21 October 2005
The efficiency of home telephone services is reportedly under threat as a result of the possible takeover of Marconi.
The telecoms giant upkeeps a large percentage of BT's network and is being strongly linked with a possible buyout which involving Chinese firm Huawei – who are said to lack the ability to continue such high-level maintenance.
Huawei's inexperience with European systems is said to be behind the potential problems, and it is probable that another firm would have to be employed to carry out the work in the event of a successful bid from the Asian giants.
Michael Philpotts, analyst at the Ovum telecoms consultancy, told ElectronicsWeekly.com that third-party assistance would be necessary should Huawei gain control.
"Marconi do a lot of work in maintaining the BT network and Huawei don't have the capabilities in Europe to maintain that. Huawei has no footprint in Europe," he said.
Ericsson, the Swedish telecoms firm, is however still favourite to carry out the takeover after next Tuesday's deadline for final bids from interested parties.
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