To narrow its focus on its broader carrier business
Nortel has announced its decision to discontinue its mobile WiMAX business and end its joint venture with Alvarion to enable it to narrow its focus and strengthen its broader carrier business.
The company will work with Alvarion to transition its mobile WiMAX customers to ensure that ongoing support is provided. The companies formed the alliance last June to create an end-to-end WiMAX offering to deliver high-speed wireless broadband across multiple frequency bands for mobile or nomadic applications including VoIP, streaming music, and HD video.
Richard Lowe, president of carrier networks at Nortel, said: We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment. Our continued success in the wireless business requires us to focus our energy on opportunities with long-standing customers. This will position Nortel more effectively to capitalize on future resurgence of carrier spend levels and drive value to the business.
Last month the company and some of its subsidiaries filed for bankruptcy protection in Canada and the US after reporting a third-quarter net loss of $3.41 billion on revenue down 14.3% at $2.31 billion.