Tuesday, October 13, 2009

Cisco enters LTE?

First, I am neither a market researcher nor an analyst. These are the thoughts of a newbie in wireless segment.

Today Cisco (CSCO) announced that it is going to acquire Starent Networks (STAR). Read here.

What does this acquisition mean to Cisco? Cisco is huge company with lot of network equipment. But since the start of LTE, Cisco hardly made any noise. As far as I know Cisco was not big in the wireless segment. I am still not aware how many are using SGSN/GGSN's from Cisco. While its counter parts Alcatel Lucent and NSN were aloud with there wireless solutions.

Starent on the other hand is evolving organization. It is small, but it proved its point in wireless segment. Verzion, Sprint Nextel and Vodafone has announce Satrent as one of their EPC solution provider. Starent net revenue was high compared to last year. So Cisco did what it is best at doing, went ahead and bought Starent.

Now Cisco will have a strong foot hold in wireless division. More over both Cisco and Starent supported the Wimax. I am happy to see this deal happening. Signs of market recovery?

1 comment:

Nickname unavailable said...

Cisco has many large install bases of GGSN based upon their 7600 and 7200 based platforms. Their current application modules (MWAM and SAMI) support GPRS in its many flavors. They use the SAMI module for SGW, PGW and PCEF as well. The Starent purchase may be to acquire market share rather than technology. Time will tell.