Sierra Wireless and Xircom plan to develop their own multi-mode UMTS and GPRS wireless modems in form factors including PC cards, CompactFlash cards, and embedded modules. For its part, Nortel will provide seed money to help fund the development and provide technical and joint marketing support. Under the terms of the contracts, the companies will provide the devices to Nortel’s wireless operator customers on preferential terms.

As reported in the Globe and Mail, Peter MacKinnon, vice-president of Nortel’s wireless internet, said the seed capital will allow Sierra and Xircom to get the new modems to market in the first half of 2002, 12 to 18 months earlier then otherwise planned.

"We expect these new modems to provide the ‘missing link,’ unleashing a torrent of data by freeing application from the desktop and enabling a new wave of applications and services that are scarcely imaginable at today’s speeds," said Frank Plastina, president, Wireless Internet, Nortel Networks.

High-speed modems will enable the mobile user easier access to the wireless Internet over 3G networks, which Nortel customers are now planning or constructing. Nortel hopes that the development of "easy" wireless access will attract a mass market of enthusiastic mobile subscribers thus reassuring its customers to continue with their 3G plans.