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Nortel, Huawei Go Separate Ways
By Mark Evans | June 7, 2006
Nortel's plans for joint venture with Huawei Technologies has apparently fallen apart less than four months after being unveiled. Nortel spokeswoman Ann Fuller told the Ottawa Citizen the JV was "not appropriate" (whatever that means). Nortel was supposed to own a majority stake in the Ottawa-based JV, which slated to focus on high-speed equipment such as IP-DSLAMS and the development of ultra-broadband products. While Nortel's JV with LG has worked out, Nortel's track with Asian suppliers is less than stellar in light of the fact a JV with China Putian has also evaporated.
Update: In a research report, Merrill Lynch said it views the Huawei JV cancellation at "incrementally negative". "Even though Nortel could still work with Huawei, we do see benefits in a formal JV such as positioning Nortel's products in BT's 21C network where Huawei is currently the incumbent access vendor."
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