Cisco

Huawei 2007 revenues up 48 percent to $12.5B

Sue Marek — Tue, 08 Jul 2008 11:01:11 -0400

While many infrastructure vendors are facing lean times, Chinese manufacturer Huawei seems to be blossoming. The company reported $12.56 billion in revenues in 2007, up 48 percent from 2006. Huawei's net income was $674 million in 2007, up 32 percent from 2006. The company also had an operating margin of 7 percent for a profit of $879 million.

According to Light Reading, this makes Huawei the fifth largest telecom equipment vendor in the world, after Cisco ($34.9 billion), Ericsson ($31.3 billion), Alcatel-Lucent ($27.9 billion) and Nokia Siemens ($21 billion). Huawei ranks slightly higher than Nortel, which had $10.95 billion in revenue in 2007.

For more:
- see this article

Related stories:
NextWave, Huawei trial mobile WiMAX
Five bidders compete for Huawei's device division

Cisco, Intel others form WiMAX patent pool

Sue Marek — Mon, 09 Jun 2008 11:57:10 -0400

Six WiMAX firms have teamed together to create the Open Patent Alliance, a group that's goal is to jointly license WiMAX patents so they can keep royalty rates in check and make the technology more affordable. The companies involved in the formation of the OPA include Cisco Systems, Intel Corp., Alcatel-Lucent, Clearwire, Sprint and Samsung.

During a Webcast this morning, representatives from each company talked about how the OPA would play a role in making IPR costs predictable so that the WiMAX ecosystem will flourish. Sriram Viswanathan, general manager, WiMAX program office and vice president of Intel Capital said that "it's very important to have predictable costs of IPR and that has not existed in the cell phone market. OPA removes that," Viswanathan said.

Likewise, Barry West, CTO of Sprint Nextel and president of Xohm and the "new" Clearwire, said that Sprint is a big believer in the power of the embedded device model, adding that having a large number of device makers is key to this model. "To encourage this, it's helpful if IPR is easy and predictable. I look foward to working with the OPA and I encourage others to join so we can rapidly spread the growth of WiMAX devices."

However, the OPA members made it clear that companies that join the group don't relinquish their patents. The IPR remains with the owners and they are free to use them. Instead the group will work to make it easier for others to license those patents.

In addition, the OPA referred to itself as a "patent pool" and said that it is very different from the WiMAX Forum, an organization with a goal of promoting interoperability and collaboration among its members.

For more:
- see this ComputerWorld article
- see this WSJ article (sub. req.)

Related stories:
Cisco to unveil WiMAX patent alliance. Cisco story
Cisco buys WiMAX vendor Navini for $330M. Read this Cisco story
WiMAX Forum certifies first mobile WiMAX products. Read this WiMAX story

Cisco announces open platform for mobile enterprise

Lynnette Luna — Wed, 28 May 2008 11:13:57 -0400

Cisco is taking the open platform concept that has become so prevalent in the consumer mobile world to the corporate market. The company announced today a new mobile services platform that it is opening up to outside developers. The Cisco 3300 Series Mobility Services Engine, which will ship in June, is designed to give its enterprise IT customers one platform that will tie disparate wireless networks, mobile devices and applications into a single platform so that these businesses can manage their employees' mobile devices and applications across both wireless and wired networks, whether that's a large cellular network or a WiFi network.

By opening up the platform to allow third parties to write services that will run on its networking gear, Cisco aims to provide a platform that allows rapid development of applications, thus allowing it to take a larger share of IT budgets. Analysts note that the move is an attempt on behalf of Cisco to bolster its presence in the overall wireless market, which has historically focused on WiFi and now WiMAX through its purchase of Navini in 2007.

To read more about Cisco's open-platform plan:
- check out this Dow Jones article

Related stories:
Cisco buys WiMAX vendor Navini for $330M. See this Cisco WiMAX story
Xanadoo to offer prepaid WiMAX. See this Xanadoo story

Motorola invests in multiple mobile OS technology

Mon, 21 Apr 2008 06:59:56 -0400

Motorola has joined previous investors Intel, Cisco and Texas Instruments by backing virtualization start-up VirtualLogix, which enables handset makers to use two operating systems on one handset. While virtualization could feasibly allow a user to toggle between say Windows Mobile 6 and Google's Android, it can also help secure a phone by running one OS that controls the basic functions and another one that lets the end user customize. That way, newly downloaded applications and services cannot affect the integral applications.

