LG and Nortel JV to come to market in 2H05

The new company, which is tentatively named LG Nortel Company, will focus on 3G/WCDMA, 3.5G/HSDPA and next generation mobile network business.

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By  Tawanda Chihota Published  May 17, 2005

A joint venture company established by South Korean consumer electronics company LG and Canadian telecoms vendor Nortel Networks at the beginning of this year is set to be unveiled commercially early in the second half of the year. Nortel will hold a 50% plus one share stake in the joint venture while LG will hold the remainder. The new company, which is tentatively named LG Nortel Company, will focus on 3G/WCDMA, 3.5G/HSDPA and next generation mobile network business. “Based on distinct strengths of both the companies in the CDMA and GSM technologies, the new company will benefit from the synergies and compete in Korea as well as globally,” says Mun Hwa Park, president and CEO of LG Mobile Communications Company. The new company’s expansion plans include the Middle East, where Mun Hwa Park believes there is scope for LG Nortel Company to establish a strong presence as the number of WCDMA networks in the region grows over time. It will take a while for 3G technology to catch on here (in the Middle East) as the technology is in its infancy in this region. But LG is number one in the 3G field, so it is our firm belief that this new joint venture company will be in a position to play it’s role in the 3G arena by supplying superior 3G solutions and service in the Middle East,” he says. Nortel Networks Middle East, in the meantime, has begun a region-wide road show that is aimed at highlighting the importance of IP telephony and the significant business impact that IT telephony solutions and technologies will have on small and medium size businesses and enterprises in the region. The half-day events are taking place in Jeddah, Riyadh, Khobar, Dubai and Doha over a number of days. The seminars are open to IT and telecoms managers who want to learn more about converged solutions that can help their organisations control costs and change the way their workforces communicate. Nortel is showcasing its latest innovative converged IP products and solutions and sharing case studies on how organisations are already benefiting from IP telephony today. “IP Telephony is making some serious claims in the market in regards to the benefits it can provide to organisations, including lower business costs, increased employee productivity, improved customer service and greater profitability. The IP Telephony road show will give us the opportunity to share our experiences in transforming enterprise communications and offer a compelling case on why organisations should be considering IT telephony as a way of moving forwards,” says Ramin Attari, vice president Middle East, Nortel Networks.

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