Cisco to Support Verizon Wireless’ 4G LTE ON ISR G2 Platform and CIUS Tablet

| Jan 10, 2011 | Enterprise Networking
| Analysts: Mike Spanbauer, Kathryn Weldon

Event Summary

January 6, 2011 – Cisco announces a new module series for the ISR G2 family of routers supporting 4G LTE connections. With Verizon initially providing support for the service over its LTE network, customers have a high performance wireless WAN option for backup links or remote site connectivity. With the advent of 4G technologies, performance is at a point where customers are considering new deployment models for their WAN services. Expect this market to grow significantly in the next few years.

Quick Take

Analytical Summary

• Current Perspective: Positive on Cisco’s 4G LTE offerings, because LTE is an emerging technology that offers additional highspeed options and appeals on the basis of deployment simplicity. Positive to enterprise mobility, as customers may finally opt to choose cellular as a viable, enterprise-grade, flexible alternative to fixed connectivity for a broader set of business applications.

• Vendor Importance: Moderate to Cisco, because regardless of the technology that a customer chooses for WAN connectivity, Cisco is likely to get the business as it enjoys dominant market share. Positive to Verizon Wireless as this service will extend its existing broadband service options. It also provides Verizon Wireless with a small window of opportunity before Cisco strikes similar deals with other operators deploying 4G.

• Market Impact: Moderate on the enterprise market, because 4G LTE coverage is so sparse currently that few customers have the option to embrace and deploy this technology. For customers within coverage areas, 4G LTE provides an additional option for broadband connectivity (backup, redundancy, etc.) in addition to the 3G backup options already available from Cisco in partnership with Verizon, Sprint and AT&T. As Verizon’s LTE deployment efforts continue in 2011 and as competitors such as AT&T step up their own 4G plans this year, there will be more significant opportunities. 4G tablets like the Cisco Cius may also be adopted by enterprises looking not only for laptop alternatives but for built-in collaboration, conferencing, video and other UC capabilities that need high bandwidth and low latency.

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Competitive Strengths and Weaknesses

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