Nortel Opens 3G Talks in China

Nortel is close to establishing a joint venture with China
Putian to build third-generation wireless gear for the
Chinese market, the company said today.

The new company will handle R&D, manufacturing and sales to carriers in the
promising China market. China Putian will own 51 percent of the joint
venture, and Nortel will own the remaining 49 percent.

In a statement, Nortel CEO Bill Owens said the collaboration will help the
company advance 3G technology and strengthen its ability to reach new
prospects in China.

Nortel spokesperson Jay Barta said Nortel has formed three joint ventures
with Chinese firms to date.

Nortel, which has been dogged by an accounting scandal, has had recent success
in 3G in the United States, helping support major rollouts by
Verizon Wireless and Cingular.

The move to strengthen ties with China is not altogether unexpected. In a
September meeting with reporters, Owens said
the company was exploring its options with large players in the Asian market.

“We see these companies competing with us in the Western world … in
places that I would not expect them to be yet,” Owens said at the time,
citing Huawei Technologies and others.

The two companies have collaborated on projects before, including 3G field
trials sponsored by China’s Ministry of Information Industry. Details
of the joint venture are expected to be finalized by June 30.

Other large North American networking companies have also taken notice. At
Cisco’s annual shareholder meeting in November, CEO
John Chambers predicted
that the majority of the company’s competitors a decade from now will be
Asia-based.

Industry watchers attribute the rise of Asian companies to the improved IT
infrastructure, low cost of production, solid education systems and
softening economic and regulatory policies.

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