely in both good times and bad, we lay the foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and efficient processes.

Strategy

Huawei will persist to be customer-centric and gradually extend our integrated advantages in the Telecom Networks, Global Services and Devices areas based around customer requirements. Moving forward, we are committed to providing products and solutions for the Cloud, Pipe and Devices businesses and helping operators to achieve business success with our ABC strategy: growing average revenue per user (ARPU), increasing bandwidth and reducing cost.

Telecom Networks: All-IP Convergence, Application Support, Responsive and Cloud Computing

Huawei has built comprehensive advantages in core areas such as wired and wireless broadband access, data communications, and optical transmission through years of continuous development. We have become the preferred partner for operators in the age of All- IP convergence. We are committed to providing open application environments, smart operational platforms, and efficient services to global telecom operators, thus helping to enhance their operational revenue and efficiency. At the same time, Huawei promptly fulfilled customer needs with our agility to developing innovative products and solutions. We help operators build cloud computing platforms to effectively improve their return on investment. 

Global Services: Collaboration, Agility, Reduction, Enhancement

In Global Services, Huawei helps customers to further increase their total value of ownership (TVO) through continuously optimized service solutions and improved operational efficiency. 

Devices: Partnership, Customization, and Value

We focus on the operator resale market to help consumers fulfill the diversified device requirements of end users and to provide consumers with rich and convenient communication experiences by offering a wide variety of network devices. 

Continuous Customer-Centric Innovation and Win- Win Cooperation

In order to meet the needs of our customers, we focus on continuous customer-centric innovation. The goal of our product R&D is to deliver timely solutions for both anticipated and actual customer needs by developing innovations in technologies, products, solutions and services. 

We have more than 51,000 employees (46% of our overall headcount) engaged in R&D and have established 20 research institutes in countries around the world including the USA, Germany, Sweden, Russia, India, and China. We have also set up over 20 joint innovation centers with top operators to transform leading technologies into a competitive edge for customers and to achieve business success. 

Moving ahead, Huawei will continue to expand cooperation in Telecom Networks, Global Services and Devices, as well as moving into the new Enterprise Business segment, with the aim of establishing a healthy, harmonious and win-win environment.

Financial Highlights

Shareholders

Huawei Technologies Co., Ltd. (the "Company"or "Huawei") is a wholly-owned subsidiary of Shenzhen Huawei Investment & Holding Co., Ltd. ("Huawei Holding"). Huawei Holding is solely owned by employees of the Company, without any third parties, including the government bodies, holding any of its shares. 

Huawei Holding implements an Employee Shareholding Scheme (the "Scheme") through the Union, which involves 65,179 employees as of 31 December 2010. They are represented by and exercise their rights through the elected representatives. The Scheme effectively aligns the personal goals of employees with the Company's long-term development, fostering the continuing success of Huawei.

Board of Directors and Committees

The Board guides and oversees the overall business operations, and makes decisions on significant issues in strategic and operational areas. The Board of Directors has established the Human Resources Committee, the Finance Committee and the Audit Committee to assist the Board in overseeing the Company's operations. 

The key roles and responsibilities of Board of Directors include:

·         Approving the Company's strategic directions and its medium-to-long-term business plan, and monitor their execution

·         Approving the Company's major financial arrangements and business transactions

·         Approving the Company's operational and financial results

·         Establishing and reviewing the governance structure in accordance with the development of the Company and changes in the operating environment

·         Overseeing the establishment and maintenance of the Company's monitoring mechanism

·         Providing advice and guidance to management regarding significant issues encountered, including major market changes and risks

·         Approving the appointment and remuneration of the Chief Executive Officer; establishing the succession plans for the Chief Executive Officer and other senior management

·         Approving the appointment of senior management and their remuneration policy and performance evaluations

In 2010, the Board of Directors deliberated on the future governance and business structure of the Company, and set out plans for the formulation of the Company's management outlines. The annual business plan and budget, the quarterly operational performance, the strategic direction and organizational setup for new businesses, investment and merger & acquisition projects, the appointment and remuneration of senior management, and other key human resources and financial policies were also reviewed and approved by the Board. The Board also concluded a set of resolutions on the Company's strategic directions, major investment decisions, financing arrangements and major contracts.

