To: John F Beule who wrote (408 ) 8/13/1998 10:32:00 AM From: John F Beule Read Replies (1) | Respond to of 615
I believe GIC and CSCO are working together on this modem technology: Cisco in initial cable modem deal with Comcast SAN JOSE, Calif., Aug 12 (Reuters) - Cisco Systems Inc. <CSCO.O> said on Wednesday that U.S. cable TV operator Comcast Corp. <CMCSA.O> had selected it to provide a limited number of cable modems and router equipment for its cable network. Comcast spokesman Richard Rasmus said his company would pay about $1 million to Cisco in a non-exclusive deal to supply equipment that is part of its next-generation cable network that will be used to deliver data, voice and video services. The contract calls for Cisco to install data routers and customer cable modem equipment for "several hundred customers" in four Comcast U.S. cable markets, Rasmus said. Installation of the equipment will begin this quarter. Cisco upstaged rival cable modem maker Motorola Inc. <MOT.N> to win the business with Comcast, the nation's fourth largest operator of cable TV networks. Motorola has sold Comcast about 28,000 modems to date. Motorola was Comcast's incumbent supplier of cable modems and related equipment, but has yet to produce cable modems based on open industry standards such as Cisco has -- a key factor in Comcast's decision to go with Cisco, Rasmus said. Motorola and Cisco, among other suppliers, remain in the running for a contract to refit Comcast's entire network to to make it Internet-ready, Rasmus said. Dale Boehm, Cisco marketing director for cable products, said the deal was significant because it was Cisco's first commercial cable modem contract with a U.S. cable operator. The Comcast deal was the latest of several preliminary contracts from top-tier cable operators that eventually could lead to Cisco being awarded widescale contracts to build high-speed cable Internet networks. "We've had earlier deals with MediaOne, Time Warner, At Home and Road Runner," Boehm said in an interview. "These are just the ones we've been able to make public." MediaOne Group Inc. <UMG.N> and Time Warner Inc. <TWX.N> are other top U.S. cable system operators. At Home Corp. <ATHM.O> and RoadRunner are competing high-speed cable media services. At Home is backed by cable operators, including Comcast, Cablevision Systems Corp. <CVC.A>, Cox Communications <COX.N> and Marcus Corp. <MCS.N>. Road Runner is owned by MediaOne, Time Warner and Advance/Newhouse. Microsoft Corp. <MSFT.O> and Compaq Computer Corp. <CPQ.N> also have smaller stakes. Cisco modem equipment will be installed in two new markets in Atlanta and Chesterfield, Va. and in two of the six existing markets where Motorola modems are already in use by Comcast customers -- Orange County, Calif. and a region of Michigan. In total, Comcast serves 4.3 million cable customers in 21 states. Comcast offers residential, online services and Internet access through ComcastHome, a high-speed online service providing 24-hour, unlimited broad band Internet access and high-resolution content to home computers. Data is transmitted at speeds 100 times faster than standard modems over phone lines. Cisco stock was trading at break-even at $98 near the close of the regular trading session on Wednesday, after rising as much as $1.625 earlier in the day. 22:32 08-12-98 Copyright 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similiar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.