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To: Threshold who wrote (1402)12/4/1999 6:07:00 PM
From: James W  Respond to of 16863
 
Here's an article,December 4, 1999

Cisco Seeks Deals With Nokia and Ericsson
By REUTERS
TOCKHOLM -- Cisco Systems Inc, the world's biggest maker of computer networking equipment, said on Friday it would like to form alliances with telecoms equipment makers Nokia and Ericsson similar to its wireless Internet deal with their U.S. rival, Motorola.


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Cisco's northern European head, Theo Wegbrans, told Reuters in a telephone interview he would welcome a deeper partnership with both of the Nordic telecoms equipment makers, despite the fact that they were competing with Motorola and each other.

"We would welcome a deeper partnership with Ericsson and Nokia. Of course everyone would prefer to be exclusive to us but that's not our business model -- our business model is to encourage partnerships in complementary areas," he said.

Motorola, the world's leading maker of mobile telephones, linked up with Cisco Systems Inc in February to develop wireless Internet service, with the two companies planning to invest up to $1 billion on the project over the next four to five years.

Wegbrans said in Stockholm last week that Cisco believed it was a logical complement to Ericsson, which the world's leader in making wireless systems with about 40 percent of the market.

Cisco's core business areas are networking, data networking, and Internet Protocol technology, and it is keen to break further into the rapidly expanding wireless sector.

Wegbrans said the competency which both Nokia and Ericsson offered in wireless technology was attractive to Cisco, but declined to speculate on what types of cooperation were possible. Cisco already sells some of its products through Ericsson and Nokia, and a partnership would go beyond that.

"We would have to discuss these things with them -- sit around a table with them and find out where their new technology investments are going ...so that we can achieve further integration," he said.

"It would depend on what emerges and how we could find the synergies..that's something we would like to discuss with them but haven't done so far," he said.

Ericsson information head Pia Gideon declined to comment on Wegbran's comments last week, saying that Ericsson was continuously looking around but was happy with its portfolio.

Wegbrans said Cisco was not interested in acquiring large companies, or deviating from its core comepetency.