Ericsson ends lawsuit by acquiring business, strikes Telefonica deal

|By:, SA News Editor

Ericsson (ERIC +4.3%) has acquired femtocell base station developer Airvana's 3G EV-DO ops in an all-stock deal. (PR)

Though Ericsson notes Airvana supplies it with EV-DO software and states the deal will help it support carriers who have deployed EV-DO (e.g. Verizon, Sprint, KDDI - they're now mostly investing in 4G), the company's main goal appears to have been the dismissal of a $330M suit filed by Airvana against Ericsson, in which the former alleged the latter conspired with LG to sell Airvana hardware without including (royalty-bearing) software.

Separately, Ericsson has announced a 4G infrastructure deal with Telefonica's Spanish unit. Ericsson will be the supplier for 1K of the 2.2K 4G nodes Telefonica plans to deploy in 2013, including the ones for Madrid and Barcelona. Alcatel-Lucent announced a Spanish 4G deal with Telefonica yesterday.

Altogether, Ericsson says it has scored 160+ 4G deals worldwide. Earlier this year, research firm TBR observed Ericsson "took a commanding lead" of the 4G infrastructure market in 2012 thanks to North American, Japanese, and South Korean deal traction. It forecast Ericsson would maintain the pole position in 2013, but added rivals are set to gain share.