Nortel collaborating with Huawei

Nortel collaborating with Huawei

Nortel Networks Corp. has announced that they are going into collaboration with rivals Huawei Technologies Co. Ltd., which are based in China to develop equipment for broadband connections to homes.

These two networking giants would form a new entity, which would work out of Ottawa. Nortel would own most of this new unit and would integrate the Huawei’s broadband access products with Nortel’s voice and broadband networking technologies.

Nortel and Huawei have been competing in the networking retail market since quite sometime with the Chinese company rapidly gaining more and more strength powered by their low cost solutions to similar products offered by their American counterpart.

However, making it big in the American market has been a complicated affair for Huawei, which would now get support from Nortel for their operations in the region. They have already been collaborating with 3Com Corp. for a venture located in Hong Kong.

Nortel CEO Mike Zafirovski said in a statement on this new initiative: “This will create a powerful new player in what is a high-growth market.” he was supported by Huawei chairwoman Yafang Sun who added: “We believe the cooperation with Nortel, a leader in the telecommunications industry, will enable us to create greater value for our customers.”

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