Nortel Networks has abandoned WiMax in favor of 4G wireless technology.

Nortel had previously announced that it was focusing its money and development efforts on long-term evolution or LTE, but this is the first time it has announced that it is abandoning WiMax.

LTE hasn't yet been standardized and is fast getting the backing of the major companies. There are potential customers in AT&T and Verizon Wireless, and Vodafone. Sprint Nextel is the biggest player to use WiMax. 

Nortel said that it has not given up on WiMax completely, but will instead deal with it through a partnership with an outfit called Alvarion.

More here.