Telecoms share prices may have taken a beating of late - most notably in the case of Vodafone, which...
Telecoms share prices may have taken a beating of late - most notably in the case of Vodafone, which we yesterday wrote could hit a price of just 75p - but German conglomerate Siemens today urged investors in VCTs to consider its new investment unit focused on wireless technologies, as it will be looking for VC partners over the coming year.
Siemens Mobile Acceleration (SMAC) Company chief executive Dietrich Ulmer says the accronym might raise a few eyebrows, but it is the technology ideas his company is considering investing in that will provide the biggest highs.
SMAC has one goal, which is to identify new wireless telecoms technologies, into which it will put about £1m in cash, plus provide the backup of SMAC's parent company Siemens.
This includes everything from office space, prototype manufacturing facilities and even learning how to deal with human resources or accounting issues.
Ulmer says the new company has already put £4m of its £14m budget for this year into ventures, is about to do the same for a fifth company and has "10 hot ideas in the wings."
Seimens' mobile communications division, which makes everything from base stations to mobile phones has 30,000 staff, many highly competent engineers, that can be used to help drive the new ventures forward.
Ulmer says there is a need for companies such as Siemens, Nokia and Ericsson to pump money into new ideas if only to save their own skins by coming up with applications that the public will start to use, driving up earnings made by the operators that buy telecoms equipment.
Ulmer says the launch of SMAC in the UK meant the company can tap into Europe's biggest single VC marketplace, where just a fraction is currently devoted to wireless telecoms.
"We would consider investing with other VCs in individual circumstances, even during the initial investment stage. For next round financing we would need ot bring in VC money in any case.
The launch of SMAC may mean UK technology VCs see more funds go their way to take advantage of the increased interest in wireless telecoms despite the current downturn in equities prices.
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