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Credit First Service Union (AXcess News) San Jose, CA - Cisco Systems, Inc. (Nasdaq: CSCO) is buying set-top box maker Scientific-Atlanta (NYSE: SFA) in a deal valued at $6.9 billion. The acquisition would make Cisco the nation's leading provider of television distribution over the Internet.

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Card Credit Mobile Service Cisco's acquisition of Scientific-Atlanta is thelargest deal the San Jose-based technology company has done, but its move into the market might be ideal timing as more and more homes become connected through broadband fiber optics and telephone companies are beginning to bundle services.

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Card Credit Discover Service John Chambers, Cisco president and chief executive said, "Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services."

Cable television services are delivered to consumers via networks of fibre optic cables. The signals are decoded using a set top box, which is provided by the service supplier as part of a subscription package. Digital cable customers can also access telephone services and broadband internet services. Digital cable can carry around 200 services (TV and radio), plus interactive services. All Public Service Broadcasting channels (including Five) are available with any cable TV subscription package.

Credit Public Service Union The move will allow Cisco to enhance its services and business that move through its switches and routers. To Scientific-Atlanta, that's music to their ears as the company needs more capital to expand its market share against Motorola (NYSE: MOT) which also manufactures set-top boxes.

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Card Credit Processing Service With Cisco involved Scientific-Atlanta's customers can see more bundled services, which they prefer over numerous sources.

Center Credit Service Union Through Scientific-Atlanta Cisco can provide cable operators and phone companies that are entering the paid TV market an end-to-end solution for delivering video services.

Card Credit Service Wireless Cisco is already in with cable operators and phone companies, to whom it sells routing and switching equipment. Now, it can add one more piece of equipment in homes and provide more complete services. So for Cisco, the acquisition of Scientific-Atlanta made perfect sense and has a built-in value the router and switch manufacturer can easily convert to sales - and market share.

Credit Security Service Union Scientific-Atlanta is the largest provider of set-top boxes in the nation and with Cisco behind it, the company should be able to widen its lead against Motorola.

Credit Report Service Shares of Cisco were at $17.00, down 37 cents and Scientific-Atlanta's stock was quoted at $42.14, up 69 cents at 2:23pm EST Friday.

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