LONDON—European operator Vodafone Group plc announced a major new agreement with Chinese equipment manufacturer Huawei Technologies Co. Ltd. that calls for Huawei to build 3G phones that Vodafone plans to sell under its own brand. The move highlights a significant, growing trend in the worldwide mobile phone industry where wireless carriers are seizing control of the market from handset makers.
Vodafone said it plans to begin selling Vodafone-branded 3G handsets built by Huawei starting in September. The agreement spans 21 countries with Vodafone service, and is scheduled to last for at least five years. The agreement marks a significant win for Huawei, which has so far only dabbled in the European phone market. The company is primarily a network infrastructure provider.
“This agreement will enable Huawei to become one of the world’s leading players in handset development and production,” said Ping Guo, Huawei’s senior vice president. “We already have a strong presence in the global market and this agreement offers us a great opportunity to expand into new regions alongside the world’s leading mobile community. We consider the partnership with Vodafone as a sign of the trust they have in the quality of our research and production.”
Vodafone said the agreement marks the first time it will sell handsets carrying its own brand. The carrier sells phones from a variety of vendors, including Sharp Corp., Nokia Corp., Motorola Inc., Samsung Electronics Co. Ltd. and others.
Vodafone’s move is indicative of a growing trend in wireless. Already carriers like Orange in the United Kingdom and Cingular Wireless L.L.C. in the United States sell phones carrying their own brand, while others—like Verizon Wireless—have delved into the handset software space by designing and branding their own specialized user interface.
