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Huawei eyes $4 billion investment in broadband

With 4K video and cloud computing on the rise, the Chinese company argues that fixed broadband must improve.

A key component of Huawei's broadband investment will be research and development. Huawei

Huawei, the China-based smartphone manufacturer and telecommunications company, has already invested heavily in mobile technology and is now eyeing fixed broadband as its next growth opportunity.

Over the next three years, Huawei will invest $4 billion in fixed broadband technology, the company announced late on Wednesday. Huawei said its investment will center on products and services that will create a better broadband offering for end users.

Fixed broadband -- essentially the connections that run between service providers and homes and offices -- can include cable service, fiber optics, DSL and T1 connections. Huawei's investment in fixed broadband is somewhat surprising given its recent focus on mobile technology, especially its push into mobile devices with phones like the Ascend P7 and budget-friendly Ascend Y550 .

In a statement, Huawei argued that its focus has long been "customer needs and adding value through core technologies." The company believes that fixed broadband will be a crucial component in our lives in the coming years as heavy data needs continue to pile up.

Huawei might have a point. With streaming video and 4k, or Ultra HD, television taking hold in the word, the need for reliable broadband continues to grow. Huawei is also considering the impact big data and cloud computing could have on enterprise customers that rely on fixed broadband for their daily operations.

A key component in Huawei's mission is to invest in research and development. The company will specifically determine how new chips, algorithms and photonics -- the use of light for the transmission of data -- could improve its broadband services.

CNET has contacted Huawei for comment. We will update this story when we have more information.