Huawei hopes to capture bigger market share in managed services

SINGAPORE - Huawei, one of the world's leading telecommunications equipment and solution providers, is hoping to capture a bigger share of the market in managed services, senior executives of the company said on Wednesday.

It will try to win new contracts by helping the operators focus on end user experience and generate more revenue, they said at the industry event CommunicAsia in Singapore.

Huawei now has accumulated over 240 contracts in managed services for over 100 operators in more than 60 countries and regions, with a compounded annual growth rate of more than 70 percent over the past six years.

It has recently signed managed services contracts with leading operators such as Sunrise, Telefonica UK and SingTel.

Huawei hopes to capture more of the new contracts so as to achieve economy of scale, said Wei Bing, head of marketing, Assurance and Managed Services, Global Technical Service, Huawei.

Huawei was selected as the exclusive managed service provider for Indonesian operator PT XL Axiata Tbk (XL) in February this year, with about 1,200 employees moved to a local unit of Huawei.

Ongki Kurniawan, chief service management officer of XL, said the transition has been smooth.

The ever more rapid development of telecommunications technology makes it more challenging for the operators to manage their network while focusing on delivering innovative services to the customers, he said.

The partnership allows XL to "differentiate ourselves in the market by delivering new and innovative services to our customers, while improving the quality of our network and effectively managing future challenges," he said.

Lu Bing, a senior manager of Huawei, said Huawei takes over the network management operations from the operators not only to help them cut the cost in the traditional sense, but to enable the operators to provide more and better services and help them generate more revenue.

"We ... create more value for the operators," Lu said.

XL was aspiring to transform itself and become the No 1 in service quality and double its revenue with four times of users within three years starting from last year.

The strength of Huawei lies in its capability to provide services covering fixed and mobile network, and equipment and devices, and it has been trying to transform itself to focus more on end user experience, senior executives of the company said.