Nortel and Huawei issued a joint press release highlighting the intent to form a joint venture targeting the Ultra Broadband access market. The two companies will join forces to develop a new product portfolio sold exclusively through Nortel and Huawei.
These new Ultra Broadband products will target next-generation DSL and fibre-to-the-home (FTTH) opportunities with service providers around the world, and are critical in delivering new high-bandwidth services such as IPTV and interactive video services.
The announcement says that by working together, new revenue opportunities and new markets are opened for Nortel and Huawei. Just as important, this announcement is an example of a strategic step that Nortel is taking in its business transformation plan focused on generating new revenue and expanding operating margins.