Cisco announces $5b financing for operators' 5G transition

Cisco announced that it is planning to fork out $5 billion funding over the next three years to help its customers for network transitions to 5G.

Cisco said “the 5G movement is in steep ascent and service providers face significant financing pressures as they prepare for this 5G revolution.”

Cisco's recent Mobile VNI Forecast shows that by 2022, the average 5G connection (22 GB/month) will generate nearly three times more traffic on the networks than the average 4G connection (8 GB/month).

Service providers must expand their networks to support this growth. At the same time, they must invest in new 5G services to stay competitive, the vendor said in a statement.

Cisco said it is planning to commit $5 billion in 5G funding via Cisco financing over the next three years to help its customers succeed with their network transitions to 5G.

Meanwhile, Cisco has also announced a raft of announcements with Asian mobile carriers including Bharti Airtel, KT, Softbank and Rakuten

Cisco is helping Bharti Airtel to build India’s largest 5G-ready, IP-based automated network. Airtel aims to deliver enhanced subscriber experiences and offer high-speed mobile access for its mobile customers in the country.

Airtel’s IP-based network architecture will enable new functionality, including segment routing, traffic engineering and Ethernet VPN that helps ensure seamless interoperability and the ability to leverage existing investments in its MPLS-TP network. The automated IP network architecture will also give Airtel the ability to enhance its services to SMBs and enterprises.

The deal with KT will see Cisco transitioning KT’s network architecture to better manage 5G traffic with advanced routing and automation software, intelligent analytics and machine learning.

The network includes a 5G routing backbone with Cisco Network Convergence System Router 6000 and ACI on Nexus 9000 switching platform at KT’s distributed data centers in the country.

In Japan, Cisco is helping SoftBank to deploy Segment Routing IPv6 (SRv6) in its 5G mobile network to help the Japanese telco reduce capex and opex. It is also helping Rakuten Mobile Network to launch the world’s first virtualized, cloud native mobile network by October 2019.

Cisco is also using the MWC2019 to unveil a host of products and services covering 5G, WiFi 6, smart city and connected cars.

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