Cisco takes on last-mile wireless: Computer network supplier will buy Clarity

Cisco Systems last week announced it will add fixed wireless to its stable of broadband strategies with the purchase of Clarity Wireless. The acquisition will give the network supplier the capacity to provide its residential and business customers with high-speed, non-line-of-sight wireless access to a local loop.

"International operators often don't have access to [digital subscriber line] or cable, or they're extremely expensive in a regulated environment and they want a wireless option," says Junaid Islam, Cisco's group manager for architecture marketing. "The purchase of Clarity really complements our broadband offerings to the user."

Clarity's unique niche in fixed wireless is the ability to transmit at high speeds of up to 150 Mb/s in non-line-of-sight. This means that transmissions can not only skim the rooftops of buildings, but they can even be completed when no antenna is in sight. Clarity accomplishes this by devising a coding structure that lets them identify every bit in a multipath transmission and recorrelate those bits at high speed, Islam said.

"The magic is doing this at really high speeds," he says. "Non-line-of-sight exists today, and plenty of companies in Silicon Valley are working on high-speed wireless, but they can't do it when there's an obstruction. We thought this would give Cisco customers an edge."

The Clarity deal, valued at $157 million in Cisco shares, will bring Cisco a higher profile in the roster of traditional telecom vendors, said Larry Eldritch, an analyst with Stratcomm Partners. "Last-mile solutions are crucial for telcos these days," he said. "With this buy, Cisco is gearing up eventually to give them a very attractive package of ad hoc options."