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The purchase is expected to boost Cisco's direct control over small-cell products and services, so the company can better control development, offer analytics , and lessen its dependency on carriers.
As 4G /LTE mobile networks increase their coverage, femtocells are expected to become an increasingly important part of the infrastructure , filling in those hard-to-cover spots, using wireless bandwidth more efficiently than regular networks, and helping offload some of the traffic from cell towers to the broadband Internet infrastructure.
In August of last year, Ubiquisys Chief Financial Officer Fraser Park told The Wall Street Journal that, "when people install a femtocell, customer satisfaction jumps by 94 percent." Because of the revenue loss from dissatisfied customers, not to mention the cost of customer acquisition, high customer satisfaction is a boon for network providers. Park added that Vodafone, AT&T and other carriers expect that, once their macro next-gen networks are essentially finished, the incremental growth beyond that will be driven by small cells.
Ubiquisys, founded in 2005, will become part of the Cisco Service Provider Mobility Group, and the deal is expected to close by the end of the fourth quarter.