Nortel-Huawei? Don’t Count On It

Ever since Nokia and Siemens decided to combine their carrier networking equipment units, there has been no lack of speculation about Nortel doing a deal to keep up with the Joneses, including talk about a joint venture or merger involving Huawei. Truth be told, Huawei is attractive because it’s a fast-growing player with a low-cost structure but there are plenty of other issues to consider. A good example is Huawei’s troubles doing business in India where it has been struggling, in part, due to security concerns within India’s intelligence community about doing business with a Chinese company. Nortel has enough of its own problems, including a controversial deal in Tibet, without getting caught up in Huawei’s geo-political battles.

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