Malibu Networks, one of the more promising wireless broadband startups in Los Angeles, is laying off staff after being stung by troubles in the faltering telecommunications sector.

The company did not return calls, but an investor, Clinton Bybee managing director of Arch Venture Partners, confirmed the layoffs, though he did not provide numbers. The company is believed to have a staff of less than 100.

“The company has taken the necessary steps to make sure it has the ability weather the storm,” said Bybee. “It’s a prudent move to make sure you’ve got the staying power.”

While scores of start-ups formed in the last two years to deliver wireless broadband technology, Malibu stands out for its razzle dazzle engineering that solves an important piece of the fixed wireless broadband puzzle.

Chicago-based Arch and L.A.-based TL Ventures were among the VC firms that participated in Malibu’s second funding round of $35 million, which closed in February.

No one doubts that connecting to the Internet wirelessly and at high speeds will happen. But getting the new technologies in place is taking longer than expected because financially stressed telecom companies are slowing down the roll-out of broadband.

With venture capital funds slashing their investments in telecom start-ups, delivering that snazzy technology is becoming increasingly difficult.

Even though it has downsized, Malibu is moving forward with beta versions of its equipment, and selling them to a few customers worldwide, Bybee said.

Malibu looks to set its self apart in the crowded field of start-ups by providing equipment that can tell what kind of data a user requires voice, video, etc.

Malibu formed an alliance in February with Florida-based wireless company Fuzion Wireless Communications Inc. that analysts are watching closely.

“That’s the most important thing Malibu has going up against other start-up vendors,” said Lindsay Schroth, an analyst with the Yankee Group.

Fuzion has said it will use Malibu’s product and help with joint development, marketing, engineering and field implementation. “It’s a really big advantage,” Schroth said. “If they can launch with help of Fuzion, that gives them a head start.”

The question facing start-ups like Malibu is how to weather the telecom slump.