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Technology Stocks : PairGain Technologies

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To: Joe Pirate who wrote (28545)2/10/1999 8:16:00 AM
From: Lea Hwang Lee  Read Replies (4) of 36349
 
All,

I used to own PAIR and I sold
it for a loss.

PAIR specializes in HDSL technology.
Depending on the last mile connection,
the bit rates could range between
2-5 mbits/sec. PAIR is the leading
edge company in this technology.

There is a newer technology poised
to overtake HDSL. This is called ADSL.
The bit rates of ADSL is about 8-10 times
(at least) higher than HDSL. The biggest
problem with ADSL technology is the lack of
industry standard. However, this is going
to change soon. There is also an open
consortium currently taking charge to
standardize the technology. Check out

adsl.com

I think this technology has great potential
and I think it will win over HDSL to become
the standard. I held on to PAIR for quite
a while hoping that they can adopt ADSL
quickly. But each time I read their latest
product release, I only saw how they improve
their HDSL technology. I gave up the wait
and sold it for a loss to avoid even bigger
losses...

There is also an argument that on certain last
mile connections, HDSL is still advantageous
over ADSL. They believe that HDSL will complement
ADSL, but they will never dominate this market.
I think this segment of market is too small
to have any great potential.

Plus, in a long run, both ADSL and HDSL will
be replaced by fibreopti (bit rates 10 times or
more than those for ADSL). Many new building
constructions now have fibreopti built-in.
In the short term (3-5 years), ADSL, currently
led by many big guys like CISCO, AT&T, etc,
are going to dominate the market place.

Unless PAIR can jump onto ADSL soon
(which I think its too late for them to do so),
I wish all of you best of luck...

Lea Hwang
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