Nortel to push into India and China - More growth planned

By Dave Murray @ Wednesday, July 09, 2008 1:02 PM

Section - Telecoms/Fabric

Nortel is planning an aggressive push into India and China, hoping to take advantage of a boom in networking gear.

Francois Lancon, Nortel's executive in charge of Asia-Pacific, told Reuters that the Asia-Pacific region accounted for 16 per cent of Nortel's total revenue, and that the company wants to see this rise to nearly a quarter in the next three years.

The US's biggest maker of telephone equipment will be going into these regions peddling Wimax wireless products and communications that integrate the phone closely with desktop computers. It's not going to bother trying to compete on cost, but instead will set itself apart on technology and long-term value, Lancon said.

The company has not been doing so badly. Recently, China's water resources ministry picked Nortel to provide voice, data and video communications products that link employees in 31 provinces.

Analysts however warn that it might be more difficult than Nortel might think. Charter Equity Research's Ed Snyder said that Nortel would find plenty of the tough cost competition that it has been blaming for its falling margins in Asia. X

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