Nortel Networks is likely to cooperate with Taiwan-based manufacturers in the production of WiMAX relay stations that will be compliant with the forthcoming IEEE 802.16j standard, according to Jackson Wu, president of Nortel Greater China.

With the establishment of relay stations under the 802.16j standard, the total cost for the construction of a WiMAX network is expected to be lowered to one-third of the cost of a 3G network in 2008, Wu estimated.

However, Taiwan makers are not expected to secure volume orders for relay stations from Nortel until the latter half of 2008 when the WiMAX relay stations are expected to enter commercial operations, according to a Chinese-language Commercial Times report.

The recent issuance of WiMAX operating licenses in Taiwan will help drive the development of the WiMAX industry on the island, placing Taiwan network-equipment makers in the forefront of WiMAX product production, especially in the CPE (consumer premises equipment) segment, Wu stated.

In addition to stationary WiMAX equipment that is compliant with the 802.16-2004 standard, Nortel has also released small volume orders for mobile WiMAX products to Taiwan-based makers with shipments expected to show significant growth in the second half of 2008, Wu indicated.