Tuesday October 26, 8:20 am Eastern Time
Company Press Release
Broadcom and Cisco Establish Joint Development Program to Deliver High-Speed Wireless Internet Services
Breakthrough VOFDM Technology Overcomes Many Existing Challenges Posed by Existing Proprietary Wireless Systems, Resulting in Higher Performance, Lower Costs
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 26, 1999-- Broadcom Corporation (Nasdaq: BRCM - news), a leading provider of integrated circuits enabling broadband communications to and throughout the home and business, today announced a joint development program with Cisco Systems, Inc. (Nasdaq: CSCO - news) to develop a high performance Application Specific Integrated Circuit (ASIC) for the broadband fixed wireless market that incorporates breakthrough radio frequency (RF) technology known as Vector Orthogonal Frequency Division Multiplexing (VOFDM). The custom digital chip development is part of a larger Broadcom and Cisco effort to establish an open broadband fixed wireless standard based on VOFDM.
Broadcom and Cisco engineers will work side by side to develop a full custom CMOS, single-chip wireless modem ASIC, containing both a Media Access Control (MAC) layer and an advanced wireless Physical Layer, that enables a robust, cost-effective broadband fixed wireless solution to be offered to multiple equipment vendors on the open market. The advanced VOFDM physical layer technology enables reliable communication in wireless links where line-of-sight connections are not practical. The modem is capable of providing users with data rates greater than 40 million bits per second (Mbps) in both the downstream and upstream directions.
VOFDM technology works well in congested city, suburban and rural environments by minimizing the line-of-sight limitations and installation problems faced by other proposed broadband fixed wireless technologies.
As part of their partnership, Broadcom and Cisco will work together to develop an open standards-based broadband fixed wireless solution for multi-tiered market deployments of large, scaleable wireless networks. The standard will enable ubiquitous point-to- multipoint wireless networks for enterprise or service provider deployments. These networks can be used to carry voice, data and video services to small-to-medium business, residential and small office, home office (SOHO) customers. Broadcom joins Cisco and nine other companies in an industry coalition that is supporting an open standard for the new technology that will deliver broadband fixed wireless Internet and voice services.
''Cisco is working with Broadcom on this project to draw on their expertise in Media Access Control technology and their industry- leading experience in broadband communication systems,'' said Paul Bosco, vice president and general manager for Cisco's Cable and Wireless Products and Solutions Group. ''Broadcom has an excellent reputation for reliable project execution, low-cost chip manufacturing and time-to-market for complex system-on-a-chip devices.''
''We consider this technology to be innovative and clearly capable of accelerating universal access to wireless broadband Internet services worldwide,'' said Dr. Henry Samueli, Broadcom's co-founder, chief technical officer and vice president of research and development. ''In contrast to the other emerging solutions for mass market broadband fixed wireless access, VOFDM technology is extremely robust in the presence of interference and multi-path fading that occurs in real life wireless environments.''
Samueli added: ''Our goal is to create cost-effective customized silicon solutions for mass deployment of broadband consumer premises devices. We have analyzed all of the technology alternatives for broadband fixed wireless, and this advanced solution is the only one that enables reliable communication in obstructed wireless links where line-of-sight connections are not practical. In addition, the technology works very well in line-of-sight links with ground and vegetation clutter that often disables other solutions. VOFDM technology increases customer coverage, reduces installation cost and significantly improves service economics.''
''Through this partnership, and in keeping with Broadcom's mission to provide the technology that enables delivery of broadband services to the home and business, we are strengthening our position in the wireless market,'' said Tim Lindenfelser, Broadcom's vice president of marketing. ''This market will grow as consumers are offered new alternatives to existing broadband delivery methods. The recent merger announcement by MCI WorldCom and Sprint, and their mutual belief that wireless increasingly will be used for broadband Internet access and data services, provides additional validation of the promise of this market.''
About Broadcom
Broadcom Corporation is a leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, data and video content to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.
Safe Harbor Statement of Broadcom Corporation under the Private
Securities Litigation Reform Act of 1995:
This release may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as ''anticipates,'' ''expects,'' ''intends,'' ''plans,'' ''believes,'' ''may,'' ''will'' and similar expressions are intended to identify forward- looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
Important factors that may cause such a difference for Broadcom in connection with the VOFDM broadband fixed wireless access ASIC program include, but are not limited to, the timing and successful completion of technology and product development through volume production; the rate at which our present and future customers and end-users adopt Broadcom's technologies in the broadband fixed wireless markets; delays in the adoption and acceptance of new industry standards in the foregoing markets; the timing of customer qualification and industry interoperability certification of our products and the risks of non-qualification or non-certification; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the volume of product sales and pricing concessions on volume sales; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; wafer pricing and the availability of foundry and assembly capacity and raw materials; our ability to specify, develop, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the effects of new and emerging technologies; fluctuations in our manufacturing yields and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks and uncertainties associated with our international operations; intellectual property disputes and customer indemnification claims; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; the quality of our products and any remediation costs; the effects of natural disasters and other events beyond our control; potential business disruptions, claims, expenses and other difficulties resulting from ''Year 2000'' problems in computer-based systems used by us, our suppliers or our customers; general economic conditions and specific conditions in the markets we address; and other factors.
Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. Broadcom undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Note to Editors: Broadcom® and the pulse logo are trademarks of Broadcom Corporation and/or its subsidiaries in the United States and certain other countries. Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the United States and certain other countries. All other trademarks mentioned are the property of their respective owners.
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Contact:
Broadcom Corporation, Irvine
Bill Blanning or Eileen Algaze, 949/450-8700 (media)
Corporate Communications Dept.
blanning@broadcom.com
ealgaze@broadcom.com
or
William J. Ruehle, 949/450-8700 (financial analysts)
Vice President and Chief Financial Officer
billr@broadcom.com
or
Esteban R. Torres, 949/450-8700 (investor relations)
etorres@broadcom.com
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