Often seen as the upcoming challenger to the fortunes of incumbents such as Nokia, Motorola and Alcatel, Huawei Technologies is not the least fazed by the consolidation taking place in the telecoms equipment market.

The Chinese telecoms equipment maker, blessed with low-cost labor and talented people, has been able to give the Western brand names a run for their money. Analysts have pointed out that competition from Chinese companies, convergence, and the propensity to buy from a single vendor have led to the recent mergers and acquisitions taking place in the telecoms industry.

Zhao Ming, director of Huawei's Shanghai Research Institute, welcomed the competitive environment, noting that this will lead to a healthier industry. "This will also allow Huawei to be stay on pulse of things and improve its technology," he told ZDNet Asia on the sidelines of the 3GSM World Congress Asia in October this year.

Also, there is a common misconception that Chinese manufacturers often produce low-quality goods, a mindset which Huawei is striving to correct.

"When we entered the global market, innovation is our topmost priority," Zhao said, adding that Vodafone found Huawei's products to be of a high quality. Most importantly, Huawei's solutions have helped Vodafone lower the total cost of ownership.

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