Mr. Jones, Mr. Scrapps made me do it!
US Robotics Sees High Demand For x2; To Ship In A Few Days
By Mark Boslet
PALO ALTO, Calif. (Dow Jones)--U.S. Robotics Corp. (USRX) shrugged off Rockwell International Corp.'s (ROK) recent challenge to its new high-speed modem technology, insisting it was months ahead in the marketplace.
Rockwell has in recent days said it would begin mass-producing its new modem chip this month and that products with the technology could be on store shelves next month. Rockwell plans to ship up to four million chip sets by June.
But U.S. Robotics said testing of its new x2 technology has gone on for months in real-world situations, a big advantage compared with Rockwell's more rushed market entry. In addition, 325 Internet and online service providers are installing the technology so consumers will be able to use it, something Rockwell has not been able to accomplish, the company said.
Consumer products are to ship within a ''few days,'' said U.S. Robotics Chief Executive Casey G. Cowell.
Both companies claim their new technology will offer on-line connections as fast as 56 kilobits per second, about twice as fast as the quickest modems currently on the market. Because the Rockwell and U.S. Robotics technologies are not compatible, consumers have to choose between one or the other until product standards are agreed upon.
Cowell said he believes the company's success in getting service providers that cover 70% of online subscribers to incorporate x2 technology is an important distinquishing feature.
Consumers need to find similar 56K technology on the other end of a phone line to take advantage of the greater speed.
Cowell also said testing of the x2 technology over real-world phone lines has gone well. The modem performs at speeds of about 50 kilobits per second on 90% of the circuits tested, he said.
Analysts expect U.S. Robotics to produce about one million x2 modems a month. Cowell declined comment on production levels, only saying that the company is ''tremendously positioned to roll out the technology aggressively.''
Perhaps the more critical question, however, is when the ISPs will turn the new technology on, said one investor.
U.S. Robotics shares have fallen about 7% since Friday's close on Rockwell's announcement of its quicker rollout. |
