Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Infowave Wireless Messaging IW:TSE -- Ignore unavailable to you. Want to Upgrade?

To: Frank Ferrari who wrote (733)	6/7/1999 5:32:00 PM
From: Link Lady	Read Replies (2) \| Respond to of 1690

canoe.com Monday, June 07, 1999 Money News Motorola stake in wireless unit seen significant CHICAGO, June 7 (Reuters) - The plan by wireless communications company Motorola Inc. (MOT-N) and Internet networking equipment maker Cisco Systems Inc.'s (CSCO-O) to buy the fixed wireless assets of Bosch Telecom catapults Motorola into one of the top spots in the emerging market for wireless high-speed data, voice and video services, analysts said. With the assets of Bosch Telecom, the two companies plan to form SpectraPoint Wireless to provide broadband services to consumers and businesses over a fixed wireless network. "Motorola right now is one of the top three guys that have this product," said Wojtek Uzdelewicz, analyst with SG Cowen and Co. "Lucent (LU-N) and Nortel (NT-T) have similar offerings, but a lot of the other vendors still don't have it." Motorola and Cisco announced the deal earlier Monday. Terms were not disclosed. Bosch Telecom is a unit of Germany's Robert Bosch Corp. Analysts also said the proposed Bosch deal should be viewed as a sign that Motorola's existing joint venture with Cisco was working and marks the start of an important relationship. "I think working with Cisco is going to become a major initiative for them (Motorola)," said Tim Luke, analyst with Lehman Brothers. Cisco and Motorola formed an alliance in February -- their first forays into the red-hot Internet-based wireless services sector. The two companies had said they would invest $1 billion on research and development centers for third-party developers and create new Internet-based architecture for cellular wireless services focused on the mobile industries. One analyst estimated that Motorola and Cisco would pay about $100 million for the Bosch assets, with Motorola controlling a majority stake of about 80 percent. Motorola "paid less than $100 million for it, so the whole thing would be valued at a little over $100 million," Uzdelewicz said. "They've gotten a rapidly emerging technology at a good price." The deal, which must clear regulatory hurdles, is expected to close by the end of June. Once the transaction is completed, Cisco will own a minority, while Motorola will own a majority. The assets consist of a broadband fixed wireless system built on a technology known as Local Multipoint Distribution Services, or LMDS, which supplants wired phone and cable lines with a wireless transmission system. Shares of Motorola were off $1.88 at $86.19, while Cisco was trading up 75 cents at $115.63.