Cisco Systems Inc. said today it's working with seven carriers, including AT&T, BT and Shaw Communications, to help deliver a secure, hassle-free way for smartphones and other mobile devices to switch automatically between cellular and WiFi networks.
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Cisco calls it the "first carrier-grade" system to offer cellular-like roaming for WiFi networks— that is, technology that will allow smartphones to find less costly, speedier WiFi hotspots automatically and connect to them seamlessly (no user intervention). Cisco says its solution is based on industry standards, namely the Wireless Broadband Alliance's Next-Generation Hotspot (NGH), which in turn is based on a specification by the Wi-Fi Alliance. (You can read all about the results of the WBA's recent trials with carriers here.)
Cisco CEO John Chambers made the announcement at the Mobile World Congress in Barcelona today. "Existing mobile network infrastructures simply cannot sustain the growth we're seeing on their own," he said in a prepared statement. "Tomorrow's mobile Internet must span multiple networks and deliver seamless and highly secure mobile experiences."
I asked a few analysts for their take on the news and what it means for Cisco, the market and users:
"It may not be immediately obvious that Cisco is a big player in the wireless space and one of the leaders in this emerging space," said Chris Nicoll, an analyst with ACG Research. While Ericsson, which last week announced plans to buy carrier-grade WiFi equipment maker BelAir Networks, is the market leader, "Cisco has 12 million access points installed. They understand network security and network performance. That alone means you can't discount them," Nicoll said.
"Cisco is using the increased focus on Wi-Fi and small cells as a chance to reset its place in the mobile ecosystem," said Daryl Schoolar of Ovum. "Many people don’t realize what a major player Cisco has been in this area. The reason is Cisco’s lack of a macro base station portfolio. However, as the market has started to focus more on Wi-Fi and small cells, areas Cisco does have a presence in, this gives Cisco a chance to raise its market profile."
"I’ve heard people position this as a market entry. It’s a mistake to position Cisco as just entering this market. Along with BelAir and Ruckus, Cisco has been one of the most active on the carrier WiFi front, leveraging its enterprise WiFi assets and mobile core assets," said Peter Jarich, an analyst with Current Analysis. "Carrier WiFi has gone from something launched by a handful of operators to a mainstream complement to mobile data services. Most every operator either has a strategy in place or is building one. Cisco has a solid position, but as the market takes off, it’s now facing new competitors – a lot of what it’s doing is helping to solidify its position to deal with this competition."
In case you missed it, Cisco this month week put out its five-year forecast for mobile data traffic, with estimates about smartphone and tablet usage and mobile network connections speeds, among other things. One thing it found: that 80 percent of the time people are using their mobile gadgets — smartphones or tablets — they're inside, which makes having access to WiFi networks even more compelling.
