Imagine takes Motorola to court over WiMAX dispute

1 Mar 2011

Irish alternative broadband services provider Imagine is suing equipment manufacturer Motorola for EUR90 million (USD124 million) over alleged breach of contract concerning a plan to roll out a WiMAX network in the Republic. Siliconrepublic.com writes that in its case before the commercial court, Imagine accuses Motorola of having failed to meet its contractual obligations vis a vis an end-to-end national broadband network contract signed in 2009. The altnet contends that the vendor’s failure has resulted in it incurring losses of EUR17 million to date, a figure that could rise to as much as EUR90 million by end-2013. For its part Motorola, which was bought by Nokia Siemens Networks for USD1.2 billion in 2010, counters that it has complied with its obligations. However, Imagine believes that Motorola is guilty of side-stepping its responsibility and that since October 2010 it has tried to push Imagine towards NSN to resolve any issues. Imagine’s business rollout strategy envisaged 234 base stations would be installed by the end of 2010. However, so far Imagine says that only 125 base stations have been installed, having a dramatic impact on its working capital and resources.

Ireland, Imagine Communications, Motorola