Huawei Wants More Video Router Business (CSCO, JNPR, COMS)

By Douglas A. McIntyre Updated Mar 23, 1:32PM EDT · Published Jun 16, 1:32PM EDT

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Huawei Technologies Co., Ltd. is one of the inaccessible companies to invest in for Americans. Yet it runs head to head against Cisco Systems Inc. (NASDAQ: CSCO) and other router and backbone giants for business in the global networking push. Today, the company announced the launch of its new NetEngine V6 400G-platform universal service router at CommunicAsia in Singapore. This also competes with Juniper Networks, Inc. (NASDAQ: JNPR) and the company was tied with 3Com Corporation (NASDAQ: COMS) in China for some time via H3C.

Will this kill Cisco? No of course not. But it is one more move toward carrier-grade solutions with faster speed and more efficiency over the old legacy routers that are still powering much of the web’s infrastructure.
Huawei’s router has a capacity of 400 gigabits per slot and is fully compatible with all existing NE40E router linecards. The company noted that it is substantially faster, greener and more intelligent than similar platforms in the industry and it is designed to handle the increasing high-definition video streams.

The company also said that it has the lowest power consumption per GE/10GE, about 10% less than similar products in the industry. It also claims 960 GE ports per chassis as well as full backward compatibility with all line-cards.

The NE40E USR is also said to be capable of integrating the functions of BRAS, GGSN, DPI, SBC, video real-time monitoring and stream cache technologies to offer more flexibility during network deployment. It also comes with an integrated Value-added Service Engine (iVSE) unique in-line Real-time Stream Monitoring (iRSM) and comprehensive clock sync solutions.

To show how this company has grown, the company gave a figure from Infonetics showing that Q1-09 report showed Huawei with a market share of 14.3% with strong growth in the global router market. The company also claims to serve 36 of the world’s top 50 operators, along with over one billion users worldwide.

Jon C. Ogg
June 16, 2009

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.