Nortel explained that the move would allow it 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.”
Upon the release of this news, Nortel’s stock rose almost 10% to $8.90 per share. Likewise, Alvarion stock elevated 6% to around $8 per share.
Under the deal, Alvarion will combine its radio access network technology with Nortel’s core network solutions, backhaul solutions and applications such as VoIP.
“Early movers in this market are looking for a high-quality, turnkey WiMAX solution that delivers vast coverage in a cost-effective way and meets growing demand for true mobile broadband that can support new services like streaming music and mobile TV,” said Richard Lowe, president of Nortel’s Carrier Networks business. “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.”
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