(SinoCast via NewsEdge) Networking giants Huawei and Nortel announced that the two firms will no longer pursue a planned joint venture.
Reports said the two firms agreed to form a joint venture to offer high-speed Internet in key markets, specifically China.
Nortel CEO Mike Zafirovski however told analysts this week that the Nortel-Huawei joint venture "no longer made business sense."
Nortel formally announced the decision in a first-quarter filing.
Huawei could not be reached for comment.
Analyst Chris Umiastowski of TD Securities meanwhile said that Nortel and Huawei did not get the contracts from particular customers they had hoped to reach.
'It seems that Nortel wanted to announce the JV early to hopefully sway these vendors more in Nortel's direction, but it didn't work,' Umiastowski said.
Nortel and Huawei compete against each other in the market for telecommunications equipment, but they announced in February that they would team up to create broadband Internet access gear for customers worldwide.
Nortel said it would hold a majority stake in a new, jointly owned Ottawa-based company.
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