Cisco, Motorola to buy Bosch wireless unit

www.computerworld.com |  Business

Cisco Systems Inc. and Motorola Inc. announced today that they intend to jointly
purchase Bosch Telecom Inc., a U.S. unit of Germany's Robert Bosch Corp., in a move
designed to increase the pair's focus on a particular type of wireless technology.

Bosch Telecom, based in Richardson, Texas, specializes in offering the fixed
wireless point-to-multipoint communication technology LMDS (local multipoint
distribution services). LMDS can effectively replace existing phone lines and cables by
making use of a reception dish, and is significantly cheaper and less
resource-intensive than wireline technology, according to a joint release from Cisco
and
Motorola issued today.

Under the terms of the agreement, Cisco and Motorola will set up a new company known
as SpectraPoint Wireless to deliver broadband wireless services bringing together
high-speed Net-based data, voice and video for LMDS, the joint release said.
SpectraPoint is
the name of Bosch's LMDS product offering.

Financial details of the deal weren't disclosed, but Motorola is to be the majority
stakeholder in SpectraPoint. The deal, dependent on receiving government approval, is
likely to close June 30, the statement said.

Cisco and Bosch have already been working for a year on creating networks for LMDS
license holders in Australia and the U.S., the joint release said.

Today's tie-up is the second partnership between Cisco and Motorola to be announced
this year. In February, the duo announced that they would jointly invest $1 billion
over the next four to five years in creating a global wireless Internet architecture,
as well as cross-license technology and develop products together.

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