Nortel closes mobile WiMax business

Nortel filed for bankruptcy protection last year

Telecoms firm Nortel has announced today that it is to discontinue its mobile WiMax business.

Nortel is in the process of restructuring after filing for bankruptcy last year, and this move will help it to better manage its remaining portfolio and focus on core products and customers, the vendor said.

As part of these plans, the firm announced today that it has ended its relationship with WiMax provider Alvarion. The deal, which was announced last June, involved the integration of Nortel's network and backhaul solutions, along with its global services, with Alvarion's radio access network technology. Nortel was also able to resell Alvarion's WiMax access products.

Both firms stressed that customers would be well supported during the transition period.

"Our priority is to minimise the effect on customers. We will work closely with Nortel to ensure that the transition will be as smooth as possible," said Tzvika Friedman, Alvarion president and chief executive, adding that the firm was "obviously disappointed in the direction this has taken".

Richard Lowe, Nortel president of carrier networks, said the move was designed to help Nortel capitalise on an anticipated future resurgence of carrier spend levels and drive value to the business.

"The action, while difficult, was a necessary step addressing Nortel's current situation and intention to narrow the company's focus," he added.