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Ciena Corp. (Quote), a Linthicum, Md.-based optical-networking systems and software provider, said it has signed a memorandum of understanding with China's CEC-IDN Telecom Limited to collaborate on manufacturing, and research and development activities in China.
Ciena and CEC-IDN intend to collaborate on the joint manufacture of Ciena's CoreDirector and MetroDirector K2 products in the People's Republic of China (PRC). This manufacturing collaboration will first involve the MetroDirector K2 and will be carried out in a sequence of phases that ensure the highest standards of product quality and availability, officials said.
Ciena and CEC-IDN also plan to jointly establish a software research and development center in Shanghai for the development of a single, integrated and localized Network Management System (NMS) for the joint Ciena/CEC-IDN product. The center will focus on tailoring Ciena's ON-Center NMS software to meet the requirements of the PRC market, including the development of a Chinese-language graphical user interface (GUI) and the integration of CEC-IDN's existing access products.
The memorandum of understanding follows a successful six-month collaboration between the two companies that had entered into distribution and technical co-operation agreements in 2001. CEC-IDN has deployed Ciena's industry-leading CoreDirector and MetroDirector K2 products, and has placed several additional purchase orders with the Maryland-based company.
Ciena views Asia, and especially China, as a "key region" for future growth, said Gary Smith, Ciena's president and chief executive officer. "Together with CEC-IDN, we expect to bring China's telecom operators the ability to migrate their networks from legacy systems to next-generation optical networks, ultimately reducing capital expenditures and generating additional streams of revenue."
CEC-IDN was founded by China Electronics Corporation (CEC), the largest electronic enterprise in China, and IDN Telecom, Inc., a privately held broadband and metro access solution company with headquarters in Fremont, Calif. CEC was established in 1989 under the jurisdiction of China's State Central Enterprises Working Committee with a mandate to vitalize and develop China's information industry.
Earlier this week, Ciena said it would buy ONI Systems in a $900 million deal.
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