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Nortel announces strategy changes for WiMAX and 4G programs
Telecom supplier moves mobile WiMAX efforts to Alvarion joint venture and gears up for LTE development.
Nortel Networks has its sights set on wireless growth over the next three years and announced several product strategies to realize those goals. The major WiMAX news from the Toronto-based company is the formation of a joint venture with Tel-Aviv's Alvarion. The venture will see Alvarion pick up the mobile WiMAX product development for the telecom supplier, freeing up resources for Nortel's pursuit of LTE solutions. The Nortel and Alvarion mobile WiMAX solution is expected to combine technologies from both companies. Alvarion is an established radio manufacturer citing 200 commercial WiMAX deployments worldwide, while Nortel is recognized for core network solutions and strong value-added services including VoIP.
Nortel has struggled to assemble its own WiMAX portfolio, instead choosing to partner with Airspan Networks for fixed WiMAX while pursuing its own 802.16e-2005 base station and a joint venture with Korea's LG Electronics for devices. "Wireless broadband is one of the fastest growing opportunities in the telecommunications market," said Richard Lowe, president at Carrier Networks, Nortel. The new Alvarion relationship keeps the company in the WiMAX market while freeing its telecom R&D staff to focus efforts on the forthcoming 3GPP LTE (Long Term Evolution) protocol that will compete with WiMAX for 4G mobile operator networks.
The partnership is a boost for radio manufacturer Alvarion. The company will gain access to Nortel's core network solutions and VoIP systems, along with promotion through Nortel's sales channels for mobile WiMAX opportunities. Nortel officials estimated that partnering with Alvarion will save the company between 12 and 15 months of development time. They also note that revenues from the WiMAX venture are expected in 2009, in advance of LTE capabilities. The impact on Nortel's current fixed WiMAX partner, Airspan, is unclear.
By Jeff Orr,
ORR Technology, LLC
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