Motorola, Cisco Make Dual-Mode Handset Connection

The jointly developed handsets, scheduled for availability early in 2006, will combine Motorola&'s GSM phone technology with San Jose, Calif.-based Cisco&'s wireless LAN and VoIP technology, enabling a cell phone seamlessly to become a wireless VoIP handset when the user is in the office.

Solution providers said the convergence of VoIP, Wi-Fi and cellular technology is an evolution that could improve communications and make life simpler for mobile users.

“There&'s no reason for me to have multiple numbers to be reached at, multiple voice mails to check and multiple devices,” said Gaby Batshoun, president and CEO of Global Business Solutions, a network integrator in Newport, Ky.

The strategic alliance is part of Schaumburg, Ill.-based Motorola&'s overall effort to target enterprise customers with mobility solutions.

Motorola is already jointly developing dual-mode phones through a partnership with Cisco rivals Avaya and Proxim.

Separately, Proxim recently closed a deal to sell its assets to Terabeam Wireless in a $25.2 million purchase that scuttles previous plans to sell its assets to Moseley Associates.

San Jose-based WLAN vendor Proxim in June struck a $21 million deal with Moseley after filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.

The Terabeam pact came about after the Falls Church, Va., company emerged as the high bidder in the court-approved auction held as part of Proxim&'s bankruptcy proceedings.

Plans for the sale were disclosed July 20, and the deal was completed the following week. Terabeam has named Proxim President and CEO Kevin Duffy as its president and COO and plans to move its headquarters to Proxim&'s San Jose facility. Virtually all of Proxim&'s employees have joined Terabeam, according to a statement from Terabeam.

Terabeam is the business name of YDI Wireless, a publicly traded broadband wireless equipment vendor. The combined company now offers indoor and outdoor Wi-Fi, WiMax, mesh and wireless Gigabit Ethernet solutions.