Human Resources Committee

The Human Resources Committee comprises Board members and senior human resources experts. The key roles and responsibilities of the Human Resources Committee include:

·         Evaluating the corporate strategy and policies on human resources

·         Reviewing the Company's medium to long-term human resources plan and annual human resources programs

·         Reviewing the selection, allocation, performance evaluation, remuneration, incentive & discipline as well as succession plan of the Company's middle and senior management

The Human Resources Committee meets on a monthly basis. Business executives and relevant experts are invited as non-voting participants when needed. Based on business needs and requests of the Board of Directors, the Human Resources Committee held twelve meetings in 2010 to develop frameworks and policies, as well as to monitor executions regarding cadres management & succession plan, compensation & incentive optimization, organization development and performance improvement of human resources system.

Finance Committee

The Finance Committee consists of members with relevant expertise and experience, including Directors and financial experts. The key roles and responsibilities of the Finance Committee include:

·         Reviewing the Company's medium-to-long-term business plan, overseeing and managing the Company's annual budget and business forecast through quarterly reviews and monthly reviews, and driving special actions on critical results of operations

·         Reviewing all the finance-related strategies, plans, policies and campaigns, and submitting such for the Board's approvals, including capital and asset structures, asset and debt financing, strategic investments, major financial investments, mergers & acquisitions, and divestitures etc

·         Monitoring the Company's operational and financial results and ensuring integrity and accuracy of financial information

The Finance Committee generally holds meetings on a monthly basis, and may call for special sessions and invite relevant functional experts to attend if needed. Based on business needs and requests of the Board of Directors, the Finance Committee held eleven meetings in 2010, and focused its efforts in the structural design, approval procedure, execution, and monitoring of the Company's strategic plan (SP) and business plan (BP), operational management, capital investment projects, capital structure, operating assets management, enterprise risk management, subsidiaries and joint ventures management etc. The Finance Committee also approved and issued relevant policies and guidelines for the above matters.

Audit Committee

The Audit Committee comprises Directors and the Chief Internal Auditor. The key roles and responsibilities of the Audit Committee include:

·         Reviewing the Company's internal audit plan, monitoring its execution results, discussing the Company's internal control policies

·         Approving the internal control framework and milestone plan, overseeing the implementation of internal control improvement measures and driving special actions on key issues

·         Monitoring management's and employees' integrity and the Company's compliance with rules and regulations

·         Approving the appointment of independent auditor together with the Board of Directors, and evaluating the performance of the independent auditor

The Audit Committee holds meetings on a quarterly basis. Four meetings were held in 2010 to review the Company's risk management and internal control strategies, and to approve the annual internal audit plan. In addition, the Audit Committee monitored the Company's internal control effectiveness through reviewing regular reports, such as the Audit Trend Report, the Semi-annual Control Assessment (SACA) and the GPO Internal Control Reports, submitted by the Internal Audit Department and Global Process Owners (GPO). The Audit Committee also promoted the compliance of the Business Conduct Guideline (BCG) among all employees through sharing of major audit findings and non-compliance cases. During the year, the Audit Committee also discussed the management letter with the independent auditor.

Supervisory Board

Pursuant to the requirements of the Company Law of the People's Republic of China, Huawei has established a Supervisory Board, which consists of five members who are elected by the shareholders. The key roles and responsibilities of the Supervisory Board include overseeing the Company's financial and operational results, monitoring the performance of the Directors, Chief Executive Officer and other senior management, as well as attending Board meetings as observers.

Independent Auditor

Independent auditor is responsible for auditing the Company's financial statements in accordance with applicable accounting standards and audit procedures, and expresses an opinion as to whether the financial statements are true and fair. 

