Telecom equipment maker Nortel Networks is dumping its WiMax business to focus on 4G wireless technology.
The company said earlier this week that it's focusing its money and development efforts on long-term evolution or LTE. Even though LTE hasn't yet been standardised, it has more support from major carriers around the world than WiMax.
The two largest US operators, AT&T and Verizon Wireless, have already announced they plan to use LTE to build their 4G wireless networks. Vodafone, the largest worldwide wireless operator, also plans to use LTE for its next generation network.
Sprint Nextel is the only major US operator using WiMax. The company earlier this year joined forces with Clearwire and several other companies including Comcast, Time Warner Cable and Intel in a US$12 billion joint venture to build a nationwide WiMax network.
Sprint, which has already been testing its WiMax network in some places, did not choose Nortel as one of its major vendors to build the new network. This was a major blow for the telco equipment maker, which instead has been forced to focus on carriers in emerging markets. Relative to LTE, this WiMax opportunity is much smaller, which likely contributed to the company's decision to ditch it.
Instead of sinking a lot of research and development into WiMax, Nortel plans to address this market through a relationship with Alvarion.
Most people don't have a 3G phone yet and there is already talk about a replacement. Any new mobile networks should come with a commitment from hardware suppliers and/or the participating carriers that each and every old device will be recycled as much as possible.