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Nortel, Huawei to jointly pursue broadband access market

Nortel Networks Ltd. and Huawei Technologies Co., Ltd. today announced a joint venture that will revolve around the...


February 1, 2006  


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Nortel Networks Ltd. and Huawei Technologies Co., Ltd. today announced a joint venture that will revolve around the development of ultra broadband access products and services.

The Dell’Oro Group estimates that total 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.

Huawei is ranked as the world’s number one vendor of IP-DSLAM ports for the last seven quarters and currently holds the number one and number two position for BB-DLC voice and DSL ports respectively, according to the research firm Infonetics Research Inc.

The two companies say their product portfolio 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 joint venture, which will be majority-owned by Nortel and headquartered in Ottawa, will focus on product enhancements for Huawei’s current broadband access portfolio and the development of a new ultra broadband product portfolio.

“Nortel is focused on seizing opportunities that will generate new revenue and expand operating margin,” said Mike Zafirovski, Nortel’s president and CEO.

Nortel and Huawei expect to complete the formation of the joint venture in the third quarter of this year.