Stephanie - >>The AMTX/TI article never ran on DJ.<<
NEW YORK -(Dow Jones)- Amati Communications Corp., a developer of technology that creates high-speed Internet connections over regular phone lines, Thursday announced an alliance with Texas Instruments Inc.
The pact is aimed at combining Amati's technology, which is based on the hot Asymmetric Digital Subscriber Line, or ADSL, transmission technology, with Texas Instruments' chip-making knowhow. The firms also said TI's experience in other communications technologies should help Amati to integrate its offerings with other formats.
The deal could be significant for Amati. Shares of Amati and other ADSL firms, such as PairGain Technologies Inc. and Westell Technologies Inc., lost ground a few weeks ago partly on fears that telecom-equipment heavyweights could steal the the lead in the nascent market by selling products substantially below cost.
Those fears were sparked after after Westell lost out on a key ASDL contract to French conglomerate Alcatel Alsthom SA. Four Baby Bell companies - Ameritech Corp., BellSouth Corp., Pacific Telesis Group and SBC Communications Inc. - placed the first big commercial order for ADSL gear with Alcatel. Westell had been expected to win the pact.
Last month, Ameritech Corp. and International Business Machines Corp. began a six-month trial of high-speed modems based on ADSL technology.
Computer modems using ADSL are expected to be in hot demand by phone companies seeking a low-cost way to give customers high-speed, more convenient access to the Internet but still use exisiting copper telephone lines.
Transmitted: 10/17/96 4:24 PM |
