A year ago at Mobile World Congress we boldly declared our commitment to Mobility when we stated that 4G=IP=Cisco. And this year has truly been pivotal with the mobile Internet taking off and Cisco’s acquisition of Starent further demonstrating our commitment to this market.
Though challenged by the combination of increased demand (hear from our friends at Vodafone Spain in the video below) and increased competition from over-the-top providers, I believe now is the time for mobile operators to capitalize on this mobile Internet transformation.
Mobile operators have a great deal of power in their IP-based networks. The mobile operator knows the mobile customer -- their device, their service package, their usage patterns, and even their location. And of course the mobile operator knows their own network -- their available bandwidth, service capabilities, and content and security.
With this intelligence, mobile operators have the unique ability to create and provide rich multimedia services to their customers in a high-quality, secure and reliable manner. Further, operators can enable their subscribers to customize and personalize their own service packages to meet their ever-changing needs.
With this intelligence mobile operators can win a share of these new Internet service revenues, reduce network expenses, and increase customer satisfaction.
As I mentioned in this post, on the introduction of the Cisco ASR 5000, the combination of intelligence and performance in the context of an all-IP mobile network is more important now than ever before.
The holiday season is always a time of excitement, anticipation, and good will. Clearly, mobile is at the heart of all three! I just spent $300 on new smartphones for my family and upgraded our plans to 1200+ minutes, 500+ text messages, and tens of mega bytes per month. That does not even include everything I do with my business phone! If this is any indication, the mobile data traffic will far exceed the projections from the Cisco Visual Networking Index in many markets!
As the new Cisco Mobile Internet Technology Group, under the leadership of Ashraf Dahod, former Starent CEO, Starent’s employees will continue their innovative work to develop and support industry-leading mobile broadband solutions.
I am excited that Cisco has announced its intent to acquire Starent Networks! This important addition, occurring at a time when mobile internet is undergoing massive transformation, would help enable Cisco to better meet the unprecedented needs of our mobile operator and service provider customers as they deliver the next wave of multimedia applications and data services.
To our mobile operators and service providers, this intended acquisition is very much in line with our “4G=IP” vision we’ve stated in the past would, if completed, extend Cisco’s world-class offerings in three key areas.
Scaling mobile operator networks towards 4G LTE solutions, while protecting investment in 3G technologies, to meet the exponential growth in data services
Offering personalized applications to deliver integrated user experiences, create differentiation, and increase ARPU.
Developing innovative business models that deliver incremental revenue streams to address the shrinking voice revenues.
For more details on this announcement, our formal corporate forward looking statement disclaimer, and more insight on the trends causing the need the 4G mobile internet, please see the post by Simon Aspinall, another of our regular SP360 contributors, that is highlighted on our corporate sister blog, The Platform: Cisco to Aquire Mobile Internet Leader Starent Networks