Nortel Networks Corp. plans to close its mobile WiMax division as part of its restructuring, putting a number of Ottawa jobs at risk.
About 500 people in the national capital, Paris, and Asia are involved in the operation and are affected by Thursday's late-afternoon announcement, which ends a joint venture with Alvarion Ltd., an Israeli firm.
Nortel has not announced how many people in Ottawa would be affected or when decisions will be made.
Ottawa hosts mobile WiMax research and operations staff. The fixed WiMax program will continue, however.
Nortel, which is restructuring under court protection from creditors, said the decision will help narrow its focus and better manage its investments to strengthen its business. The company had previously stated the intention work with another wireless technology called LTE.
"We will work closely with Alvarion to transition our mobile WiMax customers to them and assure customers that they will continue to benefit from leading-edge technology and high-quality service," said Nortel's president of carrier networks, Richard Lowe.
The agreement with Alvarion, announced in June 2008, outlined the integration of Alvarion's advanced radio access network technology with Nortel's products.
It also covered the resale by Nortel of the Alvarion platform of WiMax products.
Nortel filed for bankruptcy protection on Jan. 13.
With files from The Canadian Press
