Chapter 912 Huawei Marconi

Boss Ren was actually somewhat tempted by this plan.

The main reason is that Huawei today is no longer the Huawei of ten years ago.

It can be said that Huawei has gained more support from the Chinese side because of its business model and development, but the 15% stake held by Rich23 Capital has more or less become an obstacle for Huawei to gain more support in this regard.

After all, the autonomy of the communications industry has always been valued by various countries - the only difference is whether it has the ability to be independent.

Huawei's current performance is completely worthy of more support from the country, but in this case, having foreign capital and not having foreign capital are different concepts.

If Barron's plan is followed, then Huawei is nothing more than giving up part of its European market share in exchange for its parent company's "pure Chinese bloodline" - not to mention that this will also help Huawei gain more market share in Europe.

And according to Barron's plan, Huawei will still be the largest shareholder of the joint venture - its European joint venture Huawei Marconi, and the distribution of shares will be Huawei holding 49%, DS Holdings (Cavendish Trust) holding 36%, and William Weber Capital holding 15%...

In this way, at least in the British, French and German markets, Huawei Marconi will be treated equally with domestic telecommunications equipment suppliers.

As for Barron's words, Boss Ren knew the other party's power in these places, so he naturally had no doubts.

"Mr. Ren, I have learned about your experience and I admire your character and business acumen. Therefore, if there is an opportunity, we will become Huawei's most reliable partners."

"Your Highness, you are too kind. I started Huawei at the age of 44. In the past ten years, I have also experienced various setbacks. I can't compare with a dragon among people like you..."

Speaking of which, Boss Ren is still grateful to Barron. In 1998-2000, Huawei bet on 3G technology, but unexpectedly, China's 3G camera was delayed, which put Huawei in a dilemma at the time - they chose the GSM technology route, which made China Unicom's CDMA IS95 equipment procurement in the country almost all fall into the hands of ZTE.

You should know that the original 2G network had two standards, namely GSM (GPRS/EDGE) organized by the European ETSI and CDMA ISA2000 1x organized by the American TIA with Qualcomm as the main force. At that time, China's two mobile operators used GSM, and China Unicom used CDMA IS95.

In the end, Huawei believed that CDMA IS95 was a technology destined to be eliminated, so it put almost all its R\u0026D and investment on GSM, preparing to continue to develop 3G technology.

As a result, the bidding for China Unicom's communication equipment was won by ZTE, which invested in the development of CDMA IS95...

As for the GSM bidding for China Mobile, Huawei was also very unlucky. It happened that European manufacturers were engaged in a price war in order to compete with American manufacturers. The price of GSM equipment plummeted. If Huawei calculated the R\u0026D costs, it would lose money even if it won the bid...

Then the 3G technology they developed had no market in China because China had not yet launched 3G photography.

To make matters worse, UtStarcom, which occupied the vast majority of the PHS market in China at that time, relied on its market share to bundle and sell their broadband access equipment, which also greatly squeezed Huawei's market in broadband equipment.

You know, the main market for the 3G network WCDMA on the GSM path is in Europe. At that time, it first reached a cooperation with O2 Telecom to enter the British and European markets, which can be regarded as saving Huawei's life.

After Barron held 15% of Huawei's shares, O2 Telecom's equipment in Europe was also mainly purchased from Huawei. With the expansion of O2 Telecom's scale, Huawei currently occupies a considerable market in Europe.

Now the two sides have changed their way of cooperation, which can be said to be beneficial to both parties.

For Barron, Huawei has a unique equity distribution method and has never been listed. In addition, Huawei's increasingly important position in China's domestic telecommunications industry, the 15% shares they hold, in terms of influence, basically cannot affect Huawei's decision-making. In terms of income, Huawei has invested almost all of its income in research and development, and basically will not distribute dividends. If it is never listed, it will not be launched through the open market...

Instead of this, it is better to turn it into shares of the joint venture company of the two parties in Europe.

According to the agreement reached between Barron and his boss, Huawei Marconi will cooperate with Huawei to establish a research and development center in Europe, and the research and development results of both parties will be shared.

And Huawei Marconi has also obtained Huawei's authorization to use Huawei's exclusive patents-of course, it needs to pay patent fees to Huawei.

In the future, all relevant communication equipment for the European market will be produced in Huawei's Marconi factory in the UK, which also means that Barron can obtain half of the profits in the European market.

At the same time, O2 Telecom will also support Huawei's standards in the field of 5G technology in the future, and the two parties have reached a technical alliance.

Boss Ren also attaches great importance to the establishment of this joint venture, after all, it is related to Huawei's future European market.

Barron entertained Mr. Ren in London and took the time to visit Chatsworth House in Derbyshire with him, showing his hospitality.

It is worth mentioning that Chatsworth House has been closed to tourists since May 31 this year and will be renovated again.

And after this renovation, the manor will no longer be open to tourists.

Yes, this renovation of Chatsworth House will be more thorough than the previous overall renovation. Not only will the external walls be carefully maintained, but the interior of the manor house will also be renovated and modernized again, which will be more suitable for modern people to live in.

Because after this renovation, Chatsworth House will return to being the residence of the Devonshire family and equipped with full security, so it will naturally no longer be open to tourists.

The main purpose of the Devonshire family opening the manor was to obtain funds in this way to cover the expensive maintenance costs of the manor.

Later, as Barron's assets continued to grow, he himself did not like living here very much - this kind of aristocratic manor was originally used by aristocrats who lived in the countryside, and is not suitable for the current commercial society.

When Barron and his friends were young, it was naturally more appropriate to live in a metropolis like London. Whether it was socializing or working, or even the education of their children, the convenience of the metropolis was far beyond the reach of this ancient manor.

However, now that Barron has reached such a status, it is harmless to occasionally return here to live for a month or two, because there is the assistance of the entire assistant team and the family office.

In this case, if Chatsworth Manor continues to be open to the public, according to the opinion of Barron's security team, there will be some hidden dangers in terms of security.

Since he no longer cares about the funds for the maintenance of this manor, Barron simply made the decision to close it to the public after this overall renovation.

In addition, in addition to adding more modern facilities, this overall renovation will also carry out large-scale upgrades in security to prepare for emergencies.