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Non-Tech : Amati investors

AMTX 1.430

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10:40 AM EST

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To: Robert A. Hawley who wrote (6087)	11/25/1996 11:46:00 AM
From: Geof Hollingsworth	of 31386

I think you are correct to be cautious. The 16-CAP (or is it CAP-16) implementation of VDSL for switched digital video was jointly developed and is co-owned by Lucent and BBT, and is implemented in two chip-sets. The subsciber side (for the PC, set-top, etc.) is either royalty-free to others or at least cheap. The other chipset (the VAP) goes in the ONU and requires a hefty license fee- I have heard it is the better part of $1 million. The only VAP licensee I have heard of to date is....NEC! Given that this is a switched digital video system, that CAP-16 is already available, that NEC has (may have? anyone else heard of this?) licensed it, that the HK deployment is scheduled for mid-1997, and that the agreement was news to Berry, I think there is at least a 50/50 chance that this has nothing to do with Amati. Of course, it could also be released as an Amati agreement about the time I press "Respond", which would be fine with me too.

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