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Huawei’s Biggest Unit Targets $28 Billion in Sales Amid 4G Build

Huawei Technologies Co., China’s largest maker of telecommunications equipement, is targeting a 9 percent increase in revenue this year from its Carrier Network Business Group.

The unit, which designs and builds networks for mobile- phone operators and accounted for 73 percent of revenue last year, is also seeking to achieve a 10 percent annual growth rate by 2015, said Ryan Ding, head of the division.

The company’s carrier network business had sales of $25.7 billion in 2012, said Ding in an interview at the Mobile World Congress in Barcelona today.

Huawei is expecting an increase in network spending this year as carriers worldwide build out faster, fourth-generation networks using a technology called long-term evolution. China, where China Mobile Ltd. (941) will be adding 200,000 4G sites, and Asia Pacific, where 4G licenses have recently been awarded, will grow particularly well, Ding said.

“We are quite optimistic for 2013,” Ding said through a translator. “Investment increases into LTE will also drive an increase in the whole industry.”

Carriers will spend about $11 billion upgrading their networks to 4G, compared with $6 billion last year, he said, adding Huawei is also investing in technology which reduces energy consumption or lets carriers control their networks from the cloud.

To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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