Pat. The article came from PC week. Here is the whole thing:
Thursday January 23 6:24 PM PST
U.S. Robotics sets pricing for 56K-bps modems
By John Dodge and Scott Berinato
SKOKIE, Ill.-Options for remote access are multiplying fast and will expand further in three weeks when U.S. Robotics Inc. begins shipping its 56K-bps "x2" modems at prices ranging from $60 to $239.
However, the decision to purchase one, no matter how aggressive the pricing, must be based on whether a customer's ISP (Internet service provider) supports the x2 technology. Rockwell Semiconductor Products Division and U.S. Robotics are competing to set the standards that govern how 56K-bps technology is implemented.
"It's here now from us, and all the ISPs [that use U.S. Robotics equipment] have to do is download the software [that supports it]," Joe Dunsmore, the company's vice president of product management, said here today. U.S. Robotics recently added 60 ISPs that support x2, bringing the total to 100 worldwide and including such heavyweights as CompuServe Inc., America Online Inc. and Mindspring Enterprises Inc., officials said.
ISPs that do not use U.S. Robotics equipment must purchase hardware and software to support x2.
Thousands of small ISPs, however, are holding off deciding until they see which way the standards battle goes.
Upgrades to current Sportster and Courier modems shipped since Aug. 15, 1996, will be priced at $60 and $95, respectively. A new internal data and fax modem will cost $199, while an external version for both PCs and Macintoshes will be priced at $219. An internal data, fax and voice-mail modem will sell for $219, while an external unit will be priced at $239.
"We feel x2 is worth in the $100 price range," Dunsmore said. In tests, the company has regularly obtained speeds between 48K-bps and 53K-bps, he added.
"Customers have to go to their ISP and insist they support x2," Dunsmore said.
Analysts characterized U.S. Robotics' prices as "reasonable."
"The market will bear those prices," said Vern Mackall, an analyst with International Data Corp., in New York. "The issue remains, will people buy a pre-standard technology. Early adopters have been waiting for this, though, and that price won't be a problem at all. It shows USR's prescience for having [software] upgradability. It's a significant advantage to them."
A U.S. Robotics competitor, however, was quick to wave the yellow caution flag.
"I'm concerned about the quality of the first modems to hit the market," said Bob Rango, general manager of the modem/multimedia group at Lucent Technologies Inc., in Huntington Beach, Calif. Lucent and Rockwell have agreed that their 56K-bps technologies will interoperate.
"There is sometimes an exaggeration of the truth, and it will be very interesting to see if these modems connect at 56K. It could turn users off to this if they don't," said Rango. "[Lucent has] shipped production chip sets. We're all pushing very hard to get to the marketplace, and the concern I have is there may be substandard products out there."
Although a recent report from Smith-Barney indicated Rockwell had pushed back chip shipments until September, Rockwell officials in Newport Beach, Calif., maintained the company will ship the chips in March.
Separately, U.S. Robotics is forging ahead on XDSL and cable remote connectivity. In this quarter, it plans to release to developers point-to-point client and central office access equipment achieving speeds of 384K-bps upstream and 1.5M-bps downstream. In the second quarter, a frame-based rack-mounted XDSL hub will go into testing and deployment. An ATM unit will be released in the third quarter with increased speeds of 640K-bps upstream and 6M-bps downstream.
USR will sell much of this equipment to telcos that will offer the XDSL service. They, in turn, will bundle client equipment into the deal with the customer, said Ronald Westernik, U.S. Robotics' assistant vice president of marketing. Although he declined to reveal which telcos have signed up, Westernik said multiple deals are currently under negotiation.
In addition, the company expects to provide retail plug-and-play cable modems by the end of this year for one-way service and by the second quarter of next year for two-way service. The company expects to price the modems below $300, said Semir Sirazi, U.S. Robotics' vice president and general manager.
"There are still some standards issues to be worked out, but we think this is a huge, huge market," Sirazi said.
Regards
Louie |
