This Day On The Street
Continue to site
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

Gruia: Stop the Cheap Shots at Huawei

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 - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ERIC $8.10 -1.40%
S $3.44 -3.90%
SYMC $16.64 -1.30%
AAPL $93.75 -1.10%
FB $117.53 0.69%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs