Sunday March 14, 9:34 pm Eastern Time
Microsoft, Intel to unveil telecom alliance - FT
LONDON, March 15 (Reuters) - Microsoft (Nasdaq:MSFT - news) and Intel (Nasdaq:INTC - news) are expected to announce a joint attack on the fast-growing telecommunications equipment business on Monday, the Financial Times reported.
The newspaper said in its Monday edition that the two companies will unveil an alliance with hardware producers Hewlett-Packard (NYSE:HWP - news) and Northern Telecom Ltd. (Toronto:NTL.TO - news), also known as Nortel Networks.
If successful, the alliance could open up a huge market for Microsoft's Windows NT operating system and Intel's Pentium microprocessor, the report said. The venture is seen as possibly advancing the introduction of corporate networks combining voice, data and video signals on the same infrastructure, the report said.
The plan is for Canadian-based Nortel to build routers, switches and servers for corporate networks running Microsoft NT software and handling both data and voice communications.
Nortel initiated the new four-way alliance, the article said. The move is seen as a departure from usual practice in the the telecoms equipment market where competitors such as Cisco Systems (Nasdaq:CSCO - news) and Lucent Technologies (NYSE:LU - news) produce both the hardware and software needed for their equipment.
The venture could give Nortel the opportunity to get in on the ground floor of a growing market, even if it runs the risk of undermining its profitable voice telecoms business lines.
Other telecoms equipment suppliers could eventually be brought into the alliance if it proves successful, and it is understood that the new range will be marketed by Hewlett-Packard under its brand name, the report said.
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