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Huawei to expand supply and production in Hungary

Chinese network and telecommunications equipment giant Huawei is opening an assembly plant and a logistics centre in Hungary after the one year of test period expires in summer 2010. The company has been a supplier for Vodafone and the two are now launching a new mobile internet sharing device on the market.

Huawei has been testing its production plants in Pécs and Komárom with 280 employees already, and if the results meet the expectation, the sites will be the European logistics and assembly centers of Europe for one of the world’s top three telecom equipment suppliers. The plants is expected to turn out an annual $1.5 billion of product and services with a staff of about 700 from 2011 on, Huawei Magyarország sales director Zoltán Takács said at a press conference.

Huawei has been partner of mobile service provider Vodafone Hungary since 2005. As the latest outcome of this partnership, Vodafone is launching its new shared mobile internet services from March 12, using Huawei’s devices that allow the internet service of a USB modem to be used with a wireless connection by as much as five users at a time.

“Mobile internet penetration is growing at a speed of about 7% yearly, with the market being increasingly competitive, but also presenting very innovative solutions,” Xu Qin Song, vice president for Huawei Europe told the BBJ. Xu came to Hungary to award Vodafone for its innovative data technology solutions that helped mobile internet expansion in the country.

Mobile internet usage has grown at an indeed spectacular dynamics, with subscriptions’ number increasing by 102% at Vodafone. “Users access the service with modems and handsets in an approximately equal proportion, as more and more people have a second device to use on the road,” Péter Török, senior manager for broadband services at Vodafone said. When asked about the pricing policies, Török said the prices of the services can not really be significantly lower, but that of the devices are constantly decreasing, resulting in more and more people being able to afford such a service. (BBJ Online)