Nortel teams with Huawei

Nortel networks has entered into a memorandum of understanding with Huawei Technologies

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By  Andy Tillett Published  February 1, 2006

Nortel networks has entered into a memorandum of understanding with Huawei Technologies. The venture will work to establish a joint venture to develop ultra broadband access solutions for markets around the world. The two companies have also entered into a supply agreement that allows Nortel to immediately begin engaging customers with Huawei’s current industry-leading broadband access portfolio. The joint venture will be majority-owned by Nortel and headquartered in Ottawa, Canada. The joint venture will be focused on product enhancements for Huawei’s current broadband access portfolio and the development of a new ultra broadband product portfolio. This portfolio will be sold exclusively to Huawei and Nortel as channel providers. “We believe the cooperation with Nortel, a leader in the telecommunications industry, will enable us to create greater value for our customers. It will bring better value to our existing and potential customers” said Yafang Sun, chairwoman at Huawei. The new company will work to combine Huawei’s broadband access solutions with Nortel’s voice and broadband networking strengths to create a new product portfolio, designed to be a leader in the industry in value and performance. These products will aim to give service providers the ability to converge the delivery of voice, video, data and wireless services to businesses and residential customers onto a common IP platform, supporting copper, fiber and fixed wireless networks. “This joint venture is a bold opportunity to combine the strengths of Huawei and Nortel into a company that can aggressively target and win share in the rapidly expanding ultra-broadband market,” said Mike Zafirovski, president and CEO at Nortel. ”This will create a powerful new player in what is a high growth market,” he added. Nortel and Huawei expect to complete the formation of the joint venture in the third quarter of 2006. Joint development of products has already begun, and the products are expected to be available in all markets by the third quarter of 2006.

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