LG-Nortel goes into business with Accton

Telecoms joint venture LG-Nortel this week partnered with Taiwanese kit vendor Accton to form another joint venture targeting the North American market.

The joint venture will combine the SMB voice and data portfolio of LG-Nortel with Accton’s marketing and sales experience, SMB channels and logistics skills.

LG-Nortel will own 60 per cent share in the joint venture and Accton Group will own 40 per cent. The new company will be tentatively named Edgecore Networks.

The Korean-Canadian venture said North America’s SMB telecommunications market is expected to comprise 27 per cent or S$5.7bn of the global space in 2010.

But with Nortel’s break up plan almost complete there has been plenty of speculation that it is looking to sell its 50 per cent stake in LG-Nortel.