RealTime IT News

Huawei-3Com Open Joint Venture

After clearing regulatory hurdles, the proposed joint venture between Huawei Technologies and 3Com is a reality.

The network equipment makers today signed documents over the weekend establishing Huawei-3Com Co. The collaborative effort will have a presence in Hong Kong, China and Japan.

Initially, the joint venture will produce a local area network switch and two router product lines, 3Com spokeswoman Karin Bakis told internetnews.com.

The products will be marketed under the Huawei-3Com name in China and Japan and the 3Com name in the rest of the world.

Huawei brings equipment technology, engineering and sales and marketing staff, as well as licenses to its related intellectual property to the joint venture.

Marlborough, Mass.-based 3Com contributes $160 million cash, assets related to its operations in China and Japan, and licenses for certain intellectual property.

In two years, 3Com has the right to acquire a majority ownership interest in Huawei-3Com Co., which could help it further compete against larger rivals including Cisco Systems .

As Huawei-3Com begins operations, there will be approximately 1,500 employees based in China derived primarily from Huawei but with additional resources from 3Com as well as newly hired employees.