NewNet becomes latest feather in ADC cap

ADC Telecommunications has announced that ADC Software Systems, a unit of its Wireless Systems Group, has acquired NewNet Inc., a Shelton, Conn.-based developer of SS7 technology, short messaging servers and other intelligent network products.

The $53 million stock-for-stock transaction is the latest in a long line of acquisitions that has helped ADC augment its traditional wireline infrastructure and access products with wireless hardware and software solutions.

NewNet produces its own SS7 protocol stack software, called Connect 7, as well as products focused on SS7 service creation and management. The company also manufactures IS-41 and GSM-MAP protocols that position SS7 for seamless wireline/wireless network integration.

"Wireless has driven a lot of the recent growth in SS7," said John Baker, president of ADC's Wireless Systems Group. Although telcos have invested in SS7 networks for many years, the signaling standard's value has increased in recent years. Besides the wireless push, SS7 links can be a source for collecting increasingly valuable network traffic data that can help carriers better manage their networks.

SS7 technology can also perform the advanced routing necessary to support a wealth of emerging enhanced services.

"Some people are talking about doing Internet traffic on SS7," said Baker. "There is a lot going on at a high level."

The combination of companies also will create the resources to compete in the international SS7 markets, such as Europe, that have yet to fully develop, said Dilip Singh, president of NewNet, which will be renamed ADC NewNet.