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Technology Stocks : Stratex Networks, Inc. (STXN)

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To: Dave Press who wrote (816)1/11/2000 7:43:00 PM
From: Rob Preuss   of 1762
 
[10-18-99 article in Telephony Online]

Source:
internettelephony.com

Remark:
DMIC led a $25M investment round in privately held Ensemble
Communications only 2 months after this article appeared.
Having just reviewed their web site ensemblecom.com
it seems likely to me that DMIC may eventually acquire
Ensemble Communications to further broaden their product line.

Air express

Telecom 99 exhibitors show the fixed broadband wireless way

JASON MEYERS

While proponents of third generation mobile wireless were
duking it out over migration paths, air interfaces and
applications at Telecom 99 last week, developers of fixed
broadband wireless systems were showing the world another way
to use the sky. Attendees at the Geneva extravaganza couldn?t
elbow their way down half an aisle without tripping into an
exhibitor preaching the broadband wireless story.

Applications and networking formats ran the gamut, from 155
Mb/s radios meant to form a ring backbone to access systems
designed to make any carrier with some spectrum to spare into
a wireless ISP.

Sibling rivalry was not hard to find among broadband
wireless brethren. While some newer entrants touted the
wonders of various forms of point-to-multipoint for last-mile
access, some of their more senior counterparts opted to keep
their point-to-point sights set on the network center?and
some even characterized the alternative as too embryonic to
be commercially ready.

"There are a number of access technologies that are proven,
and there are a number that are unproven," said Charles
Kissner, chairman and CEO of Digital Microwave Corp., a well-
established supplier of point-to-point systems. DMC unveiled
an addition to its Altium product line that makes the 155 Mb/s
system applicable from 6 to 38 GHz. "We know that regardless
of the access, there?s an important infrastructure
requirement to support it. That?s why we?ve rolled out a
product that?s essentially fiber in the sky," he said.

Kissner characterized point-to-multipoint systems as well-
intentioned but underdeveloped and said the technologies must
mature before they?re ready to serve as network entry points.
For one thing, he said, the capacity of the systems currently
being developed probably wouldn?t be capable of handling the
traffic emanating off the fat backbones being installed.

"It?s like a science project," he said. "The technologies
and economics will merge, so we do see point-to-multipoint as
viable but not in the form that it?s in now."

Up-and-coming developers of point-to-multipoint systems,
however, begged to differ.

Developers of point-to-multipoint applications believe that
their systems are better-equipped in the capacity,
flexibility and economy categories for the access networks of
operators leveraging spectrum, such as local multipoint
distribution service.

Wavtrace, for example, demonstrated its time division
duplexed (TDD) system in the display of Harris, which took an
equity investment in Wavtrace earlier this year. Wavtrace?s
gear currently is in trials with Formus, Nextlink and
Virginia Tech. Netro also was demonstrating its point-to-
multipoint gear, and Ensemble Communications announced that
its adaptive TDD system?newly named Fiberless?is ready for
trial. Ensemble?s Fiberless system is designed to take
control and manipulation of spectral bandwidth to new heights
by providing real-time adjustment of bandwidth upstream and
downstream on the carrier end and bandwidth-on-demand on the
customer end.

Still other broadband wireless developers were showing off
systems that potentially could give rise to a new
classification of wireless IP service providers. Wireless
Inc., which offers service providers design and installation
of fixed broadband wireless access services under its
StarPort Service Program, announced a deal with Redback
Networks under which it will integrate Redback?s subscriber
management platform into its Wireless-DSL access system.
Wireless Inc.?s W-DSL system is aimed at service providers
looking to supplement their DSL footprints and those
specifically pursuing a wireless strategy.

"Right now, DSL is the only game in town, but this whole
broadband access area is going to become a huge market," said
William Gibson, president and CEO of Wireless Inc. "[The DSL
providers] need wireless because they can?t satisfy their
customer base with just DSL."
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