China Telecom and Huawei have established a Business Joint Innovation Center (BJIC) to jointly develop differential, innovative products and solutions by treating them as dynamic interactive systems that can be mixed up in the style of a Rubik’s Cube.
Huawei said the BJIC model differs from the traditional industry partnership in that both companies will invest in joint development, verification, and go-to-market of products and solutions to accelerate provisioning.
It also marks a change in traditional carrier-vendor relationships, said China Telecom chairman Yang Jie. “We have shifted from the old equipment-selling partnership to a new cooperation model centered around joint business innovation. This is why we launched our BJIC today.”
The BJIC’s structure is geared towards China Telecom’s Transformation 3.0 strategy, which focuses on five ecosystems: emerging ICT, internet finance, intelligent connectivity, IoT and smart homes.
Gao Tongqing, executive VP of China Telecom, employed a “Rubik’s Cube” metaphor to describe the BJIC’s approach to industry ecosystems – the idea being that the industry is evolving into different ecosystems that not only complement each other but can also be twisted to form dynamic combinations.
“By aligning strategies, combining strengths and complementing advantages, China Telecom and Huawei will execute their strategies, build a new type of partnership, and achieve shared success based on the BJIC,” said Gao.
Gao said the joint innovation activities will initially focus on smart homes, cloud-and-network integration, IoT and 5G. “The cooperation between the two companies will expand to include more domains as industry needs and technologies evolve.”
At the BJIC’s launch event in Barcelona, China Telecom and Huawei showcased three innovations resulting from recent cooperation between the two companies, including Video 3.0 (for IPTV services), eCloud (public cloud service), and all-optical networks.