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Technology Stocks : Terayon - S CDMA player (TERN)
TERN 26.11-3.7%Nov 20 3:59 PM EST

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To: Bobo who wrote (72)3/12/1999 10:48:00 AM
From: George T. Santamaria  Read Replies (1) of 1658
 
It has to be appreciated that Signal-to-Noise Ratio is a key issue in this business. If BRCM has a solution that neatly fits on silicon but cannot function in the current cable plant environment, then we have a moot point.

Let me explain further. Existing Motorola modems rely on old-fashioned QPSK for the uplink modulation. If you look at SFA's web site, theyy take a well defined position on this issue and advocate it for it's robustness. Lower data rate but far more robust. Likewise for S-CDMA as it purports to take the issue a step further by claiming to function in an all-coax network. Whether it does or not, it's a huge advantage to have an uplink scheme that functions at a low S/N ratio.

On the other hand, BRCM's chip set uses 64 QAM type modulation techniques. I think that with cable plant upgrades being the major limitation on broadband expansion, the point regarding BRCM's cost advantage at the chip level is moot.
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