Tuesday, January 31, 2006

Nortel and Huawei Establish Joint Venture for Broadband Access Market

Nortel and Huawei Technologies will establish a joint venture for developing 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 broadband access portfolio.

The new company will combine Huawei's broadband access solutions with Nortel's voice and broadband networking technologies to create a new product portfolio designed to be a leader in the industry in value and performance. These products will give service providers the ability to converge the delivery of voice, video, data and wireless services to business and residential customers onto a common IP platform that supports copper, fiber and fixed wireless networks.

The parties intend that the joint venture will be majority-owned by Nortel and headquartered in Ottawa. 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.

Nortel said it revenues for the global broadband access equipment market approached US$9 billion in 2005 and included a US$1 billion IP-DSLAM segment that is forecast to reach nearly US$2 billion in 2008.

"Nortel is focused on seizing opportunities that will generate new revenue and expand operating margin. 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, Nortel.


  • In November 2005, LG Electronics and Nortel officially launched their joint venture, LG-Nortel Co. Ltd., will offer leading-edge communications and networking solutions in the wireline, optical, wireless and enterprise markets in South Korea and the rest of the world. LG-Nortel's headquarters will be in South Korea, with sales and marketing located in Kangnam, Seoul; R&D facilities in Anyang in the province of Gyeonggi; and an employee population of approximately 1,400.

  • In February 2004, Nortel announced strategic alliances with three suppliers of access equipment: Calix, ECI Telecom, and Keymile. Nortel has been integrating, marketing and supporting Calix's ultra-broadband loop carrier products on a worldwide basis under a three-year strategic alliance. ECI Telecom has provided access and aggregation platforms for central office DSLAM, Optical Line Termination (OLT), and remote terminal applications.

  • In November 2003, 3Com and Huawei Technologies launched their joint venture company. The new Huawei-3Com Co. Ltd. sells enterprise networking solutions, including routers and LAN switches. 3Com has the rights to market and support the Huawei-3Com products under the 3Com brand in all countries except China and Japan. In China and Japan, Huawei-3Com will sell products sourced internally as well as from 3Com.

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