Huawei, Option Join Hands; End Dispute
SHENZHEN, Oct 28, 2010 (SinoCast Daily Business Beat via COMTEX) -- Huawei Technologies Co., Ltd., one of the top-ranking telecom operators in China, has entered into a cooperation agreement with Belgium-based wireless modem maker Option, putting an end to a dispute in China-made modems, disclosed people familiar with the matter.
Option will withdraw its complaint against Huawei over USB modem dumping and subsidy. In return, Huawei has agreed to license Option with an intelligent property right and to buy M4S, the chip business operation of Option.
Neither Huawei nor Option gave details of the agreement. Nevertheless, Option, which will have an access to part of the Huawei resources and technologies, will be authorized to use the management software from Huawei at a cost of EUR 27 million or USD 37.68 million for the first year.
the two companies will work with each other in R&D in the future, said one of the people citing the agreement, noting that the partners will probably set up a joint research center in Belgium.