The new Nortel Dasa Network Systems GmbH & Co KG joint venture between Munich, Germany-based Daimler Benz Aerospace AG and Northern Telecom Ltd will establish a research and development facility, in Friedrichshafen, Germany, linked to labs at Northern Telecom headquarters. President Jacques Berube said the joint venture will result in offerings that will be available to customers in the US as well as European markets. For the most part, however, the venture will begin by concentrating on adapting Northern Telecom’s complete product line for the German market. Since Northern Telecom does not have the satellite technology expertise that Daimler Benz Aerospace does, Berube said the venture is the only way to create products for telecommunications providers that, frustrated by the slow pace of liberalisation, will most likely have to bypass traditional terrestrial networks. This, Berube said, is where the German company is an asset to the venture. For the German, a company making the tough switch from military to civilian markets, the venture is a welcome one. It will begin with a capital base of $28.4m and plans to invest $213m over the mid-term. Berube said the goal is to reach around $710m in turnover in the same period. He expects business volume from private telecommunication providers will total at least $2,128m by the year 2000. Volume expected from corporate customers and carriers will be another $1,418m.
