TORONTO — Nortel Networks Corp. has disclosed that a joint venture with Chinese competitor Huawei Technologies Co. Ltd. has been called off.

The venture had been announced Feb. 1 as a global partnership to develop ”ultra” broadband projects.

Shenzhen-based Huawei is regarded as a significant threat to Nortel and other established telecommunications equipment makers, as it combines low costs and high technology to expand its market share.

The February announcement represented ”a bold opportunity to combine the strengths of Huawei and Nortel into a company that can aggressively target and win share in the rapidly expanding ultra broadband market,” Nortel CEO Mike Zafirovski said at the time.

Disclosure of the deal's cancellation came in a single paragraph on page 50 of Nortel's first-quarter documentation submitted this week to the U.S. Securities and Exchange Commission.

”We and Huawei have now decided not to proceed with a joint venture,” Nortel stated.

”The parties are continuing discussions to define the nature that any ongoing alliance or relationship may take.”

The new joint-venture company was to have been based in Ottawa and majority owned by Nortel, combining Huawei's high-capacity access products with Nortel's voice and broadband networking technology.

The venture would have improved Nortel's position in the fast-growing market for network access equipment, while enhancing Huawei's presence in North America and Europe.

Nortel stock was up a nickel at $2.45 Friday afternoon on the Toronto Stock Exchange.