Motorola and Nortel Networks are discussing a joint venture that would combine their wireless network infrastructure, according to a media report, quoted by the Associated Press.
The new entity, combining businesses that make network equipment for wireless phone carriers, would likely have sales of about $10 billion, according to The Wall Street Journal, which cited people familiar with the talks.
The industry is seeking new ways to counter slowing growth in telecommunication equipment, the report said.
Nortel spokeswoman Ann Fuller said that the company does not comment on 'rumor and speculation.'
Spokeswoman Jennifer Weyrauch-Erickson for Motorola said the company doesn't comment on 'rumor.'
The reported talks, separate from a possible Motorola divestment of its handset division, would be part of a restructuring effort by Motorola's Greg Brown, who became chief executive January 1.
Nortel CEOMike Zafirovski was Motorola's president and chief operating officer before taking over as head of the Canadian-based company in November 2005.