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Nortel exits mobile WiMAX business

Fri, 01/30/2009 - 7:20am
Monica Alleven, Wireless Week

Nortel is saying goodbye to its mobile WiMAX business and jumping headfirst on the Long Term Evolution (LTE) train.

The company is working with Alvarion to transition its joint mobile WiMAX customers to Alvarion. Nortel is not exiting the fixed WiMAX space.

Nortel employs about 500 people to support mobile WiMAX, according to spokesman Ryan Hill, and it’s not clear how many of them might end up at Alvarion. The two companies combined efforts last year to integrate Alvarion’s radio access technology with Nortel’s core network and backhaul solutions.

Their agreement also covered Nortel’s resale of the Alvarion platform for WiMAX access points, and Alvarion will not be able to recognize about $2.4 million of revenues in the fourth quarter due to Nortel’s exit. That will bring Alvarion’s earnings per share down by about 4 cents for the quarter.

Nortel, which is going through Chapter 11 proceedings, sees LTE surfacing as the technology of choice for most operators worldwide, Hill said. Nortel is in trials with Verizon Wireless and T-Mobile International, and it won a contract with Hitachi to provide LTE core technology to KDDI in Japan.

As recently as December, a Nortel representative said the company had a lot of vested interest in making the partnership work with Alvarion. At the time, the two companies had close to 50 projects in the works.

More Broadband Direct 01/30/09:
•  Verizon: DOCSIS 3.0 isn't the answer
•  Vlog: McSlarrow on broadband stimulus
•  New digital transition delay bill likely to pass
•  AT&T repatriates 4,000 outsourced jobs
•  Thomson to sell Grass Valley to manage debt
•  Harmonic Q4 sales up 11%
•  Juniper picks up steam in 2008
•  Broadcom falls to $159M loss in Q4
•  Nortel exits mobile WiMAX business
•  Hawaii Communications Commission planned
•  Calif. weighs tough TV energy standards
•  Economy shrinks at 3.8% pace in Q4
•  Broadband Briefs for 01/30/09

 

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