Nortel, Huawei end broadband venture

  • Jim Duffy (Network World)
  • 08 June, 2006 08:02

Add "ultra" broadband access to the list of product programs Nortel has killed.

Nortel and Huawei have ceased their joint venture to develop broadband products. According to a Nortel 10Q SEC filing this week, Nortel and Huawei have decided "not to proceed" with the joint venture to develop gigabit "ultra" broadband access products announced in February.

The two are still talking, however.

"The parties are continuing discussions to define the nature that any ongoing alliance or relationship may take," the 10Q states. "An alliance or relationship, if any, would still be subject to negotiation, execution of definitive agreements and customary regulatory approvals."

Nortel entered into the joint venture with Huawei nearly five years after exiting the broadband access market.

Now that Nortel and Huawei have parted, Nortel appears to be left out of the AT&T/Verizon/BellSouth RFP for Gigabit PON products for IP video and next-generation broadband access build-outs. Nortel's response to that RFP was its joint venture with Huawei.