UK-based Marconi is negotiating a deal with the Chinese firm of Huawei Technologies that will allow each company to sell certain products from the other’s product portfolio.
Huawei is the largest telecom vendor in China’s telecom market. Currently the company has 24,000 employees and sales in 2004 reached $5.58 billion.
Under the terms of a preliminary agreement between the two, Marconi will distribute certain of Huawei’s carrier grade data products while Huawei will distribute Marconi’s next-generation access radio products.
Discussions are continuing regarding a joint product development agreement that would see the two companies also share R&D resources and technologies.
“The next stage of our relationship will be to jointly develop new products that would then be sold through our mutual distribution channels,” said Mike Parton, Chief Executive Officer of Marconi.
A more definitive agreement is expected from the companies before Marconi’s financial year-end in March 2005.