Chinese telecommunications giant Huawei has pledged to spend $4 billion (£2.45 billion) on fixed broadband research and development over the next three years. 

The Shenzhen-headquartered firm said it will expand pipeline capacity through “innovative thinking and investment” in chips, algorithms, silicon photonics and other basic technologies.

Ryan Ding, Huawei products and solutions president, said: ”Huawei recognises Fixed Broadband as a key direction for strategic investment and will continue to increase the scale of investment in related technologies, core products and solutions.

"Our investment will further develop technological advances, help customers increase their competitiveness and decrease overall operating costs."

Investment in fixed broadband is necessary to ensure that networks can keep up with the onset of new technologies like high efficiency video coding and 4k video.    

The company, founded in 1987 by ex-military chief Ren Zhengfei, added that it will continue investing in software defined networking (SDN) and network functions virtualisation in a bid to initiate open and intelligent ultra-broadband networks.

The announcement was made at the Huawei Ultra-Broadband Forum in London today which aims to address topics under the theme “Dream Broader, Band Together”.

This week, Huawei bought its second UK startup in the last six months for a reported £15 million ($25 million). The startup, Cambridge-based Neul, is focusing on a narrow band cellular internet of things technology.