China's Huawei to Link With UK's Marconi
02.01.2005, 12:35 AM
China's biggest telecoms equipment maker, Huawei Technologies Co. and Britain's Marconi Corp. PLC have set a distribution agreement expected to help extend the Chinese company's reach in Europe.
A preliminary agreement calls for Marconi to distribute some of Huawei's data products and for Huawei to distribute Marconi's next-generation radio access products to their respective customers, the companies said in a statement issued Monday in London.
A more detailed agreement was due to be signed before Marconi's fiscal year ends in March, it said.
The companies said they are also discussing a joint product development agreement to allow them to benefit from sharing technology research and development.
Huawei recently also set a joint venture agreement with Germany's Siemens AG to cooperate in so-called third generation, or 3G, mobile phone network development and sales, part of a push to expand beyond China and other developing countries to wealthier markets in the West.
"This is an important first step in what we believe will be a long and mutually beneficial working partnership," Mike Parton, Marconi's chief executive officer, said in the statement. "We will sell Huawei's products that complement our own, and which we will support through our strong service offering."
Huawei, based in the southern city of Shenzhen, is China's largest telecoms equipment supplier, with 24,000 employees and sales in 2004 reported at US$5.6 billion (euro4.3 billion).
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