5:55 PM -- Tatara Systems Inc. is going full steam ahead for femtocells now that it has sold its mobile broadband business to Smith Micro Software Inc. (Nasdaq: SMSI) (See Tatara Sells Broadband Biz.)

For an undisclosed sum, Smith Micro bought all the assets associated with Tatara's service manager client software and subscriber gateway. Smith Micro also gets Tatara's facilities and employees in Vancouver.

Now, femto-focused Tatara will use the money from this sale to develop its convergence gateway product used in the femto gateways that will sit in the network between the femtocell access points and the mobile core. In IMS networks, Tatara's convergence gateway acts as an SIP-application server.

Tatara's CTO Doug Tucker tells Unstrung that his company will work on adding more application support to the convergence server.

Tatara's femto partners include Ericsson AB (Nasdaq: ERIC), Ubiquisys Ltd. , NEC Corp. (Tokyo: 6701), Netgear Inc. (Nasdaq: NTGR), 3Way Networks , Airvana Inc. , ip.access Ltd. , and Picochip (See Ericsson, Tatara Team, Tango, AirWalk, Tatara Team, IP.access, Tatara Team, Tatara, PicoChip Go Femto, Tatara, 3Way Partner, NEC Teams With Tatara, and Airvana, Tatara Ink Deal.)

— Michelle Donegan, European Editor, Unstrung