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Technology Stocks : IDT *(idtc) following this new issue?*

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From: carreraspyder4/21/2004 4:31:36 PM
   of 30916
 
Can Someone Answer The Router? [from dslreports, today]

Linksys VP says voice enabled router coming
In an interview with CNet Asia, Victor Tsao, the VP of Linksys, talks about future offerings from the networking giant, specifically in the VoIP arena. One of the most intriguing future products Tsao mentions is the possibility of turning your Linksys router into a VoIP terminal: "We have a product right now--an analog terminal adapter for VoIP. The IP phone could be the next Linksys Ethernet router. Earlier this year Texas Instruments announced they'd be offering "Vonage on a chip" to be plugged into everything from hubs to switches, and we're told Time Warner Cable's upcoming VoIP service will be offered on a Motorola cable modem/VoIP combination device.

..if it’s not one thing, it’s your mother: we now have to figure this one out –

Linksys partners with Net2Phone; was private, now owned by Cisco. NTOP is testing that wi-fi voIP phone:


******

asia.cnet.com

{When do you plan to launch your VoIP products?
We have a product right now--an analog terminal adapter for VoIP. Within a month or two, we will work with some voice service providers in the U.S. to launch this product. That will be the first one. A lot more products will come out in the second part of this year. ]

Linksys: Can you answer the router please?

By Winston Chai, CNETAsia
Wednesday, April 21 2004 8:38 PM

If Victor Tsao has his way, your next broadband router could bear an uncanny resemblance to your living room telephone.

Ten months after his company was snapped up by Cisco Systems for US$500 million, the founder of consumer networking gear maker Linksys plans to embark on an aggressive product expansion trail this year.

Beyond latching onto the digital entertainment wave with more offerings for multimedia streaming and wireless console gaming, Tsao will venture into an area where many before him have seen limited success--Internet telephony.

With the proliferation of the Web in the 90's, the ability to make cheap long-distance calls over the Internet--based on a technology called Voice over Internet Protocol (VoIP)--was often touted as a "killer application" for consumers. Of little surprise, the market soon witnessed an onslaught of hardware and software which aimed to ride the net phoning tide. However, poor voice quality and the issue of frequently-dropped calls soon drowned much of the consumer enthusiasm surrounding IP telephony.

Thanks to improvements in quality of service and Internet bandwidth in recent years, VoIP has again caught the attention of telecom carriers around the world. During his Singapore stopover, Tsao, who now assumes the role of vice president and general manager at Linksys, spoke to CNETAsia about his plans for VoIP and future directions for the company.

Q: How has Linksys changed after the acquisition?
A: There is no change to the business model. Cisco is the leader in the enterprise networking field. Linksys is a brand of Cisco but the brand Linksys covers the other side--small businesses, home users and consumers.

As for market focus and product focus--they haven't really changed--although yes, some things have changed. Before the acquisition, 95 percent of our revenue came from the U.S. and Canada. With Cisco's worldwide presence and infrastructure, we started branching out. (Previously) we never really focused on this due to constraints as a privately-held company.

Back on Oct.14, we launched the Linksys brand in China. We created an entity in Chengdu focusing on after-sales, technology support as well as marketing and promotions.

Are there changes to your product line?
The acquisition also helps with product differentiation. Cisco is one of the few American companies with a lot of engineers and programmers in-house. During the downturn in the last two to three years, Cisco hasn't really slowed down on their product development.

For example in terms of VoIP product lines, it has 80 percent market share. Consider this--Linksys is getting into this market as well. If you talk about VoIP, you really don't know of any leader in the home or small business segment. So why not Linksys? We can start to use Cisco's intellectually property and license its products and software.

In terms of core technology for VoIP for example, echo cancellation is a must in voice applications. Cisco uses that so why not bring it to a consumer-grade level?

How about cannibalization? It's very easy to differentiate the products. For example, Linksys's products can support two ports, four ports, maybe up to 50 or 100 users. Cisco supports hundreds and thousands of enterprise users.

Many companies have tried to offer VoIP-based products to consumers but they have not fared too well. Why are you confident of succeeding?
10 years ago we talked about VoIP as the killer application. But really it has been killing itself over the last 10 years.

Now, there are a lot of applications that can't work on the analog phone. Like video. They just can't do that. Three to five years ago, the technology for VoIP equipment was there, but the problem was once you go outside your LAN (Local Area Network), it's unpredictable. But with the infrastructure being set up in the last few years, the bandwidth is acceptable now.

The challenge now is really how to make it easier to use. Don't change the user experience. Do I have to turn on my computer and plug in my headset and run Net Meeting? We must improve the user experience and the product must also work with voice service providers.

When do you plan to launch your VoIP products?
We have a product right now--an analog terminal adapter for VoIP. Within a month or two, we will work with some voice service providers in the U.S. to launch this product. That will be the first one. A lot more products will come out in the second part of this year.

When will those products be launched in Asia?
We're looking at sometime this year. We want to try out in the U.S. first. We want to make sure the product can stand its ground at the service provider level. Once we have that in place, we can pretty much go anywhere.

It's finally time for VoIP. There are more products, costs are more affordable, it's easier of use, plus Wi-Fi may enable the cordless part of it.

Linksys has been strong in making consumer networking gear. With the diversification, what are the priorities going forward?
Personal computing products are absolutely bread and butter and we will continue to drive this. Communications is number 2, thanks to Cisco. The IP phone could be the next Linksys Ethernet router. Entertainment comes next.
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