Bloomberg News

Nortel to End WiMax Business, Accord With Alvarion

January 29, 2009

Nortel Networks Corp. (NRTLQ:US), the phone- equipment maker that filed for bankruptcy this month, will discontinue its mobile WiMax business and end an agreement with Israeli partner Alvarion (ALVR) Ltd.

The decision will help strengthen the company’s other businesses and position it for future growth, Nortel said today in a statement.

Nortel said in June it was scaling back plans for the WiMax business in favor of Long Term Evolution, a rival wireless technology supported by Verizon Wireless and AT&T Inc. (T:US), the biggest U.S. mobile carriers. Mounting losses and frozen credit markets amid the economic slowdown led to the Jan. 14 bankruptcy.

“Our plan for Long Term Evolution remains unchanged,” said spokeswoman Karen Monaghan. “We continue to assess our opportunities there, including potential partnerships, to drive the LTE technology to market.”

Under their WiMax agreement set in June, Tel Aviv-based Alvarion contributed wireless technology, while Nortel provided network gear and professional services. Nortel said today it will work closely with Alvarion to ensure support commitments for mobile WiMax customers are met without interruption.

Nortel fell 2 cents to 11.5 Canadian cents today in Toronto trading. The stock has lost 99 percent in the past year.

To contact the reporter on this story: Lisa Wolfson in San Francisco at

To contact the editor responsible for this story: Julie Alnwick at

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