Airvana Gets $40M Nortel Payoff

CDMA specialist Airvana Inc. announced Friday that it will receive $39.6 million related to outstanding Nortel Networks Ltd. invoices, following the completion of Ericsson AB (Nasdaq: ERIC)'s buy-up of the Canadian firm's wireless unit.

Airvana said in January, after Nortel went into Chapter 11, that it had outstanding receivables of $22 million related to its CDMA EV-DO OEM deal with Nortel, plus a number of unbilled items. The $39.6 million payment apparently clears this up. (See Nortel to Pay Airvana $39.6M and Airvana's Nortel Exposure .)

Nortel was Airvana's largest OEM customer, using Rev A base-station channel cards under license from the company. Nortel division–buyer Ericsson is also one of Airvana's OEM customers for CDMA EV-DO equipment. (See Airvana: The Quiet Startup.)

Airvana itself has branched off into femtocells after starting as a pure CDMA infrastructure shop. The company has said it will spend 60 percent of its R&D budget on home base stations. (See Airvana: 'Betting the Farm' on Femto.)

The firm announced its first push into the evolving enterprise femtocell market earlier this week. (See Airvana Thinks Business With Big Femto.)

— Dan Jones, Site Editor, Unstrung

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