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Technology Stocks : Vitesse Semiconductor

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To: Bulldozer who wrote (2387)	3/31/1999 9:35:00 AM
From: Tim Michaels	Read Replies (1) of 4710

IP vs. SONET As a follow up to Bulldozer's comments on the subject. Keep in mind that IP is the protocol for handling packets, while SONET is the standard for transmitting over fiber. Also, Vitesse brings to the table the ability to handle very fast signals using GaAs technology. Whenever you are talking packets you are talking about the ability to interface with the exisitng network. PMC brings to the table the ability to handle packets, on an ATM network, through the UTOPIA interface. I describe this interface as the toll booth operator onto the fiber highway. The real discussion is IP vs. ATM. You will still need to hand off either signal to Vitesse to speed it up to the quickest SONET speeds. And of course companies like PMC is looking at developing chips to handle IP packets as well. The real question is what happens to ATM, and the answer remains to be seen. The most logical answer today would be for both ATM and IP to coexist. A lot of money is being spent today for ATM networks, and IP is necessary for the link between the central office and the ISP, but we'll have to wait and see how this one plays out. Tim

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