Computer network giant Cisco Systems has agreed to buy cable set-top box maker Scientific-Atlanta for $6.9 billion in a sign of convergence of the telecom and television industries.
'Video is emerging as the key strategic application in the service provider triple-play bundle of consumer entertainment, communication and online services,' said John Chambers, president and chief executive officer of Cisco Systems.
Scientific-Atlanta, a company created in 1951, is a major supplier of set-top boxes used by cable providers. These systems have become more sophisticated as providers move to digital interactive programmes, video on demand, high-speed internet and Voice over Internet Protocol networks. Cisco Systems is a top provider of networking systems for the internet.
