*AV*--Yep, I would like to improve my profits by eliminating the spread.
Nice news release. Let's see if PAIR moves well on it.
Monday March 16, 9:01 am Eastern Time
Company Press Release
PairGain and Rockwell Semiconductor Systems Announce Powerful Alliance to Deliver World's Lowest Power, Lowest Cost DMT ADSL Products
Rockwell to License PairGain's DMT ADSL Falcon Chip For Rapid Deployment of Consumer ADSL Modems and Central Office Equipment; Companies to Co-develop Family of G.lite and ADSL Devices
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 16, 1998-- PairGain Technologies Inc. and Rockwell Semiconductor Systems (NYSE: ROK - news) Monday announced an agreement whereby Rockwell will license PairGain's DMT ADSL (Discrete Multi-Tone Asymmetric Digital Subscriber Line) Falcon chip, the industry's first 8 Mbps single-chip DMT ADSL processor.
The companies will also jointly develop a family of ADSL and G.lite devices. This agreement by PairGain, the DSL market leader, and Rockwell, the consumer modem chipset market leader, creates a formidable force aimed at accelerating the deployment of low cost multi-megabit Internet access services to consumers over the existing infrastructure of copper telephone lines.
Terms of the agreement call for Rockwell to compensate PairGain via licensing and royalty fees for exclusive rights to its DMT ADSL technology over a two year period. The agreement also calls for an intellectual property exchange between the two companies and a close collaboration on the development of future, highly integrated ADSL and G.lite devices. PairGain will integrate its DMT ADSL technology into a line of DSLAM (Digital Subscriber Line Access Multiplexer) platforms, other central office equipment and high-end modems. Rockwell will offer the low cost Falcon chip to retail modem manufacturers and PC OEMs. Additionally, PairGain and Rockwell will jointly enhance the Falcon technology to target future ADSL markets, and develop both consumer modems and central-site modems and equipment.
Earlier this year PairGain announced its Falcon DMT chip, a flexible, full-functionality DMT ADSL processor. This innovative solution was designed with more features and less complexity than other offerings on the market, making it an attractive and viable solution for mass market deployment today. The Falcon chip is capable of transferring data, video and voice at rates exceeding 8 Mbps downstream and 640 Kbps upstream over a single copper telephone line. This performance will enable such consumer Internet applications as Internet telephony and video, distance learning and telemedicine. Data rates are adjustable in increments of 32 Kbps to enable the longest possible reach. The Falcon chip also offers breakthrough ADSL power consumption specifications at less than 0.55 watts for operation. The Falcon chip includes all the digital circuitry necessary to implement a T1.413-compliant DMT ADSL transceiver, and incorporates all necessary DMT modulation, framing, error correction, interleaving and interleave RAM in a single 160-pin PQFP package.
PairGain's Falcon chip is the first single-chip DMT ADSL processor that supports today's T1.413 DMT ADSL standard as well as low-cost ''splitterless ADSL'' services using the industry's emerging G.lite standard. The International Telecommunication Union (ITU) is developing the G.lite standard which will simplify modem deployment by making ADSL modems as easy to install and use as analog modems. With G.lite-compliant ADSL service, there will be no need for the telephone company to visit the consumer's home to install splitter equipment or modify any wiring. Subscribers will be able to hold a phone conversation and access the Internet simultaneously, with no need to dial in as is required with today's analog modems. The establishment of an industry-wide standard is being endorsed and promoted by a consortium of computer and telecommunications industry leaders called the Universal ADSL, Working Group (UAWG).
''PairGain and Rockwell bring together a unique and very powerful combination to the ADSL marketplace, worldwide,'' said Raouf Halim, vice president and general manager of Rockwell's Network Access Division. ''PairGain is a proven, long-term, world class supplier of DSL to telcos and CLECs alike. Their significant DSL systems expertise and advanced implementation of the Falcon technology will give the two companies a substantial lead as the ADSL market ramps up.''
''PairGain and Rockwell have the potential to dramatically accelerate the proliferation of low cost ADSL products across a broad base of Internet subscribers, worldwide,'' said Howard Flagg, president of PairGain. ''Rockwell's majority share of consumer and central site modems and its strength in world-class manufacturing technology and mixed-signal integration will enable rapid, low-cost, deployment of ADSL and G.lite-based services.''
With this ADSL alliance, Rockwell completes a product portfolio that now encompasses all major implementations of xDSL technology. This includes DMT ADSL chips and future DMT G.lite products, as well as another version of consumer-oriented ADSL technology that Rockwell announced last fall which uses low-cost, low-complexity Quadrature Amplitude Modulation (QAM) technology. Rockwell also is the world's leading supplier of High-bit-rate Digital Subscriber Line (HDSL) and Symmetric Digital Subscriber Line (SDSL) chipsets that use proven 2B1Q coding for business access and digital pair gain applications. Additionally, the company is developing chipsets that support a proposed set of specifications called OPTIS (Overlapped PAM Transmission with Interlocking Spectra) that the industry is defining for a new single-pair T1 standard for HDSL technology known as HDSL2.
PairGain Technologies Inc. (Nasdaq: PAIR - news) is the market leader in the design, manufacture and marketing of advanced xDSL communications systems. PairGain's products allow network service providers and organizations with private networks to rapidly deploy high-speed data, video and voice services to end users over the existing infrastructure of copper telephone lines.
PairGain's HiGain PG-Plus, PG-Flex, Megabit Access and campus area network products provide fiber optic quality transmission over the ''last mile'' in both public and private networks worldwide. More information on PairGain is available on the Internet at pairgain.com.
Rockwell Semiconductor Systems and Electronic Commerce is based in Newport Beach, Calif. Rockwell Semiconductor Systems is a leading worldwide provider of semiconductor system solutions for personal communications electronics products used in personal computing, network access, personal imaging, wireless communications and digital infotainment. These product platforms offer a variety of technology convergence opportunities and each leverages the company's 30-year mixed-signal computing heritage in such key areas as signal-processing algorithms, signal conversion, and communications protocols. The Electronic Commerce Division, based in Wood Dale, Ill. is a leading supplier of call center systems and personalized electronic commerce applications software. For more information, visit the Rockwell Semiconductor Systems Website at rss.rockwell.com.
Rockwell (NYSE:ROK - news) is a global electronic controls and communications company with leadership positions in industrial automation, avionics and communications, and semiconductor systems with fiscal 1997 sales of approximately $8 billion and 48,000 employees. Rockwell's world headquarters is located in Costa Mesa in Orange County, Calif.
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 companies operations, markets, products, services and prices and other factors discussed in the companies filings with the Securities and Exchange Commission. |