CISCO AND MOTOROLA TO FORM STRATEGIC ALLIANCE TO BUILD INTERNET-BASED
Anytime, Anywhere Access To A New World
Of Combined Internet, Voice and Video Wireless Services
NEW ORLEANS, La., Feb. 8, 1999 -- Cisco Systems Inc., the worldwide
leader in networking for the Internet, and Motorola Inc., the
worldwide pioneer in wireless communications for nearly 70 years,
announced today the first phase of a strategic alliance to develop
and deliver a New World framework for Internet-based, wireless
networks. This collaboration will deliver the first all-IP platform
for the wireless industry, which will unite different standards for
wireless services worldwide, and introduce an open Internet-based
platform for integrated data, voice and video services over cellular
Cisco and Motorola plan to jointly invest as much as $1 billion over
four to five years to deliver a wireless Internet. Both companies
plan to cross-license technology and develop complementary products.
Additionally, the companies plan to establish four Internet Solutions
Centers worldwide to drive innovation within the wireless industry
and encourage third-party companies to develop and create new
services and products based on open Internet standards.
"The Motorola/Cisco alliance will be the final piece to fully utilize
the IP framework with the packetized voice and data network we and
Motorola incorporated into the iDEN system at its inception," said
Craig O. McCaw, renowned industry leader.
"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," Paglusch said. Other industry
leaders such as Cellnet, Nextel and AirTouch also have voiced support
for this new effort.
Both companies plan to jump-start a new category of advanced products
and services by broadcasting IP signals over the air. The idea is to
unite the convenience and mobility of wireless devices with the power
to access large amounts of information from the Internet. Imagine one
wireless Internet, broadcasting integrated data, voice and video
communications anytime and anywhere. For example: sales forces using
portable devices to securely access updated customer information from
company networks; commuters using cell phones to safely send and
receive audio email; or publishers and broadcasters delivering data,
audio and video stories to subscribers on-demand, whether its a
cable sports channel, or a local broadcast of your high school
daughters basketball game.
"Cisco and Motorola are bringing a New World Internet platform to the
wireless industry," said Don Listwin, executive vice president, Cisco
Systems. "This extends the Internet to a world without wires, and
represents the first major deployment of integrated data, voice and
video services under an Internet-based cellular infrastructure."
"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 communication
technologies known to mankind," said Bo Hedfors, Motorola, Inc.
senior vice president and president of the Network Solutions Sector.
"Our architectural breakthrough will create a new market and will
radically change the industry as we know it today," Hedfors added.
This announcement is based upon a memorandum of understanding both
companies signed on February 3, 1999. Definitive agreements will be
Next Generation Internet-Based Wireless Network
The two companies are uniquely positioned to lead an orderly
migration from circuit-based networks to Internet-based, wireless
networks. Operators and service providers, for example, will be able
to offer bundled data, voice and video services over an all IP-based
platform. This means they can look forward to a stronger competitive
position in a rapidly changing communications landscape.
The architecture vision that Motorola and Cisco share today is an
open Internet-based framework, intended to work across all wireless
standards such as (GSM Global System for Mobile Communication; CDMA
Code Division Multiple Access; TDMA Time Division Multiple Access,
etc.). As a result, wireless devices will work anytime and anywhere
worldwide. In addition, the architecture is open to everyone who
wants to be a developer, provider or user of integrated data, voice
and video services over wireless networks.
Enterprise Virtual Private Networks (VPN) based upon wireless,
IP-based technology, will naturally extend the ubiquitous nature of
Intranets over wide-area links, to remote offices, mobile users, and
telecommuters. For example, an employee traveling in a remote region
of the world will have seamless access to the corporate Intranet
without the need for wires.
Unified Messaging via web-based wireless access lets a cellular phone
user simultaneously send and receive voice mail, e-mail and fax
messages while talking on the same phone. No longer will users need
multiple voicemail boxes for work and home, as all can be
consolidated into one web-based box.
Wireless Commerce through the use of smart cards imbedded within the
wireless devices, will enable users to make real-time transactions,
like buying and selling stocks, purchasing airline tickets or buying
the latest best-selling book all while talking and surfing the web
Internet Solution Centers
Internet Solution Centers that will bring end-to-end solutions to our
customers through testing, certification and training facilities, as
well as providing a place to showcase new products, are planned
initially for San Jose, Calif. and Swindon, U.K., with one additional
center in the U.S., plus another in Asia. The centers illustrate the
Cisco/Motorola commitment to an open architecture with application
programming interfaces (APIs) and a desire to draw third-party
participation into the creation and development of new wireless
solutions based on the architecture.
Cisco Systems, Inc. is the worldwide leader in networking for the
Internet. For further information on Cisco Systems, Inc., visit the
web site at http://www.cisco.com/.
Motorola is a global leader in advanced electronic systems and
services. It liberates the power of technology by creating
software-enhanced products that provide integrated customer solutions
and Internet access via wireless and satellite communications, as
well as computing, networking, and automotive electronics. Motorola
also provides essential digital building blocks in the form of
embedded semiconductors, controls and systems. Sales in 1998 were
$29.4 billion. Motorola NSS, is a pioneer in the development,
manufacture, and deployment of wireless networks worldwide. For more
information about Motorola, visit the web site at
Angela Hesse Joe Arimond
Cisco Systems, Inc. Motorola Public Relations
Phone: (408) 525-6353 Mobile: (847) 624-4852
Cell: (408) 930-1132 Voicemail: (847) 632-3889
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Phone: (617) 494-8202 ext 4224
Randi Paikoff Feigin Tim Callard
Cisco Systems Motorola Investor Relations
Phone: (408)527-1099 Phone: 847-576-4995