4G network investment pays off for Huawei

Huawei Technologies Co said it will achieve sustainable growth this year after posting a 19 percent revenue growth in the first half.

The world's No. 2 telecom equipment maker's revenue was 135.8 billion yuan (US$21.9 billion) in the first six months of this year, with an operating profit margin of 18.3 percent.

"Driven by increasing investment in (4G) LTE networks worldwide, Huawei has further solidified its leadership position in mobile broadband," Huawei's CFO Cathy Meng said in a statement yesterday.

"Rapid growth in software and services helped maintain steady growth in our carrier network business," Meng added.

The smartphone business has also become a new income engine for Huawei, which has launched flagship model P7 in 70 countries and regions, the statement said.

China will become the world's biggest regional 4G network with more than 700 million 4G users, accounting for 25 percent of the global level, according to Ericsson, the world's biggest telecommunications equipment maker.

All three Chinese carriers have launched LTE (long-term evolution) network in major cities nationwide, which offer users 4G network for high-speed data services such as mobile film and video conference.

Combined with smart-phone business, Shenzhen-based Huawei surpassed arch rival Ericsson for the first time last year after it posted an 8 percent rise in revenue to 239 billion yuan.