LG-Nortel launches joint venture for voice and data network
Posted by sweens on January 28, 2010
Published on January 28th, 2010
The joint venture formed by Nortel Networks Corp. and LG Electronics of South Korea plans to tackle the U.S. business equipment market by mid-February with a new Taiwanese partner.
LG-Nortel said Thursday that it will pair with Accton Group to roll out a voice and data network for businesses operating under the name Edgecore Networks Inc.
LG-Nortel will hold a 60 per cent share in Edgecore while Accton will have the remaining 40 per cent.
The two companies will split responsibilities such as research and development, manufacturing, and marketing.
“This partnership will provide significant new opportunities to reinforce our brand, increasing our global competitiveness and helping our customers embrace the future opportunities and challenges of the converged communications market,” said LG-Nortel chief executive Jae Ryung Lee in a release.
Nortel holds a majority stake in the LG-Nortel joint venture, one of the few remaining pieces of the company that hasn’t been sold.
Toronto-based Nortel, formerly a giant of the global telecom equipment industry, filed for bankruptcy protection last year and has since been auctioning off its assets in an attempt to pay back debtholders.