(CORRECTING EARLIER STORY Nortel pulls out of mobile business)
Nortel is to discontinue its mobile Wimax business, ending its joint agreement with Alvarion.
Nortel said the decision would enable it to improve its focus, better manage its investments and strengthen its broader carrier business to better position itself for long-term competitiveness.
Nortel said the move would not affect its fixed Wimax business.
The Canadian vendor's latest swing in mobile strategy follows its announcement on January 14 that it was seeking bankruptcy protection.
"We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment," said Richard Lowe, president of carrier networks, Nortel.
"Our continued success in the wireless business requires us to focus our energy on opportunities with long-standing customers. This will position Nortel more effectively to capitalize on future resurgence of carrier spend levels and drive value to the business."
The two companies agreed last June to integrate Alvarion's radio access technology with Nortel's core network and backhaul solutions and global services. It also provided for Nortel to resell Alvarion Wimax access products.
Nortel hived off its W-CDMA radio access business to Alcatel in 2006, and has since been selling and servicing 2G systems.
A spokesperson for Nortel Asia-Pacific said it would push ahead with developing LTE, with trials by Verizon and T-Mobile now underway. The company had won a joint bid with