Lucent creates digital radio unit
Pequot Capital Management makes an investment in the telecommunications equipment maker's digital radio unit, creating a new entity called Lucent Digital Radio.
Lucent's new unit is trying to make strides in bringing digital signals to radio.
The size of Pequot's investment was not disclosed but Lucent will hold a majority stake in Lucent Digital Radio.
The Lucent Digital Radio system uses In-Band On-Channel (IBOC) technology which is designed to allow broadcasters to convert to an all-digital AM or FM broadcast system. The company hopes its digital radio will let listeners hear crystal-clear audio, while also providing new data services over regular broadcast signals. Lucent said that listeners will be able to hear IBOC, satellite, or Internet audio over the same receiver--whether in their car or at home--with wide varieties of programming and interactive services.
"Lucent Digital Radio is now positioned squarely at the forefront of the dawn of digital radio," said Lucent Digital Radio president Suren Pai.
Lucent will continue to support Lucent Digital Radio, providing ongoing access to its state-of-the-art research at Bell Labs research and development unit.
Pequot Capital Management is a research-intensive investment firm, managing more than $6 billion in assets.