Airvana's Nortel Exposure

6:00 PM -- Nortel Networks Ltd. 's descent into Chapter 11 proceedings is already having a ripple effect in the wider wireless world.

Nortel has re-badged CDMA kit from Airvana Inc. as part of its 3G offerings for year's now. Airvana has put out a statement this afternoon saying that nothing will change about the deal:

Nortel has informed Airvana that it will continue to purchase goods and services from the company and that Airvana is a long term partner and a key supplier to Nortel, playing a vital role in its ability to continue serving the needs of its CDMA EV-DO customers as a significant part of its ongoing operations and future success. Future purchases would be under the terms of Nortel’s current agreement with Airvanaz.

Nonetheless, Airvana is still waiting for money back from Nortel for products already delivered:

Airvana currently has outstanding receivables with Nortel in the amount of $22 million for products and services billed. In addition, there are unbilled products and services that were delivered in December 2008 through the date of Nortel’s bankruptcy filing. Collection of these receivables will be subject to Nortel’s bankruptcy proceedings.

Airvana isn't the only wireless company that has an OEM deal with Nortel. Alvarion Technologies Ltd. (Nasdaq: ALVR) and WiChorus Inc. have similar WiMax deals with Nortel. These are much newer agreements, however, so it is not yet clear how much equipment might have been delivered to Nortel.

— Dan Jones, Site Editor, Unstrung