Good News for Nortel!

10:45 AM -- Nortel Networks Ltd. , I think most folk would agree, could do with cheering up following "Black Wednesday." (See Nortel to Sell Carrier Ethernet, Optical Biz, Nortel Plunges on New Forecast, and The Heavies Weigh In on Nortel.)

So Mike Zee and co. will be thanking Deutsche Telekom AG (NYSE: DT) and its wireless business T-Mobile International AG today for giving Nortel's 4G mobile efforts a shot in the arm.

In a nutshell, T-Mobile has announced it has managed a live test of a mobile data session using next-generation LTE (long-term evolution) wireless technology from Nortel.

According to the two companies, "data was transmitted to and from a vehicle driving in Bonn between Deutsche Telekom's headquarters on the left side of the river Rhine and the T-Mobile headquarters on the river’s right bank."

That's a 4-kilometer stretch, in case you were wondering.

"Data transmission went smoothly without interruptions and without loss of quality even across different cells –- one of the most important prerequisites for qualification as a mobile communications network of the future," the two companies note.

That's good news for Nortel, because it gives its 4G developments more credibility just as it's looking for a partner, or buyer, to help "mitigate" the costs of developing a technology that won't deliver revenues for a few years yet. (See Nortel 4G Plans Up in the Air.)

It'll no doubt also make DT feel a bit more confident about its 4G service claims. (See DT's 4G Folly.)

— Ray Le Maistre, International News Editor, Light Reading

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