Cisco Says Most Network Gear Needed For 5G Is Ready Now And Can Cut Costs

Cisco, known for manufacturing network equipment to move large volumes of data over the Internet, wants a larger market share of mobile devices supporting these alternative providers instead of making radio access equipment.

Its impetus to access network radio is part of Cisco's efforts to demonstrate to mobile network operators investing in modern infrastructure tools and automation can help them cope with the growing demands for data while reducing costs

Silicon Valley company made the announcement before the Mobile World Congress this week in Barcelona, where hundreds of telecom operators are looking for new ways to meet customers' exploding data demands and intense pricing pressures.

Cisco said it is working with more than 20 network operators to offer 5G next-generation services that promise to deliver video phones and not only faster, but also connected automobiles and industrial sensors connected to the Internet during the next decade.

"Most things that allow us to do this, you can do it before 5G," he told Reuters Yvette Kanouff, general manager of the Cisco business unit for telecom service providers, in an interview.

Ray Mota, an industry analyst with ACG Research, said Cisco is looking to convince operators to spend more on what it called "5G precursors" that solve urgent network problems, but should not be replaced once 5G starts using it. around 2020.

Ovum, another research firm, said the message that Cisco was "an operator can provide much of the functionality of 5G, with up to 85 percent of its functions today. "

Called Virtual Providers Radio Access Network (VRAN) include the outside of the mobile industry such as Intel (INTC.O), Red Hat RHAT.O, Mavenir, Phazr and Tech Mahindra people looking to replace systems Patented Wireless Made by the Big Three of the Mobile Industry. with cloud-based software.

Virtual radio equipment allows customers to rely on basic hardware, reducing the high costs of mobile networks.

The Cisco effort is supported by the Indian operator Reliance Jio, which since 2016 has ended the mobile market by building a 4G network edge and offering free voice and data for six months to gain many followers

Cisco's commitment to open the market places it in competition with leading mobile equipment providers, including Ericsson # 2. Cisco has also entered into a two-year joint sales agreement with Ericsson, under which they are cooperating in 160 ongoing agreements, Kanouff said.

Market research firm Dell'Oro estimates that network access revenue network (RAN) equipment - which has been reduced in recent years - will stabilize before rising modestly to about $ 30.5 billion for 2022 as the 5G commercial networks take off.

Cisco CEO: Repatriation Was The Most Important Part of Tax Reform

Cisco Systems Chief Executive Officer Chuck Robbins said repatriation of profits abroad is the most important part of the recently approved tax reform.

"We are very pleased that the tax reform is approved," Robbins told Yahoo Finance's Andy Serwer and Jen Rogers at the World Economic Forum in Davos. "It was amazing how fast that happened, which gives me some optimism as to how quickly we could overcome some of the challenges we are facing right now, but I think the repatriation is the most important part. "

Cisco has one of the largest accumulations of cash abroad. Of the $ 70.5 billion in cash and marketable securities of Cisco, about $ 67.5 billion, or 95.8%, is held abroad, according to data compiled by Bloomberg.

Under the new tax law, companies with foreign liquidity will pay an effective tax rate of 15.5% and an effective tax rate of 8% on illiquid foreign assets.

Cisco is expected to launch its quarterly results in mid-February, where the administration will discuss its plans for what it will do with its capital after the tax reform.

"We will continue to execute on our capital return strategy, we will continue to analyze strategic mergers and acquisitions, we will see investments in R & D. We will see investments in our people, and we are looking at a lot of other things right now. And we'll probably talk more about it in a few weeks, "said Robbins.

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