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Nortel Reveals Vision For 'Unwired Enterprise': Page 2 of 3

Instead of overlaying WLAN equipment on top of an existing wired data infrastructure, Nortel will offer an integrated system, said Power. For example, Nortel will integrate WLAN functionality directly with the Ethernet switch, as opposed to offering standalone equipment like a wireless access point or a router.

"The difference is today you have to find [an Internet] connection but in the future you'll always be connected," Power said.

By running wireless functionality in distributed switches and routers, businesses can improve the performance of their applications.

Nortel has expertise in developing systems based on MIMO (multiple-input, multiple-output) and OFDM (orthogonal frequency division multiplexing), the technologies behind WiMax. The company said it plans to use its expertise to create the new portfolio of WLAN products that support the MIMO-based 802.11n standard.

Nortel is so determined to bring the products to market, it will build them in-house by increasing R&D spending. Previously, the company had farmed out its WLAN gear to original equipment manufacturers (OEMs).