Spark forges deeper links with Huawei to piggyback on Chinese R&D

The two companies last week signed a memorandum of understanding, witnessed by Prime Minister John Key and Chinese Premier Xi Jinping in Auckland, which will let Huawei tailor technologies for Spark, using the Chinese firm’s mammoth spend on research and development.

Huawei won Spark’s contract to build a long-term evolution (LTE) network, commonly known as 4G, which is expected to drive revenue growth for the telecommunications company as it transforms into a data services retailer.

A poll of some 600 delegates at a telecommunications conference in Shanghai last week said the biggest benefits from LTE was a boost in average revenue per user (ARPU), which they largely expected would rise by about 20 percent.

An increase of that order would lift Spark’s ARPU to $36.12 per month from the $30.10 rate it reported in the six months ended June 30.

Eric Xu, Huawei's rotating chief executive, told the global mobile broadband forum last week good user experience will likely transform into greater revenue and should be central to telecommunications carriers’ services.

“Looking into the future, user experience of networks is going to be the productive force and the primary force,” Xu said.