In a move designed to enhance its multimedia, voice conferencing and VoIP solutions, Nortel (News - Alert) has acquired DiamondWare, a pioneer in high-definition, proximity-based 3D positional voice technology.

 

The Canadian-based telecom giant snapped up DiamondWare (News - Alert) for approximately $7 million in cash, plus up to an additional $3 million to DiamondWare security holders based on achievement of future business milestones during the next 40 months.

 

Under terms of the agreement, Nortel will acquire all of the outstanding shares of DiamondWare.

 

The Mesa, Arizona-based DiamondWare develops 3D high-fidelity audio technology most notably used in video games, simulators, conferencing, VoIP and Internet-based radio. It customers include, the U.S. Special Forces, the U.S. Navy, the U.S. Air Force, game developers, carriers and equipment makers.

 

DiamondWare's technology uses wideband, stereo capability and custom spatial positioning that delivers real-time interactions in 3D virtual worlds and meetings, online gaming systems, and multimedia applications, said Neil Sack, a consultant for the company.

 

Sack says this made it a natural play for Nortel to extend its voice technologies.

 

"The deal will help Nortel expand its next-gen collaboration technology further into voice, using the technology to replicate the richness of a real-world communications experience,” he said.

 

“DiamondWare's 3D voice will provide a much richer voice experience,” he said. People for always talk about telepresence technologies but all those experiences are designed to imitate reality. It’s almost like real but the next generation will make it better than real.”

 

Keith Weiner, CEO at DiamondWare, said he expects DiamondWare's 3D voice technology to help provide Nortel's customers with a more natural and immersive communication experience.

”Whether they're using it for traditional telephony and conferencing applications, mobile unified communications or for Web 2.0 virtual world environments," said Weiner. “It is and immersive experience.”

 

Writing in his blog, President and Group Editor-in-Chief of TMC Rich Tehrani (News - Alert), pointed out that Nortel is further betting that the technology advantage they have as a result of this acquisition will help insulate them against others in the market who compete. “That would be Avaya, Cisco (News - Alert) and even to a lesser degree (at the moment) Microsoft. You see, I personally believe that 3D, stereo communications provides such a rich immersive experience that once you have tried it, you will have trouble going back to traditional telephony,” writes Tehrani.

 

John Roese (News - Alert), Nortel's chief technology officer, in a statement. “The acquisition of DiamondWare strengthens Nortel's position in the converging telecommunications and IT landscapes and gives us another building block to create the ultimate communications experience for our customers.”