diff --git a/libosmocore/Makefile.am b/libosmocore/Makefile.am
index 6bda10a..8007b74 100644
--- a/libosmocore/Makefile.am
+++ b/libosmocore/Makefile.am
@@ -1,7 +1,7 @@
 AUTOMAKE_OPTIONS = foreign dist-bzip2 1.6
 
 INCLUDES = $(all_includes) -I$(top_srcdir)/include
-SUBDIRS = include src
+SUBDIRS = include src tests
 
 pkgconfigdir = $(libdir)/pkgconfig
 pkgconfig_DATA = libosmocore.pc
diff --git a/libosmocore/configure.in b/libosmocore/configure.in
index 8c0fe67..d9fa6e8 100644
--- a/libosmocore/configure.in
+++ b/libosmocore/configure.in
@@ -34,4 +34,7 @@
 	include/osmocore/Makefile
 	include/Makefile
 	src/Makefile
+	tests/Makefile
+	tests/timer/Makefile
+	tests/sms/Makefile
 	Makefile)
diff --git a/libosmocore/include/osmocore/Makefile.am b/libosmocore/include/osmocore/Makefile.am
index aec27d1..189c767 100644
--- a/libosmocore/include/osmocore/Makefile.am
+++ b/libosmocore/include/osmocore/Makefile.am
@@ -1,2 +1,4 @@
-pkginclude_HEADERS = signal.h linuxlist.h timer.h talloc.h msgb.h select.h \
-		     tlv.h bitvec.h comp128.h statistics.h gsm_utils.h
+osmocore_HEADERS = signal.h linuxlist.h timer.h talloc.h msgb.h select.h \
+		   tlv.h bitvec.h comp128.h statistics.h gsm_utils.h utils.h
+
+osmocoredir = $(includedir)/osmocore
diff --git a/libosmocore/libosmocore.pc.in b/libosmocore/libosmocore.pc.in
index 0d09cb8..7c29869 100644
--- a/libosmocore/libosmocore.pc.in
+++ b/libosmocore/libosmocore.pc.in
@@ -1,4 +1,5 @@
-prefix=@exec_prefix@
+prefix=@prefix@
+exec_prefix=@exec_prefix@
 libdir=@libdir@
 includedir=@includedir@
 
diff --git a/libosmocore/tests/Makefile.am b/libosmocore/tests/Makefile.am
new file mode 100644
index 0000000..56e8b6f
--- /dev/null
+++ b/libosmocore/tests/Makefile.am
@@ -0,0 +1 @@
+SUBDIRS = timer sms
diff --git a/libosmocore/tests/sms/Makefile.am b/libosmocore/tests/sms/Makefile.am
new file mode 100644
index 0000000..a8f1ff6
--- /dev/null
+++ b/libosmocore/tests/sms/Makefile.am
@@ -0,0 +1,5 @@
+INCLUDES = $(all_includes) -I$(top_srcdir)/include
+noinst_PROGRAMS = sms_test
+
+sms_test_SOURCES = sms_test.c
+sms_test_LDADD = $(top_builddir)/src/libosmocore.la
diff --git a/openbsc/tests/sms/sms_test.c b/libosmocore/tests/sms/sms_test.c
similarity index 85%
rename from openbsc/tests/sms/sms_test.c
rename to libosmocore/tests/sms/sms_test.c
index 2ce2cc6..106635f 100644
--- a/openbsc/tests/sms/sms_test.c
+++ b/libosmocore/tests/sms/sms_test.c
@@ -22,14 +22,12 @@
 #include <stdlib.h>
 #include <string.h>
 #include <sys/types.h>
-#include <openbsc/debug.h>
-#include <openbsc/msgb.h>
-#include <openbsc/gsm_data.h>
-#include <openbsc/gsm_utils.h>
+#include <osmocore/msgb.h>
+#include <osmocore/gsm_utils.h>
 
