MANHASSET, N.Y. Nortel Networks Corp. and China Putian Corp. have announced they would establish a joint venture for research and development, manufacture and sale of third generation mobile telecommunications equipment and products to customers in China.
China Putian, a State-owned telecom enterprise and one of China's largest telecom equipment suppliers, expects to iron out a definitive joint venture agreement with Nortel (Toronto, Canada) by the end of June.
The joint venture company, named Putian-Nortel Networks Telecommunications Equipment Co. Ltd., will likely be headquartered in Wuhan, capital of Hubei Province. The company will focus on TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) and WCDMA (Wideband CDMA) products and solutions, as well as related network engineering and optimization services.
China Putian will own 51 percent of the joint venture; with Nortel the remaining 49 percent.
The agreement builds on a June 2004 Memorandum of Understanding (MoU) signed by the companies for cooperation on R&D and manufacture of 3G equipment and products. Both companies have cooperated on projects such as the recent 3G field trials sponsored by China's Ministry of Information Industry.