Xybridge was set up as a wholly-owned subsidiary by Ind Telesoft to develop the Softswitch technology for local loop access network and thus commercialise technology developed in India and abroad.

The initial round of funding to the parent company, Ind Telesoft, was done by ICICI and Intel followed by a second round of funding by Motorola that has made Ind TeleSoft a major stakeholder in Xybridge.

Zhone, promoted by Mory Ejabbat and Jeanette Symons, co-founders of the erstwhile Ascend Communications, is planning to go for an initial public offering (IPO) during the later part of the first quarter of the current fiscal, and thus getting listed on the NASDAQ. Post-IPO, Ind TeleSoft will be a shareholder in the Zhone through this acquisition.

Xybridge recently came up with IP core solution for broadband wireless mobile network with Ascom and Motorola as customers. With Ascom, it has entered into a strategic arrangement to provide solutions to small and medium scale companies.

Xybridge's Softswitch technology provides a strategic complement to Zhone's broadband access equipment, thus helping it to deliver a comprehensive multimedia solution for the local loop. Telesoft is a consulting services company focussing on innovative telecom and Web-enabled solutions. It delivers software development services for circuit and packet switched networks in the areas of call processing, element management systems etc.Ind Telesoft and Lucent technologies will work together to operate as inter-operability testing laboratory for multivoice VoIP solutions.