 int main(int argc, char** argv)
 {
-	DEBUGP(DSMS, "SMS testing\n");
+	printf("SMS testing\n");
 	struct msgb *msg;
 	u_int8_t *sms;
 	u_int8_t i;
@@ -47,7 +45,3 @@
 		printf("Wanted: '%s' got '%s'\n", input, result);
 	}
 }
-
-/* stubs */
-void input_event(void) {}
-void nm_state_event(void) {}
diff --git a/libosmocore/tests/timer/Makefile.am b/libosmocore/tests/timer/Makefile.am
new file mode 100644
index 0000000..d3decf5
--- /dev/null
+++ b/libosmocore/tests/timer/Makefile.am
@@ -0,0 +1,6 @@
+INCLUDES = $(all_includes) -I$(top_srcdir)/include
+noinst_PROGRAMS = timer_test
+
+timer_test_SOURCES = timer_test.c
+timer_test_LDADD = $(top_builddir)/src/libosmocore.la
+
diff --git a/openbsc/tests/timer/timer_test.c b/libosmocore/tests/timer/timer_test.c
similarity index 96%
rename from openbsc/tests/timer/timer_test.c
rename to libosmocore/tests/timer/timer_test.c
index 26fcbc9..ec29ef0 100644
--- a/openbsc/tests/timer/timer_test.c
+++ b/libosmocore/tests/timer/timer_test.c
@@ -20,8 +20,8 @@
 
 #include <stdio.h>
 
-#include <openbsc/timer.h>
-#include <openbsc/select.h>
+#include <osmocore/timer.h>
+#include <osmocore/select.h>
 
 static void timer_fired(unsigned long data);
 
diff --git a/openbsc/configure.in b/openbsc/configure.in
index 88a3f61..71ed10b 100644
--- a/openbsc/configure.in
+++ b/openbsc/configure.in
@@ -16,6 +16,8 @@
 AC_SEARCH_LIBS(crypt, crypt,
     [LIBCRYPT="-lcrypt"; AC_DEFINE([VTY_CRYPT_PW], [], [Use crypt functionality of vty.])])
 
+PKG_CHECK_MODULES(LIBOSMOCORE, libosmocore)
+
 dnl checks for header files
 AC_HEADER_STDC
 
@@ -38,7 +40,6 @@
 
 AC_OUTPUT(
     openbsc.pc
-    liblaf0rge1.pc
     libsccp.pc
     include/openbsc/Makefile
     include/vty/Makefile
@@ -47,8 +48,6 @@
     src/Makefile
     tests/Makefile
     tests/debug/Makefile
-    tests/timer/Makefile
-    tests/sms/Makefile
     tests/gsm0408/Makefile
     tests/db/Makefile
     tests/channel/Makefile
diff --git a/openbsc/include/openbsc/Makefile.am b/openbsc/include/openbsc/Makefile.am
index 8aa90c3..2343549 100644
--- a/openbsc/include/openbsc/Makefile.am
+++ b/openbsc/include/openbsc/Makefile.am
@@ -1,15 +1,11 @@
 noinst_HEADERS = abis_nm.h abis_rsl.h db.h gsm_04_08.h gsm_data.h \
-		 gsm_subscriber.h gsm_04_11.h \
-		 timer.h misdn.h chan_alloc.h telnet_interface.h paging.h \
+		 gsm_subscriber.h gsm_04_11.h debug.h signal.h \
+		 misdn.h chan_alloc.h telnet_interface.h paging.h \
 		 subchan_demux.h trau_frame.h e1_input.h trau_mux.h \
-		 gsm_utils.h ipaccess.h rs232.h openbscdefines.h rtp_proxy.h \
+		 ipaccess.h rs232.h openbscdefines.h rtp_proxy.h \
 		 bsc_rll.h mncc.h transaction.h ussd.h gsm_04_80.h \
-		 silent_call.h mgcp.h meas_rep.h bitvec.h rest_octets.h \
-		 system_information.h handover.h statistics.h
-
-laforge_HEADERS = signal.h linuxlist.h timer.h talloc.h msgb.h select.h tlv.h \
-		  debug.h
-laforgedir= $(includedir)/laf0rge1
+		 silent_call.h mgcp.h meas_rep.h rest_octets.h \
+		 system_information.h handover.h
 
 openbsc_HEADERS = gsm_04_08.h meas_rep.h
 openbscdir = $(includedir)/openbsc
diff --git a/openbsc/src/Makefile.am b/openbsc/src/Makefile.am
index 2edaf00..cfe025e 100644
--- a/openbsc/src/Makefile.am
+++ b/openbsc/src/Makefile.am
@@ -1,5 +1,6 @@
 INCLUDES = $(all_includes) -I$(top_srcdir)/include
-AM_CFLAGS=-Wall
+AM_CFLAGS=-Wall $(LIBOSMOCORE_CFLAGS)
+AM_LDFLAGS = $(LIBOSMOCORE_LIBS)
 
