Nortel, China Putian plan 3G venture

Canada-based Nortel Networks Corp said it had signed a framework agreement to establish a wireless joint venture with China Putian Corp. The proposed company, Putian-Nortel Networks Telecommunications Equipment Co., will likely be headquartered in Wuhan, central China, and will focus on research, development and manufacturing of 3G equipment for the China market. It will develop equipment for the Chinese "homegrown" 3G technology standard TD-SCDMA, as well as another 3G standard, WCDMA, Nortel said. State-owned China Putian, one of China's largest telecom equipment manufacturers, will have a controlling 51% stake in the venture with Nortel 49%. Analysts say Nortel has been looking to gain ground on rivals such as Siemens and Alcatel which have long-standing 3G partnerships with Chinese companies