Not only do customers need products and technology, but more importantly, they need solutions that can bring them success in their business. Huawei has already made the transition from being technology-oriented to being driven by customer requirements, from solely providing products to offering complete end-to-end solutions, allowing the development of our products to be driven by our customers' success.
We continuously work towards improving our ability to innovate based on our customers' needs. Huawei has been investing a minimum of 10% of our annual revenue into R&D, with 10% of that investment used for pre-research to stay at the forefront of new technologies and breakthroughs. At present, Huawei has already successfully rolled out products and solutions in areas including FMC, IMS, WiMAX and IPTV.
In addition, we have re-structured the organizational framework of our product line, in anticipation of future network convergence and industry transformation. Huawei provides complete end-to-end solutions in areas including the service and application layer, core layer, bearer layer, access layer, and terminals, thereby offering our customers distinct advantages to face network convergence.
By focusing on key network technologies, Huawei has formed core technology systems for systems architecture, hardware, software and ASIC design. Also, we currently hold leading positions in areas such as mobile softswitch, UMTS, super-long-haul DWDM, MSTP, NGN, MSAN, IP telecom network, IP DSLAM, intelligent network and signaling network. Huawei has also become one of the leading providers in CDMA, 3G terminals, intelligent optical network ASON, core routers and switching. In addition, we have invested heavily in the development of our ASIC chips. At present, we have developed over 100 types of ASIC chips including UMTS baseband and HSDPA chips, optical network chips, router chips, and broadband access chips, greatly improving the system's capabilities and thus enabling us to offer unique advantages at a lower cost.
We are introducing the world's best R&D management models into our company and strengthening the support of our broad and shared platforms. Through the Marketing-PMT-IPMT-IRB framework, Huawei changed our product development and planning process, and gradually solved challenges involving the effectiveness of decision-making. Using CBB (a hardware and software sharing module), we established a technology sharing system that comprises various layers such as system design, platform, modules and components. With the experience gained from eight years of CMM implementation, we established a large and sophisticated software engineering management system. Meanwhile, we also introduced the fundamental ideas of CMM into our hardware quality management system. Most of our software development research institutes have already passed CMM level-5 certification.
Huawei also promotes standardized, component-based and platform-specific management in our research and development, and simplified the structure of our systems and organizational framework to prevent the leakage of technology. With an asynchronous development method, we coordinate development progress at various levels, manage the time-to-market of our products and speed up our response time to market demands.
Standards & Patents
Huawei actively participates in 83 international standardization organizations including ITU、3GPP、3GPP2、OMA、ETSI and IETF. Meanwhile, Huawei's representatives have been elected to positions in various organizations, including vice chair of ITU-T SG11, chair of 3GPP SA5 , vice chair of RAN2/CT3, vice chair of 3GPP2 TSG-C WG2/WG3, vice chair of TSG-A WG2 ,chair of ITU-R WP8F Technical Group , vice chair of OMA GS/DM/MCC/POC , Board Member of IEEE CaG etc.
Through our active participation in these groups, Huawei is committed to realizing the vision of network convergence, where communications and networking services are genuinely merged together.
By June 2008, Huawei had filed 29,666 patent applications. By the end of 2007, we had held 7% (152 patents) of the world's UMTS essential patents, ranking amongst the top five in the world.
