Briefs: Nortel, Huawei team on ultra-broadband

February 1, 2006

Nortel and China's Huawei Technologies will set up a global joint venture to develop solutions for ultra-broadband access.

Ultra Broadband allows companies to deliver voice, data, video and wireless broadband services to business and residential customers using a common fixed wireless or fixed-line platform, including copper wires.

The new company established under Wednesday's memorandum of understanding will focus on enhancements of Huawei's broadband access portfolio along with the development of ultra-broadband products. Canada-based Nortel brings to the table its networking technologies and marketing clout.

"This joint venture ... combines the strengths of Huawei and Nortel into a company that can aggressively target and win share in the rapidly expanding ultra broadband market," said Nortel President Mike Zafirovski. "This will create a powerful new player in what is a high growth market."

Nortel said it would be majority owner of the new joint venture, which is expected to be formalized in the third quarter, and is already working on product development.

Copyright 2006 by United Press International

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