Here's some more "ROKs" for ya, Scrappy.
Rockwell Resumes Shipping Chips for New 56K Modems (Correct)
(Corrects in seventh and eighth paragraphs to reflect that
Rockwell has started shipping chipsets to makers of central-site
modems. Adds closing share price in last paragraph.)
Seal Beach, California, April 9 (Bloomberg) -- Rockwell
International Corp. said it resumed shipments of chipsets for new
high-speed modems, ending a three-week production delay after
Motorola Corp. said their performance wasn't good enough.
Rockwell, the electronics and semiconductor maker, used new
software to increase the modem's speed for some users, said
Angelo Stephano, Rockwell's Business Director for PC Products.
``In some networks, throughput will be higher and
performance will be more robust,'' Stephano said.
Seal Beach, California-based Rockwell rushed out its
chipsets -- computer chips and other parts that make up the heart
of the modem -- last month, as it tried to catch up with rival
U.S. Robotics Corp., which shipped 56K modems to retailers in
February.
The two companies are in a battle to set the industry
standard for 56 kilobit-a-second technology, which is about 50
percent faster than previous modems.
Rockwell's original chipsets were acceptable to modem makers
Boca Research Inc. and Diamond Multimedia Systems Inc., who
already shipped modems using Rockwell's so-called K56Flex
standard to stores last month. Motorola, though, said the
chipsets didn't deliver data transmission speeds fast enough for
users in some telephone networks.
Last month, Rockwell started shipping 56K chipsets to makers
of so-called central site modems that allow Internet service
providers to offer the higher speed data transmission.
The faster modems, though, may not have made their way to
Internet service providers yet. That has hurt K56Flex sales
because consumers won't buy the new modems if Internet service
providers aren't able to provide high-speed data transmission,
said Diamond Multimedia Chief Executive William Schroeder.
So far, U.S. Robotics is selling far more X2 modems than all
the K56Flex suppliers put together, Schroeder said.
Diamond will stick with selling K56Flex-standard modems
only, because the more than two dozen modem makers backing the
Rockwell standard will ultimately win over more Internet service
providers, Schroeder said.
``I have to endure some short-term pain now, but I'm hoping
that it will pay off in the end,'' Schroeder said.
Internet service provider Exec PC is profiting from being
early into the 56K market. The closely held Milwaukee-based
company said it's offering 56K download speeds to its customers
after equipping its head office with U.S. Robotics' central site
X2 modems.
Exec PC president Greg Ryan said a price promotion in March
and advertisement of the new 56K speeds helped it increase its
customer base by almost 5,000 to 40,000 customers in 11 cities.
``X2 is a good marketing advantage for us,'' said Exec PC
president Greg Ryan.
Rockwell's Stephano said modem makers will be ready to ship
K56Flex central-site modems ``this month.''
Rockwell shares fell 5/8 to 62 1/2. U.S. Robotics stock fell
15/16 to 58 1/8. |
