Huawei should buy Nortel’s carrier Ethernet and optical assets to help improve its competiveness against Cisco, Alcatel-Lucent, and Nokia Siemens, writes Ray Le Maistre, international news editor at Light Reading. Despite growing steadily each year to become a $12.5 billion business, the China-based company is still far behind its networking rivals, Le Maistre adds. Huawei’s acquisition of Nortel’s MEN (metro Ethernet networks) business would enable it to break into the North American market; enable the two companies to rekindle their failed access equipment relationship; give Huawei access to Nortel’s advanced developments in 40G/100G; and would boost both companies’ carrier Ethernet ambitions.
Le Maistre adds:
“This is a move that makes total sense for Huawei. Expect to see the Chinese vendor at least check out the potential for such a deal, which could, of course, run into some regulatory barriers and, of course, some potential competition that won’t be keen to see Huawei get its hands on Nortel’s MEN.”
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