The rumor was true. Cisco announced this week an agreement to buy privately held WiMAX equipment maker Navini Networks for a sum of $330 million in cash and options, giving the company instant inroads into the WiMAX market.
Cisco said it expects its entire broadband wireless solutions portfolio, which also includes 802.11-based equipment, will become an integral part of the vendor's Country Transformation and "Digital Inclusion" initiatives that are designed to spur broadband penetration to consumers and business in emerging countries.
"Emerging country service providers are in expansion mode, building out broadband wireless networks and are concerned about deployment costs and the availability of skilled resources," said Brett Galloway, vice president and general manager of the Wireless Networking Business Unit, Cisco. "Around the world broadband wireless networks based upon WiMAX have the potential to add millions of new Internet users who cannot be reached economically using copper or fiber infrastructures. Additionally, WiMAX networks will help drive the transition to open IP-based broadband wireless architectures and accelerate the roll out of new applications and services."
Navini's business fits right in since the company has pursued most of its deals in emerging markets and its base stations operate in several different spectrum frequencies. Check out Navini's commercial 802.16e deals here.
To read more about Cisco's acquisition of Navini:
- check out this report from Unstrung
- take a look at this release