Nortel hangs onto Metro unit

Beleaguered Canadian kit vendor Nortel, currently sheltering in Chapter 11 bankruptcy protection, looks keen to hang on to the Metro Ethernet Network (MEN) unit it put up for sale late last year.

According to reports, Nortel has taken the MEN unit, which had been described by analysts as its “crown jewels” off the market. The reason is understood to be little interest in the business unit given the state of the global economy.

However, the decision to hang onto the optical and carrier Ethernet portfolios could be good for the Canadian firm, as the unit’s products are still very much in demand.

Last week, Nortel severed its WiMAX partnership with Alvarion. In doing so, Nortel’s interest in WiMAX comes to an end. And With Alvarion’s ability to penetrate the North American market is weakened. Nortel says it will work closely with Alvarion, however, to transition its mobile WiMAX customers to help ensure that ongoing support commitments are met without interruption.