By tweaking network technology, user behavior, business models and industry structure, Cisco Systems Inc. is flexing its muscles in the wireless Internet space.
The company, known for its end-to-end network enterprise solutions, plans to expand its expertise into the wireless arena.
This involves paving the way for a wide array of applications for business, entertainment and personal management, creating an in-building wireless LAN system for user self-sufficiency, building special business content technology and ensuring what it calls `network persona.’
“Our focus is to help mobile operators add data to their networks so that they can deliver more services,” said Mark Milazzo, director of Cisco’s mobile wireless group.
These solutions are targeted at specific demographics identified as techie, social, empowered, business and youth.
The techies are end users who primarily use personal digital assistants and PCs instead of phones, have Internet access, are connected to voice mail and e-mail and have common wireline and wireless experience.
The socials are one-button-function end users who crave information in walled gardens.
The empowered seek information services, integrated messaging, personalized access to services and access to business partners.
Business end users are interested in corporate applications like virtual private networks and security, have consistent access via different media, demand services that are immediately available with high performance and have their e-mails and voice mails integrated with companies.
The youth crave instant messaging, chat rooms, groups, Internet and games.
The idea, according to Milazzo, is to align these demographics to different providers like ISPs, operators, ASPs, hosting services and content aggregators in a seamlessly horizontal manner, rather than a vertical one, so “you have to open the network and not close it.”
“No one can have all the cool content,” said Milazzo,”so you need service aggregation.”
He said because there are so many moving parts in the Internet world, Cisco’s marketing strategy is to win operators over to the virtue of moving from vertical to horizontal, which makes it easy for the customer to reach data.
The solutions follow the 802.11 wireless in-building system, which allows the user to browse the Web without dial-up modems or digital subscriber lines. The in-building system feeds on Cisco’s Internet infrastructure, data services core and radio access networks. The base station is connected to a specific Bell network.
“The benefit is that the user gets free calling on one phone, on one number without a desk phone. This is already in Europe,” he said.
He said these initiatives bring self-sufficiency and, therefore, loyalty from the customer, especially with the progress from circuit-switched to packet-based technology.
The Internet infrastructure covers Internet core infrastructure, WAP infrastructure, corporate voice/data service and mobile switching center transit network.
“It is building the IP network and gateways that is making it work,” he said.
He said Cisco is partnering with Motorola Inc. and Nokia Corp. to facilitate GSM technology and aligning with Motorola and Samsung for CDMA technology.
He said the market is split between radio infrastructure and switch infrastructure. The infrastructure involves 2.5G buildout, 3G buildout with voice and data and voice over IP buildout.
The infrastructure market will rise from $50 billion in 2000 to $80 billion in 2004, he said, and IP will slice $13 billion out of it.
“Cisco is focused on the $13 billion opportunity,” he said.
Milazzo said because the United States still trails Japan, Korea and Europe in the global wireless market, Cisco’s foothold is stronger in those places than here. He said his company has IP franchises in 80 percent of the top 25 operators in Europe.
