This isn’t Moto’s month — handset margin pains, job cuts, profits down — and now a dig at its Connected Home division. A report from Lazard Capital markets says that according to their sources Cox has chosen Cisco for a network upgrade over Motorola in a deal worth a couple of hundred million dollars:
We believe Cox is upgrading its plant from 750MHz to 1GHz to support voice and has selected Cisco over Motorola for its transmission gear. Our industry sources expect the upgrade to take place over the next 18-24 months where the Motorola gear (RF and optical transmission) will be swapped out in favor of Cisco.
Motorola’s Connected Home represents only about 8 percent of sales and less to earnings, and the lost deal does not change Moto’s position as a set-top box supplier to Cox, says the Lazard report. But still. We contacted Motorola, Cox and Cisco and will update the story when we get a reply.