The Huawei Way by Yang Shaolong

The Huawei Way by Yang Shaolong

Author:Yang Shaolong
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2017-04-15T04:00:00+00:00


CDMA

In 1996, Huawei had two choices as it decided to take its forces into the field of mobile telecom. These were the two mainstream international technologies: CDMA and GSM. CDMA was the American system. With good connectivity and slight radial variation, it had considerable technological content. GSM was the European system. Also known as Global Connect, this technology was slightly inferior but the R&D involved was also simpler.

Huawei was financially incapable of having two systems running in parallel, so Ren made the decision and chose GSM. He then assembled a team of experts to do the research and development. Within two years, they had broken through the technology and had the results appraised and approved at the national level.

In February 2000, as the date approached for China’s formal entry into the WTO, China and Qualcomm signed a “framework agreement” for investing in building CDMA.

Once this news became known, Huawei, which did not have CDMA, urgently pulled together several hundred developers for an all-out effort to “break through” or reverse-engineer, the technology. During the spring holiday period of 2000, they shut themselves into the offices on Shiyan Lake in Shenzhen and worked day and night to crack the code. Achieving a complete breakthrough was difficult due to the CDMA technology itself. On May 21, 2001, therefore, Huawei decided to join forces with Motorola when China’s Unicom CDMA issued a call for bids, with as much as RMB 100 million in business at stake. Since many of the functional standards did not meet the requirements of the Unicom network, however, Huawei was only able to get some orders, for mobile switches. After the lessons of this defeat, Huawei renewed its efforts and fought for another year to crack the technology. Not only did it then break through the full set of CDMA technology, but also it put out a higher version of CDMA 2000. Various provinces and municipalities in China tested the technology and confirmed it as being at the cutting edge of international standards. Since Huawei had not won the first tender, however, it was unlikely that Unicom was going to choose it on the second tender. The company was not going to dismantle everything it had bought in the first tender and switch it over. Therefore, as Unicom CDMA finished its second tender in November 2002, for business in excess of RMB 20 million, Huawei lost out yet again.



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