Investment into WiMAX technology has been dropped by Alcatel-Lucent, which will now concentrate its efforts on Long Term Evolution (LTE).
The company is thought to have made the decision as part of a cost cutting exercise amid the current economic downturn, reports the Telecom.
It is said that the firm believes that LTE will be the prevailing fourth generation mobile broadband technology in the future.
Commenting on the current state of the market, Infonetics Research wireless analyst Richard Webb said that the development of WiMAX as a major means of connectivity will be hampered in this financially challenging period.
"With less cash available for network rollout, and possibly less spectrum being auctioned until the current financial crisis passes, WiMAX deployment will be inhibited for the next 12 months."
On the flip side, Infonetics Research still expects the number of worldwide fixed and mobile WiMAX subscribers is expected to top 76 million in 2011.