Nortel Teams Up With Chinese Rival

In a surprising move, Nortel is hooking with one of its biggest international competitors, China's Huawei Technologies, to develop broadband access solutions for DSL and fiber-to-the-home (FTTH) providers around the world. The two companies announced Wed. that they will form a joint venture to create "ultra broadband" products for service providers interested in pursuing IPTV and interactive video. The two companies also said they have signed a supply agreement that will allow Nortel to promote Huawei's current portfolio of broadband access products to its customers. With the pact, Nortel, which is under new leadership, will re-enter a business that it left in 2001 when telecom spending collapsed. Plans call for Nortel to be the majority owner of the jont venture, which will be based in Ottawa. The two companies said they intend to launch the new partnership sometime in the third quarter.
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