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Huawei signs second big Crown fibre supplier contract, landing Enable

Huawei has landed its second major fibre deal under the $1.35 billion Ultrafast Fibre roll-out (UFB).

Christchurch UFB winner Enable Networks (owned by the council) said this morning it had chosen the company to provide fibre, ducting and layer 2 electronics.

In November, Huawei won the contract to provide fibre and layer 2 electronics to central North Island UFB winner  Ultrafast Fibre – a consortium led by lines company Wel Networks – won contracts covering Hamilton, Tauranga, Tokoroa, New Plymouth, Hawera, Wanganui, Te Awamutu and Cambridge.

Ericsson has been named as the fibre contract winner for Chorus, which won the lion’s share of the UFB roll out. (UPDATE: Chorus told NBR this afternoon that it has yet to put its layer 2 contract out to tender. "In the meantime, we will continue to draw upon our existing partnerships," a spokesman said. Existing partners include long-time supplier Alcatel Lucent, the spokesman confirmed.)

In December, Chorus said it had picked Huawei to provide fibre equipment for segments of the $300 million Rural Broadband Initiative. "Our arrangement with Huawei is to provide specialist equipment for some RBI applications, to suggest they are supplying all equipment for the project is not correct," a Chorus spokesman told NBR.

With a second Chinese company, Axin, Huawei is also involved in a mooted second transtasman cable.

Huawei is also 2degrees main network partner and, more recently through a $100 million credit line, the funder of its expansion.

In July 2010, Prime Minister John Key - who had recently visited Huawei in China as part of a trip to the Shanghai World Expo - praised the Chinese company as potentially cost-effective Crown fibre partner.

"No one's saying they would be the final selected partner in New Zealand but they've certainly got the capacity if they wanted to," Mr Key said.

More by Chris Keall

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Comments and questions

Anyone know when Chorus will announce layer 2 winner?

[NBR put this question to Chorus. A spokesman replied:

"We’re still to determine our preferred suppliers for layer 2 UFB equipment and hope to begin the RFP process in the coming months. In the meantime, we will continue to draw upon our existing partnerships."

Existing partners include Alcatel Lucent, the spokesman confirmed.

- CK]

This is a political decision not a commercial decision.

The best and cheapest manufacturer of fibre comes from Korea but Crown f
Fibre never gave them a look in - the onky reason can be political

In response to Anonymous | Wednesday, February 8, 2012 - 1:49pm

There could be political reasons. But building a national next generation network needs more than fibre. They have to consider all layers holistically when selecting a tender.

Enable chose Huawei because they were the cheapest... pure and simple and this was done with CFH's blessing because all they care about is how cheap the network will cost to build.

New Zealand is getting a cheap and NASTY solution.... thanks John!

Yip Huawei look good upfront but quality counts for longivity... lets hope Chorus choose wisely.

There is one major political reason - Jenny Shipley is involved. She is director of the China Construction Bank and an integral part of facilitating Chinese businesses and corporations buying up and moving in to NZ.

That's all good and well, but it isn't 'xenophobia' that brings cause for pause... it's the fact that the repressive Chinese government tortures, imprisons, and murders its dissident citizens. Do we really want to get involved with a nation like that? The Chinese themselves are great, their culture is fantastic, but their corporate and governmental practices are abhorrent and disgusting, both to humans and to animals and the environment. Mrs Shipley, I'd rather wear jandals (you patronising wanna-be).

.
i bought a huawei IDEOS android phone from 2 degrees mobile and, although in perfect condition (not damaged in any way) it stopped working after several months
.
after a catalogue of errors from 2TML the phone is now out of warranty and remains broken
.
i must confess that initially i thought i'd done a great deal, a shiny iphone-esque device at under 1/2 price, suffice to say, buy cheap buy twice!
.
live and learn, live and learn
.

I'm confused if you look on the Enable Website they already have a network servicing local schools and businesses it advertises speeds of up to 10G??

[Enable already has a fibre network operating in Christchurch. UFB funding will be used to expand that network - CK]

So many Anon comments from vendors. CFH ran a proper RFP process with proper testing and due dilligence. Huawei is the global market leader in GPON by a country mile.

Does Axin win any tender or be any supplier to Chorus?

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