Valuable insight into the superiority of WSTL engineering from Capt_SmartJack over at Yahoo:
messages.yahoo.com
Margin factors - Part 1
...I DO want to focus on this "quality" issue. When I, and others, talk of quality, it is not just the way the product is manufactured that we are speaking of. Most people think of quality as just "quality control". Westell does have a GREAT quality control program, and that WILL add to the cost of the product, and have an effect on GPM. But, I think th "quality" that most people are refering to actually is more of a performance issue. When we earlier talked about the performance of the modems, the SAR function was brought up. This was new to you, and something you did not know about. You even posted it on the EFNT thread when you saw it. The WSTL modem HAS the SAR function built into it, the EFNT does not. The EFNT modem needs to rely on the CPU to do all of the SAR function. This slows down the data transfer in many cases, which effects performance of the modem, and may cause lock-ups. Lock-ups that are WELL documented by EFNT modem users. Well, guess what?? It COSTS MORE for WSTL to put the SAR function into the modem. But, WSTL puts that function in the modem for SERVERAL reasons. Reasons like: 1) It should be there so the CPU is not tasked with it. 2) You get higher data transfer this way. 3) Less conflicts with other programs running that can cause lock-ups. 4) It allows the modem to support networking, so it is not a "1 computer" modem. Need I go on???
messages.yahoo.com
Margin factors - Part 2
But, adding the SAR function is not the only place WSTL stopped. This modem can be reconfigured, and upgraded, via software downloads. This modem works better against bridge taps than ANY of it's competitors. This modem has the highest data transfer rate on the worst cable make-ups than ANY of it's competitors. It does all this, and still uses the same DSL chipset form ALA that the others use to be compatible with the ALA C.O. equipment. I have seen others on this board say that anyone can build these modems, because it is just a matter of slapping in the DSL chipsets. IT'S NOT!! There is a reason that the WSTL modem performs better than a ALA modem connected to ALA C.O. equipment using ALA chipsets. That is because of ADDITIONAL SUPPORT LOGIC that only WSTL has. It is what sets WSTL apart from the crowd, and it also adds more COST.
The problem here is the RBOC purchasing departments. When they are starting new deployments of new technology, they look at cost and compatibility. So, WSTL needed to price their modems at about the same cost as the competitor. If you were in purchasing, wouldn't you think that a ALA modem would perform better than a WSTL up against ALA C.O. equipment?? You would. And if that modem was a lower price, that would be even more reason to want to buy all of those. That is what happened early on in Bell Atlantic. But, guess what?? The more modems that went in, the more the installers found out that WSTL worked better, and more modems that got sent back to ALA. Word started getting back to headquarters and to purchasing to get MORE WSTL, because it was the better product, and saved money in installation time. WSTL should be able to charge more for the superior product, but they had to lower the cost to win the original bid.
Now, the same thing is happening in SBC. When SBC started rollouts, they did not know which modem would perform the best, and looked at price. EFNT was the lowest, because it was not as robust. But, purchasing and the install crews did not know this. In order for WSTL to win business, and be able to prove themselves, they had to lower their price closer to EFNT. The price had to be low, even though it cost much more to build this feature rich product. But, the price had to be low enough to get purchasing to buy them, and give them "a shot". Now, as time went on, SBC is finding out what Bell Atlantic did. WSTL works better, is easier to install, and has fewer problems. So, more WSTL is being ordered, and WSTL now out ships EFNT in SBC.
So, what can EFNT do?? They can push the low cost product in new markets, which they have. That keeps the sales moving. They can also add more circuitry to solve these problems, but that would greater increase their modem cost, and lower the ir GPM.
The WSTL "quality", and added circuitry DOES make a difference, and DOES have a effect on GPM. >>
All the best,
Michael |
