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Struggling Nortel jettisons WiMAX business

As it seeks to reorganize under creditor protection, Nortel Networks has ended its mobile WiMAX agreement and exited the business

Nortel Networks (TSX: NTL) this week announced that it has decided to discontinue its mobile WiMAX business and end its joint agreement with Alvarion.

Nortel and Alvarion entered into their arrangement in June when Nortel decided to end mobile WiMAX product development in favor of LTE. Nortel will now exit mobile WiMAX entirely.

The move comes as Nortel attempts to restructure after filing for Chapter 11 bankruptcy protection from creditors.

Nortel says the decision will allow it to narrow its focus, better manage its investments and strengthen its broader carrier business to better position itself for long-term competitiveness.

Nortel said it will work with Alvarion to transition its mobile WiMAX customers to help ensure that ongoing support commitments are met without interruption.

“Our continued success in the wireless business requires us to focus our energy on opportunities with long-standing customers,” said Richard Lowe, Nortel president of carrier networks, in a statement. “This will position Nortel more effectively to capitalize on future resurgence of carrier spend levels and drive value to the business.”

The agreement 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.

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

Network World (US)