|
Home >
UMTS
June 26, 2004
Nortel Networks Corp. plans to work with a leading Chinese equipment
maker to produce third-generation wireless gear for the world's most
populous country, just one in a flurry of announcements from the company
yesterday.
The Brampton, Ont.-based firm was also named as one of the suppliers for
Sprint Corp.'s $1-billion (U.S.) wireless network upgrade. Nortel's portion
of the contract wasn't disclosed but analysts said it would be small
compared with rival Lucent Technologies Inc.'s part.
The announcements were made during Supercomm, the world's biggest trade
show at which network equipment companies showcase their wares for
communications service providers. It is taking place this week in Chicago.
In China, Nortel heralded its connection with Beijing-based China Putian
Corp. to co-operate on research, development and production of advanced
wireless gear. The Chinese government is trying to encourage the development
of the country's own third-generation standard, which allows for faster data
transfer, rather than using the same technologies being deployed in Europe
and Asia.
Chinese wireless companies will use other standards as well, all of which
Nortel also sells. Licenses for third-generation service are expected to be
issued next year, the government said. UBS Ltd. of London said in a recent
report that the government wants to give China's standard more time to
develop.
Nortel has increased its focus on the Chinese market recently. Last year,
it said it would invest $200-million over three years in China to bolster
its research and development operations.
The partnership with China Putian -- a memorandum of understanding rather
than a binding agreement -- follows comments from Nortel chief Bill Owens
last week that the company is open to such alliances.
There has also been talk of working with Cisco Systems Inc., an idea
raised by that firm's chief, John Chambers, at the Speakers Forum in Toronto
last week, but a number of analysts say such a connection would benefit
Cisco more than Nortel
|
|
