This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gruia: Stop the Cheap Shots at Huawei

Stocks in this article: S ERIC SYMC

NEW YORK ( TheStreet) -- This month marks the tenth anniversary of the departure of my beloved father, from whom I was fortunate to learn a wide range of things - law and philosophy among them. On one occasion, my father taught me the concept of argumentum ad absurdum, (from Latin, it literally means "argument from absurdity"), a line of reasoning that demonstrates a false statement by showing the absurd or untenable results that would logically follow from its acceptance.

Such an argument comes to mind when considering the treatment that Chinese telecom vendors are getting in the U.S. Despite no "smoking gun" evidence of any wrongdoing, Huawei has been judged to pose a security risk to the U.S. because its infrastructure could allegedly be used to spy on Americans. This security threat scenario has been a prevalent theme in U.S. press reports following investigations by U.S. House committees.

The U.S. government made clear its antipathy toward Huawei in the fall of 2010 when it actively lobbied Sprint (S) not to select the Chinese telecom equipment maker to help build the operator's LTE network.

First, the facts: Huawei, which posted 2012 revenue of $35.4 billion, has eclipsed Ericsson as the world's largest telecom equipment. That's a long way from the company's inception twenty five years ago as a one-room workshop in a fishing village near Hong Kong. That village, Shenzhen, is now among the largest and most prosperous cities in China.

Secondly, Huawei has become the leader in the growing 4G Long-Term Evolution (LTE) market. According to the Global mobile Suppliers Association (GSA) in 2012, a total of 97 service providers announced various LTE commercial contracts. Huawei was the top vendor in terms of total confirmed contracts awarded with 41, easily topping Ericsson (ERIC) at 23, according to Frost & Sullivan estimates.

Huawei's LTE customer list is an enviable: Telenor, Vodafone (VOD) (Germany, Italy), T-Mobile (Germany, Hungary), Telefonica/O2 (Czech Republic, Germany), Bell and Telus (Canada), Yota> (Russia), Softbank (Japan), Bharti Airtel (India), Optus (Australia), Everything Everywhere (UK) and TIM (Italy). Huawei has clinched at least one Tier-1 operator LTE win in every G-7 country except the U.S.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs