October 25, 1999 Web posted at: 9:34 a.m. EDT (1334 GMT) by Terho Uimonen

From...

(IDG) -- Nokia has announced the formation of a new unit called Home Communications with a mandate to develop digital home platforms and communications products.

The new unit will be based in Linköping, Sweden, and will focus on developing digital platforms and communications products based on IP (Internet protocol) technology for homes, Nokia said in a statement.

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Nokia Home Communications will draw from the Finland-based mobile phone giant's in-house expertise in wireless LANs (local area networks), IP and digital broadcasting, the company said.

Set-top boxes for accessing the Internet via television sets are one example of the kinds of products the unit will develop, Nokia said.

Nokia's move comes as the home networking market is emerging as a new frontier for many companies. Earlier this month, for example, rival telecommunications equipment maker L.M. Ericsson Telephone and appliance maker Electrolux set up a 50-50 joint venture focused squarely on home networking.

The Home Communications unit will be part of Nokia Ventures Organization, which was set up by Nokia to explore new areas for future business growth. Nokia Ventures Organization also includes Nokia Internet Communications, the Nokia Ventures Fund as well as an internal venturing unit, the company said.

Terho Uimonen is Scandinavia bureau chief for the IDG News Service.