Seimens invests in US SW co

LOS ANGELES: A venture capital arm of Siemens AG has taken a stake in a Los Angeles-based start-up that sells software that lets consumers get music on their cell phones independent of mobile phone carriers, the companies said.

Terms of the investment by Siemens Mobile Acceleration, a venture investment arm of the German technology and engineering conglomerate, into Xingtone were not disclosed.

The firm sells a $15 software package that allows consumers to transfer songs and other digital content that they already own to their cell phones.

The start-up, which was founded in March last year, has also developed software allowing media companies to sell music and other digital content for cell phones directly, bypassing wireless carriers, said Brad Zutaut, Xingtone chairman and one of the firm's four founders.

Although some wireless carriers see an opportunity in charging more to transmit such content to cell phone users, Xingtone is pushing the idea that such closed networks cannot be sustained, Zutaut said.

"We're one of the companies that's pushing the edge," he said.






Siemens Mobile Acceleration has made about 20 investments in early-stage, wireless-related start-ups worldwide since its founding about two years ago.

Siemens sees an opportunity in both Xingtone's software to convert digital songs into ringtones "on the fly" and in the distribution method it has developed for record companies and others to sell material for cell phones, a Silicon Valley-based executive said.

"We think that within the wireless industry this is one of the most dynamic areas," said Sven Weber, vice president for the Siemens investment arm.

Siemens ranks as the No. 4 global handset manufacturer and provides network infrastructure and related services for wireless carriers. The German company also provides wireless radio modules.

© Reuters