Cisco Systems said Wednesday that is has invested in a U.K.-based company called IP.access, which has developed gear to boost cell phone signals indoors.
Details of the deal or how much of a stake Cisco has in the company have not been disclosed.
IP.access makes devices called femtocells, which boost cell phone signals indoors to provide better in-building cell phone coverage. Femtocells offer wireless operators a cost effective way to improve network coverage. Several wireless carriers around the world have already begun using the technology. Sprint Nextel announced last year it would offer its Airave femtocell product. And IP.access says on its Web site that it already has deals with several network operators including T-Mobile USA, Smart in the Philippines, Telfort (now KPN) in the Netherlands, and Telefonica O2 in the Czech Republic.
It's not surprising that Cisco would be interested in a femtocell company. Cisco, which has traditionally provided carriers with IP infrastructure equipment, has also been bulking up its wireless offerings in the last few years. It's biggest acquisitions so far have been in the Wi-Fi market, most notably Linksys and Airespace. But it's moved into other wireless technology, too. In September it bought Cognio, a company that has developed technologies to better manage wireless spectrum. And in October it acquired the WiMax equipment provider Navini for $330 million. As more of its customers go mobile, Cisco sees an important opportunity. And femtocells, like Wi-Fi routers, offer another way to provide mobility indoors.
Other large technology companies have also taken an interest in femtocell technology. Last year, Google invested an undisclosed amount in a femtocell company called Ubiquisys.
IP.access has been around since 1999 when it was spun out from TTPCom, a cellular infrastructure company later acquired by Motorola. In the last couple of years, the company has been out raising money from venture capitalists, and it counts Intel Capital among its investors.
Sprint Nextel introduced a new product Monday to help improve cell phone coverage indoors.
(Credit:
Sprint Nextel)
The new Sprint Airave is a femtocell or compact wireless base station that boosts cellular signals indoors to provide enhanced coverage up to 5,000 square feet. The device, which can handle up to three calls at one time, is available for purchase in Sprint stores in Denver and Indianapolis. It will be available throughout Sprint's network sometime in 2008.
The device works with an existing broadband connection to send calls over the Internet instead of using Sprint's cellular network. When subscribers leave the range of the device, the call switches to Sprint's wireless network.
Sprint is selling the Airave, which is made by Samsung, for $49.99. Subscribers who use the Airave will pay an additional $15 a month for unlimited calls within the Airave home network. Families can access the Airave signal on multiple Sprint phones for $30 a month. Calls that switch over to Sprint's regular cellular network will be charged usual calling plan rates. Currently, the service only works on Sprint handsets. And it's not available for use with any Nextel handsets.
The service is similar to one launched by T-Mobile earlier this year, called HotSpot @Home. The main difference is that T-Mobile's service uses unlicensed Wi-Fi signals of cellular frequencies. And while the Sprint Airave service can be used with any Sprint phone, T-Mobile's service requires users get a special handset.
Still the concept of using IP technology to improve indoor wireless coverage is the same.
The femtocell technology that Sprint is using not only helps users conserve cell phone minutes while they're at home, but it also reduces traffic on the cellular network, which could potentially improve overall quality of the entire network by reducing congestion.
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