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WiMax Axed By Bankrupt Nortel Networks

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Nortel Networks said it will no longer support WiMax as it tries to restructure after filing for bankruptcy protection two weeks ago. Reuters reported that Toronto-based Nortel said today that it was also ending an agreement with WiMax infrastructure company Alvarion to resell its products and help fund the development of the technology. Analysts predicted that in order to survive, the company was going to have to shut down business lines and divest assets, but dropping WiMax is a bit surprising because it was one of the bigger supporters. Nortel made it sound strictly like a business decision: Richard Lowe, president of Nortel’s carrier networks business: “We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment.” But you have to wonder if it’s because they now see the greater opportunity lying in the competing LTE technology? Back in September, Nortel said it sees LTE as the most likely upgrade path for about 80 percent of the world’s existing mobile phone providers, with others going for WiMax.

Jan 29, 2009 6:47 PM ET

Posted In: Technologies / Formats, Broadband, WiMax, nortel

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