NEW ORLEANS-Following a trend of convergence between the wireless and Internet industries,
Motorola Inc. and Cisco Systems Inc. last week announced the first phase of a strategic alliance to develop and deploy
a framework for Internet-based wireless networks.
The companies signed a memorandum of understanding calling
for them to cooperate to deliver the first completely Internet Protocol platform for the wireless industry and introduce
an open Internet-based platform for integrated data, voice and video services over wireless networks. Definitive
agreements are expected to be completed soon.
The architecture of the Internet framework will be designed to work
across all wireless standards, said the companies.
Examples of services Motorola and Cisco envision include sales
forces using portable devices to securely access updated customer information from company networks; commuters
using cell phones to send and receive audio e-mail; and publishers and broadcasters delivering data, audio and video
stories to subscribers on demand.
“This alliance gives us precisely the right mix of innovation and creativity at
exactly the right time to launch the convergence of wireless and the Internet, the two most powerful communications
technologies known to mankind,” said Bo Hedfors, senior vice president of Motorola Inc. and president of the
company’s Network Solutions Sector.
The companies noted they expect the number of worldwide wireless and
Internet users to grow from about 200 million each today to 1 billion each by 2005 and said the growth curves of
wireless and the Internet relate well to each other.
Motorola and Cisco said they plan to jointly invest up to $1
billion during the next four to five years in the project. The companies also plan to cross-license technology and
develop complementary products, according to the agreement.
In addition, the companies plan to establish four
Internet Solutions Centers worldwide to provide testing, certification and training facilities for third-party participation
as well as provide a forum to showcase new products. The facilities initially are planned for San Jose, Calif., and
Swindon, U.K., with one additional center in the United States and one in Asia.
Motorola said companies such as
Sprint PCS, Cellnet, Nextel Communications Inc. and AirTouch Communications Inc. all have voiced support for the
effort.
“We have discussed the Motorola/Cisco IP architecture and believe that it has great promise and are
interested in acting as a potential test bed,” said Keith Paglusch, senior vice president of Technical Services and
Network Operations for Sprint PCS. “Anything that reduces network operating costs, provides for more efficient
transport or adds additional functionality to the network is very much in line with our strategic focus.”
Most
major wireless infrastructure manufacturers either have acquired companies or formed alliances to bolster their
presence in the Internet networking arena, including L.M. Ericsson, which last week signed an agreement to develop IP
communication technologies with software company OZ.COM.
