SHANGHAI, China—Motorola Inc. and Huawei Technologies Co. Ltd. are teaming up to launch what they call an “enhanced and extensive” suite of UMTS and HSPA infrastructure equipment to carriers.
The companies said a new research and development center in Shanghai, China is a key component of their joint venture, as employees from both vendors will work to further develop UMTS-based products and services.
However, the crux of the deal appears to be that Huawei stands to gain access to Motorola’s clients and network expertise in both design and managed services, while Motorola gets to tout low-cost infrastructure equipment.
Motorola stated in a press release that it intends to contribute its services expertise in network design, deployment and integration as well as provide value-added services such as network performance, network security, network management and Operation Support Systems. Huawei is set to contribute “its dramatically increasing expertise in technology innovation, research and development.”
Huawei’s previous joint venture with Nortel Networks Ltd. to develop high-speed broadband access gear fell apart in early June without much explanation from either company.
Under pressure to consolidate, several wireless equipment vendors have announced plans to merge with or acquire other vendors. But Nortel and Motorola remain on the industry’s merger and acquisition-radar, as both companies have not announced any plans to combine forces with other vendors.
