By Heather McLean, 23 May 2002 12:45
NEWS Nokia has bought a 10 per cent stake in DSL equipment maker Redback Networks in a bid to increase 3G broadband sales and access to customers. Nokia has invested $34.5m in the US-based broadband equipment maker in return for a 10 per cent stake in the company. Redback's main product is a subscriber management system which enables network carriers to control large numbers of customers using DSL networks. Bernt Ostergaard, telecommunications analyst at Giga Web, said: "Nokia is strengthening its whole DSL push. DSL is up for its second coming. When it launched 10 years ago operators didn't want to invest in it as they had already invested in its predecessor, ISDN." The deal entitles Nokia to increase its stake in Redback to a maximum of 19.9 per cent within 18 months. Nokia is also entitled to place a representative on Redback's board of directors. Both organisations will increase cooperation between their sales forces to sell products to other network carriers and service providers in the 3G space. Why has Nokia been panicking about 3G network patents?
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