Pace up 15% on Cisco deal news

Shares in Pace Micro Technology, the TV set-top maker, surged 15 per cent yesterday after the company joined a group headed by Cisco Systems, the Internet equipment maker, to develop technology for wireless broadband access.

Shares in Pace Micro Technology, the TV set-top maker, surged 15 per cent yesterday after the company joined a group headed by Cisco Systems, the Internet equipment maker, to develop technology for wireless broadband access.

Such equipment would be an alternative to installing fibre-optic cable and could also provide a cheaper connection for businesses than equipment using digital subscriber line technology, which provides high-speed Internet access over conventional phone lines.

Analysts said decoder makers like Pace would benefit from developments in wireless technology as households would access the Internet through their set-top boxes. "Set-top manufacturers are likely to be the gatekeepers of the big information pipeline coming into people's houses," said Patrick Yau, analyst at Credit Suisse First Boston.

For Cisco, which ranks among the world's 10 biggest companies by market value, the pact marks the first time it is embedding wireless technology into its equipment that sends data on to the Internet. Other companies joining the venture include Motorola, Samsung and Toshiba.

Pace stock closed 34p higher at 257p after hitting a record high of 265p.