The scope of the financial audit and the annual audit results are subject to the review of the Audit Committee. Any relationship or service that may potentially affect the objectivity and independence of the independent auditor is reviewed by the Audit Committee. The independent auditor may also discuss with the Audit Committee for any audit issues identified and for any difficulties encountered during the course of the financial audits. 

Huawei has selected KPMG as the independent auditor of the Company since 2000.

The members of the newly-elected Board of Directors and Supervisory Board

At the end of 2010, 51 representatives and 9 alternate representatives were elected by all the employees who participated in the Employee Shareholding Scheme. The representatives then elected the members of the Board of Directors and Supervisory Board. The newly-elected members of the Board of Directors are Ms. Sun Yafang, Mr. Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun, Mr. Ren Zhengfei, Mr. Xu Wenwei, Mr. Li Jie, Mr. Ding Yun, Ms. Meng Wanzhou, Ms. Chen Lifang, Mr. Wan Biao, Mr. Zhang Pingan, and Mr. Yu Chengdong. The newly-elected members of the Supervisory Board are Mr. Liang Hua, Mr. Peng Zhiping, Mr. Ren Shulu, Mr. Tian Feng, and Mr. Deng Biao.

Resume of Directors

Ms. Sun Yafang

Sun Yafang joined Huawei in 1989, and has served as Engineer of Marketing and Sales Department, President of the Procurement Department, President of Marketing and Sales Department, President of Human Resources Committee, President of the Business Transformation Executive Steering Committee (BT-ESC), President of Strategy and Marketing Committee, and President of Huawei University, etc. 

Since 1999, Ms. Sun has been the Chairwoman of the Board. 

Sun Yafang was employed as a technician of Xin Fei TV Manufactory in 1982. She was an engineer of Beijing Research Institution of Communication Technology in 1985. 

Sun Yafang studied in Chengdu University of Electronic Science and Technology, bachelor's degree. 

Mr. Guo Ping

Born in 1966, Mr. Guo holds a Master's Degree from Huazhong University of Science and Technology. Mr. Guo joined Huawei in November 1988, and has served successively as an R&D Project Manager, General Manager of Supply Chain, Director of the Executives Office, Chief Legal Officer, President of the Business Process & IT Management Department, President of the Corporate Development Department, Chairman and President of Huawei Device, Corporate EVP, and now as Chairman of the Finance Committee. 

Mr. Xu Zhijun (Eric Xu)

Born in 1967, Mr. Xu holds a Doctorate Degree from Nanjing University of Science & Technology. Mr. Xu joined Huawei in 1993, and has served successively as President of the Wireless Product Line, Chief Strategy & Marketing Officer, Chief Products & Solutions Officer, Corporate EVP, and Chairman of the Investment Review Board. 

Mr. Hu Houkun (Ken Hu)

Mr. Ken Hu holds a Bachelor's Degree from Huazhong University of Science and Technology. Ken joined Huawei in 1990, and has held several senior roles within the company including President of Huawei's Chinese market, President of Huawei Latin America, President of Global Sales Department, Chief Sales & Service Officer, Chief Strategy & Marketing Officer, Chairman of Corporate Global Cyber Security Committee, Chairman of Huawei USA, Corporate EVP, and Chairman of the Human Resources Committee. 

Mr. Ren Zhengfei

Born on October 25, 1944 into a rural family where both parents were school teachers, Mr. Ren Zhengfei spent his primary and middle school years in a remote mountainous town in Guizhou Province. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. After graduation, he was employed in the civil engineering industry until 1974 when he joined the military's Engineering Corps as a soldier tasked to establish the Liao Yang Chemical Fiber Factory. Subsequently, Mr. Ren had taken positions as a Technician, an Engineer, and lastly promoted as a Deputy Director, which was a professional role equivalent to a Deputy Regimental Chief, but without military rank. Because of his outstanding performance, Mr. Ren was invited to attend the National Science Conference in 1978 and the 12th National Congress of the Communist Party of China in 1982. Mr. Ren retired from the army in 1983 when the Chinese government disbanded the entire Engineering Corps. He then worked in the logistics service base of the Shenzhen South Sea Oil Corporation. As he was dissatisfied with his job, he decided to establish Huawei with a capital of RMB 21,000 in 1987. He became the President of Huawei in 1988 and has held the title ever since. 

