Friday, September 1 2006 16:34 Hrs (IST) - World Time -

Bangalore: With a cumulative investment of $100 million, Huawei Technologies India, the largest overseas software R&D subsidiary of the Chinese telecom major, has expanded its operations here with plans to take its workforce to 1500 people by yearend.

The expanded operations will be used to develop optical network products and wireless LAN (local area network) solutions for its global customers.

The new R&D facility will focus on new generation Optix series of intelligent optical network products, based on cutting-edge technologies. Huawei's optical solutions are deployed by leading operators telecos providing IPTV (internet protocol television) services, triple play (high-speed Internet, television and voice) services, mobile services and leased line services to their customers, worldwide.

"The optical network products will be initially designed and developed here for our leading customers such as Fibernet and Viatel in the UK, NEUF in France, DFN in Germany and Telemar in Brazil," a company official told sources.

As the first and the only major Chinese software development facility in India, Huawei has been engaged in developing next generation network, data communication, telecom middleware, intelligent network, mobile handset, server and security network over the last six years.

"Since we have entered India in 1999, we have made a cumulative investment of $100 million in setting up three operational facilities in Bangalore for software development and R&D activities, besides a marketing division for selling our products to leading Indian telecos in mobile as well as landline space," said Huawei India COO George Huang.

About 200 lateral techies will be working on optical networks and wireless LAN solutions. Going forward, the subsidiary plans to deploy an additional 300 engineers to broaden its portfolio in new domains such as wireless switch and wireless access points products.

According to Ovum-RHK, a global telecom consulting and marketing research firm, Huawei's optical network has been ranked second in the global optical network market in 2005, and number one in the Asia-Pacific optical network market over the last five years.

In 2005, the Indian subsidiary generated $127 million from its marketing operations.

With a high retention level, the company has ramped its headcount to 1,200 people this year and plans to hire another 300 techies by December. Interestingly, about 40-50 Chinese engineers from its four R&D centres in China are on deputation to India for training and project development.

"We provide our engineers an opportunity to work on cutting edge technologies and engage in the development of products/components in wireless LAN domain and optical domain," George pointed out.

Huawei India vice president and head of embedded solutions Virendra Gupta said the R&D and SDC (software development centre) activities cover end-to-end ownership of products ranging from front-end process line and system conceptualisation to software development, testing and delivery.

The subsidiary is in the process of setting up a dedicated campus in a 20-acre land at Whitefield on the outskirts of Bangalore by 2008.

"Our parent company has applied to the Indian government for FIPB (foreign investment promotion board) clearance to set up a production facility in India's silicon hub at an estimated cost of $100 million for manufacturing products and equipment for telecom infrastructure of service providers in the subcontinent, spanning broadband, 3G, CDMA and backbone networks," George hinted.

With presence in 100 countries across North and South Americas, Europe, Africa, Middle East and Asia-Pacific, Huawei manufactures products and solutions for about 300 telecos, including 28 of the top 50 operators, serving over one billion users worldwide.

About 60 percent of Huawei's revenues are generated from outside China. Besides four R&D centres in China and one in India, the company has two R&D facilities in the US and one each in Sweden and Russia. About 50 percent of its total employees (44,000) are involved in software development, chip design, embedded software and R&D projects.