Nortel and Huawei Create Broadband Equipment Partnership

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Nortel and Huawei Create Broadband Equipment Partnership

5:45 am on February 2, 2006 | Category: Business, Web Services

Canadian telecom equipment giant, Nortel Networks, has announced that it is planning a major joint venture with Huawei Technologies.

This partnership will target the worldwide market for high-speed internet access, and is Nortel’s biggest ever deal with a Chinese company. The venture will be based in Ottawa, and is set to be launched in the third quarter of this year.

Although neither company will comment on the financial terms of the deal, it will them working together to target providers in both North America and Asia.

“We’ll combine their technology, our knowledge of the market, some of our technology and drive products into one of the significant regions and segments of the globe,” said Nortel executive, Walt Megura, referring to the Asian market.

The jointly created telecom products will be primarily targeted towards telephone providers that want greater convergence of voice, video, data and wireless services using, especially those using digital IP technology.

“We view this strategy as practical, both from an investment and time-to-market standpoint as reentering the access market with its own products only would be difficult after exiting,” commented UBS analyst, Robert Dennison.