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Nortel to end mobile WiMAX business
02 февраля 2009 |
Nortel Networks Corp. said it will discontinue its mobile WiMax business and end its joint venture with Israel's Alvarion Ltd.
The decision will allow Nortel, which sought bankruptcy protection from creditors in the U.S. and Canada earlier this month, to narrow its focus, better manage its investments and strengthen its broader carrier business.
"We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment," said Richard Lowe, president of carrier networks at Nortel.
The company, once Canada's largest, filed for bankruptcy protection Jan. 15, further weakening the ranks of major telecom-equipment makers and sending chills through suppliers already coping with declining sales of network gear and handsets.
Lowe said Nortel will work with Alvarion to move mobile WiMax customers to that company's service without interruption.
Alvarion Chief Executive Tzvika Friedman said,"We will work closely with Nortel to ensure that the transition will be as smooth as possible."
Nortel last June said it was focusing its main wireless research and development resources on a fourth-generation technology called long-term evolution and wireless applications as it moved its WiMax efforts into a joint venture with Alvarion.
LTE and WiMax technology are meant to allow for mobile devices to browse and download from the Internet at faster rates. However, LTE has proven more popular with established carriers.
Nortel's shares were at 11 cents, up 13%, in after-hours trading, while Alvarion's were at $3.40, up 0.3%.
Источник: Total Telecom
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