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Nortel, Huawei In Broadband Access Venture

LONDON — Nortel is teaming with China's Huawei Technologies Co. Ltd. to develop and market broadband access equipment. As part of the deal, Nortel immediately will be able to sell most of Huawei’s existing lineup for broadband access.

The Canadian group will hold the majority stake in the venture, which will be headquartered in Ottawa.

Negotiations are under way, and the companies expect the combined group to start operations in the third quarter. Development of advanced access gear has already started, they said.

The aim is to combine Huawei’s broadband access technology with Nortel’s voice and broadband networking know-how to create a range of advanced DSL and fiber-to-the-home products that will offer triple-play services to operators worldwide.

Nortel sees the venture as part of the business transformation strategy it outlined last year for creating business opportunities.

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