Amati Communications and NEC America, Inc. provide broadcast
video/ADSL equipment for MCI Corporation trials;
osen't anyone remember this article...Amtx does have customers and is growing.
Amati Communications and NEC America, Inc. provide broadcast
video/ADSL equipment for MCI Corporation trials; first application of
Amati's high-speed 6 Mbps ADSL/DMT technology and NEC video
broadcast system in U.S. video trial
Business Wire - March 20, 1997 08:02
FINANCIAL AMATI-COMMUNICATIONS AMTX CALIFORNIA DISTRICT OF COLUMBIA IOWA COMPUTERS ELECTRONICS
COMED TELECOMMUNICATIONS PRODUCT V%BW P%BW
SAN JOSE, Calif.--(BUSINESS WIRE)--March 20, 1997--Amati Communications Corporation (NASDAQ: AMTX), a
leading developer of advanced transmission equipment utilizing Discrete Multi-Tone (DMT) technology for the Asymmetric
Digital Subscriber Line (ADSL), and NEC America, Inc., a leading manufacturer and supplier of telecommunications
equipment, announced results with MCI Corporation of an ongoing ADSL technology trial with Northwest Iowa Telephone
Company.
The trial, which began in July 1996, utilizes the Amati 6 Mbps ADSL/DMT modems in conjunction with the video switching
equipment provided by NEC America, Inc. for broadcast quality TV delivered over the local access phone lines. This trial
marks the first deployment in the U.S. of real-time 6 Mbps MPEG2 switched digital video.
The significant benefits of the technology are realized in the enhanced quality of the video as compared to normal cable access
television with the availability being as simple as obtaining local phone service.
Results to date established that ADSL is a technically viable method for transmitting broadcast TV services over the subscriber
copper loop. Trial participants receiving the programming are impressed with the 6 Mbps transmission quality.
Among the objectives of the trial, the companies wanted to assess ADSL as a technically and economically viable delivery
mechanism for subscription broadcast services to residential users, to determine video quality performance and to evaluate
ADSL transmission and exchange equipment and customer premises installation issues.
"This trial with NEC and MCI is important to Amati for several reasons," said Jim Steenbergen, President and CEO, Amati
Communications. "First, it permits Amati to closely work with MCI, a major telephone service provider in the U.S. It
strengthens our relationship with NEC in terms of our previous VDSL announcements and now our ADSL work.
"It further validates the Amati DMT technology as the best solution for high-speed transmissions over copper wire. And, it
helps confirm the knowledge gained in several overseas trials that a market for high quality video can exist assuming the
appropriate technology is made available."
The ADSL/DMT modems are supplied by Amati to NEC. Amati manufactures a plug-in unit for the switch and a remote
modem that interfaces to the NEC set-top box in the home. The technology used in the modems is the same as that used in the
Amati Overture 8 ADSL/DMT modems and the Amati Allegro ADSL Access Concentrator.
Amati has been providing ADSL modems for service trials since 1995 and has product being tested in various video and
Internet service applications. Amati developed the standard technology for ADSL -- Amati's Discrete Multi-Tone Technology
-- which has been accepted by both the ANSI and ETSI as the industry standard.
The specification T1E1.413 defines the DMT approach as the preferred technology for implementation of ADSL at the highest
data rates over existing subscriber loops.
Dr. Rikio Maruta, Senior Vice President, NEC America Inc., Public Networks Group, confirmed the importance of Amati's
contribution in providing advanced ADSL/DMT based modem technology for NEC's video distribution switch system in this
trial.
MCI Corporation
MCI Corporation, headquartered in Washington, DC, provides a full range of integrated communication services to more than
20 million customers. Credited with opening up the U.S. long distance market for competitors, MCI is now leading the charge
to bring competition to the $100 billion local market., offering American consumers for the first time the freedom to choose
their local carrier.
With 1996 revenues of $18.5 billion, MCI is one of the largest and fastest growing telecommunication companies in the world.
On November 3, 1996, MCI announced a definitive agreement to merge with BT to form Convert plc, the world's first global
communications company.
NEC America, Inc.
NEC America, Inc., an affiliate of NEC Corporation, develops, manufactures and markets a complete line of advanced
communications products and software for public and private networks. NEC Corporation and its affiliates worldwide are a
$41 billion global leader whose 153,000 employees are dedicated to providing leading edge computer, communications and
semiconductor products and services.
Amati Communications Corporation
Amati is a leading developer of advanced transmission equipment utilizing DMT technology for the ADSL, Very High-Speed
Digital Subscriber Line (VDSL) and cable modem markets.
Amati is participating in tests of 2 Mbps, 4 Mbps and 6 Mbps video-on-demand (interactive video) and broadcast video
services being offered by PTTs in Europe and the Asia-Pacific and by system integrators such as Philips, Italtel, Tadiran and
NEC (AU).
Amati is also providing ADSL/DMT equipment at 6 Mbps and 4 Mbps for Internet access trials in Washington and Texas.
Additionally, Amati is a provider of network connectivity systems for the internetworking and OEM marketplaces.
The company's connectivity products include local area network gateways, client-based workstation software and network
data communications interfaces. Amati's World Wide Web site is at www.amati.com .
Statements made in this press release which are not historical, including statements regarding product demonstration, product
capabilities and markets, are forward looking statements and as such are subject to a number of risks. Please see the
Company's Annual Report and Form 10-K for the 1996 fiscal year and other reports filed with the Securities and Exchange
Commission for additional disclosure regarding such risk factors.
CONTACT: Amati Communications
Benjamin W. (Tac) Berry, 408/879-2035
or
Simon/McGarry Public Relations
Carol Felton, 408/746-0911
E-mail: cfelton@shandwick.com
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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