Nortel Hopes to Involve WiMAX in Future Profitability Plans

6:35 am on December 6, 2006 | Category: Business, Cellular, WiMAX, Wireless Technology

cellular.jpg

Canadian telecommunications equipment manufacturer, Nortel Networks, has confirmed that it is on track to meet an important operating income target of $1.5 billion in 2008, but acknowledged that its 2006 performance may be a disappointment to some shareholders.

“There is a commitment, there’s a path for us to go from a break-even, a loss position, to be a $1.5 billion operating margin company in 2008,” said Nortel CEO, Mike Zafirovski at a recent news briefing in Hong Kong.

Nortel has managed to close its quarterly losses significantly in the past few months, but cautions that much work remains to be done in the face of low profit margins and stiff competition.

Zafirovski, who joined Nortel last year after working at Motorola and General Electric, has been reviewing the company’s operations and making plans to improve profits in the years to come. He recently agreed to sell Nortel’s UMTS wireless technology business, in an attempt to shift resources to newer, cutting edge technologies such as WiMAX, a long-range wireless broadband standard.

“We believe that the new trends are really going to play well to the capabilities and opportunities that WiMAX provides to our customers,” Zafirovski commented. “In the second half of 2006, we’ll be investing five times as much as the initial budget … five times as much as we spent in the first half of 2006. This is not just giving it lip service. We’re committed to WiMAX.”

Related Articles:

    None Found

    No Comments yet »

    RSS feed for comments on this post.

    Leave a comment

    XHTML: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


    Published by TeleClick Enterprises
    Edited by Jeremy Maddock