Cisco Announcement:
-- [B] Cisco unveils fixed wireless equipment strategy --
By Mike Mason, Bridge News
Santa Clara, Calif.--Dec 1--As expected, Cisco Systems on Wednesday outlined
its plans for fixed wireless technology, announcing a broadband access platform
that will compete against other high-speed Internet pipes such as digital
subscriber lines and cable modems.
* * *
"Our goal is to build alternate access services so providers that don't have
cable or DSL capabilities can use fixed wireless," said Cisco Executive Vice
President Don Listwin at an analysts' meeting here.
Cisco's fixed wireless technology operates on the multi-channel, multi-point
distribution service, known as MMDS. MCI Worldcom and Sprint have spent more
than $2 billion combined on MMDS licenses this year to become the largest
holders in this spectrum.
While MCI and Sprint are still evaluating different fixed wireless equipment
makers, a Cisco representative said the company hopes to get that business and
is also in talks with Excite@Home and some European service providers.
The MMDS market is expected to develop in 2 stages. First, early next year,
service providers are expected to offer MMDS-based service to small and
mid-sized business. Then by the end of next year, MMDS services will be offered
to consumers.
CIBC World Markets estimates the market for broadband fixed wireless
equipment will be $3.5 billion by the end of 2000 and $7 billion by 2003.
Pricing and speeds for service over the MMDS frequency are expected to be in
the same range as those for cable and DSL.
Today's product announcement marks a new market entry for Cisco, which
already makes equipment for DSL and cable. The company's fixed wireless
technology came about through its 1998 acquisition of Clarity Wireless, a
Silicon Valley-based firm whose technology overcame earlier limitations that
required fixed wireless systems to have unobstructed line-of-sight. End
Bridge News, Tel: (415) 835-7692
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