Having sold its way outof the 3G access market, Nortel Networks Ltd. (NYSE/Toronto: NT - message board) is pinning its mobile hopes on a variety of 4G technologies to remain relevant in the wireless infrastructure market, with 802.16e technology, better known as mobile WiMax, providing the initial 4G opportunities. (See Alcatel Snags Nortel 3G Unit and Zafirovski: We'll Get 4G Right.)

    Ever since it announced the sale of its 3G assets late last year, Nortel has been focusing its wireless marketing on the potential of 4G, and building relationships with companies that can help deliver associated products and services, such as end user devices and support services. (See Nortel Builds WiMax Ecosystem, Nortel, Toshiba Team on WiMax, Nortel Parters With SECI, and Nortel Demos WiMax.)

    During are centWiMax presentation and demonstration at its Maidenhead site in the U.K., the vendor's CTO John Roese noted that "18 months ago investment was low, but now it's been ramped up. We're investing $100 million in WiMax R&D a year, but it's just part of a broader system. We’re investing too in wireless backhaul with Carrier Ethernet developments [including PBT], and in applications development." (See BT Sells PBT-Based Backhaul Service and Nortel on PBT: Today BT, Tomorrow the World!)

    The CTO added:"About 20 percent of Nortel's R&D is going into these areas combined, and that's about $340 million per year. Strategic investment is vital."

    Nortel's CEO Mike Zafirovski also mentioned the company's 4G investments during the vendor's recent conference call, stating that the Canadian giant is "making the right investments." (See Nortel's Z-Man Hints at M&A.)

    The company doesn't yet have a commercial release of its 802.16e access infrastructure, though that's due to hit the streets before the end of 2007. "It's in the beta phase and in trials, and we'll see networks go live in the second half of the year, with mass commercialization in 2008," said Roese. "Then 2009 will see the expansion of end devices with the help of companies such as Intel Corp. (Nasdaq: INTC - message board). The technology is new, there's not much market reach yet, though we have early wins in early markets." (See Craig Wireless Deploys Nortel, Chunghwa Uses Nortel WiMax, and Nortel Helps Golden.)