Accton, LG-Nortel Tie Up for N. America Voice and Data Solution Market

Taipei, Feb. 23, 2010 (CENS)--Accton Technology Corp., a major telecommunications equipment company in Taiwan, and LG-Nortel, a South Korea-based telecomm solution provider, recently announced their joint venture to offer voice and data solutions for North American small and medium businesses (SMBs) and large enterprises.

The agreement was signed in Hsinchu, northern Taiwan by Jae Ryung Lee, CEO of LG-Nortel, and A.J. Huang, chairman of Accton Group. LG-Nortel will own 60% share in the joint venture while Accton Group the rest 40%. The new company, tentatively named Edgecore Networks Inc., will be established in February with headquarters in Irvine, California.

According to Accton, the venture will combine the SMB voice and data product expertise of LG-Nortel with Accton's marketing and sales capability, SMB channels, and logistics skills. Combining these capabilities would position the venture to take full charge of the SMB and enterprise equipment business of LG-Nortel and Accton across the U.S. and Canada, Accton said. Accton and LG-Nortel would cooperate in every aspect of their businesses including R&D, manufacturing, marketing, new business development, and brand use, The Taiwanese telecom equipment maker said.

Huang pointed out that demands from North American customers are directly connected to the global communication trends. 'The brand value and voice platform technology that LG-Nortel provides, paired with Accton's distribution and manufacturing capacity, and Accton's local network reach, he added, would make the venture a powerful combination that could deliver significant benefits for companies across North America.

North America's highly-competitive SMB telecom solution is expected to comprise 27% (US$5.7 billion) of the global market in 2010, LG-Nortel said. Through the joint venture, LG-Nortel would bring its telecom solutions directly to the North American SMB and enterprise market with a broad portfolio including LG-Nortel's voice products and Accton's data products. The joint venture would help both companies strengthen their position in the highly competitive convergence market, the Korean equipment said.