Mr. Xu Wenwei (William Xu) 

Born in 1963, Mr. Xu holds a Master's Degree from Southeast University. Mr. Xu joined Huawei in 1991, and has served successively as President of the International Technical Sales & Marketing Department, President of the European Region, Chief Strategy & Marketing Officer, Chief Sales & Service Officer, President of the Joint Committee of Regions, and President of the Enterprise Business Group. 

Mr. Li Jie (Jason Li)

Born in 1967, Mr. Li holds a Master's Degree from Xi'an Jiao Tong University. Mr. Li joined Huawei in 1992, and has served successively as Regional President, President of the Global Technical Service Department, President of the Human Resource Department, and President of the Joint Committee of Regions. 

Mr. Ding Yun (Ryan Ding)

Born in 1969, Mr. Ding holds a Master's Degree from Southeast University. Mr. Ding joined Huawei in 1996, and has served successively as Product Line President, President of the Global Solution Sales Department, President of the Global Marketing Department, and Chief Products & Solutions Officer. 

Ms. Meng Wanzhou (Cathy Meng)

Ms. Meng holds a Master's Degree from Huazhong University of Science and Technology. Ms. Meng joined Huawei in 1993. She obtained her M.A. in 1998. She has held positions of Director of the International Accounting Department CFO of Huawei Hong Kong, President of the Accounting Management Department, President of the Sales Financing & Treasury Management Department, and is now the CFO of Huawei. 

Ms. Chen Lifang

Ms. Chen graduated from Northwest University. Ms. Chen joined Huawei in 1995, and has served successively as Chief Representative of the Beijing Rep. Office, Vice President of the International Marketing Department, Deputy Director of the Domestic Marketing Management Office, President of the Public Affairs and Communications Department, and Corporate Senior Vice President. 

Mr. Wan Biao

Born in 1972, Mr. Wan holds a Bachelor's Degree from University of Science and Technology of China. Mr. Wan joined Huawei in 1996, and has served successively as Director of the UMTS RAN System, President of the UMTS Product Line, President of the Wireless Product Line, and CEO of Huawei Device. 

Mr. Zhang Ping'an (Alex Zhang)

Born in 1972, Mr. Zhang holds a Master's Degree from Zhejiang University. Mr. Zhang joined Huawei in 1996, and has served successively as Product Line President, Senior Vice President, Vice President of Strategy & Marketing, Regional Vice President, Vice President of the Global Technical Service, and CEO of Huawei Symantec. 

Mr. Yu Chengdong (Richard Yu)

Born in 1969, Mr. Yu holds a Master's Degree from Tsinghua University. Mr. Yu joined Huawei in 1993, and has served successively as 3G Product Director, Vice President of the Wireless Technical Sales Department, President of the Wireless Product Line, President of the European Region, and Chief Strategy & Marketing Officer.

Continuous Improvement of Management Systems

Huawei has implemented a dedicated and customer-centric management system since 1997. With long-term partnership with the world's top management consulting companies, the Company has aligned its management system with industry's leading practices in respect of R&D, supply chain & procurement functions, sales & customer services , human resources management, financial management, quality & business operations and IT management, etc. 

In order to better fulfill customers’ requirements, Huawei has undertaken ongoing business transformations in 2010, to building a global process architecture with continuous optimization, establish a global process ownership system, construct core competencies of Huawei in terms of strategy, customer demand management, quality & business operations and IT management, as well as improving the process-based and effective management systems. These transformations include:

·         Customer Relation Management (CRM) Transformation: Developing customer-centric sales and service approach to ensure that Huawei focuses on customers’ requirements and expectations at all times, so as to maximize value for its customers and facilitates their success as a way to realize Huawei’s own achievements

·         Issue to Resolution (ITR) Process Transformation: Adopting a customer-oriented approach in customer support and service management to ensure that Huawei remains attentive to the customers’ issues and complaints, and provides timely resolutions in order to improve customer satisfaction.

