VentureBeat

Iamba Networks has raised $7 million in in funding to expand its business of making chips and software for telecommunications companies.

The Cupertino, Calif., company’s chips are used to enable telecommunications companies to implement gigabit passive optical network, or GPON, access. That’s a standard for enabling an optical fiber to be split into different streams to serve different parties.

Companies are using the technology to build wireless phone networks that can handle on-demand video, high-definition video, and a single network that can carry both land-line and cell phone calls. The company’s chips go into devices that access the GPON networks from homes, small businesses, or apartment buildings.

Investing firms include Pitango Venture Capital, Cedar Fund, Giza Venture Fund and Kreos Capital. All of them participated in previous rounds.

Iamba’s chips are in demand in places such as Asia that are building out next-generation telecom networks capable of supporting video. It will use the funding to expand its product line, increase its sales and support, and expand into new regions. The custom chips have been in production since January of this year and another will be released this summer.

The company was founded in 2000. Its biggest competitor is Broadlight.