Networking giant Cisco has agreed to acquire WiMax equipment manufacturer Navini Networks for $330 million.

Navini Networks makes, and owns the rights to, a range of WiMax (Worldwide Interoperability for Microwave Access) related technologies, including modems, base stations, adaptive antenna arrays and management software, all sold under the “Smart WiMax” brand.  

WiMax is a long-range wireless broadband standard. It is predicted to have more of an impact in developing nations, where broadband infrastructures have yet to be built, than in the developed world where Ethernet ports are ubiquitous.

In 2005, Cisco’s chief technology officer Charles Giancarlo told its user conference that “wired technologies are already highly deployed [in the developed world]. We do not believe there is a good business model [for WiMax].”

But not everyone is as convinced of the inutility of WiMax as Cisco. In July 2007, wireless companies Clearwire and Sprint Nextel announced their intention to build a US-wide WiMax network, offering a roaming broadband service to up to 100 million customers by the end of 2008. Chip-maker Intel is also a supporter.

Although the technology is wireless, it has not been specified for use with mobile devices or laptops in transit. Rather, it is optimised for high-speed Internet service delivery that does not require local installation. One possible application is television broadcasting.

Cisco, which makes the physical equipment on which the Internet is currently based, has a lot to lose should WiMax take off. Could Clearwire and Sprint Nextel’s announcement have forced Cisco to rethink its position on the standard? After all, it is better to be replaced by one’s own products than one’s competitors’.

Further reading

WiMax gets US-wide boost

Cisco gears up for a platform fight The network equipment maker is in a belligerent mood.

Crosstown traffic Three competing technologies promise to bring metropolitan wireless broadband services to all.

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