Cisco's BroadHop purchase should expand carrier options for mobile broadband
Cisco's (NASDAQ: CSCO) acquisition of BroadHop should help the IT giant offer products to mobile carriers that will enable them to better manage and monetize mobile broadband.
BroadHop offers policy management products to enable mobile and fixed-line carriers to control network resources in real time, monetize new services and applications, and deliver identity-based services. The company's focus has been on mobile, WiMax, mobile broadband and converged networks.
In a blog posted on Tuesday, Hilton Romanski, head of corporate business development at Cisco, said his firm had agreed to acquire BroadHop for an undisclosed consideration. He noted that Cisco had worked with BroadHop in the past to provide Wi-Fi solutions to carriers.
"BroadHop has been a key service provider Wi-Fi partner for Cisco, and this acquisition is a natural extension of our collaboration as we continue to engage tier-one global service providers with our combined technologies. This acquisition reinforces Cisco's commitment to service providers by enabling policy control and service management across mobile, fixed and wireless broadband networks, and adds value by driving the mobility network architecture to the next level," Romanski explained.
According to Cisco's stats, global IP traffic has increased eightfold over the past five years, and will increase threefold over the next five years. This jump in IP traffic has increased the needs of mobile and fixed-line carriers for large-scale policy control and services, he added.
BroadHop was one of the vendors examined in a recent survey of telecom carriers by Infonetics Research. The carriers named Openet, Tekelec and Huawei as the top policy management vendors.