NCoTec ups its 3G mobile phone activity

date: 26th February 2001, source by: efinancialnews.com

NCoTec ventures, the European technology venture capitalist, is cranking up its activity as the race to deliver the third generation (3G) of mobile communication quickens.

It has just completed a fourth deal investing in Kevab, a newly formed Swedish-based designer and developer of specialist third generation UMTS base stations.

Alongside this nCoTec has appointed Jacob Philipson to head its Scandinavian operation, which is relocating from Stockholm to Skeppsbron.

Philipson has worked with Ericcson Hewlett Packard, Architel and Nortel Networks in Europe, Asia and Australia and has nearly 10 years experience in communications software and operational support systems.

He will be responsible for developing new business and identifying investment opportunities across Europe with support from London and Stockholm.

At the same time Andy Halsall has been appointed as an associate in London after seven years in the venture capital and software industry with McKinsey and IBM.

Alasdair Warren, managing director at nCoTec, said: 'The balance of industry experience and commercial skills, which Philipson and Halsall bring, is consistent with our objective of creating value-added technology investments.'

The investment in Kevab is nCoTec's second investment in Scandinavia.

The deal is worth SKr47.5m (€5.3m) in seed and development capital to the new firm. Kevab's business model is possible because of the standardised open interfaces of UMTS technology, which means Kevab's products can be integrated with the infrastructure products of the existing large 3G telecom equipment vendors.

Kevab is also proposing to outsource manufacture to third parties and licence technology where possible to shorten development lead times.

Lars Lindell, nCoTec's technology officer, is joining the board of Kevab. He says: 'We were attracted to the radio base station business because it is the largest and most profitable segment of the 3G infrastructure market.

'Industry analysts estimate the global market for 3G infrastructure will grow to over $25bn (€27bn) in the next three years from virtually zero today, making it one of the fastest technology growth areas.'

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