Mar

Cisco will withdraw from WiMAX business to lead the 4G wireless technology, the future of LTE

It is reported that Cisco Systems for 2.9 billion U.S. dollars in the acquisition of Starent Networks, the WiMAX access network is planning to withdraw from business, and stop the WiMax base station, R & D and manufacturing work to concentrate on IP Network Business.

Cisco spokesman Brady (JimBrady) announced this week 5: Cisco's mobile strategy, from start to finish has been to provide a packet core network and IP network-based non-wireless communication. Because in this area, we are able to offer differentiated value-added. Based on our assessment of the near future for the WiMax business, we announced the termination of the design and construction of the decision of WiMax base stations, and we also announced that existing customers will provide transitional technical support.

The move is not surprising. In accordance with Starnet network point of view, 4G wireless competition in the future of WiMAX technology, LTE, while the United States some of the largest operators, including Verizon and AT & T have announced plans to migrate to LTE. Cisco announced the acquisition of WiMaxRAN in 2007, equipment manufacturers NaviniNetworks. Cisco claims at that time, through WiMax to offer broadband services to developing countries, will be a very potential market.

However, WiMax heat lasted only a very short period of time, and then changed the focus of the industry to re-shift to 4G mobile technology as the representative of the LTE technology. At present, LTE has been the communications industry, strongly supported by major organizations, while the 4G systems has been the world's most popular mobile operators choices. The United States market is concerned, VerizonWireless formally in 2010 to promote the commercialization of LTE, while the AT & T will also officially joined the ranks of 2011.

Cisco in 2007 to 330 million U.S. dollars acquisition of Navini Networks entered the WiMAX market. It also has huge amounts of Clearwire's WiMAX signed a supply agreement. For now, Navini's WiMax network in high-end products can not occupy an important place. Although Cisco is the world's largest WiMax network project to provide equipment and services, but only by IP devices, rather than wireless devices.

According to a report FierceBroadbandWireless.com Web site, Cisco has confirmed that stopped in its packet core network systems and applications to develop WiMAX base stations. Although Cisco has not given press coverage to NetworkWorld independently confirmed, but in FierceBroadbandWireless reports quoted a spokesman for Cisco's statement:

After some careful consideration, our mobile strategy will focus on providing a nothing to do with the kinds of RF IP end mobile multimedia business networks. Cisco will continue to focus on the core packet network, while increasing for families such as base stations and WiFi RF technology inputs. As a part of this decision, we have decided to stop the design and build a new WiMAX base stations. We believe that Cisco's customer service is the best way for customers to provide the network edge and core values.

Analysts have said that Cisco's acquisition of Starent deal, the company's business focus has changed from WiMax to LTE transferred to a bigger market. With WiMax by Intel (blog) and other chip manufacturers support different is that, LTE by Ericsson and Alcatel-Lucent and other telecommunications equipment giants are supported. Cisco has said it will not compete with these companies.

For Cisco's WiMax business to stop the news, analysts said was not unexpected. VisantStrategies analyst Si Weise (LaurenceSwasey), said: Cisco introduced the current situation is a good business. Si Weise said he thought the LTE will become the mainstream of the world's 4G technology and WiMax will eventually be the current operator acceptance.

Si Weise also said that Cisco's acquisition of Navini intends for the entire WiMax sector. At present, including Huawei Technologies, Samsung and Motorola, including the major equipment suppliers are commercial networks to provide wireless devices. Si Weise said that, while compared to entering the market, Cisco's decision to withdraw from the market, the impact should be much smaller.