Carrier WiFi

Mobility Roams No More

Mobility Network Systems (MNS), a startup that developed software to enable handoffs between wireless LAN hotspots and cellular networks, has shut up shop, sources say.

Mobility Networks was not responding to phone calls as of Wednesday afternoon, and its Website is down. An ex-spokesman for the company and a spokeswoman from Mobility's erstwhile partner, Nortel Networks Corp. (NYSE/Toronto: NT), both said that the startup is now defunct.

The company was forced to close down because it was unable to raise additional venture capital, according to one source. The company, which was originally called mDiversity when it started in 1999, raised around $30 million in funding.

However, this sum and a partnership with Nortel announced last December were evidently not enough to save it (see Nortel Romances Roaming ). Nortel's spokeswoman says that Mobility's demise will not affect Nortel's own ability to integrate wireless LAN and cellular networks.

"Their situation, while it is unfortunate, has no impact on our business," she says.

Our source suggests that there had been some talk of selling off Mobility Network's intellectual property. However, the Nortel spokesman could not comment on whether the vendor had looked into picking up Mobility's assets.

— Dan Jones, Senior Editor, Unstrung

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