Irish WiMAX operator sues Motorola for breach of contract

Irish WiMAX operator Imagine is suing its vendor Motorola (NYSE:MSI) for $124 million, claiming the vendor breached an agreement to deploy a WiMAX network in the Irish Republic.

Imagine claims that failures by Motorola have cost it $23.6 million already and will lead to additional losses totaling $124 million by the end of 2013. Imagine said Motorola failed to meet customer demand and provide a network infrastructure that met the original tender agreement. As a result, Imagine said it may have to lay off some 100 staff as a cost-saving measure.

Imagine and its parent companies had envisioned a plan of 234 base stations installed by 2010. However, to date, just 125 stations have been installed so far. Perhaps more irritating for the operator is that it claims Motorola has told Imagine to send its complaints to Nokia Siemens Networks, which is buying Motorola's networks business.

Motorola denies the claims and the court case will resume in June.

For more:
- see this cellular-news article
- read this Silicon Republic article

Related articles:
WiMAX trial planned for UK, rollout to follow within months
BT Italia expands WiMAX network
Alvarion wins Italian WiMAX deal, but reports poor Q3 results
Telefonica Spain selects ZTE for giant WiMAX deployment

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