Thoughts?
NEW YORK (CNNfn) - Cisco Systems Inc. and Motorola Inc. Monday set a strategic alliance to develop an Internet-based wireless platform that will carry data, video and voice services over cellular networks.
The move opens up the door for third-party developers to provide products that will allow consumers to transmit data, such as e-mail, by cellular phone and other wireless communications devices.
Under the deal, Cisco (CSCO) and Motorola (MOT) will invest a combined $1 billion over four to five years to deliver a "wireless Internet" that utilizes both wired and wireless networks.
The companies said they plan to cross-license technology and develop complementary products.
The wireless network will be based on an Internet Protocol architecture, which allows for simultaneous voice, data and video transmissions.
"This extends the Internet to a world without wires and represents the first major deployment of integrated data, voice and video services under an Internet-based cellular infrastructure," said Don Listwin, Cisco executive vice president.
Cisco and Motorola hope the network will pave the way for third-party developers to create Internet-enabled wireless products. Smart card embedded within cell phones, for example, would enable users to conduct e-commerce transactions while talking or surfing the Web.
The companies said the network is intended to work across the diverse wireless standards.
Cisco shares fell 4 to close at 101-1/4 in Friday trade. Motorola shares shed 1-5/8 to 66-7/16.
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