ValueLine Writes about BlueTooth and XTND...FYI...
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<<Extended Systems (NASDAQ: XTND), which is not covered by Value Line, appears to have an early lead in protocol software for connecting devices. It has signed partnerships with Motorola, Ericsson and Microsoft to provide products that facilitate the transfer of information through a wireless medium. The stock, though it tends to be very volatile, has had an abrupt price runup in recent months. While Extended Systems has a lead in bringing Bluetooth products to market, it is still too early to declare its entries absolute winners, though the company was named a finalist for "Best of Comdex.">>
Here's the review of BlueTooth....
<<Industry Review:
BLUETOOTH (SHORT-RANGE WIRELESS)
Bluetooth, a consortium of over 1,300 electronics and telecommunications companies, has been formed to develop a product standard that will utilize a specific radio frequency to transfer voice and data over short distances. The group is named for Harald Bluetooth, the 10th century king, who united independent provinces into the state of Denmark.
Much like King Harald, today's Bluetooth group hopes to marshal companies into a common state. It aims to create a worldwide standard at a frequency of 2.4 gigahertz, a band that is globally nonregulated, so that products operating at this wavelength can communicate with each other. Currently, the designed range is from 10 centimeters to 10 meters, meaning the frequency is low power, doesn't pose health risks, and, unlike infrared devices, doesn't need to be in a "line of sight" to function. The effort, over time, should greatly reduce the number of wired connections.
The consortium began about two years ago when Ericsson, IBM, Intel, Nokia, and Toshiba formed the group to set a standard for the wireless personal area network. More recent members?3Com, Lucent, Microsoft, and Motorola?have joined the founding five to form the Promoter Group, which will focus on pushing Bluetooth ahead. These nine companies, among the largest and most successful technology companies in the world, are working with some 1,300 other Bluetooth members, whose efforts seem likely to spawn a major transition in social customs just as television and the Internet have done.
Already, early product introductions include a hands-free telephone from Ericsson and several products from Motorola's recently acquired Digianswear unit. This year additional products are likely to come to market. Indeed, it was at Comdex, a technology convention, that this short-range and inexpensive technology made a big splash. Investors, bent on finding the next big technology revolution, have seized on Bluetooth and the companies most likely to benefit from its proliferation of consumer and industrial products. Many Bluetooth stocks are richly priced, reflecting the companies' promising business prospects. Still, in our judgment, they are likely to be year-ahead market leaders.
Interactive Devices
Bluetooth is apt to foster technical modifications affecting the setup of interdependent electronic equipment. In the home, the personal computer would become cordless, with each component communicating through embedded oscillators and filters?the keyboard, for instance, would be mobile, as would the mouse. VCRs are likely to function without a hookup to the TV, stereo speakers could be placed anywhere in a room (without unsightly wires), and home appliances could be switched on as needed by a preset radio-frequency (RF) signal from a personal computer.
Wireless homes are likely to become increasingly common, with remote handsets or headsets, taking RF commands for everything from setting the thermostat to turning on the oven. The design has been organized so disparate RF-enabled devices, including automobiles, can function together under a master device in a configuration known as a master/slave relationship.
Beyond the home, industry and institutions are prospective users of the new RF technology. Hospital emergency rooms, for example, would be able to expedite the receipt of patient medical data via Bluetooth technology. In commercial transactions, the need for cash would be further minimized, as Personal Digital Assistants (PDAs) like 3Com's Palm hand-helds could be used at vending machines. Already, Sonera, a Finnish company, has introduced a Bluetooth-compatible vending machine. The interoperability of this technology platform should also lead to strong customer response early on. In fact, current estimates state that the Bluetooth technology will be part of hundreds of millions of devices within three years. In essence, any transaction of information or monies over short distances (up to 100 meters with additional power amplification) could be carried out via Bluetooth technology.
Maintaining Security
The Bluetooth standard creates a system for the transmission of radio signals, called hopping. To reduce interference and the potential for interlopers, the transmission will hop, based on a logarithm, to different frequencies in the 2.402 GHz to 2.480 GHz range, after transmission of a small amount of data, referred to as a packet. There are 79 channels through which the system can hop, at a speed of 1,600 hops per second. This procedure is also designed to keep the transfer of data continuous.
Privacy will be ensured through a challenge-response algorithm, for devices within a personal area network, and also through encryption and authorization. Overall, given the very short range of the Bluetooth platform, and its embedded protection measures, security shouldn't become an issue.
The Bluetooth Lead
The long-term success of Bluetooth will also be a direct result of the sharing of the system architecture. While the organization known as HomeRF is also working towards a wireless world, they have only about 100 members and the technology does not seem to be as advanced. Although the two are working together to set an interoperability standard, we think Bluetooth is much more likely to achieve global hegemony.
VHS is a perfect example. Sony, which developed Betamax, and was the first to market with a VCR, decided to keep its technology in-house. Meanwhile, VHS was allowed to be reproduced by any-one. The sharing of VHS technology limited Betamax's commercial appeal.
Bluetooth's free access to the system will be tempered by product regulation. Testing will be done by a committee formed of Bluetooth members, with the intention of ensuring that products function correctly and maintain the integrity of the Bluetooth brand name. From a consumer's point of view, a TV from Sony can work with a VCR from JVC, which can communicate with a Dell or Compaq computer, which can work with a Motorola wireless home unit. More established companies can leverage brand names, while smaller companies can benefit from partnering with their larger Bluetooth associates.>>
Best Regards,
Scott |
