Cisco has sat on the fence about WiMAX for years, despite the apparently natural fit of 802.16e with its IP heritage, its core network business and its push into Wi-Fi metrozones. However, that will change when its acquisition of advanced mobile WiMAX start-up Navini Networks closes shortly, and last week the IP giant briefed analysts on where the new addition would fit into its strategy and portfolio. It seems that taking Cisco equipment into developing markets is the key, rather than using WiMAX to enhance enterprise or metro area offerings in mature territories, or even taking on the mobile infrastructure majors in the mobile broadband sector.
Although Cisco may, wisely, be steering clear of short term head-on collision with the likes of Ericsson, a battleground where it has not fared well in the past, it will certainly meet the mobile giants in a couple of years’ time if its strategy for WiMAX as a broadband vehicle for new markets proves successful. All the vendors are well aware that, in countries where there is limited wireline build-out, GSM will often be the primary communications network, paving the way for wireless networks and devices to be the main basis of both broadband and voice services, as well as broadcast TV and radio. So the stakes are far higher than in the traditional broadband wireless market in underserved areas, though the initial Cisco/Navini contracts may look very similar to those from the proprietary days, with the focus on fixed and nomadic, rather than wide area mobile, access, and on relatively localized operators. Over time, though, it is clear that Cisco’s ambitions will be far larger, and it will aim to stake its claim in the mobile broadband market of the next decade by planting small acorns in key territories in this one.
Navini is a good purchase for this strategy since its key differentiators lie in the efficient use of spectrum, and the resulting flexibility of network design and low capex/opex, that comes from its combination of MIMO smart antenna arrays and adaptive beamforming techniques. These are particularly important when addressing difficult operator issues such as covering sparse populations or awkward terrains.
“For Cisco, WiMAX is really an opportunity around the broader opportunity in developing countries,” explained Brett Galloway, general manager of the Wireless Networking Business Unit. He positioned the WiMAX push as a way to enhance the existing Cisco next generation network initiatives and accelerate the spread of broadband, which then drives Cisco’s broader portfolio of products. “WiMAX for Cisco is not just about selling WiMAX radios but about driving broadband penetration and about our ability to deliver a set of services across all devices, all access technologies and across all market segments,” said Galloway.