Huawei denies sale report

Huawei Technologies Co., China's biggest telecom equipment maker, denied a Financial Times report last week that it was trying to offload some of its hardware units, including its access and optical products.

"We would like to clarify that Huawei has no intention of selling off any part of its business," the Shenzhen-based company said.

"By the end of 2004, Huawei had completed a restructuring to converge the business units of optical network, access network, datacom and switches under the Network Product Line to provide customers with an innovative, total end-to-end solution, which includes the optical and access divisions. The restructuring demonstrates Huawei's business and development strategies and validates the speculation as having no basis."

A Huawei spokesman denied the Financial Times report and said optical fiber and Internet access equipment were two of Huawei's most profitable units and therefore there was no reason for them to be sold.

He said that Huawei was in a leading position in the domestic optical sector, occupying 61 percent of China's total market. In the Internet access equipment sector, Huawei was one of the world's top three market holders, holding 14 percent of the asymmetric digital subscriber line (ADSL) market. ADSL is the leading network access equipment for individual users.

In line with its huge ambitions for the overseas market, Huawei is taking active moves to consolidate its business and enhance its overseas partnerships.

Huawei reached a distribution agreement with Britain's Marconi Co. last week to help extend its reach in Europe. Additionally, prior to that deal, it set up a joint venture agreement with Germany's Siemens AG to cooperate in the third-generation (3G) mobile phone, network development and sales.

Source: Shenzhen Daily-Agencies