 sbin_PROGRAMS = bsc_hack bs11_config ipaccess-find ipaccess-config \
                 isdnsync bsc_mgcp ipaccess-proxy
@@ -28,22 +29,19 @@
 libsccp_a_SOURCES = sccp/sccp.c
 
 bsc_hack_SOURCES = bsc_hack.c bsc_init.c vty_interface.c vty_interface_layer3.c
-bsc_hack_LDADD = libmsc.a libbsc.a libmsc.a libvty.a -losmocore -ldl -ldbi $(LIBCRYPT)
+bsc_hack_LDADD = libmsc.a libbsc.a libmsc.a libvty.a -ldl -ldbi $(LIBCRYPT)
 
 bs11_config_SOURCES = bs11_config.c abis_nm.c gsm_data.c debug.c \
 		      rs232.c bts_siemens_bs11.c
-bs11_config_LDADD = -losmocore
 
 ipaccess_find_SOURCES = ipaccess/ipaccess-find.c
-ipaccess_find_LDADD = -losmocore
 
 ipaccess_config_SOURCES = ipaccess/ipaccess-config.c ipaccess/ipaccess-firmware.c
-ipaccess_config_LDADD = libbsc.a libmsc.a libbsc.a libvty.a -losmocore -ldl -ldbi $(LIBCRYPT)
+ipaccess_config_LDADD = libbsc.a libmsc.a libbsc.a libvty.a -ldl -ldbi $(LIBCRYPT)
 
 isdnsync_SOURCES = isdnsync.c
 
 bsc_mgcp_SOURCES = mgcp/mgcp_main.c mgcp/mgcp_protocol.c debug.c telnet_interface.c
-bsc_mgcp_LDADD = libvty.a -losmocore
+bsc_mgcp_LDADD = libvty.a
 
 ipaccess_proxy_SOURCES = ipaccess/ipaccess-proxy.c debug.c
-ipaccess_proxy_LDADD = -losmocore
diff --git a/openbsc/tests/Makefile.am b/openbsc/tests/Makefile.am
index f40105f..3b1b931 100644
--- a/openbsc/tests/Makefile.am
+++ b/openbsc/tests/Makefile.am
@@ -1 +1 @@
-SUBDIRS = debug timer sms gsm0408 db channel sccp
+SUBDIRS = debug gsm0408 db channel sccp
diff --git a/openbsc/tests/channel/Makefile.am b/openbsc/tests/channel/Makefile.am
index 6b9f6e3..8e57b8d 100644
--- a/openbsc/tests/channel/Makefile.am
+++ b/openbsc/tests/channel/Makefile.am
@@ -8,14 +8,8 @@
 	$(top_srcdir)/src/gsm_subscriber_base.c \
 	$(top_srcdir)/src/gsm_subscriber.c \
 	$(top_srcdir)/src/debug.c \
-	$(top_srcdir)/src/timer.c \
-	$(top_srcdir)/src/select.c \
-	$(top_srcdir)/src/talloc.c \
 	$(top_srcdir)/src/gsm_data.c \
-	$(top_srcdir)/src/signal.c \
-	$(top_srcdir)/src/statistics.c \
 	$(top_srcdir)/src/bts_ipaccess_nanobts.c \
-	$(top_srcdir)/src/bts_siemens_bs11.c \
-	$(top_srcdir)/src/tlv_parser.c
-channel_test_LDADD = -ldl -ldbi
+	$(top_srcdir)/src/bts_siemens_bs11.c
+channel_test_LDADD = -ldl -ldbi $(LIBOSMOCORE_LIBS)
 
diff --git a/openbsc/tests/channel/channel_test.c b/openbsc/tests/channel/channel_test.c
index 36d0572..759001c 100644
--- a/openbsc/tests/channel/channel_test.c
+++ b/openbsc/tests/channel/channel_test.c
@@ -23,7 +23,7 @@
 
 #include <assert.h>
 
-#include <openbsc/select.h>
+#include <osmocore/select.h>
 #include <openbsc/gsm_subscriber.h>
 #include <openbsc/abis_rsl.h>
 
diff --git a/openbsc/tests/db/Makefile.am b/openbsc/tests/db/Makefile.am
index 310763a..85f2c14 100644
--- a/openbsc/tests/db/Makefile.am
+++ b/openbsc/tests/db/Makefile.am
@@ -4,5 +4,5 @@
 noinst_PROGRAMS = db_test
 
