Nokia acquires Diamond Lane Communications to boost Fast Internet
Nokia today signed a definitive agreement to acquire Diamond Lane Communications Corporation for approximately US $125 million in cash. The company, based in Petaluma, California, has developed the market-leading multi-service digital subscriber line access multiplexer (DSLAM), a device that enables Internet access speeds up to 125 times faster than current 56 kilobit-per-second modems over existing telecommunications networks.
Nokia has been an investor in Diamond Lane since 1997. The two companies already have successfully integrated Diamond Lane's products in an end-to-end Fast Internet solution that addresses service provider needs including service and network management and billing.
Mika Vehviläinen, Senior Vice President, IP Solutions Group, Nokia Telecommunications, said the acquisition gives Nokia a critical technological element driving development of the next wave of communications network infrastructure - IP and ATM broadband access networks - and an increased presence in the world's foremost Internet market, the United States.
"The Internet has reached farther and faster than any previous communication technology," Vehviläinen said. "It took radio 35 years to reach an audience of 50 million people; television required only 13 years, but the Internet has surpassed that in just four years."
Diamond Lane President and Chief Executive Officer Jerry Parrick said Diamond Lane has developed the most extensive product line in the industry to address the needs of all service providers.
"Our combining with Nokia will enable us to compete for a major share of the global digital subscriber line market," Parrick said. "Nokia's financial strength and position as a global leader in the telecommunications industry will enable us to greatly enhance the scope of our products and reach a larger customer base immediately. We plan to own a major share of the global DSL market."
Diamond Lane Communications Corporation, founded in 1995, is one of the first companies in the world to commercially offer digital subscriber line data access. Privately held, the company is a worldwide technology leader in xDSL solutions, enabling a variety of high-speed data applications via its SpeedLink system, a digital subscriber line access multiplexer based on ATM standards. With final approvals, expected in 30 days, Diamond Lane will become Nokia High Speed Access Products.
Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer monitors. In 1998, net sales totaled FIM 79.2 billion (USD 15.7 billion, EUR 13.3 billion). Headquartered in Finland, Nokia is listed on five European Stock Exchanges and on the New York Stock Exchange (NOK.A), has sales in over 130 countries and employs more than 44,000 people worldwide.