Telecom network vendor Huawei on Thursday said it will be investing over $4 billion in fixed broadband (FBB) technology research and development over the next three years.
Huawei’s plans to invest significantly in fixed broadband technology reflects a report from Dell’Oro Group that said wireline telecom markets will grow at a CAGR of 3 percent against 1 percent growth for wireless between 2013 and 2018.
In August, Dell’Oro Group said the combined service provider equipment markets will grow at a CAGR of 2 percent between 2013 and 2018 — after recording a CAGR of -1 percent between 2008 and 2013.
Huawei said the $4 billion investment will focus on products and solutions which will support their customers with providing an improved service experience for end users.
Huawei Products and Solutions President Ryan Ding said: “Our investment will further develop technological advances, help customers increase their competitiveness and decrease overall operating costs.”
Existing technologies are changing, next-generation High-Efficiency Video Coding is maturing, 4k panel and content production costs are reducing and the development of the 4k video industry, are all driving new solutions.
As LTE and 5G deployment continues, construction of high-performance networks which guarantee better customer experience will be expected by telecom operators. Huawei said FBB technologies will be progressed by leveraging big data, data centers and cloud computing to meet their needs.
Tam Dell’Oro, president and founder of Dell’Oro Group, said: “While we believe carriers will continue to enhance their wireless networks, we anticipate carriers will put more emphasis on backhauling traffic which means improving their fixed line networks in the next five years.”
Huawei today said it will innovate Software Defined Networking (SDN), Network Functions Virtualization (NFV) to initiate open broadband networks that help customers simplify operations and management, realize service innovation and improve network efficiency.
For next-generation networks, Huawei will conduct research and develop on new key technologies and architectures for IP and all-optical networks, advancing FBB network development.
Fixed LTE broadband access gains
At present, 1.26 billion households do not have DSL, cable, or fiber-optic broadband. Fixed and mobile telecoms are looking to LTE to make the connection.
“By the end of 2014, there will be 14.5 million residential and commercial premises with fixed LTE broadband access. By 2019, that figure should grow to 123 million,” said Jake Saunders, VP and 4G practice director at ABI Research.
ITU pitches for broadband
ITU, a telecom industry association under the aegis of UN, says more than 40 percent of the world’s people are already online, with the number of Internet users rising from 2.3 billion in 2013 to 2.9 billion by the end of this year.
Over 2.3 billion people will access mobile broadband by end 2014, climbing steeply to a predicted 7.6 billion within the next five years.
ITU says there are now over three times as many mobile broadband connections as there are conventional fixed broadband subscriptions.
Huawei on green telecom
Meanwhile, Eric Xu, Rotating chief executive officer, Huawei, said: “Huawei is committed to socio-economic and environmental sustainability. We leverage our expertise to bridge the digital divide and deliver high-quality digital connectivity for all.”
“We always honor our commitment to supporting secure and stable network operations anytime, anywhere. We contribute to low-carbon economies by helping customers and industries improve productivity and reduce energy consumption,” said Xu at the sixth Global Supplier Sustainability Conference in Shenzhen, China.
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