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Wednesday, 23 April 2014 10:45

Huawei ups investment by 14 per cent

Written by Nick Farrell

Mostly in LTE, 5G and cloud

Huawei expects investment in information technology to rise 14 percent in 2014. Fan Chen, vice president of accounting, told an analyst conference in Shenzhen, China his outfit will be investing in LTE (Long-Term Evolution), 5G and cloud computing technology. Huawei, the world's third-biggest smartphone manufacturer, had 34 percent profit growth in 2013 and has targeted 2018 revenue to almost double the record reaped last year.

LTE investment makes a lot of sense as China upgrades its mobile networks to handle the new technology. Huawei began investing in 5G in 2009 and is spending a small fortune on developing the technology. As such it is expected to clean up in Europe when the technology comes out. Its aim is that the first commercial 5G networks will be up and running by 2020, and will offer data speeds of around 10Gbps, which is approximately 10 times faster than 4G.

However, Huawei stated that there must first be a successful global deployment of LTE 4G before 5G can be made a reality. Huawei is already helping with the European rollout of 4G in countries like Sweden and Norway. Huawei expects its enterprise business revenue to reach $10 billion in five years, said Xu, from roughly $2.45 billion in 2013.

Its carrier business, where revenue growth is slowing, will shrink to 50 to 60 percent of its total revenues in 2018 from about 70 percent last year. Huawei's global service business, part of its carrier operations, is predicted to grow 17 percent in 2014, from $8.34 billion last year.

 

Nick Farrell

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