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ADC Gets G-Connected

ADC (Nasdaq: ADCT) has bought the remaining outstanding shares of Israeli IP services gateway company G-Connect Ltd. for an undisclosed amount. (See ADC Buys G-Connect.)

And the company couldn't be more excited!

“We had a majority interest in the company after the acquisition, and we’ve been consolidating our financials for the past couple of years, so we just went ahead and bought the rest of the company,” explains ADC VP of marketing Steve Grady.

Tantalizing indeed.

ADC originally bought a share in G-Connect back in 1998 when it acquired the digital loop carrier (DLC) company, Teledata. G-Connect was founded in 1996 as a subsidiary of Teledata Communications. ADC has since divested of the DLC technology, but held onto its share of G-Connect and the company’s SG-1 IP service gateway product. (See FTTN Service Delivery Option Challenges and Considerations - by ADC.)

ADC will retain G-Connect’s staff of 14, leaving them where they are in Israel.

The SG-1 IP service gateway allows broadband subscribers to select their own mix of content, services, and bandwidth, based on their user profiles. The SG-1 also authenticates users, enforces subscriber policies, and manages network traffic and security. (See ADC Krone Unveils Digivance.)

The SG-1 product has been available since the late 1990s, but ADC hasn't sold that many of them. Grady says the product is being used mainly in the networks of “alternative” ISPs like WISPs. These players, he says, are using the service creation functionality to differentiate themselves from larger broadband providers like the RBOCs and cable MSOs.

Grady says it’s hard to point to products that compete directly with the SG-1. Some router makers -- Juniper Networks Inc. (NYSE: JNPR), for example -- have begun building the IP service gateway functionality into their products. On the wireless side, some base station vendors have begun baking in the technology, he adds.

Heavy Reading analyst Rhondalee Rohleder says products like the SG-1 could someday make a comeback in the access network. “While much time is spent on the more glamorous parts of the network, DSLAMs and aggregators have quietly become stars in the delivery of enhanced services and triple-play,” she says. (See Arvig Uses ADC for FTTx.)

ADC's products focus on connecting triple-play services to the access networks that deliver them to the home or enterprise, ADC spokesman Mark Borman says. The IP service delivery functions performed by the SG-1 may represent the future of ADC's "facilitator" role.

— Mark Sullivan, Reporter, Light Reading

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