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Huawei to launch 3G network product made in India

Fakir Chand in Bangalore

Emerging unscathed from the 'Taliban' controversy that clouded its Indian operations recently, Huawei Technologies Ltd of China will be launching this year the third generation 3G-network management product with the software solution that has been designed and developed entirely by its Indian subsidiary in Bangalore.

To be branded SoftX2000, the next generation product will be put on beta testing from April and formally launched during the second or the third quarter of the current year, by which time the much-battered telecom market is expected to see a gradual revival, worldwide.

"The SoftX2000 solution will virtually revolutionise how telecom and mobile networks will operate hereafter. We are proud to declare that this particular 3G switch has been wholly designed and developed right from the conception stage by Indian engineers at our Bangalore center," declared Huawei India chief operating officer Jack Lu Ke on Wednesday.

Elaborating on the contribution being made by Huawei India to its parent company as the largest R&D center outside China, Jack said the SoftX2000 would not only enable mobile handsets to conduct video-conferencing through wireless network management (read NetWare) from anywhere and anytime to anyplace, but also improve the quality of multiple services provided by telecom players in the fixed arena.

"Huawei is ahead of other 4-5 telecom players like Alcatel, Siemens, Nokia, and two middle level US companies to engage in such next generation network management solutions, and will be the first one off the block to launch the product this year after beta testing.

Right now, many Indian engineers are working on the system integration of SoftX2000 at Huawei's global R&D facility at Shenzhen in China.

Unlike the traditional switches, the 3G network will change the way the industry will use the Internet Protocol as it is also PC enabling with high level of automation and control systems for Internet content providers to offer e-transaction facilities with fool-proof security," Jack stated.

Huawei India is also working in the other next generation technologies such as wideband switching, embedded systems, wireless infrastructure, data communications, intelligent networks, and IP applications like VoIP.

Its 505 engineers, including around 170 Chinese professionals are working in the three domain areas of: Fixed Network Solutions, including switching systems, transmission systems, and optical access networks; Mobile Network Solutions to provide operators with total solutions on the service, transmission, and support layers of mobile networks; and Data Communication Network Solutions to provide total data solutions covering a vast array of product series ranging from ATM to IP and core switching to edge access.

"Broadband packetisation and personalisation of networks are the trends of the future. We are concentrating our efforts in developing these technologies for the benefit of our global customers. We will also be working on high-speed packet switching, the core of the 3G network for the deployment of the core network switching platform," Jack affirmed.

In order to further consolidate and expand its Indian operations, the subsidiary will be investing an additional $30 million during this year for ramping up its infrastructure facility and recruit 300 more Indian techies to take the total strength to around 850 employees.

Interestingly, unlike in the recent past, Huawei will not be bringing anymore-Chinese professionals to India for training as it has already trained a couple of hundreds during the last 18 months in batches of 100-150. Allowed entry into India only on business visas of 1-3 months, about 60 Chinese engineers are left working as of now.

Asked whether the Indian government has been reluctant to give employee visa to its Chinese nationals for migrating and training or working in India in the wake of the recent inquiries by the Intelligence Bureau into its operations, Jack told rediff.com that as a policy the parent company had decided to recruit hereafter only Indian geeks even at the management or project/product development work.

"Our long-term goal is to have about 2,000 professionals working at our Indian facilities with investments going up by 60 percent every year," Jack, adding that till date the parent company had invested around $70 million in its Indian operations through its Honk Kong-based investment subsidiary.

Referring to the ongoing partnership work with leading Indian software companies like Infosys, Wipro, Sasken, Satyam, and 10 others, Jack said we had outsourced $14-million worth work from these partners, and would be stepping up the relationship to increase outsourcing by 15-20 percent this year in the areas of network management, VoIP protocol, and next generation communication solutions.

Though Huawei India is a cost center, it has generated revenue of $12 million during its calendar-cum-financial year 2001, and has set a target of turning out work that will be valued at $32 million.

"We want every employee of Huawei in India to generate about $50,000 per year so that we will be able to take the revenue figure at $100 million with 2,000 techies during 2005," Jack claimed.

Globally, in spite of the economic slowdown and virtual collapse of the telecom market, Huawei increased its global sales by 16 percent during the fiscal year 2001, and posted a revenue of $3.83 billion against $2.66 billion in the previous year.

Outside China, the company had a whopping growth of 156 percent to generate around $328 million. Instead of benching and lay-offs, Huawei continued to recruit more employees during 2001.

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