T-Mobile & Cisco Team Up to Offer Enterprises Converged Voice over WiFi and Cellular

Event Summary

December 15, 2010 -- Cisco and T-Mobile are collaborating to provide businesses with cost-savings by seamlessly switching voice calls and data sessions to their corporate WLAN from their mobile device when they are in their office, rather than having them pay for cellular minutes. Cisco’s technology also promises in-building, business-quality voice. The solution is based on the UMA standard, optimized with Cisco’s Unified Wireless Network and CCX technology, and can be sold in conjunction with T-Mobile’s WiFi Calling for Business service.

Quick Take

Analytical Summary

• Current Perspective: Moderate on the T-Mobile and Cisco joint WiFi/cellular interoperability solution, because it has the potential to provide cost-savings while solving the in-building signal problem for cellular connections. It also adds to T-Mobile’s arsenal for reaching enterprise customers. However, WLAN upgrade costs may negate some of the cost benefits, and unlimited and pooled voice plans have already brought down the cost of domestic cellular calling. In addition, it does not offer PBX integration, a key component of other Cisco UC solutions.

• Vendor Importance: High to T-Mobile, as collaborating with Cisco will bring the carrier into enterprise deals in which it would not otherwise participate. The solution is of moderate importance to Cisco, because the majority of likely customers have already invested in Cisco WLAN gear, although the joint go-to-market approach may also provide incremental revenue to Cisco through infrastructure upgrades.

• Market Impact: Moderate on the enterprise mobility services and WLAN equipment markets, as the deal may improve T-Mobile’s position as a provider of enterprise solutions, fortifying its position as fully embracing dual-mode voice in a more overt manner than its U.S. competitors have done. On the equipment side, it may slightly up the use of Cisco gear and help validate the vendor’s technology (assuming it does well in the market and the voice quality and seamless handoff work as promised.)

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Competitive Strengths and Weaknesses

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