Analysys International Says Huawei and Nortel Joint Venture Intends to Occupy GPON Market With First Chance
Posted on: Wednesday, 8 February 2006, 09:00 CST
BEIJING, Feb. 8 /Xinhua-PRNewswire/ -- Analysys International, a leading Internet-based business information service provider, says that Huawei and Nortel established joint venture in order to obtain first chance and occupy the global GPON market.
News Background
On Feb. 1, 2006, Nortel Networks and China's Huawei Technologies announced they have entered into a Memorandum of Understanding (MoU) with the intent to establish a joint venture to develop ultra broadband access solutions for the global market. The two companies have also entered into a supply agreement that allows Nortel to immediately begin engaging customers with Huawei's broadband access products.
Quick Analysis
According to a media report, Huawei and Nortel established the joint venture to develop ultra broadband access solutions. Analysys International says the joint venture will most probably be focused on the development and promotion of next generation passive optical networks (PON) and WiMAX products. The development trend of broadband access would be optical networks, and the development trend of wireless access would be broadband. PON and WiMAX represent the two development directions. Analysys International says the cooperation between Huawei and Nortel is based on the understanding of this basic trend.
As a Chinese telecoms equipment maker, Huawei has produced its Gigabit- capable passive optical networks (GPON) products. However, China's broadband access market is not mature enough that optical networks access is in great demand by households. As a result, Huawei can't obtain full development and improvement for its GPON series products in the Chinese marketplace.
In overseas markets, particularly in North America, the GPON market has been initiated in large scale. The development of IPTV has increased the demands for optical networks access by households in North America. However, due to competition from major western telecoms equipment makers, such as Alcatel, Motorola and Hitachi, and its weak brand recognition in North America as well as lack of mature products that satisfy North American market, Huawei only achieved poor performance in this emerging market. Analysys International says Huawei joining with Nortel to explore the GPON market will be helpful to avoid these disadvantageous factors.
In addition, when China's GPON market is initiated, the mature GPON products that have undergone tests at the overseas markets will win first market opportunities for Huawei in China.
Analysys International's Position
The joint venture between Huawei and Nortel will further enhance edge for Huawei in overseas markets and improve Huawei's position in the global broadband access equipment market.
About Analysys International
Analysys International is the leading Internet based provider of business information about technology, media and the telecom industry in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the web site at http://english.analysys.com.cn/ .
For more information, please contact: Jessica Wang Overseas Media Manager Analysys International Tel: +86-10-6466-6565 x394 Fax: +86-10-6466-7102/7103 Email: Overseas@analysys.com.cn
Analysys International
CONTACT: Jessica Wang, Overseas Media Manager of Analysys International,+86-10-6466-6565 x394 or fax +86-10-6466-7102/7103, Overseas@analysys.com.cn
Web Site: http://english.analysys.com.cn/
Source: PRNewswire
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