I don't see how they can still rate ADTN a buy! I found this press release from one of ADTN's competitors, PAIR, concerning a drop in their product pricing. Won't this hurt ADTN's numbers even more? I think that I am going to get out while I still can. Can anyone give me any foresight on this issue?
Monday June 2 4:01 PM EDT
Company Press Release
PairGain expands HiGain HDSL line with intelligent low cost products to address T1 feeder applications
Phone companies to save more than 50 percent over traditional T1 repeaters
HDSL market leader continues to respond to market demand for advanced copper-based solutions
TUSTIN, Calif.--(BUSINESS WIRE)--June 2, 1997--PairGain Technologies Inc. (NASDAQ:PAIR) Monday announced the availability of a comprehensive range
of HDSL (High-bit-rate Digital Subscriber Line)-based HiGain products designed specifically to be deployed in digital loop carrier (DLC) feeder environments,
where multiple T1s are used to link remote DLC systems to telephone company central offices (COs) or in typical point-to-point T1 installations when advanced
maintenance, performance monitoring and testing features are not required.
PairGain's new HiGain products, while continuing to enable intelligent HDSL transmission, have been modified for the remote cabinet environment.
Since testing and maintenance are typically handled in the telephone companies' COs and not in the field, all front panel management and local testing features have
been eliminated.
The new offerings will include two HiGain line units, HLU-231, List 7C and HLU-319, List 2C for the most widely used ``220'' and ``3192'' shelves and two remote
units, HRU-412, List 8C and HRU-419, List 1C for the ``400'' enclosures and ``3192'' shelves, doublers, indoor and outdoor enclosures, comprehensive network
management and are fully compatible with PairGain's existing HiGain products.
The new HDSL products will enable telephone companies to realize cost savings of 50 percent of more over traditional T1 repeaters, due to lower equipment and
labor costs.
These low cost products will enable PairGain to aggressively pursue the feeder segment of the T1 market, traditionally serviced by T1 repeaters.
DLC feeder market
The ``feeder'' is the high capacity link between the serving CO and remote DLC cabinet. For over 20 years, phone companies have used DLCs to build out their
networks instead of constructing new COs.
Today, more than 25 percent of business and residential customers receive phone service via a DLC. The copper feeder is usually comprised of five or more T1 lines
in parallel.
Today, phone companies deploy feeder links via fiber optic cable or T1 repeaters. The copper feeder link is the largest remaining application for T1 repeaters.
Custom-tailored features; compelling economics
Unlike the company's existing HiGain products which are ideally suited for the T1 local loop environment where advanced network management and testing features
are mandatory, PairGain's new HiGain products have been designed specifically to address the DLC feeder market.
Since DLC cabinets are often installed beyond the carrier serving area (CSA) or 12,000 feet of the closest central office, the new products allow for longer spans by
enabling more than three doublers per link. (In a normal point-to-point HDSL installation no more than two doublers are typically deployed over any given span.)
Total span range can be up to 10 miles or more.
HDSL inherently requires fewer splices and less equipment in the field than traditional T1 repeaters, with HDSL units required every 12,000 feet and T1 repeaters
required every 3,000-6,000 feet. The resulting benefits include greater reliability via HDSL, given that there are fewer potential points of failure; and quicker
installation and service turn-up via HDSL.
``Since a number of our existing customers had begun using our HiGain products to address the T1 feeder application we decided to respond to the increasing
market demand with a low-cost, tailored version of our HiGain local loop products,'' stated Charles Strauch, PairGain chief executive officer.
``We believe these products are priced and featured right and will enable us to capture a good portion of the T1 feeder market which has traditionally been serviced
by T1 repeaters.''
Market-Leading HiGain T1 Systems
PairGain is the undisputed HDSL market leader. Its HiGain systems are the telephone companies' fastest way of deploying HDSL to deliver high-speed data, video
and voice over ordinary copper wire pairs, with a minimum of installation and labor costs.
HiGain systems provide plug-and-play repeaterless T1 and E1 service over one or two pairs of unconditioned copper telephone lines at distances of up to 12,000
feet. The products are being deployed by all seven regional Bell operating companies, Bell Canada and nearly all major independent telephone companies in the
United States and Canada.
Pricing and Availability
The new products will be available during the third quarter of this year. Pricing is based on volume with line and remote units priced at about 25 percent less than
PairGain's standard HiGain products.
About PairGain
PairGain, the xDSL (high speed Digital Subscriber Line) market leader, designs, manufactures and markets communications systems that allow telephone companies,
network service providers and organizations with private networks to efficiently and quickly deploy high-speed data, video and voice service to end users over the
existing infrastructure of ordinary copper telephone lines.
PairGain's HiGain, PG-Plus, PG-Flex and Campus systems are marketed under the trademark, CopperOptics, indicating their ability to provide fiber optic quality
transmission over the ``last mile'' in both public and private networks, worldwide.
NOTE: Except for the historical information contained herein, the matters discussed in the announcement are forward-looking statements which involve risk and
uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the company's operations, markets, products,
services and prices and other factors discussed in the company's filings with the Securities and Exchange Commission. |
