Nortel Networks (hereinafter referred to as "Nortel") announced on Wednesday that it will reduce its investment in WiMAX and focus on developing LTE (next-generation evolution technology). Nortel made this announcement at its annual analyst meeting. Due to the decline in its core telecommunications equipment business, the company had to cut back on investments in new technologies. After two consecutive quarters of losses, Nortel has been cutting costs while waiting for sales to improve. Currently, major carriers worldwide are optimistic about LTE technology.