·         Integrated Finance Service (IFS) Transformation: Cover all of the key financial areas globally, build a global system of financial management, facilitate the business development with better management and drive for sustainable and profitable growth.

·         Improvement of Corporate Quality and Operations System: Carrying out ongoing initiatives on Environment, Health and Safety (EHS), Corporate Social Responsibility (CSR) and Enterprise Risk Management (ERM), etc., to reduce operational risks and support sustainable growth. In addition, optimizing quality management of the supply chain including that in Electronic Manufacturing Services (EMS) and supply centers, and undertaking ongoing activities like 6 SIGMA and lean production improvements to achieve higher efficiency and better quality production.

Alignment of business strategy and goals

Huawei has utilized balanced scorecards to manage organizational performance. Corporate goals are communicated top-down to business functions, in order to align the goals with business activities of client relationship management, internal operations, employee development, and financial management. The assignment of business targets enables different business functions to take ownership of their responsibilities in achieving the Company’s short and long-term objectives. 

The balanced scorecards of each function are reviewed and revised on an annual basis for the alignment with the annual business plan and budget. In addition, the performance targets of individual employee and business functions performance targets are monitored and assessed annually to ensure the Company’s strategies and goals are embedded throughout the organization. 

Internal Controls

Based on the COSO (The Committee of Sponsoring Organizations of The Treadway Commission) framework, Huawei has designed and implemented an internal control system, covering the internal controls over financial reporting in its business and financial processes across all subsidiaries and business units, with a view to ensuring the data integrity of its financial statements. The Company's internal control framework consists of five components, including Control Environment, Risk Assessment, Control Activities, Information & Communication and Monitoring. 

Control Environment

Control environment is the foundation of an internal control system. Huawei has established and maintained high standards of ethical values, and is dedicated to promote good corporate citizenship and strict compliance with laws and regulations. Huawei has established BCG to define the Company’s acceptable behaviors and business conduct. In addition, Huawei has provided structured training programs and required employees to acknowledge their understanding and commitment in complying with the BCG. 

Huawei has a well-established governance structure with clear delegation of authority and accountability, which comprises of the Board of Directors, Board Committees, Group Functions and multi-level Management Teams. Huawei has also clearly segregated the roles and responsibilities for its functions and units to ensure proper check and balance. In addition, Huawei has established a Business Control Department to assist business functions to improve their systems of internal controls, with the Internal Audit Department performing independent reviews on a regular basis to assess the internal control effectiveness of all processes. 

Risk Assessment

Huawei performs risk assessment on all business processes on a regular basis. Each process owner is responsible for identifying, assessing and managing different types of risks. Risk assessment criteria include the likelihood and the potential impact of risk occurrence, for example, the impact on the business, financial reporting and reputation, etc. 

The top management works closely with process owners to identify, manage and monitor the significant risks faced by the Company. They also assess the potential risk impact of any changes in the external and internal environments, review and approve the associated risk management strategies and mitigating measures for the Company. 

Control Activities

Huawei has established standardized business processes globally, and identified Key Control Points (KCPs) and Global Process Owners (GPOs) for each process. In addition, the Company has established a Global Process Control Manual and Segregation of Duties Matrix that are applicable to all subsidiaries and business units. The GPOs are responsible for ensuring the overall internal control effectiveness, in light of changes in operational environment and risk exposures. 

Information & Communication

The Company has established information and communication channels to collect external information as well as to facilitate information flow within the Company. 

The management discusses business strategies and operational issues with different functions through regular meetings. All the operational policies and procedures are available on the Company’s intranet, and training seminars on business operations and internal controls are organized regularly to ensure that employees can obtain the latest information in a timely manner. The Company has also established mechanism to communicate internal control issues and the follow-up actions with the GPOs. 

