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Tech Giant Cisco Will Buy WiMax Firm for $330M

Navini's technology will enable widespread 3rd world internet access

By Nick McMaster,  Newser Staff

Posted Oct 24, 2007 2:53 PM CDT

(Newser) – Cisco Systems announced yesterday that it will purchase WiMax innovator Navini Networks for $330 million in cash and stock, Fortune reports. WiMax is similar to existing wireless technology except that its signals can be received by computers up to five miles away. Cisco's acquisition represents a reversal of previously held skepticism about the technology.

Cisco was skeptical because much of the developed world already has the wiring infrastructure for traditional Internet access. WiMax, however, will play a decisive role in wiring the developing world, where extensive phone and fiber optic cable systems don't exist. A WiMax network in such places could provide widespread access for a fraction of the investment in infrastructure.

WiMax startup Navini has been acquired by Cisco for $330 million.
WiMax startup Navini has been acquired by Cisco for $330 million.   (Navini.com)
John T. Chambers, Chairman and CEO of Cisco, speaks during a panel discussion at the Clinton Global Initiative Annual Meeting Thursday, Sept. 27, 2007 in New York.  (AP Photo/Jason DeCrow)
John T. Chambers, Chairman and CEO of Cisco, speaks during a panel discussion at the Clinton Global Initiative Annual Meeting Thursday, Sept. 27, 2007 in New York. (AP Photo/Jason DeCrow)   (Associated Press)
People are seen inside the offices of Cisco Systems Inc. in Brasilia, Wednesday, Oct. 17, 2007. (AP Photo/Eraldo Peres)
People are seen inside the offices of Cisco Systems Inc. in Brasilia, Wednesday, Oct. 17, 2007. (AP Photo/Eraldo Peres)   (Associated Press)
Cisco headquarters.
Cisco headquarters.   (Getty Images)
Cisco Systems chairman and CEO John Chambers delivers an address.
Cisco Systems chairman and CEO John Chambers delivers an address.   (Getty Images)
Cisco Systems Headquarters.
Cisco Systems Headquarters.   (KRT Photos)
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