Nokia's chief executive revealed today that he considered providing the technology for failed radiowave telephony operator Ionica, but decided to give it a wide berth.
Ionica, which called in the administrators last month after a string of poor financial performances, chose wireless local loop technology from rival equipment vendor Nortel.
But Ionica's failure was pinpointed as a key reason for the loss of almost 600 jobs at Nortel's wireless local loop manufacturing units in the UK in September.
Nokia's chief executive Jorma Ollila said at the FT World Telecommunications conference today that the Finnish company did look at providing the technology, but judged it an unwise strategy.
"I don't think it's a big surprise that it hasn't taken off," said Ollila.
"We didn't see that it would be efficient in terms of investment and the price point was not correct," said Ollila. A problem with Ionica's service is that it didn't offer any value added service to customers that existing wireline didn't already offer, he said.
Nortel also manufactures high bandwidth wireless local loop technology, being used by new US operator Teligent. Wireless local loop is also being used without any apparent problems by Atlantic Telecom in Glasgow and Aberdeen.
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