Huawei Technologies' rotating chief executive officer Eric Xu has thrown his support behind the Nokia and Alcatel-Lucent partnership.

Speaking at the 12th Huawei Global Analyst Summit in Shenzhen, China Xu who is also the executive director of the board at Huawei, said the imminent partnership is good for business.

"The consolidation is big news for the industry," Xu said. "I hope they can be a strong player in the industry," he stated.

He added that competition of three strong players (Ericsson, Nokia and Alcatel-Lucent, and Huawei) can make the industry ready for the future.

Last week Finland headquartered company Nokia announced that it would acquire French firm, Alcatel-Lucent, for a reported $16.5 billion.

The merger is set to rival networks firms, Ericsson and Huawei, and has largely been welcomed as one that will bring competition and scale to the market.

Analysts agree that it will open the market up to more innovative offerings as the three entities compete for market share across the continent.

Huawei has won a number of key networks services contracts with operators across the African continent.

* Simnikiwe is in Shenzhen, China for the 2015 Huawei Global Analyst Summit.