For more on the investment:
- read this Motorola invests in VirtualLogix article

Verizon Wireless: Femtocells in 2008

Mon, 07 Apr 2008 06:59:56 -0400

Verizon Wireless CTO Tony Melone said at the CTIA Wireless 2008 trade show last week that the carrier would begin offering femtocell products and service plans sometime this year. The announcement follows a move by Sprint into the femtocell arena. AT&T also is said to be evaluating a femtocell offering.

What remains to be seen is what Verizon will charge for the femtocell device and the service plan. Sprint charges around $50 for the product and $15 per month for service. Verizon's commitment, broader than Sprint's thus far and the only one by a U.S. telco that has both local wireline and wireless networks, may well bring femtocell deployment to its tipping point in the U.S. market. -Lynnette

To read more about Verizon's femtocell plans:
- take a look at this article from AP

Also, check out our recent webinar: Fixed Mobile Convergence:
Are femtocells and UMA/WiFi solutions competitive or complementary?

Related articles:
Sprint formally launches femtocell, Airave Report
Nokia Siemens and Ubiquisys jointly push femtocells Report
Cisco pours cash into U.K. femtocell developer Report
Operators want femtocells Report

Xanadoo upgrading to mobile WiMAX

Tue, 01 Apr 2008 18:25:51 -0400

Cisco made its first WiMAX-related announcement since acquiring WiMAX vendor Navini in December for $330 million. Cisco customer Xanadoo, a wireless ISP operating in the central and southern U.S., has upgraded its market in Springfield, Ill., to 802.16e and is working to upgrade the rest of its markets that are using technology based on NaviniÃ¢â‚¬â„¢s proprietary broadband wireless technology.

Xanadoo has spectrum in the 2.5 GHz band and is targeting consumers and small- to medium-sized businesses to compete with DSL and cable offerings. The ISP offers seven different pricing plans beginning at $15 per month with plans to soon launch a prepaid wireless broadband offering. This large number of pricing plans is how Xanadoo is differentiating itself from DSL and cable, which typically only offer two different plans and require bundling of services. Ã¢â‚¬Å“There are niche markets where prepaid appeals to consumers,Ã¢â‚¬Â Marshall Pagon, chairman and CEO of Xanadoo said during an interview with FierceWireless today.

Ã¢â‚¬Å“There are the credit challenged but lots of professionals and contractors that are out of the office that donÃ¢â‚¬â„¢t need a contract. The resources they use are web-based. Students as well as military people are also attracted to such offerings.Ã¢â‚¬Â Xanadoo covers about 8 million pops in Texas, Arkansas, Illinois, Kansas, Minnesota, Missouri, Nebraska, Oklahoma and West Virginia. The operator also holds 700 MHz spectrum covering nearly 156 million pops in some major markets. -Lynnette

T-Mobile's VC arm invests in femtocells

Mon, 03 Mar 2008 06:59:58 -0500

T-Mobile's venture arm has invested an undisclosed amount into the U.K.-based femtocell maker, Ubiquisys. Google, Accel Partners, Atlas Venture and Advent Venture Partners had previously invested in Ubiquisys. Cisco and Intel recently invested in femtocell company ip.access and Qualcomm has put money into Airvana.

T-Mobile said it plans to test Ubiquisys' femtocell technology in trials in Germany, the Netherlands and the U.K. in the coming months. Meanwhile, its U.S. subsidiary is using WiFi hotspots in the home as an alternative to a femtocell solution to improve coverage in the home.

For more on T-Mobile's investment:
- read this article from the Guardian

Motorola hires Liska as new CFO

Fri, 22 Feb 2008 06:59:58 -0500

Motorola hired Paul Liska as its new chief financial officer. Liska takes over for Tom Meredith who served as the interim CFO during the past few months. Meredith will remain on the company's board, according to CEO Greg Brown.

The new CFO is tasked with managing costs while the company's handset business continues to slide as well as help structure a joint venture for networking technologies with Nortel Networks. Liska's appointment marks only the latest executive change at Motorola since Brown took the helm of the company last month. Since then CTO Padmasree Warrior left the company for the CTO post at Cisco and the head of human resources departed as well. Brown has known Liska for about ten years, according to a report in the Wall Street Journal.

For more on Liska:
- read this press release
- read this article from the WSJ

ALSO NOTED: RIM updates; American Airlines WiFi; and much more...

Thu, 24 Jan 2008 06:59:50 -0500

> Research In Motion plans to roll out a series of updates for the BlackBerry platform. Article

> Hiding cell phone taxes does not make them go away. Article

> Cisco invests in femtocells through IP.access. Article

> American Airlines set to test WiFi service on its 767 planes. Article (WSJ sub. req.)

