[LA Times] Cisco to Enter Home Market.

I Find Karma (adam@cs.caltech.edu)
Fri, 8 Jan 1999 03:40:44 -0800 (PST)

It was just a matter of time before Cisco entered the consumer market.
Watch for competition between Cisco and Lucent to start heating up in
1999. The $1000 price target is kind of steep, but after the initial
adopters clamor about how great this is, the price will drop to
something reasonable and everyone will consider buying one...


A friend of mine recently told me Cisco has no consumer brand name
recognition. I expect a MAJOR marketing push from them in the next few
years to build the brand name equity that Intel currently enjoys...

> Cisco to Enter Home Market
> By Leslie Helm, LA Times Staff Writer, January 7, 1999
> Telecom: It will start with a TV cable modem that provides simultaneous
> phone and Net connections
> Cisco Systems, the leading provider of equipment used by businesses to
> build Internet-based networks, will announce today a major new push into
> the home.
> Debuting the first in its new line of home products, Cisco will
> unveil at the Consumer Electronics Show in Las Vegas a device that, when
> connected to a regular television cable, provides two phone connections
> and four high-speed Internet connections simultaneously.
> In a related matter, San Jose-based Cisco also will announce today
> a preliminary agreement with AT&T Corp. on a nearly $100-million
> contract to help AT&T build an infrastructure capable of delivering
> voice, video and telephone services over cable TV lines. AT&T is close
> to acquiring an extensive cable network through a merger with cable
> giant Tele-Communications Inc.
> "Today, you get cable TV, long-distance phone service, local phone
> service and Internet access from four different providers," said Robba
> Benjamin, general manager of Cisco's newly created Consumer Line of
> Business. "This [technology] will enable AT&T to offer all four on one
> bill."
> Cisco's new device, the cable modem, will be the first to offer
> regular voice connections. It will sell for about $1,000 and is aimed at
> home offices. But Cisco is also licensing its technology to consumer
> electronics companies such as Sony, Hitachi and Samsung, which plan to
> offer similar products for the consumer market later this year.
> Cisco believes that over time, Internet service, cable TV providers
> and others will offer telephone services to their customers as a free
> add-on to their basic services.
> As part of its consumer strategy, Cisco plans to work with a broad
> range of partners to create a new "personalized network" that will make
> it easy to connect personal computers, televisions, phones and other
> appliances to one another and to the Internet.
> "This is Cisco landing on the beach," said Gary Arlen, president of
> Bethesda, Md.-based Arlen Communications, a research firm. "Home
> automation has been around for 15 years, but it hasn't gone anywhere.
> Cisco makes the whole thing credible."
> Cisco said it is pulling together a team of partners to make the
> technology happen. One set of Cisco partners, for example, will provide
> the technology to connect various Internet devices in the home using
> wireless, electric or phone lines. Others will produce Internet-capable
> phones and other Internet appliances. Each device will include Cisco
> software and carry a "Cisco NetWorks" logo similar to Intel's famous
> "Intel Inside" logo.
> "Cisco is really moving into the consumer market," said Mark
> Stubbe, a vice president at Samsung Telecommunications America, a South
> Korea-based firm that plans to market a variety of Internet appliances
> that carry the Cisco brand. "By working with them, we can get to market
> a lot faster than if we worked separately," Stubbe says.
> Analysts say Cisco may have a tough time building a consumer market
> for cable modems and other high-speed Internet access devices because
> the technology is still new and all the kinks have not been worked out.


What's great about this country is that America started the tradition
where the richest consumers buy essentially the same things as the
-- Andy Warhol