Nokia acquires IP telephony firm

Nokia is acquiring Vienna Systems, a private Internet protocol (IP) telephony company in Kanata, Ontario, for $US90 million.

"The whole issue of IP becoming a predominant communications platform is at the heart of this," said Jim Bowman, Nokia vice president of communications, adding that the ubiquitous nature of IP gives it possibilities unrealised with ATM (asynchronous transfer mode) networks.

"Plus, everything is moving in a wireless direction now," he said, and that's why Nokia is making a stronger push into IP.

Vienna Systems makes hardware and software to distribute voice, fax and video over IP networks. Newbridge Networks, also in Kanata, has held a 30 percent stake in Vienna, which it is turning over to Nokia. In a separate announcement, Newbridge outlined plans to work with Nokia, based in Helsinki, Finland, to provide IP ability and service for broadband ATM wireless networks.

The companies have formed a technical group to work together to ensure interoperability among products, which also will be jointly developed. There is no particular time frame for when new products will be announced, Bowman said, but the market is "progressing everyday," so the goal is to quickly develop new hardware and software.