Alcatel-Lucent sounds Wi-Max death knell

Alcatel-Lucent has announced plans to axe its investment in WiMax as part of a cost cutting exercise.

Instead, the Franco-American company will focus its fourth generation mobile broadband efforts solely on Long Term Evolution (LTE).

Recently appointed CEO, Ben Verwaayen, said LTE is the most viable option for investment because most mobile networks around the world are planning to use it for their 4G networks.

Moving away from WiMax is part of Alcatel-Lucent’s strategy of returning to profitability by 2010.

As well as reducing WiMax spending, the company will cut back on investments in GSM and CDMA 1x.

Furthermore, 1,000 management jobs will be discharged, and contractors will be reduced by 5,000.

This is in addition to the 16,500 positions the company has said it will cut by the end of 2009.

Alcatel-Lucent formed in 2006 when Alcatel SA and Lucent Technologies merged.

Since the merger, the company has seen seven straight quarters of losses.

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