Nortel and Alvarion entered into their when Nortel decided to end mobile WiMAX product development . Nortel will now exit mobile WiMAX entirely.

The move comes as Nortel attempts to restructure after bankruptcy protection from creditors.

Nortel says the decision will allow it to narrow its focus, better manage its investments and strengthen its broader carrier business to better position itself for long-term competitiveness.

Nortel said it will work with Alvarion to transition its mobile WiMAX customers to help ensure that ongoing support commitments are met without interruption.

"Our continued success in the wireless business requires us to focus our energy on opportunities with long-standing customers," said Richard Lowe, Nortel president of carrier networks, in a statement. "This will position Nortel more effectively to capitalize on future resurgence of carrier spend levels and drive value to the business."