Hi all:
I was rooting around in the WSTL news archives and found two articles on WSTL that I -DIDN'T- see on this board (or on SI), so I thought I'd post 'em:
ARTICLE #1
Computers & Technology Finally Ready? DSL Promises Fast Net Access
Investors Business Daily, Monday, April 06, 1998 at 13:23
Waiting for phone companies to invest in new technologies can be
like waiting for a bus that never shows up.
But it looks as if the Baby Bells are getting serious about
speeding up Internet access over regular phone lines.
Digital subscriber line technology sends data 10 to 30 times
faster than conventional modems. Many companies have been waiting
for the DSL market to get hot. Among them is Aurora, Ill.-based
Westell Technologies Inc.
In '93, Westell was the first company to deploy DSL switching gear
in field trials with phone companies. It's now a partner of Bell
Atlantic Corp., which plans to start offering DSL service in a few
cities by late '98.
Westell CEO Marc Zionts recently spoke with IBD about DSL.
IBD:
Cisco Systems Inc. in March announced plans to buy NetSpeed Inc.,
a DSL firm. Texas Instruments Inc. snapped up DSL firm Amati
Communications Corp. last year. Will there be a shakeout among DSL
players?
Zionts:
There will be plenty more consolidation. Cisco's acquisition of
NetSpeed was their third deal related to DSL. That says a lot about
this market. If you're just a DSL start-up company, it can be tough
to go it alone. But Westell has other businesses that will carry it
through until DSL gets started.
IBD:
Westell almost bought Amati, which held key DSL-related patents.
Is it important to own intellectual property in the DSL market?
Zionts:
We were after digital signal processor (chip) competency (to build
DSL equipment). The intellectual property came with it. Through our
strategic alliance with Texas Instruments, we're still getting access
to that expertise. We needed the right silicon partner.
IBD:
The regional Bells, Compaq Computer Corp., Intel Corp. and
Microsoft Corp. recently formed a consortium backing a new DSL
variant that's more consumer friendly. Are they on the right track?
Zionts:
Ease of use and ease of installation are important for consumers.
(Such ease) also radically improves the business model of the service
provider (Baby Bell). If they don't have to send out a truck, they
have a chance to save $250 per installation.
IBD:
Will modems based on the consortium's standard be available for
the Christmas shopping season, as the group promises?
Zionts:
As long as you're talking '99. If you're talking Christmas '98,
it's overly optimistic.
IBD:
The DSL consortium has embraced a data format from Aware Inc. of
Bedford, Mass. Is there any disadvantage to Westell?
Zionts:
The consortium is simply promoting a standard. They're not
picking someone's implementation. It's a fallacy if someone thinks
the whole (standard) is based on Aware. Even if it were, we're a
systems company. We can buy hardware from anywhere.
IBD:
Is the industry still worried that not all DSL gear will be
compatible?
Zionts:
We need to take advantage of the consortium's efforts. If we
don't achieve interoperability, the market size will only be a
fraction of what it could be if we do.
If you look at Cisco's deal with NetSpeed, which also involves
Northern Telecom, you still have companies endorsing alternate
technologies. All that does is create fear, uncertainty and doubt in
the hearts of end users and customers.
IBD:
What's driving the need for DSL equipment?
Zionts:
If you're in the computer industry, the gating item that you now
need to solve is bandwidth. Computers have tons of memory,
processing speed and video cards, but what's limiting performance is
bandwidth. If greater bandwidth doesn't happen from DSL, it will be
provided through cable modems or some other method. Phone companies
want to exploit their asset, the existing copper wiring.
IBD:
How much do phone companies have to spend to provide DSL service?
Zionts:
The economics of this are based on the homes you serve, not the
homes you pass, as in the cable industry. With a cable modem, you
have to wire the whole neighborhood. Once you get a take rate (for
service), you (providers) can calculate the cost.
With DSL, the phone companies can put equipment in a central
office based on each customer served. If there are 3,000 customers
that take DSL service, they'll spend 3,000 times the price per line.
(DSL providers are) looking at less than $500 per customer served.
IBD:
What issues do the regional Bells face in offering DSL service?
Zionts:
They can deploy DSL as either a regulated or a deregulated
service. I think most of the regional Bells will decide to offer DSL
as a regulated service, so they have to file tariffs (for pricing
rates) in each state.
They also have to decide on how they're going to distribute DSL.
Early on, I think the phone company will provide not just the
service, but will also lease or sell the modem. In a few years, the
modem may come built into computers. There are many back-office
issues that you can't underestimate. No one wants this to be like
ISDN. You want there to be great customer care.
IBD:
What percentage of the U.S. population will have access to DSL
technology a few years from now?
Zionts:
By the year 2000, some people say 25% of the U.S. population will
want highspeed Internet connections. Given that assumption, the
market will be split by technologies such as cable modems, DSL and
wireless. My belief is that DSL would get a significant share of the
market. I could see a model that by 2000 you could see a 10%
penetration rate for DSL services.
This thing will happen a lot later than any of us would have
liked. But once it happens for real, it may ramp up a lot faster
than many of us expect.
ARTICLE #2
RESEARCH ALERT - Westell (NASDAQ:WSTL) downgraded
Reuters, Thursday, March 05, 1998 at 12:50
NEW YORK, March 5 (Reuters) - Bankers Trust Alex. Brown
said on Thursday it lowered its rating on shares of Westell
Technologies Inc to buy from strong buy.
-- Further details not immediately available. -- Stock
up 5/16 to 12-9/16. |
