Airvana Out of the UMTS Femto Business?
Light Reading Mobile has heard talk from a couple of different sources that Airvana Inc. is pulling out of the 3G UMTS femtocell market in order to focus on its CDMA line of home base stations.
The logic of the move is that there is much stiffer price competition in the crowded market for 3G GSM-based home base station products. (UMTS is a 3G technology derived from the GSM standard.) As time goes on, Airvana would largely be competing against Taiwanese ODMs with reference designs at the ready.
In the 3G CDMA market, on the other hand, Airvana only really faces competition from Samsung Corp. , so price points remain better and the Airvana product is the early leader. The company has 3G CDMA femtos with Sprint Corp. (NYSE: S) and KDDI Corp. in Japan. (See More 3G Femtos Coming to the US.) Chelmsford, Mass.-based Airvana had a 2007 deal to supply Nokia Networks with 3G GSM femtocells. Thomson Broadband and Pirelli SpA (Milan: PECI.MI) have also been re-badging Airvana GSM femtos. (See NSN, Airvana Team and Airvana's Femto Flavors.)
Airvana didn't confirm or deny any of this when LR Mobile asked. "We don't comment on rumors," a spokeswoman told us.
— Dan Jones, Site Editor, Light Reading Mobile