TORONTO - Nortel Networks Corp., the Canadian telecommunications equipment company, has agreed to team up with the Israeli technology provider Alvarion Ltd. to deliver long-range wireless access to customers.
The financial terms of the arrangement announced Wednesday were not disclosed.
The collaboration will involve the Tel Aviv-based company's radio access network capabilities and Nortel's network gear and services.
Nortel said it is focusing its main wireless research-and-development resources on a fourth-generation broadband technology called LTE and wireless applications, leaving WiMAX development to Alvarion.
Long-term evolution, or LTE, technology enables faster Web browsing and downloads over mobile phones and other wireless devices. It involves a wireless broadband Internet system with voice and other services.
WiMax, which stands for Worldwide Interoperability for Microwave Access, is a technology that provides wireless data over long distances. Nortel said it will contribute resources, expertise and funding to Alvarion's WiMax development.
"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 company," said Richard Lowe, head of Nortel's carrier networks division.
The agreement covers resale by Nortel of Alvarion WiMAX access products.
"This enables Nortel 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," the Toronto-based company said.
Nortel, meeting with investors Wednesday, reaffirmed its outlook for this year, predicting revenue growth "in the low single digits" with a gross profit margin of about 43 percent of revenue.