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Nortel, Israeli company combine network businesses
The Canadian Press - June 11, 2008 at 7:30 AM EDT
TORONTO — Nortel Networks Corp. and Tel Aviv-based technology provider Alvarion Ltd. have struck a “strategic WiMAX agreement” to combine the Israeli company's radio access network solutions with the Canadian telecom equipment maker's network gear and services.
The financial terms of the arrangement were not disclosed Wednesday.
The aim is to “create an end-to-end WiMAX solution” enabling established and new service providers to efficiently deliver high-speed wireless broadband for applications including VoIP, streaming music and high-definition video.
“The collaboration between Nortel and Alvarion will allow both companies to deliver on these needs quickly and efficiently with a world-class WiMAX solution that is based on the best technology from each,” stated Richard Lowe, head of Nortel's carrier networks division.
“The solution will also include Nortel services, ranging from network consulting, design and deployment to full network management.”
The agreement covers resale by Nortel of Alvarion WiMAX access products, whose base-station development “will be accelerated by Nortel's contribution of resources, expertise, and funding,” the companies said.
Nortel said it is focusing its main wireless research and development on so-called fourth-generation long term evolution applications, leaving WiMAX development to Alvarion.
“This enables Nortel to achieve faster time to market with WiMAX at a lower cost, while accelerating LTE development to meet a demand that is emerging faster than the industry originally predicted,” the Toronto-headquartered company said.
“Both WiMAX and LTE represent game-changing opportunities for Nortel because they require advances in network speed and capacity that Nortel knows how to deliver,” Mr. Lowe stated.
Nortel, holding a meeting with investors Wednesday to discuss the company's ongoing “transformation,” reconfirmed its outlook for this year, predicting percentage revenue growth “in the low single digits” with a gross profit margin of about 43 per cent of revenue.
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also:
http://en.wikipedia.org/wiki/Alvarion
Founded 1992, Alvarion employs 444 people worldwide and reported net revenue of US$236.6 million for their most recent fiscal year, which ended on December 31, 2007.
If this agreement solves the huge gapping hole on their wireless product portfolio then it could be a very good thing. Time will tell.
I think the end of Wimax was a good idea, since there seems to be little traction for the technology which has been in 'hype mode' for years with very small results.
At least with LTE it appears that all of the major players are moving in the same direction. People who don't know the depth and breadth of Nortel's product line or our customers have no idea how many of our customers wireless customers aren't necessarily data/voip customers or how many of our trunking/voip customers aren't our own wireless customers.
If we can come up with a solid product the customers will come, have no worries.