Rodania, the Spanish private equity firm, is raising a €45m ($44m) fund for investment in wireless applications, a move that indicates returning confidence in the mobile phone and wireless industries.

The depressed state of the telecoms market has obliterated numerous venture capital funds that were raised in the late 1990s to invest in technology start-ups. The start-ups have run into trouble because the telecoms companies have no cash available to buy their products.