Monitoring

The Company has established a whistle blowing mechanism for employees to report any irregularities, and has provided channels for suppliers to raise complaints in the Honesty & Integrity Agreement signed with them. Any irregularities reported by internal or external parties will be followed up by the Company to ensure business conducts of staff members are properly monitored. 

The Internal Audit Department is responsible for performing an independent evaluation on the internal control system of the Company, and conducting investigations on any cases of potential violation of the BCG. The Internal Audit Department reports the audit and investigation results to the Audit Committee and senior management. 

The Audit Committee monitors the internal control effectiveness of the Company, including the implementation of control improvement plans. The Audit Committee has the authority to request management to provide explanations on control issues identified and to take remedial actions. The Audit Committee may also suggest the Human Resources Committee to take disciplinary actions when necessary.

R & D

Research & Development

Huawei is committed to investing in R&D to create competitive products and solutions.

To meet the needs of our customers, we focus on continuous customer-centric innovation. The goal of our product R&D is to deliver timely solutions for both potential and actual customer needs by developing innovations in technologies, products, solutions and services.

The Company has extensively implemented the Integrated Product Development (IPD) process within the R&D function. With thorough comprehension of customers' needs, we significantly shortened the timeline for products to reach the market and therefore helping our customers to achieve success.

In 2010, Huawei continued to increase its R&D investment. Annual R&D expenses amounted to CNY 16,556 million, an increase of 24.1% year-on-year. We have more than 51,000 employees (46% of our total workforce) engaged in R&D and have established 20 research institutes in countries including the USA, Germany, Sweden, Russia, India and China. In addition, we have over 20 joint innovation centers with leading telecom operators where we work in partnership with these operators to transform leading technologies into a competitive edge for customers and helping them achieve business success.

As at 31 December 2010, Huawei had accumulatively filed 49,040 patent applications i.e. 31,869 patent applications in China, 8,892 international patent applications under the Patent Cooperation Treaty, and 8,279 overseas patent applications. Of the 17,765 authorized patents granted, 3,060 were overseas patents. In addition, Huawei holds a leading position in terms of essential LTE patent applications.

Huawei joined, supported and made significant contribution to international standards. By the end of 2010, Huawei was a member of 123 standards organizations, including 3GPP, IETF, ITU, OMA, NGMN, ETSI, IEEE and 3GPP2. We have accumulatively submitted more than 23,000 proposals and served in 180 leadership positions including as board members in various organizations such as OMA, CCSA, ETSI, ATIS and the WiMAX Forum. In the LTE/EPC field, Huawei cumulatively submitted more than 6,400 proposals to 3GPP. In 2010, the number of our proposals on LTE Radio Communication Core Specification passed by 3GPP accounted for approximately 20% of the world's overall accepted proposals.

In 2010, Huawei won the " Solution Excellence Award" at the 2010 Telecom Management Forum (TMF) Management World event and the " Outstanding Contribution and Leadership Award" from Open Mobile Alliance (OMA). Both our Terabit Multi-Service Router Platform and New-Generation Multi-Service Transmission Platform Based On The Synchronous Digital Hierarchy (SDH) won the " Second Prize of the National Award for Science and Technology Progress" from the China government. The CTO of Huawei's Wireless Networks was appointed as a fellow of the Wireless World Research Forum (WWRF).

As a result of our strong innovation capabilities, Huawei competitively earned grants from several government research and innovation programs in 2010. These programs included China's Next Generation Broadband Wireless Networks, Highly- Reliable Networks and New-Generation Storage Technology, the EU's FP, and the BESTSELECT program from the government of Berlin, Germany.

