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Wi-Max: Should Nortel Go Home or Go High?
By Mark Evans | March 28, 2007
As much as Nortel is talking the talk about Wi-Max being a strategic priority, the big question - and one that is being asked by a growing number of people - is whether Nortel has a legitimate shot of becoming one of the leading Wi-Max suppliers. This issue has gained more momentum since Nortel was not among the suppliers selected to provide Sprint with equipment for its multi-billion dollar Wi-Max contract recently. Network World’s Jim Duffy has an interesting story in which he quotes CIBC analyst Itai Kidron, who says Nortel needs to become more aggressive and make some Wi-Max-related acquisitions or it needs to get out of the business and focus on areas where there is a better ROI opportunity.
“Nortel needs to still focus its strategy and narrow its business activities to a smaller number of opportunities which should be pursued more aggressively,†Kidron in a recent research report.
Stepping back, another question is what happens to Nortel’s wireless business if it doesn’t gain a lot of traction with Wi-Max. Nortel got out of the UMTS business last year when it sold the unit to Alcatel-Lucent; its CDMA business is a distant second to Alcatel-Lucent, and its GSM business has relatively minor market share. While CEO Mike Zafirovski has played it safe so far when it comes to acquisitions - not a bad strategy when you’re trying to restructure a $10-billion company - the time may come for him to make a bold move to get Nortel’s back in the game- be it wireless or another business.
Topics: Wireless |