Nortel selling UMTS unit to focus on WiMax

Nortel is certainly making big moves lately.

The company, being driven to cut costs and increase savings by new CEO Mike Zafirovski, is selling its UMTS unit to Alcatel-Lucent. The CEO also said that the company, which was a pioneer in the UMTS world, would focus more on other emerging technologies, such as WiMax.

The move wraps up a big week for both companies. Nortel just put the finishing touches on a reverse 10-for-1 stock split, resulting in fewer shares but a higher share price; and Alcatel just finished taking over Lucent Technologies.

About 1,700 Nortel workers will begin working for Alcatel-Lucent. The deal was announced in September and finalized today.