And Finally... Former FCC chairman Michael Powell joins digital kids task force group, which wants the FCC to allocate some of the 700 MHz spectrum and ensure it is dedicated to educational programming for kids. Article

Aruba to buy Airwave for $37M

Thu, 10 Jan 2008 06:59:57 -0500

Aruba Networks, a Top 10 FierceVoIP Leader, plans to acquire Airwave Wireless, a leading provider of specialized tools to centrally manage large, multi-vendor wireless LAN, mesh and WiMAX networks, for $37 million in stock and cash. The acquisition places Aruba, an enterprise WiFi network provider, in the multi-vendor network management business.

Aruba is preparing for the reality that 802.11n equipment will run alongside legacy WiFi equipment. The vendor says the Airwave platform eases technology transitions by extending the life of existing capital investments and enabling multi-vendor solutions to be run from a common, centralized network management system. Plus Aruba appears to be looking to usurp competitors such as Cisco by being able to manage their proprietary solutions.

To learn more about Aruba's acquisition of Airwave:
- check out this release

Related articles:
Aruba jumps on 802.11n bandwagon Article
Aruba moving on up in enterprise WiFi Article

ALSO NOTED: Cisco invests in SoonR; Yahoo's mobile strategy; and much more...

Tue, 08 Jan 2008 06:59:50 -0500

> Cisco invests $9.5 million in SoonR. Release

> Yahoo revamps mobile Web strategy. Article

> Congress continues to review the acquisition of 3Com by Bain Capital and Huawei. Article

And Finally... Supreme Court to hear payphone case against AT&T and Sprint. Article

Cisco closes in on Navini acquisition

Fri, 14 Dec 2007 06:59:56 -0500

Cisco Systems, which announced in October its intent to acquire WiMAX technology developer Navini for $330 million, should complete the acquisition in a number of days, according to a report from ComputerWorld. Cisco originally aimed to leverage Navini's assets to bring wireless broadband to emerging markets. The deal will still help Cisco target those markets, but executives at the company recently said they may also market to the U.S. WiMAX service providers, like Sprint and Clearwire.

"We'll go where the business is," said Brett Galloway, general manager of wireless networking at Cisco.

For more on the deal:
- read this article from ComputerWorld

Motorola may be moving closer to breakup

Thu, 13 Dec 2007 06:59:55 -0500

According to a report in the Wall Street Journal, signs are growing that Motorola is considering whether or not it should piecemeal the company. Activist investor Carl Icahn claims that breaking the company up could translate to $20 billion in additional shareholder value. Analysts seem to agree with Icahn's basic points, but many caution that if Motorola cannot fix the problems with its handset division, then a breakup may not prove as profitable as Icahn suggests. Motorola's CEO Ed Zander recently stepped down from the position. Motorola's CTO Padmasree Warrior also resigned to take the CTO post at Cisco.

For more on Moto's plans:
- read this WSJ article (sub. req.)

Cisco buys WiMAX startup for $330M

Tue, 23 Oct 2007 06:59:54 -0400

Cisco has inked a definitive agreement to acquire WiMAX developer Navini Networks for $330 million in cash and assumed options. Navini specializes in Mobile WiMAX 802.16e-2005 and integrates "Smart Beamforming" technologies with MIMO. The companies say that Navini's WiMAX products will extend Cisco's market-leading WiFi and WiFi-Mesh portfolios, which will allow Cisco to tackle new markets quicker.

For more on the deal:
- read this press release

SPOTLIGHT: Chinese vendors focusing on U.S.

Fri, 03 Aug 2007 06:59:52 -0400

Chinese telecom vendors have already headed to Southeast Asia, the Middle East, sub-Saharan Africa and Latin America and done well with equipment that is almost as robust and that costs less than similar products from Cisco, Nortel and Alcatel-Lucent. The U.S., however, is no longer the no-go-zone it once was for these vendors: Both Huawei and ZTE have been building out their U.S. offices and have become more aggressive about landing big deals with carriers. Article

Apple, Cisco settle iPhone trademarking

Wed, 21 Feb 2007 19:01:35 -0500

Cisco Systems and Apple have settled their tiff over the iPhone name, announcing plans to share the name--meaning both companies are free to use the iPhone trademark on their products worldwide. Cisco sued Apple in a California district court in January and sought an injunction against Apple. Cisco said it owned the iPhone name after it bought Infogear in 2000, and last spring it put the name to use by shipping a VoIP phone called iPhone. Infogear filed for the trademark in 1996. Apple is now permitted to use the iPhone name, and both companies said they will investigate wide-ranging interoperability between Cisco and Apple products in the areas of security, consumer and business communications.

