Re: Leader in DSL Chipsets -- Analog Devices or Alcatel?
Thread,
Significant press releases out of both companies. Irregardless of who the leader is, it's clear that DSL is finally for real! But IMHO, it's pretty clear Alcatel is the real leader.
I was listening to Westell's (sym:WSTL) CC a few days ago, and their CEO laughing said (although accurately), that Westell was five, six, or maybe seven years to early! By the way, Westell does use Alcatel chipsets for it's CPE equipment. I'm going to try to post a recap of the WSTL CC soon.
Last Mile investors should note, the chipset is only the beginning of the spending cycle for DSL equipment. As noted in ADI's press release, one million dollars worth of chipsets is leveraged out 2,000 fold(!), to $2 billion in ready to roll out DSL equipment to the carriers. Therefore these press releases are quite significant to DSL equipment investors.
MikeM(From Florida)
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siliconinvestor.com
"...In fact, according to a recently published report by Dataquest, ADI grabbed 37 percent of the ADSL chipset market in 1998, a share that is more than 15 percent higher than its closest competitor. But, adds Ruch, "the market is changing quickly and new companies are entering the market with low cost solutions."
Analog Devices Sells One Millionth ADSL Chipset
Sale of one millionth ADSL chipset represents up to $2 billion in production equipment
NORWOOD, Mass., Nov. 1 -- Analog Devices, Inc today announced the sale of its one millionth Asymmetric Digital Subscriber Line (ADSL) chipset, representing up to $2 billion in production equipment. The chipsets will be shipped by year-end, marking another milestone for ADI in its ADSL leadership position.
According to Cahners' In-Stat Group's DSL Chipset Analysis Report, published in May 1999, the forecast for full rate and G.lite chipsets from 1997 through 1999 totals 1.34 million. Used by the world's leading telecommunications companies for both customer premises equipment (CPE) Internet modems and central office (CO) equipment, for either full rate or G.lite ADSL operation, ADI's fully interoperable ADSL chipsets have been fueling the growth of ADSL deployments worldwide.
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Alcatel Ships 2.4 Million DynaMiTe ADSL Chipsets in 1999
Alcatel's ADSL Market Leadership Driven by Standards Compliance and Multi-Mode Functionality Across Systems and Silicon
November 3, 1999 PARIS--Alcatel, the market leader in ADSL systems in both the Central Office and Customer Premises Equipment sectors, has also established its leadership in ADSL silicon. Alcatel today announced that it will ship 2.4 million DynaMiTe ADSL chipsets in 1999, further enhancing the company's global leadership position in the ADSL market. Shipments have ramped up throughout the year with the concentration in the last quarter, enabling the predicted mass-deployment of carrier and end-user equipment early in the year 2000.
The ADSL market has seen explosive growth in 1999 and Alcatel saw orders for its DynaMiTe ADSL chipset increase dramatically quarter by quarter, with major sales to Central Office, Digital Loop Carrier, Customer Premises Equipment, SOHO (Small Office Home Office), router and test equipment manufacturers.
"Shipping 2.4 million chipsets was above even our expectations for 1999. This has been a great year for Alcatel DSL and DynaMiTe," said Pierre Garnier, Director of telecom products for Alcatel's microelectronics activities. "We have seen our multi-mode approach attract a huge number of customers who understand the need to future proof their systems with both full-rate and G.lite functionality. Our commitment to interoperability from the start of the development process has also been a major contributor to our success." |
