Nortel, Huawei in Broadband Venture

Nortel (NT Quote) signed a memorandum of understanding to form a joint venture with Huawei Technologies for developing ultra broadband access solutions for markets around the world.

Toronto-based Nortel said 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 new company will combine Huawei's market leading 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. ...