The two didn't give any more specific details on what type of products we could see, but analysts speculate the combination could actually be a powerful one since Cisco dominates the network services world and Apple has significant expertise in user interfaces and customer experience. It's just a matter of the two being willing to work together after butting heads over the iPhone name.

For more about the settlement between Apple and Cisco:
- check out this article from AP

Cisco extends iPhone deadlines

Thu, 15 Feb 2007 19:01:35 -0500

Apple iPhone stories continue to dominate the newswires. The latest is a development on the Cisco trademark infringement lawsuit. As you may recall, Cisco has filed a lawsuit to prevent Apple from using the name iPhone on its much-hyped cell phone music player. Today the company says that it has extended the deadline for Apple to file its response to the lawsuit until Wednesday.

Cisco's Linksys division began shipping a line of iPhones last spring and the company has said that it would allow Apple to use the trademarked name but wants both companies' phones to be able to communicate with each other.

Either way, the lawsuit will likely keep the iPhone in the headlines for the next few weeks.

To learn more:
- see this AP story

Cisco suing Apple over iPhone name

Wed, 10 Jan 2007 19:01:38 -0500

When Apple CEO Steve Jobs made his dramatic debut of the iPhone on Tuesday, he apparently did so regardless of Apple not actually securing the iPhone trademark in the U.S. Now Cisco Systems, owner of the iPhone trademark in the U.S., is suing in a California district court and is seeking an injunction against Apple. Cisco says it owns the iPhone name after it bought Infogear in 2000, and last spring it put the name to use by shipping a VoIP phone called iPhone. Infogear filed for the trademark in 1996. An Apple spokeswoman called the lawsuit "silly" and said the company is entitled to use the name because the products are materially different.

It's worth noting that, according to foreign patent office websites, Apple already has the iPhone trademarked in the U.K., Singapore and Australia, while filings are pending in Canada, the EU, New Zealand and Hong Kong.

You have to wonder now if Apple announced the iPhone too soon. Cisco said Apple had approached the company several times during the past few years and talks had increased during the weeks leading up to the announcement. Suddenly, communication between the two companies stopped on Monday, the day before the iPhone announcement, Cisco said. Now Apple is claiming the two products are materially different. A VoIP phone and a cellular phone aren't that much different, especially when you throw convergence in the mix. But take a look at the language in the March 20, 1996 Infogear trademark: "Computer hardware and software for providing integrated telephone communication with computerized global information networks."

To read more about Cisco's lawsuit:
- check out this article from AP
- and take a look at this timeline of rumors for the iPhone

Cisco's Q4 stays strong, stronger outlook

Tue, 08 Aug 2006 20:01:37 -0400

Cisco's Q4 earnings report beat analysts' expectations: The company said it made $1.55 billion, or 25 cents per share, on sales of $7.98 billion, compared with a net income of $1.54 billion, or 24 cents per share, on sales of $6.58 billion during the same quarter last year. What's more, the company has predicted an ambitious year ahead. Cisco says it will grow between 15 percent and 20 percent, expanding market share and moving into new product areas. Analysts had predicted only a 15.5 percent growth. Cisco's $6.9 billion acquisition of Scientific-Atlanta last year is still paying off, since that part of the company's business grew 23 percent overall in Q4, bringing in sales of $582 million. Analysts expected $550 million from the unit.

For more on Cisco's sturdy Q4:
- see this article from Forbes

Motorola, Cisco kill deal for cellular/WiFi

Tue, 25 Apr 2006 20:01:37 -0400

Motorola quietly confirmed that a cellular/WiFi roaming partnership it formed last summer with Cisco Systems has been called off because of carrier uncertainty about the plan. The two companies had announced plans to deliver a seamless enterprise mobility solution that would include WLAN and cellular-phone technologies. It's not surprising given the fact that operators are putting all of their cellular/WiFi roaming efforts into the consumer market to enable roaming between cellular and WiFi in the home, according to a recent discussion I had with Steve Shaw, director of marketing with Kineto, the developer of UMA(unlicensed mobile access). Shaw says all operators want to measure acceptance and quality with the mass market first. He also expects to see two launches this year for sure of UMA services and is hoping for four before the year is out.

To read more about the death of Cisco's and Motorola's cellular/WiFi deal:
- check out this report from Light Reading