Nortel backs off from WiMax

TORONTO, USA: The trouble facing Nortel Networks, which lately had filed a bankruptcy lawsuit, announced on Thursday that it has decided to discontinue its mobile WiMAX business and end its joint agreement with Alvarion Ltd., a provider in WiMAX and broadband solutions.

This decision, which will have no impact on Nortel's other solutions, will allow Nortel to narrow its focus, better manage its investments and strengthen its broader carrier business to better position itself for long-term competitiveness, said a press release.

However, the company denies total abandoning of WiMax. Nortel will work closely with Alvarion to transition its mobile WiMAX customers to help ensure that ongoing support commitments are met without interruption, added the release.

"We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment. We will work closely with Alvarion to transition our mobile WiMAX customers to them and assure customers that they will continue to benefit from leading-edge technology and high-quality service," said Richard Lowe, president of carrier networks, Nortel.

"Our continued success in the wireless business requires us to focus our energy on opportunities with long-standing customers. This will position Nortel more effectively to capitalize on future resurgence of carrier spend levels and drive value to the business."

The agreement, announced in June 2008, outlined the integration of Alvarion's advanced radio access network technology with Nortel's core network solutions, backhaul solutions, and global services. It also covered the resale by Nortel of the Alvarion platform of WiMAX access products, said the release.

"Our priority is to minimize the effect on customers. We will work closely with Nortel to ensure that the transition will be as smooth as possible," said Tzvika Friedman, president and CEO, Alvarion.