[consortium]
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Tom --
I don't think I'll buy into the conspiracy theory, but I do agree Mr. Softie is playing some powerful cards with this consortium. I watched this morning's Squawk Box on CNBC and noticed LU's CEO said of the consortium "we'll be there." Surprise to me. As of last night they were not a member. Does this mean they're now officially part of Softie's team? Sure looks like it. Of course TXN's Aylesworth also said they'd be there, but it was more in response to the question regarding the market created by the consortium.
As for standards, I'm told they're going with ADSL/DMT at the lower speeds and the T1/E1 committee is already looking at what has to be done to include it in the standard. My ADSL source at Siemens said the ITU committee will most likely give an initial blessing and the ANSI/ETSI committees add their papal blessings later.
I'd put my bet on LU being the initial supplier using ADI's chips. But since I was wrong on LU's participation in the consortium, I could be wrong on this as well. Time will tell. TI will be there with a competitive chip, though I don't know the timing.
Now when you say this development could have a more chilling affect on technological innovation than DOJ's dealings with Mr. Softie, I have to wonder how different a standard for PC modems can be from an operating system. Anyone can provide the ADSL for modems or central offices. Microsoft certainly isn't going to take those markets.
As for TXN completing the buyout, they essentially own the company now with over 78% of the shares. Behind the scenes they're even more committed. You don't reorganize a substantial portion of your company around an acquisition, restructure partnerships, and uproot large numbers of people and then say, oops, guess we won't do it. The law suits alone don't bear contemplating.
Mr. Softie has been involved with ADSL since the first day MSFT announced their participation in the GTE trials. His current maneuverings shouldn't come as a surprise to anyone. Nor should CPQ's and INTC's involvement. The writing's been on the wall for over a year.
At any rate, I'll be watching next week's announcements with as much concern as you.
Thanks for speaking out. I don't think any of your issues should be taken lightly.
Regards,
Pat |
