Video boom powering Dilithium

<p>A surge in mobile video traffic is driving growth at Petaluma's Dilithium Networks, which raised $10.9 million in a recent round of venture funding.</p><p>Video sharing, social networking and smartphone use have "increased exponentially" over the past year, said Dilithium CEO Paul Zuber.</p><p>"This is only a precursor of what's to come in 2010," he said.</p><p>By 2013, nearly two-thirds of the world's mobile traffic will be video, according to a February study by Cisco Systems.</p><p>Dilithium provides hardware, software and services that help carriers deliver video over their wireless and broadband networks. The 8-year-old Petaluma company does most of its business outside the United States, where carriers are rolling out advanced wireless services.</p><p>So far this year, Dilithium has sold technology to leading telecommunications carriers in Kuwait, Saudi Arabia, Egypt, Indonesia and India.</p><p>Dilithium now has 120 customers in 60 countries serving more than 1.5 billion subscribers, the company said.</p><p>Over 700 million consumers currently have "3G" wireless service, which allows video and other advanced applications, Zuber said in a blog this month. The iPhone and other smartphones "are dramatically increasing mobile video usage," he said.</p><p>In July, the company released the Dilithium Content Adapter, which can bring live video to any 2.5G/3G mobile phone, including iPhone, iPhone 3.0, Blackberry and Android devices.</p><p>Dilithium also is getting attention from investors, raising $10.9 million of an $18.1 million offering in October, according to a filing with the U.S. Securities and Exchange Commission.</p><p>Dilithium officials didn't return calls seeking comment.</p><p>Dilithium's latest investors weren't identified, but its past backers include Accede Capital, CM Capital, Franklin Templeton Investments, Galleon Group, Jafco Investment, Infocomm Investments, Motorola and U.S. Venture Partners.</p><p>Since 2001, the company has raised about $40 million in venture capital.</p><p>Dilithium has about 75 employees at its headquarters in Petaluma and 70 at a design center in India.</p><p>The company has other locations in Singapore and the United Kingdom.</p><p>You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.</p><p>com.</p>