Telecomredux: What are some technologies you now consider to be important in general, and important for RAD in particular?
Zohar Zisapel: I see wireless being a very important technology. Certain parts of video will develop and become very important in communications. And IP of course - it will end up as all-IP and broadband. And access is the big opportunity.

TR: One of RAD Data's strengths appears to lie in filling the gaps between what has been and what's coming next - for example, bridging TDM and VoIP with TDM-over-IP. What happens to RAD Data when we get to what will be, so to speak?
ZZ: I don't thing we'll ever get to what's going to be - the end. I'm quite sure when we get to all-IP and broadband then there'll be something new coming to replace broadband and IP. We're in a constant state of change.

TR: Do you see any evidence of an upturn in the fortunes of telecoms and ICT industry?
ZZ: Things started to turn up in 2002 and are continuing up. It's not a big bubble but the business is growing - we see that. We're selling more and more and more. It's a good competitive market, and the competition is also doing well. The down turn is behind us.

TR: Historically RAD seems to have grown internally and organically, but recently you made an acquisition - Packet Light. Is that likely to be the way forward, buying companies?
ZZ: It won't be the main avenue for us, no. We are engineers, we know how to develop things. This is our strength and the strength of Israel. Packet Light is more of a re-start than an acquisition. As a start-up the company developed a 'god box' with a lot of very good technology but didn't really go anywhere. What we did with Packet Light is we took their technology and aimed it at a new market with a different product. On the other hand, we are looking for certain companies to acquire. With RAD Vision, for example, we acquired a company in China. There are special cases where it makes sense. We've become big enough to do that as well.

TR: Speaking of China, does RAD compete with any Chinese companies in any of its markets, and is that competition intensifying?
ZZ: Unfortunately yes. We do compete with some Chinese companies, especially in China and they hit us very hard. We don't see them much outside of China. In general, though, China is a competitive threat to the whole communications industry. There is no way you can compete with them on commodity products. And they are pretty good.

TR: Where is the growth opportunity for the group - greater penetration of existing markets, expanding geographically, or developing new technology?
ZZ: Geographically we can't extend too much anymore, at least not without moving to other worlds, which is kind of difficult. In terms of revenue I would see it in new technologies and some new customers. But mostly new technologies, mostly taking advantage of changes in the market and placing ourselves in new areas to take advantage of where we are strong.

TR: Do you see any change in the geographic split of your markets?
ZZ: Not really. Europe is very strong and will stay very strong. South East Asia is also strong. In the US we're developing but we're not as strong as we might be given the size of the market. Americans prefer their local companies. But the US market is very important for us, and we are very active there and trying to do more.

TR: Some companies in the RAD Group are public companies. Do you have plans to take any other companies public? Or take the public companies private?
ZZ: We don't have any immediate plans to take companies public. There's two reasons. One is we don't have any companies that are ready to become public. The other is that the public market is not very friendly right now. Whether we take companies private is a good question. We haven't really focused on any companies to take private. However, it might be an idea … to take (the smallest companies) in the group private. The market is currently very hostile to smaller companies.

TR: Thank you.
John Williamson