Estonia, Technology, Telecomunications

Modesat develops FPGA-based DSP cores for microwave radio, cable, fixed line and mobile satellite OEMs.

CEO Peep Poldsamm said the advent of 4G before deployment of 3G networks created a situation where mobile operators will need to quickly multiply the capacity and transmission of their backhaul networks.

"In 80% of cases this will be done by using high-capacity microwave links," Poldsamm said. "We believe that we are in the right place at the right time with our technology."

Current modem technology by comparison is expensive, complex and unreliable, he said.

Modesat's solution uses proprietary technology called PilotSync that has a higher rate of modulation, which is directly related to speed of data that is transmitted over the network. The hardware is up to five times less expensive and has higher reliability than existing solutions, he said.

The initial sales target is telecom manufacturers such as Ericsson, NEC, Lucent and HuaWei. In 2009, the company expects to launch broadband satellite products and will target manufacturers of satellite communications.

"We are in talks with every one of the big telecom manufacturers," Poldsamm said.

In line with the product launch, the company expects to open a Sunnyvale, CA office this month.

Modesat was founded in 2006 based on technology developed in Belarus.

"Belarus scientists had the idea but with no way to develop it and take it to market," Poldsamm said.

The Estonian side complemented the R&D work and the financing came from venture capital firm Ambient Sound Investments, which was founded by the engineering team that developed Skype.