Jul 23, 2009 12:44 PM,

NSN parts ways with WiMax

By Kevin Fitchard

Vendor signs reseller agreement with Alvarion for its WiMax portfolio; says it will remain in the WiMax space as managed services provider and integrator

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Nokia Siemens Networks (NYSE:NOK, NYSE:SI) effectively has exited the WiMax business except as a reseller, announcing today it is partnering with WiMax leader Alvarion to sell its 4G BreezeMax portfolio. NSN will scrap the WiMax version of its Flexi base station, but will continue to support WiMax operators as a managed services provider.

Alvarion (NASDAQ:ALVR) already supplies NSN with fixed WiMax gear (based on the IEEE 802.16d standard), but today the two vendors announced they are extending that agreement to Alvarion’s entire mobile WiMax product line including its access service network (ASN) gateway and network management system, as well as the BreezeMax base station.

Most of the major vendors in the industry have been backing away from WiMax as long-term evolution emerges (LTE) the favored technology for major wireless operators and the WiMax industry has refocused on smaller operators and emerging markets. Alcatel-Lucent (NYSE:ALU) announced last year it would scale back its WiMax R&D and support the technology primarily as a fixed wireless solution. Many other vendors have entered into similar original equipment manufacturing (OEM) deals as NSN and Alvarion: Fujitsu partnered with Airspan and Nortel Networks also teamed up with Alvarion.

But in those deals, Fujitsu and Nortel maintained significant control over the product line. Fujitsu entered into joint development work with Airspan on its base station and maintained its WiMax core and software portfolio. Nortel also paired its ASN gateway with Alvarion’s base station before its bankruptcy forced it to break apart. But NSN isn’t keeping any of its former WiMax product line in-house, outsourcing the whole lot to Alvarion. The only part of the WiMax business NSN will maintain is on the services side, supplying consulting, integration and network management for any operator that wants it.

“While we're no longer developing an in-house product for WiMax, mobile WiMax is still a part of our portfolio, and we continue to work with customers interested in WiMax through a partner or reseller approach, using products from third parties and then offering our suite of services capabilities,” an NSN spokesperson said via e-mail.