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Summary:

The rush to deliver the web on the go has led Cisco to offer $2.9 billion for Starent, a telecommunications equipment company whose boxes help manage the different types of traffic traversing mobile and wired networks. The gear is especially important for mobile networks, as they […]

ciscostarentThe rush to deliver the web on the go has led Cisco to offer $2.9 billion for Starent, a telecommunications equipment company whose boxes help manage the different types of traffic traversing mobile and wired networks. The gear is especially important for mobile networks, as they handle more types of radio signals and where limited resources such as spectrum force operators to prioritize different types of IP traffic.

Starent’s boxes help carriers translate between their existing circuit-based networks and all IP-based 4G networks such as WiMAX or LTE. The gear sits between the core network and the variety of access technologies, which can range from cellular radio to Wi-Fi or femtocells. Because each box can handle multiple signals, it replaces the need for several access-specific boxes from competitors such as Cisco, Alcatel-Lucent and Huawei.

This is a pretty esoteric piece of equipment, but carriers like Verizon and Vodafone are customers of Starent. A Deutsche Bank report from last month estimated that Starent, which reported sales of $254 million for 2008 had potential orders of $2.5 billion through 2011. Cisco’s decision to buy it gives the networking giant access to that potential customer base, as well as neutralizes a competitor whose gear is designed to handle the increasing complexity in networks, as wireless and wireline operators try to sate our need for ubiquitous connectivity.

For Cisco, it shows that even as it plunks down $3 billion on a video conferencing equipment maker and pushes its new line of servers, it still has its eye on its service provider customers.

  1. [...] Cisco Scoops Up Starent to Manage Mobile Data Deluge –336×280– — 160 x 600 [...]

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  2. Cisco has been struggling in this one area, so the acquisition was somewhat expected. Opportunities in 4G and smart grids are enormous to ignore. Also Cisco has done lot of financial re-structuring and raised about $4 Billion in additional cash recently. So good use of capital to position the company well as the economy comes out of recession – http://wp.me/pw0hs-78

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  3. [...] | Tuesday, October 13, 2009 | 11:55 AM PT | 0 comments | 0 tweets retweet » Did Cisco snap up Starent on the eve of the telecom equipment provider announcing a partnership deal with Juniper Networks, [...]

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  4. [...] Earlier this morning, Tellabs, a Naperville, Ill.-based maker of telecom equipment bought WiChorus, a mobile Internet equipment maker based in San Jose, California. Tellabs is paying $165 million in cash for the upstart company whose venture backers include Pinnacle Ventures, Accel Partners, Mayfield and Redpoint Ventures. Clearwire uses WiChorus’ products. WiChorus competes with its SmartCore platform with the likes of Starent, which itself is in the process of being acquired by Cisco Systems for $2.9 billion. [...]

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  5. [...] October 28, 2009 | 8:20 PM PT | 0 comments | 0 tweets retweet » Cisco Systems’ $2.9 billion purchase of wireless networking equipment maker Starent might be in trouble: The Law Offices of Brian M. Felgoise, P.C. , a law firm in Pennsylvania thinks [...]

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  6. [...] generation of mobile broadband technology adds more capabilities for data, something that we in the U.S. are already consuming at a network-crushing pace. Bringing in LTE networks with more capacity will help with both speed and the total amount of data [...]

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