Microsoft taps LG-Nortel JV for Windows CE products

Stuart Corner
Friday, 26 May 2006 13:42

IT Industry - Strategy

Microsoft and LG-Nortel, a joint venture between Korea's LG Electronics and Nortel are to collaborate on VoIP products, specifically Windows CE-based IP terminals and the new Windows CE 6 videophone, code-named 'Yamazaki', Microsoft's new integrated embedded development environment for the next generation of smart devices.

The two have signed an MoU for a strategic alliance that will include joint R&D, cooperative marketing to customers and channels worldwide, and a licensing agreement for WinCE 6. The MoU extends an existing relationship between the two under which LG-Nortel has developed a WinCE 5-based multimedia SIP phone, the LIP-6824CD, and the world's first WinCE 6 videophone for global markets.

LG-Nortel CEO, Jae Ryung Lee, said that the two companies planned to make a wide range of WinCE-based products available to Microsoft channel partners around the world."

The two companies say they expect to conclude a definitive agreement within the next few months, at which time new WinCE 6-based IP phone designs and features will be announced.

LG Nortel was announced in January 2005 and formally established in November. Nortel contributed its South Korean distribution and services business and $US145 million in cash for 50 percent of the JV, plus one share giving it control.

The focus of the JV is R&D in both telecoms infrastructure and terminals. At the time of its formation the two said that their respective 3G infrastructure deals with leading Korean telcos, SKT and KTF would "pave the way for the joint venture to become a major 3G supplier in one of the most advanced telecommunications markets in the world.