Imagine sues Motorola for €90m over WiMax rollout

1 Mar 2011

Broadband operator Imagine Networks is suing communications technology giant Motorola for €90m for alleged breach of agreements in relation to the intended rollout of WiMax services in Ireland.

In a case before the commercial court, Imagine claims it had contracted Motorola in 2009 to provide an end-to-end broadband network nationwide.

Imagine alleges Motorola failed to meet its contractual obligations and as a result Imagine has suffered losses of €17m to date with the total cost expected to run to €90m by the end of 2013.

Motorola’s networks division, which Nokia Siemens Networks acquired last year for US$1.2bn, contends it has abided by its contractual obligations.

Imagine alleges that since last October, Motorola has been unwilling to remedy financial and technical problems and directed Imagine towards Nokia Siemens Networks to resolve the issues.

The WiMax rollout

Imagine’s business plans envisaged 234 base stations would be installed by the end of 2010.

However, so far Imagine says that 125 base stations have been installed.

The delay is understood to be having a withering effect on Imagine’s working capital. It says that potentially 100 staff may be made redundant as a cost-saving measure.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years