Milestones/ history

Year 2010

·         Deployed over 80 SingleRAN networks among which 28 were commercial LTE/EPC networks

·         Established its Cyber Security Evaluation Centre in the UK

·         Signed a Voluntary Green Agreement with the China Ministry of Industry and Information Technology (MIIT)

·         Joined the UN Broadband Commission for Digital Development

·         Awarded the"2010 Corporate Use of Innovation Award" by The Economist

 

Year 2009

·         Ranks No.2 in global market share of radio access equipment

·         Successfully delivers the world' s first LTE/EPC commercial network for TeliaSonera in Oslo Norway

·         Launches the world' s first end-to-end 100G solution from routers to transmission system

·         Receives "2009 Corporate Award" from IEEE Standards Association(IEEE-SA)

·         Receives the Financial Times' Arcelor Mittal Boldness in Business award for performance in and contribution to emerging markets and ranks the fifth most innovative company in the world by Fast Company

·         Achieves a year-on-year decrease of more than 20% in resource consumption by Huawei's main products; deploys over 3,000 sites powered by alternative energies around the world

 

Year 2008

·         Recognized by BusinessWeek as one of the world' s most influential companies

·         Ranks No. 3 by Informa in terms of worldwide market share in mobile network equipment

·         First large scale commercial deployment of UMTS/HSPA in North America, for TELUS and Bell Canada

·         Ranks No. 1 by ABI in mobile broadband devices having shipped over 20 million units

·         Largest applicant under WIPO's Patent Cooperation Treaty (PCT), with 1,737 applications published in 2008; accounts for 10% of LTE patents worldwide

 

Year 2007

·         Establishes joint venture with Symantec, to develop storage and security appliances

·         Establishes joint venture with Global Marine, to provide end-to-end submarine network solutions

·         A partner to all the top operators in Europe at the end of 2007

·         Won 2007 Global Supplier Award by Vodafone. Was the only network equipment supplier to be awarded this specific accolade

·         Unveils its ALL IP FMC solutions strategy designed to leverage distinct benefits for telecom carriers, from TCO savings to reduced energy consumption

 

Year 2006

·         Divests 49 percent stake in H3C for USD880 million

·         Establishes Shanghai-based joint R&D Center with Motorola to develop UMTS technologies

·         Introduced new visual identity (VI). The new VI reflects our principles of customer-focus, innovation, steady and sustainable growth, and harmony.

 

Year 2005

·         International contract orders exceed domestic sales for the first time

·         Selects as a preferred telecoms equipment supplier and signs Global Framework Agreement with Vodafone,

·         Selects as a preferred 21Century Network (21CN) supplier by British Telecom (BT) to provide multi-service network access (MSAN) components and optical transmission equipment

 

Year 2004

·         Establishes joint venture with Siemens to develop TD-SCDMA solutions

·         Achieves first significant contract win in Europe valued at over USD25 million with Dutch operator, Telfort

 

Year 2003

·         Establishes joint venture with 3Com focusing on enterprise data networking solutions

 

Year 2002

·         International market sales reaches USD552 million

 

Year 2001

·         Divests non-core subsidiary Avansys to Emerson for USD750 million

·         Establishes four R&D centers in the United States

·         Joins International Telecommunications Union (ITU)

 

Year 2000

·         Establishes R&D center in Stockholm, Sweden

·         USD100 million generates from international markets

 

Year 1999

·         Establishes R&D centre in Bangalore, India, which achieves CMM level-4 accreditation in Year 2001 and CMM level-5 accreditation in Year 2003

 

Year 1997

·         Launches wireless GSM-based solutions

·         Expands into metropolitan areas of China in Year 1998

 

Year 1995

·         Generates sales of RMB1.5 billion in Year 1995, mainly derived from rural markets in China

 

Year 1992

·         Initiates R&D and launches rural digital switching solution

 

Year 1990

·         Embarks on independent research and commercialization of PBX technologies targeting hotels and small enterprises

 

Year 1987

·         Establishes in Shenzhen with as sales agent for Hong Kong company producing Private Branch Exchange (PBX) switches  .Huawei was founded by Ren Zhengfei in 1987, with an initial registered capital of RMB21,000.