Cisco’s Non-Event Event: Does Anyone Want A Faster Internet?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published

Invalid Image
Al Gore invented the internet, and Cisco (CSCO) will improve it forever. Cisco built up today’s announcement of its latest technology and the result of the news was that the firm’s stock dropped.

Cisco said it would release a “next-generation” router that is twelve times faster than its old one.

The new CRS-3 product has been tested by AT&T (T) in a 100-Gigabit trial. Oddly enough, AT&T did not say how many of the new routers it would order. Perhaps none.

John Chambers, Cisco’s CEO, said that the CRS-3 can handle one billion videos at a time. “Video is the killer app,” he said. “Video brings the Internet to life and lets us all participate in a very constructive way.”

Chambers forgot to ask how important a faster internet is or whether broadband providers will pay for it. Cisco claims that its router is the foundation of the next generation of the internet, but at $90,000 per unit, cable and telecom firms may not build the future as quickly as Cisco would like

The FCC has pushed faster internet speeds, but there is not a large body of evidence that most people and small businesses think of their internet connections as slow. Tens of millions of Americans are satisfied to spend most of their time online using bandwidth constrained 3G connected smartphones.

Cisco may have the tools for a new broadband foundation, but it may find that its enthusiasm about the initiative is not shared by broadband providers or users..

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

DELL Vol: 42,366,555
NTAP Vol: 15,911,807
NOW Vol: 68,243,561
IBM
IBM Vol: 28,527,546
HPE Vol: 86,996,387

Top Losing Stocks

CTRA Vol: 73,319,495
CLX Vol: 4,744,001
RMD Vol: 3,526,686
INTC Vol: 191,680,425
SWKS Vol: 5,407,806