Huawei plans to invest over $4 billion in fixed broadband technology research and development over the next three years.
According to Reuters, the Shenzhen, China-based company believes fixed broadband technology -- including photonics used in fibre optic cables and networking -- is a "key direction for strategic investment."
Given rising consumer demand for data-hungry applications, high-definition video streaming and the expansion of mobility which sees us more connected to the Internet than ever before, the telecommunications equipment maker views fixed broadband technology as a crucial investment. Despite a surge in the growth of mobile networks, fixed broadband technology is still widely used in the West and remains a profitable industry.
The company has also recently invested in France, launching an R&D center in the French technology hub Sophia Antipolis. The research and development center focuses on chipset design and embedded technology.
While Huawei plans to spend billions on fixed broadband technology, this does not mean the company is ignoring the potential profit in mobile technology. In August last year, the company revealed plans to be at the forefront of 5G connectivity -- through engaging in collaborative projects with other industry leaders in order to lay down the foundation for 5G technology.