Motorola/Huawei

Motorola and Huawei are teaming up on infrastructure solutions. They plan to launch an “enhanced and extensive” suite of UMTS and HSPA infrastructure equipment to carriers. What are their respective interests? For Motorola, it is an opportunity to finally get low-cost infrastructure equipment (after different partners such as DSC, Alcatel, Siemens, ..) and also to get a footprint in the 3G Chinese market, but the main winner in the deal could be Huawei that can gain access to Motorola’s clients and network expertise in both design and managed services. A new R&D center in Shanghai will be used by employees of both vendors. The deal is also an answer to the consolidation wave, without the disagreements of a merger and mixing strong enterprise cultures.