Huawei Hoping For Brazil Boost
Huawei Technologies has partnered with the National Institute of Telecommunications (Inatel), to launch its Hana (Huawei Authorised Network Academy) training courses. The classes are focused on LTE networks and will help to increase the number of technical laboratories throughout Brazil, by training local students. BMI believes the move reflects a larger strategy to push for expansion in Brazil and throughout the Americas region, as it diversifies its presence into education, government and enterprise markets.
Huawei established its first office in the Latin America region in Brazil in 1999, although its regional headquarters are now in Mexico City. In June 2012, the company forecast revenues for its Brazil operations to reach US$5bn by 2016, an ambitious target as the whole of Huawei's Americas division accounted for a little more than US$5bn in 2012. The prediction followed the opening of a distribution hub in the Brazilian city of Sorocaba, consolidating its operations in 11 regional cities to cater to the growing Latin America market. The centre involved an initial investment of US$60mn but will allow the company to deliver more than 10,000 products a month by producing smartphones and tablets locally. The centre will be able to serve Peru and Chile, as well as Brazil's growing IT market ( see our online service, June 12 2012 'Chinese Firms Target Booming IT Services Market'). A US$300mn investment in a R&D facility in 2011 is another important example of the importance of Brazil to Huawei's strategic focus.
In July 2012, Huawei was selected by the government to expand access to broadband internet to rural areas, in exchange for tax breaks, as the Brazilian government aims for universal access to telecoms services. With huge one-off sporting events in 2014 and 2016, and the Brazilian National Broadband Plan (PNBL), the government has been proactive in pushing forward with 4G LTE, benefiting vendors as operators are forced to upgrade networks to 4G. The government also requires that 60% of goods and products used in new networks be locally produced from 2012-2014, rising to 65% from 2015-2016 and 70% from 2017 to 2022. By launching its Hana training courses, distribution centre and R&D laboratory, Huawei should be able to ensure it meets these targets, and will provide benefits to its regional operations through consolidated operations.
|Americas Division Experiences Slowest Growth|
|Revenue By Region, 2012 (CNYmn)|