Nokia Siemens Networks has invested an undisclosed amount for a stake in ClariPhy, who provides advanced integrated circuits that improve the efficiency and capacity of networks used for transporting vast quantities of information.

Specifically, Nokia Siemens Networks’ investment supports ClariPhy’s development of highly integrated single chip complementary metal oxide semiconductor (CMOS)* integrated circuits (ICs) for high performance optical networks digital signaling processing (DSP)**. Essentially, these semiconductor chips integrate the multiple tasks required by transport networks such as conversion of analog signals from optical sensors to digital, digital manipulation, and back to analog form again, faster and more efficiently.

High capacity transport networks are vital for delivering fixed and mobile broadband. The amount of data required by applications such as IPTV, video on demand, cloud computing and services is increasing 60% per year. Nokia Siemens Networks predicts that by 2015 data traffic across mobile networks alone will exceed 43 Exabytes, equivalent to 6.3 billion people on the planet downloading two digital books every day.

“The rapid processing of digital signals is crucial in high capacity optical networks,” said Vesa Tykkyläinen, head of the optical networks business line at Nokia Siemens Networks. “We are investing in a company that is innovative and a forerunner of the coherent chip technology*** with 40nm (nanometer) CMOS for 40G. ClariPhy will also be among the firsts to use 28nm CMOS for 100G, high-gain and low-latency soft-decision****, forward error correction and many other innovations. Together with our leading R&D, ClariPhy will enable us to be at the forefront of high performance and low power consumption next-generation optical platforms capable of 400G and beyond along with reducing equipment footprint”.

“Funding from a global telecoms industry leader demonstrates confidence and faith in ClariPhy’s leadership and its unique ability to bring together the skills and technologies required to develop cost-effective CMOS networking ICs, enabling next generation of optical networks”, said Paul Voois, CEO of ClariPhy. “The investment highlights the alignment between our strategy for IC development and Nokia Siemens Networks’ plans for packet optical networks to serve a rapidly evolving market”.

High capacity optical networks are used for Smart Transport networks, which provide the lowest total cost of ownership for a service provider’s multiservice data transport network. Smart Transport networks are based on Nokia Siemens Networks’ globally available IP Integration capabilities to plan, install, integrate, provision, maintain, optimize and, where needed, operate multi-vendor transport networks. Besides the company’s professional services, it includes Nokia Siemens Networks’ products such as DWDM optical transport platforms; optical transport network switches; TransNet network planning tool; A-Series Carrier Ethernet switches; FlexiPacket Microwave and operational support systems coupled with IP/MPLS, timing over packet and service level assurance partner products from other leading vendors.

Nokia Siemens Networks’ investment in ClariPhy and the installed base of smart transport networks will improve the existing optical networks and take the company beyond 100G. Moreover, it will enable Nokia Siemens Networks to lead the industry in the development of higher rate cards (400G, 1T), enabling it to address the huge increase in IP network traffic.

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