 db_test_SOURCES = db_test.c
-db_test_LDADD = $(top_builddir)/src/libbsc.a $(top_builddir)/src/libmsc.a $(top_builddir)/src/libbsc.a $(top_builddir)/src/liblaf0rge1.a -ldl -ldbi
+db_test_LDADD = $(top_builddir)/src/libbsc.a $(top_builddir)/src/libmsc.a $(top_builddir)/src/libbsc.a $(LIBOSMOCORE_LIBS) -ldl -ldbi
 
diff --git a/openbsc/tests/debug/Makefile.am b/openbsc/tests/debug/Makefile.am
index 62c906e..86cd7b3 100644
--- a/openbsc/tests/debug/Makefile.am
+++ b/openbsc/tests/debug/Makefile.am
@@ -1,4 +1,5 @@
 INCLUDES = $(all_includes) -I$(top_srcdir)/include
 noinst_PROGRAMS = debug_test
 
-debug_test_SOURCES = debug_test.c $(top_srcdir)/src/debug.c $(top_srcdir)/src/talloc.c
+debug_test_SOURCES = debug_test.c $(top_srcdir)/src/debug.c 
+debug_test_LDADD = $(LIBOSMOCORE_LIBS)
diff --git a/openbsc/tests/gsm0408/Makefile.am b/openbsc/tests/gsm0408/Makefile.am
index 69f1e4e..44ca96c 100644
--- a/openbsc/tests/gsm0408/Makefile.am
+++ b/openbsc/tests/gsm0408/Makefile.am
@@ -2,4 +2,4 @@
 noinst_PROGRAMS = gsm0408_test
 
 gsm0408_test_SOURCES = gsm0408_test.c
-gsm0408_test_LDADD = $(top_builddir)/src/libbsc.a $(top_builddir)/src/libmsc.a $(top_builddir)/src/libbsc.a $(top_builddir)/src/liblaf0rge1.a -ldbi
+gsm0408_test_LDADD = $(top_builddir)/src/libbsc.a $(top_builddir)/src/libmsc.a $(top_builddir)/src/libbsc.a $(LIBOSMOCORE_LIBS) -ldbi
diff --git a/openbsc/tests/sccp/Makefile.am b/openbsc/tests/sccp/Makefile.am
index 3e35014..4152a9a 100644
--- a/openbsc/tests/sccp/Makefile.am
+++ b/openbsc/tests/sccp/Makefile.am
@@ -4,5 +4,5 @@
 noinst_PROGRAMS = sccp_test
 
 sccp_test_SOURCES = sccp_test.c
-sccp_test_LDADD = $(top_builddir)/src/libsccp.a $(top_builddir)/src/libbsc.a $(top_builddir)/src/liblaf0rge1.a
+sccp_test_LDADD = $(top_builddir)/src/libsccp.a $(top_builddir)/src/libbsc.a $(LIBOSMOCORE_LIBS)
 
diff --git a/openbsc/tests/sccp/sccp_test.c b/openbsc/tests/sccp/sccp_test.c
index 562e134..982c168 100644
--- a/openbsc/tests/sccp/sccp_test.c
+++ b/openbsc/tests/sccp/sccp_test.c
@@ -28,7 +28,7 @@
 
 #include <openbsc/gsm_data.h>
 #include <openbsc/debug.h>
-#include <openbsc/msgb.h>
+#include <osmocore/msgb.h>
 
 #include <sccp/sccp.h>
 
diff --git a/openbsc/tests/sms/Makefile.am b/openbsc/tests/sms/Makefile.am
deleted file mode 100644
index c1eeec7..0000000
--- a/openbsc/tests/sms/Makefile.am
+++ /dev/null
@@ -1,5 +0,0 @@
-INCLUDES = $(all_includes) -I$(top_srcdir)/include
-noinst_PROGRAMS = sms_test
-
-sms_test_SOURCES = sms_test.c
-sms_test_LDADD = $(top_builddir)/src/libmsc.a $(top_builddir)/src/libbsc.a $(top_builddir)/src/liblaf0rge1.a -ldl -ldbi
diff --git a/openbsc/tests/timer/Makefile.am b/openbsc/tests/timer/Makefile.am
deleted file mode 100644
index 9f12d23..0000000
--- a/openbsc/tests/timer/Makefile.am
+++ /dev/null
@@ -1,5 +0,0 @@
-INCLUDES = $(all_includes) -I$(top_srcdir)/include
-noinst_PROGRAMS = timer_test
-
-timer_test_SOURCES = timer_test.c $(top_srcdir)/src/timer.c $(top_srcdir)/src/select.c
-