Nortel exits mobile WiMAX market

After filing for bankruptcy protection earlier this month, Nortel has also decided to pull out of the mobile WiMAX market. It will still sell fixed WiMAX equipment. This should come as no surprise. Nortel failed to win the Sprint contract (losing out to Motorola). It has not managed to gain any critical mass in the 802.16e equipment market outside the United States. Nortel entered into a partnership with Alvarion in 2008 whereby the two companies had agreed to integrate Alvarion’s radios with Nortel’s networking software and applications such as VOIP.

In a separate announcement, Alvarion reported today that because of Nortel’s decision to pull out of mobile WiMAX, it will not be able “to recognize $2.4 million in revenue from the sale of products to Nortel” in Q4 2008. The company said it now sees revenue for the quarter of $70 million, and the low end of its previous guidance range of $70 million to $78 million. The company also said it expects to report a non-GAAP profit of $100,000, or under a penny a share. Previous guidance had been for profits of zero to 7 cents.”

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