• Friday, Feb 21, 2020
  • Last Update : 01:14 am

Huawei Bangladesh revenue declines 35%

  • Published at 11:06 pm January 21st, 2020
Logo of Huawei

The Chinese company worked closely with the government and telecom operators during the 3G and 4G network establishment in the country

Amid slower revenue growth globally, Chinese technology giant Huawei witnessed a 35% revenue decline in its Bangladesh operation last year following stagnation in network expansion in the country.

Huawei Technologies (Bangladesh) Ltd is the largest telecom network equipment provider in the country that sells equipment including IP microwave transceivers, IP camera, network collaboration switch, routers and firewall.

The Chinese company worked closely with the government and telecom operators during the 3G and 4G network establishment in the country. 

Last week Huawei made a public demonstration of 5G technology in the country for the first time aiming to play a key role in 5G network establishment.

“Our revenue declined 30-35% last year from the target as we did not get business from our large customers like Grameenphone and Robi,” Huawei Technologies (Bangladesh) Ltd Chief Executive Officer Zhang Zhengjun told Dhaka Tribune on Tuesday.

He said the company could not sell network equipment to GP and Robi as the expansion was halted due to regulatory complications.

Zhang, however, declined to disclose the revenue figure.

Huawei Bangladesh received some business from Banglalink and Teletalk and some other business enterprises that needed network equipment, he said.  

“But things are heading towards a positive direction now. Robi already got regulatory permission for network expansion. I believe that positive trend will continue as there is huge growth potential in Bangladesh,” he said.       

Zhang said in the Bangladeshi market Ericssion was the only “healthy competitor” for Huawei.

Finnish company Nokia Networks and another Chinese firm ZTE are also providing telecom network equipment in the country. 

According to a Reuters report, Huawei Technologies global revenue also slowed down in last year compared to previous year following a US trade blacklisting of the company. Last year the Huawei global revenue increased 18% which was 19.5% in 2018.

On July 22 last year, the BTRC barred GP and Robi from rolling out new packages or services, or import and install network equipment to pressure them into clearing Tk13,446 crore audit dues.

Both the operators, having 75.77% of total mobile subscribers, took the matter to court in August last year challenging the Bangladesh Telecommunication Regulatory Commission audit claims.

The Appellate Division of the Supreme Court, on November 24, ordered GP to pay BTRC Tk2,000 crore in three months, the total audit claim from the mobile operator was Tk12,579 crore.

The High Court on January 5 this year asked Robi to pay BTRC Tk138 crore in five equal installments, the total audit claim from the mobile operator was Tk867.23 crore.

On January 14, Robi paid Tk27.60 as the first installment of audit dues.

According to BTRC data, the stand-off between the mobile phone operators and the tower companies on the issue of tower pricing put construction of around 3,000 new network towers across the country on hold last year.