Why the UK? Demy...

  • 2022-09-24 22:06:10

Why the UK? Demystifying the three keys to Huawei's transfer market

Recently, the minutes of the interview with Huawei Ren Zhengfei by the British media BBC last month were once again heated up...

"The British government has concerns about Huawei, but it does not affect Huawei's investment in the UK."

"If the US does not trust Huawei, Huawei will divert investment to the UK on a larger scale."

This is what Ren Zhengfei said in an interview with the BBC, pointing directly to Huawei's future development layout.

Huawei wants to invest in the UK, but isn't the UK also suspicious of Huawei? The world is so big, Ren Zhengfei is optimistic about the UK?

Three reasons for switching to the UK

First of all, we have seen in the interview minutes that Huawei and the British government have very good cooperation. Huawei has also placed the security certification center in the United Kingdom, and has taken the initiative to open everything to the British government for viewing, giving the UK the right to monitor, so the British The OB report did not completely deny Huawei. The move of non-denial is also in line with Ren Zhengfei's impression that the UK is very friendly to China. The UK that chooses to trust Huawei, which is automatically "open and transparent", will of course become the country that Huawei will consider first.

Furthermore, according to public information, Huawei has cooperated closely with British universities and institutions since 2014, and has established research centers in Edinburgh, Bristol, and Lipswich to train technical talents. A research group will also be established in Cambridge in the near future with British Telecom BT. Ren Zhengfei said that these research centers will continue and will not be evacuated. I am afraid that no one will leave. In recent years, Huawei's scientific research expenditure in the UK has accounted for 10% of its annual revenue. How can large investment in scientific research and technology training talents easily make wedding dresses for others? The UK is good at innovation, and China has a market, which is also a key point for Huawei to choose the UK.

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In addition, there has long been a "base" in the UK. Huawei set up an office in the UK in 2001 and currently has 1,500 employees in the UK. And recently bought 500 acres of land in Cambridge to build a light chip factory, creating 7,500 jobs directly and indirectly for the UK. While Huawei has expanded its business in the UK, it has also created more employment opportunities for the UK, which the UK is of course willing to accept.

The bridgehead of electronic information and communication technology

The UK is one of Huawei's earliest international markets

Back in 2001, Huawei opened its first office in the UK. At present, it has set up 15 offices in the UK and has more than 1,500 employees, 70% of which are local employees in the UK.

Take most of the market share

According to recent data from Statista, BT and its EE account for 28% of the UK telecommunications market, O2 is the second largest telecommunications company in the UK, accounting for 26%, and later Vodafone accounts for 21%. Three UK" accounted for 12% of the market.

Huawei has cooperated with all four major mobile operators in the UK on LTE, and is also the main LTE supplier of EE, Vodafone and Three UK. Huawei in the 4G era has already won most of the UK's market share.

The future layout has the United Kingdom

In February last year, Huawei officially announced that it would invest an additional 3 billion pounds (about 26.6 billion yuan) in the UK in the next five years to expand its office locations and add more jobs.

Huawei's plan was of great significance to the United Kingdom, which was in urgent need of large financial support in the "Brexit" plan at that time. Regardless of whether the United Kingdom finally "leaves the European Union" or not, Huawei and the United Kingdom have forged a good relationship. The United Kingdom has also become an important breakthrough for Huawei's "global containment" dilemma from the United States.

Recognized by multiple operators and signed a large 5G order

British operator O2, British Telecom's EE, and Vodafone have begun testing Huawei's 5G equipment.

Although the rumors surrounding Huawei have not stopped, it has little impact on its business in the UK. After all, business and profits have never been divided into countries, and Huawei has also won a large 5G order in the UK.

Three UK, a subsidiary of Li Ka-shing, has recently signed a network architecture contract of up to 2 billion pounds with Huawei, and plans to build a 5G network across the UK and strive to officially operate in 2019.

In December last year, Huawei officially announced that it had signed 25 5G commercial contracts worldwide (including 3UK in the United Kingdom, TIM and Fastweb in Italy, and Monaco Telecom), and shipped more than 10,000 sets of base stations, covering more than 10 countries and regions.

In addition, in December 2018, British Telecom BT publicly stated at the London Global Mobile Broadband Forum that only Huawei is a true 5G supplier, and other companies still need to catch up with Huawei's 5G technology.

Buy land in Cambridge, next to ARM

In January, the British media announced that Huawei spent 37.5 million pounds (about 330 million yuan) to buy this piece of Sawston, located in the south of Cambridge, UK, from the American biotechnology company NWBio, covering an area of 550 acres (about 223 hectares, 2.23 million square meters). m) for the construction of a new UK R&D centre.

Cambridge, UK, is also the birthplace of ARM, the world's leading provider of semiconductor intellectual property (IP).

The ARM microprocessor that we often say is the microprocessor that adopts ARM technology intellectual property rights (IP core), and it is used in various product markets. More than 95% of smartphones and tablets worldwide use ARM. Microprocessor applications based on ARM technology occupy more than 75% of the market share of 32-bit microprocessors. It can be said that ARM is at the core of the development of digital electronic products.

Why is Huawei 5G being targeted?

5G is the fifth generation of communication technology. Its main features are millimeter-level wavelength, ultra-wideband, ultra-high speed, and ultra-low latency.

In Huawei's "Top Ten Application Scenarios in the 5G Era", Huawei believes that the ten most widely used scenarios for 5G in the future are: cloud VR/AR, Internet of Vehicles, smart manufacturing, smart energy, wireless medical care, and wireless home entertainment. , connected drones, social networks, personal AI assistance and smart cities.

This means that 5G networks will determine the future development of the AI era. Leading in 5G technology also makes Huawei a "thorn in the side" of the United States.

UK 5G progress

According to previous reports from the Financial Times, Huawei is absolutely leading in 5G technology, commercial use, and industry, and has been ahead of other equipment manufacturers in the industry for more than a year. It is currently the only manufacturer in the industry that can provide an end-to-end 5G system.

There are four major operators in the UK, namely O2, Vodafone, EE and Three UK under BT Group.

The United Kingdom is the first country in Western Europe to issue 5G licenses, and Huawei's 5G technology is considered to be the most mature. British Telecom has previously admitted that Huawei's equipment is more advanced than competitors Nokia and Ericsson. Therefore, in terms of 5G technology, there is no suspense in the cooperation between Huawei and operators.

Not shutting out Huawei has given the UK a certain advantage in 5G technology.

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