Further to the rise of Huaweihas been its ability to amasswhat is now, among the global networking equipment vendors,the largest R&Dstaff. This resource base is extensive and low cost. Themajority of the over 43,000R&Dstaffis based in China. Theannual salary of a well-qualified engineer in China can be many multiples lower than aWestern Europeanor North American counterpart.This R&D base enables thethird area of strength—technology.Huawei has been quick to evolve and adapt products to customer requirements. This was demonstrated,for example,byits basestation portfolio quickly adopting to offer IP attributes and green sensibilities. Theseproductshavebeen well received by the customer base.