Last week we reported the devastating news that Nokia Siemens Networks was going to dump 17,000 employees or roughly 23% of the company in order to focus on wireless networks and trying to stay alive. Several days later we found a leaked memo detailing which business units were going to stay, and which were going to get the axe. Unsurprisingly, the WiMAX unit was on the list of divisions to be escorted out the door and kicked to the curb. Operators all over the world have unanimously agreed that LTE is the future of mobile broadband, and event Sprint, who once championed WiMAX has announced that they’ll be migrating to LTE. Anyway, we’re happy to report that 300 people will now sleep easier at night because they’ll have a job, at least in the short term, that lets them put food on the table. NewNet Communication Technologies has agreed to acquire all of Nokia Siemens Networks’ WiMAX assets:
“The addition of the WiMAX business would enhance the breadth of NewNet’s product portfolio, R&D capabilities, customer relationships and our overall market position in providing wireless infrastructure solutions to carriers on a global basis. We are thrilled at the prospect of welcoming a world-class group of WiMAX pioneers and thought leaders to the NewNet team. NewNet recognizes there is enormous potential in providing outstanding products, support and services to operators who have already invested heavily in WiMAX technologies as well as those who will do so in the future. We are committed to serving the market with an industry leading roadmap and innovative product migration options.” – Ron Pyles, president and CEO of NewNet
What you have here is a basic “you’ve got customers too poor to backtrack on their decision to support WiMAX, so we’ll milk them for as long as they’re alive” type situation. And frankly, that’s not a bad spot to be in.