MAY 15, 2007 -- Huawei Technologies Co., Ltd. (search for Huawei) and subsea cable installation and maintenance company Global Marine Systems Ltd. (search for Global Marine) have entered into a memorandum of understanding for a joint venture (JV) to deliver end-to-end competitive submarine network offerings to reliably deliver global communication capabilities.
Industry analysts forecast a huge year in 2007 with at least 20 new supply contracts expected to be awarded totaling nearly 100,000 route-kilometers -- largely driven by two transpacific cable projects and a number of medium-sized (2,000-10,000 kilometer) systems. These projections reflect a sustainable, stable growth market driven by the steady development of the Internet industry.
The JV combines Huawei's optical expertise and Global Marine's submarine engineering capability. The companies believe it will give submarine network developers and operators a strong end-to-end alternative that encompasses world-class, field-proven terrestrial and subsea technologies.
"This strategic partnership leverages on our complementary strengths. Global Marine has over 150 years worth of experience in the installation and maintenance of subsea telecommunications systems, while last year Huawei was the fastest growing vendor in optical networks and is ranked No.2 with 11.3 percent global market share in 2006, according to Ovum-RHK," said Yin Xuquan, Huawei's president of optical networks.
"The ultimate goal of all telecoms networking is to provide affordable higher-quality transmission," said Gabriel Ruhan, Global Marine's CEO. "The JV will deliver just that, combining Huawei's optical network leadership, powerful R&D resources, and exceptional reputation for customer service with Global Marine's expertise in the installation and maintenance of subsea systems."
The proposed JV is subject to execution of definitive agreements and customary regulatory approvals.
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