Cisco Systems signaled a willingness to walk away from a US$3 billion play for Tandberg rather than hike its offer.

Strategy chief Ned Hooper hinted a shareholder revolt was unlikely to prompt an increased bid due to “fiscal prudence” and warned time was running out. “No acquisition should be pursued or completed if it runs counter to the broader principles of prudence and financial fairness,” he wrote on a Cisco blog. “Given all the speculative ‘noise’ last week. I wanted to take the time to reiterate these points because it is important to me, and to Cisco, that all of our stakeholders understand our position as we near the end of the offer period.”

The comments come two weeks after a group of Tandberg investors representing 24% of its shares rejected the bid, which offered a 38.3% premium when made. Analysts have generally supported the takeover effort as likely to significantly bolster not only its enterprise video business but also demand for its core Internet gear.

Cisco may elaborate on its position alongside 3Q results tomorrow. Analyst consensus has the supplier reporting a 15% dip in revenue to $8.9 billion. But takeover predictions are mixed. “We doubt Cisco will raise its bid as it would set a bad precedent,” warned UBS analyst Nikos Theodosopoulos. BMO Capital Markets analyst Tim Long was more upbeat in his earnings forecast. “Cisco’s down market move in the enterprise video space makes too much sense for it to potentially lose over several hundred million dollars, and we expect Cisco to come to an agreement that is likely to include raising its offer,” he wrote.

CZECH IP BACKBONE: Cisco deployed an IP backbone for T-Mobile Czech Republic. The build provides a unified framework for deploying broadband triple play services, leveraging both the CRS-1 carrier routing platform and more than 6,000km of installed fiber backhaul. Cisco also supplied its XR 12400 MPLS edge router, 6500 site switch and IOS XR carrier OS.

T-Mobile said the completed network would support 60 x 10Gbps traffic speeds in anticipation of an Internet landscape dominated by video, including future HSPA and LTE deployments. Cisco estimates video will comprise 64% of mobile traffic within four years.

“Until recently, the mobile world has focused on circuit-switched voice as the primary application. We are now seeing a tremendous acceleration in the adoption of mobile broadband services,” noted Cisco Czech Republic general manager Alexander Winkler. “The factors driving this transition include powerful new devices, high-speed mobile networks optimized for IP transport, and compelling social media and collaboration applications.”