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Optical/IP

Report: Huawei Talking to Lucent, Nortel

Huawei Technologies Co. Ltd. executives say they have been pursuing deals with large North American partners, according to a report in the Chinese press this morning.

The China Daily, a Beijing-based daily newspaper that is published by London's Financial Times, quoted a Huawei executive as saying the company has already spoken with Lucent and Nortel, and wants a partnership in North America.

"We are talking with telecom equipment makers such as Lucent and Nortel Networks this year to further our partnerships so as to better position ourselves," Zheng Baoyong, executive vice president of Huawei, says in China Daily.

Huawei officials could not be reached for comment. Lucent Technologies Inc. (NYSE: LU) had not returned inquiries at press time.

A Nortel Networks Ltd. (NYSE/Toronto: NT) spokesperson says the company "does not comment on rumors and speculation."

According to China Daily, Zheng sees North America and Europe as areas that are ripe for growth, and Huawei believes that partnerships are the way to go in those regions. He says the company plans to double sales in those regions during the coming years.

Huawei has been making moves of its own in recent months, expanding in North America. It has about 24,000 workers in 55 offices worldwide. In the U.S., the company says there are roughly 60 people working at its Futurewei subsidiary in Richardson, Texas, with about 80 workers at additional offices in Santa Clara and San Diego, Calif. Huawei says about 60 percent of its employees in the U.S. are local hires.

In 2004, the company reported sales of $5.58 billion, up from sales of $3.83 billion in 2003.

— The Staff, Light Reading

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LegoAss 12/5/2012 | 3:22:13 AM
re: Report: Huawei Talking to Lucent, Nortel You have been spreading rumours of Nortel being acquired by almost every other optical vendor on the planet... only time will tell.
dljvjbsl 12/5/2012 | 3:22:13 AM
re: Report: Huawei Talking to Lucent, Nortel Canadain TV has reported that a large Chinese company wishes to acquire Nortel. They interviewed a professor who says he was cotracted to provide advice on the matter. he would not name the Chinese company.

It looks as if this compnay is Huawei.
dwdm2 12/5/2012 | 3:22:12 AM
re: Report: Huawei Talking to Lucent, Nortel Nortel dumped optical? Here is what their web says about one of their optical metro and staff.

http://www.nortel.com/products...

http://www.nortel.com/products...

Just curious.
dljvjbsl 12/5/2012 | 3:22:12 AM
re: Report: Huawei Talking to Lucent, Nortel
You have been spreading rumours of Nortel being acquired by almost every other optical vendor on the planet... only time will tell.


Not really, I've been saying that Nortel is in a death spiral towards bankruptcy. So far, nothing has proved me wrong.

I also would not say that Nortel is in the optical business anymore. It is more of a wireless and VoIP company. Atleast Nortel management got one thing right when they dumped optical.
Machavelli 12/5/2012 | 3:22:11 AM
re: Report: Huawei Talking to Lucent, Nortel I would not bet that Huawei would acquire all of Nortel, but acquiring the Optical division makes a lot of sense.

Lot at the numbers:

http://www.lightreading.com/do...

The money is in wireless and enterprise.

Nortel should ditch Optical and wireline while these divisions are still worth something.

MACH
rzerockzeron 12/5/2012 | 3:22:11 AM
re: Report: Huawei Talking to Lucent, Nortel Atleast Nortel management got one thing right when they dumped optical.
-----------------------------
lemme know what you're smoking, I want some.
kaiserkuo 12/5/2012 | 3:22:10 AM
re: Report: Huawei Talking to Lucent, Nortel Just a quick correction: The Financial Times doesn't publish the China Daily. The latter is a state-run Chinese paper with no affiliation with the FT except a propensity to borrow content liberally therefrom.
LegoAss 12/5/2012 | 3:22:06 AM
re: Report: Huawei Talking to Lucent, Nortel Those (especially dljvjbsl) that have enjoyed watching Nortel's decline, as well as others, seem to forget that it is an industry phenomenon yet all of the large incumbent vendors (although slowly recovering) are still alive - Lucent, Nortel, Alcatel, and so on. Nortel will surely rise again and for the "sell the optical" whiners, why don't you just kick a few puppies on the way to work instead.
donniall 12/5/2012 | 3:22:06 AM
re: Report: Huawei Talking to Lucent, Nortel There are many who would speculate that Nortel should have sold - or spunoff - its Enterprise long ago. In fact when Lucent spun-off its Enterprise division some years back many of the analysts speculated that Nortel would/should follow suit .... I think history proves that opinion 100% correct. Witness the re-vitalised Avaya today - and then compare that to Nortel's continued, slumbering decline in the same space ... Maybe Nortels 'tie-in' to re-sell agreements with channels with formidable clout (BT?) maybe part of the answer ...?

Don-
alchemy 12/5/2012 | 3:22:05 AM
re: Report: Huawei Talking to Lucent, Nortel LegoAss writes:
Those (especially dljvjbsl) that have enjoyed watching Nortel's decline, as well as others, seem to forget that it is an industry phenomenon yet all of the large incumbent vendors (although slowly recovering) are still alive - Lucent, Nortel, Alcatel, and so on. Nortel will surely rise again and for the "sell the optical" whiners, why don't you just kick a few puppies on the way to work instead.

Most companies have a natural life cycle. All the corporate culture and process is structured to deal with a specific product and customer model. For example, you had Wang who used to own the proprietary word processor market. You had Digital Equipment Corporation who used to own the minicomputer business. When a disruptive technology came along, they were unable to change their culture and process to adapt. They're now dead and gone. If you believe that the ILECs are in a death spiral, the companies that prospered selling to them are all going to wither unless they can change their model of doing business. There are exceptions to this.... General Electric and 3M have always had the reputation for being able to reposition themselves. To do so requires very strong and visionary management at the top. I haven't seen that from Nortel or Lucent so I'm not enthusiastic about their long-term prospects.
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