Heavy Reading
Globalcomm News Analysis   More Globalcomm News Analysis

Nortel, Huawei Kill JV

CHICAGO -- Globalcomm 2006 -- Nortel and Huawei have abruptly ended their joint venture to develop broadband products, Nortel has confirmed. (See Nortel, Huawei Form JV)

The agreement, announced in February, had the companies forming a joint venture company to develop "ultra broadband access solutions" for the global service provider market. (See Nortel & Huawei: Broadband Buddies.)

The end of the partnership was disclosed in a 10-Q statement filed by Nortel with the Securities and Exchange Commission (SEC) on Tuesday.

"On November 9, 2005, we and Huawei Technologies Co., Ltd. entered into a non-binding Memorandum of Understanding to establish a joint venture for developing ultra broadband access solutions. We and Huawei have now decided not to proceed with a joint venture," reads the filing. (See Huawei, Nortel Test Interop and Nortel, Huawei Bid on GPON.)

George Riedel, Nortel's Chief Strategy Officer, tells Light Reading that the companies are still talking, trying to find a way to work together without a formal agreeement.

"The expectation going forward is that we will be exploring ways to work together but not in a formal JV," says Riedel.

But for most purposes, it appears that the deal is dead. The 10-Q does say that any new relationship would require a re-negotiation of terms.

"An alliance or relationship, if any, would still be subject to negotiation, execution of definitive agreements and customary regulatory approvals," says Nortel's statement.

The joint venture was to be based in Ottawa and majority-owned by Nortel. It wasn't expected to go into operation until the third quarter of 2006.

— Ray Le Maistre, International News Editor, and R. Scott Raynovich, Editor in Chief, Light Reading

{thePageCount}
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
DroneComm 2015: Comms Above the Cloud – Website Coming Soon!
February 11, 2015, San Diego, CA
Cable Next-Gen Technologies & Strategies - Website Coming Soon!
March 17, 2015, Denver, CO
April 14, 2015, New York City, NY
Cable Next-Gen Technologies Breakfast @ The Cable Show – Website Coming Soon!
May 6, 2015, McCormick Convention Center, Chicago, IL
Carrier SDN Networks: Accelerating SDN in the Carrier WAN – Website Coming Soon!
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Upcoming Webinars
Webinar Archive
Educational Resources
content supplied by Heavy Reading
Educational Resources Archive
More from Heavy Reading
Market and Technology Briefings
Gain market insight from Heavy Reading Analysts through an interactive session located at your companys location.
Schedule a Market & Technology Briefing Today.
Become a Heavy Reading VIP
Sign up now to get exclusive previews of Heavy Reading's upcoming research, discounts on research purchases - and even the chance to earn free reports and free passes to Heavy Reading events!
Join Now
Research Calendar Request
Click here to receive a guide to our upcoming reports
Request for information
For More Information
Click here for more information on any Heavy Reading report, or call Sales Director David Williams @ 858-829-8612
Request for information