InterDigital Inc (IDCC)

[nieves]

Insiders: Cisco Sueing Huawei for Monopoly


CHINA, Jan 31, 2003 (SinoCast via COMTEX) -- Now world IT industry is watch the
case of Cisco sueing Huawei Technologies Co., Ltd. for infringement of
intellectual property rights.

However, some domestic industrial executives point out that the real purpose of
Cisco is to beat another rival, Huawei, so as to maintain its dominant market
share in the market.

Although Huawei has not become a full fledged competitor to Cisco, it has such a
potential. As a telecommunication equipment vendor, Huawei now provides a
variety of products including data transmitting, software, broadband, photon
network, exchanger, MMS, WLAN, 3G, NGN, and OSS. It is clear that the coverage
of Huawei's products is getting closer to that of Cisco. It would not be
surprising if Huawei became the 2nd Cisco.

The CEO of Cisco also admited that Cisco is facing severe challange from some
Asian telecom equipment vendors, including Huawei.

Besides, Huawei's market share is growing. In 2001, it was listed as the 2nd
largest software exporter of China with USD 48.91 million. By October 2002,
Huawei's high-end router, Quidway NetEngine serises have been widely implemented
in tens of industries, such as carriers, finance, governments, education, and
power. There are total 1600 Quidway NetEngine products in use now, with a market
share of 25%. They spread in over 40 countries, including Germany, Spain,
Brazil, Russia, Thailand, Singapore, and South Korea. As a merging high-end
router vender, Huawei is marching towards US.

After the lawsuit took place, Huawei has kept a low profile. It only emphasized
in an announcement saying that Huawei and all its subsidiaries respect others
intellectual property rights. It has its own core technology, but it respect all
laws and regulation of local area where it operates.


From Source: China Business Time page 3, Thursday, January 30, 2003
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Copyright (C) 2003 SinoCast, All rights reserved

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KEYWORD: CHINA
INDUSTRY KEYWORD: Marketing
Investment
SUBJECT CODE: Computers, Telecom and Information Technology

(Wall Street)





Daniel Nieves