Shares in Nortel Networks jumped 13 per cent on Wednesday after the Toronto-based telecommunications equipment maker shifted strategy and said it planned to focus its main wireless research efforts on a wireless broadband technology called LTE (long term evolution) rather than the rival 4G technology, WiMax.

The shares, which have fallen 39 per cent this year reflecting growing competition and slowing demand, gained $1.09 to close at $9.20 in New York Stock Exchange composite trading, their biggest gain for seven months.