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Non-Tech : Amati investors
AMTX 1.630+1.9%Jan 12 3:59 PM EST

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To: Galirayo who wrote (11270)3/3/1997 1:15:00 PM
From: JW@KSC   of 31386
 
{ Winning Samsung & other disputes ]

>>Any idea when TI will recieve the funds from the Defense Division Sale?<<

No, only that my company bought it along with Hughs Defense Division!

Speaking of winning Patent disputes.... MOT vs USRX
JW@KSC

2. SLOW DELIVERY OF 56K MODEMS

Question: Where are they?

Answer: Blame U.S.Robotics (USR)

Actually, you can blame the Marketing and Public Relations
departments for jumping the gun with their "x2 Technology"
and raising everyone's expectations. USR was so worried
about the competing Rockwell/Lucent "K56flex" technology
that they raced the product announcement to market BEFORE
they had a product to release.

A MODEST MODEM OVERVIEW
When two modems connect and begin to squeal at each
other, they are negotiating the sending and/or delivery
of an analog reference signal. This reference signal
has a particular combination of loudness and pitch which
is identified during the "handshaking" process. Without
an acceptable reference signal, the connection between the
two modems will be broken off.

It is these detectable changes in the signal that carry
both the transfer speed in kilobits per second (Kbps) and
the actual data itself.

The cleaner analog -and especially digital- lines installed
by the long distance carriers and local phone companies mean
that modems can detect smaller changes in the signal, and
thereby communicate more information in less time.

Modems that generate 28.8 Kbps have reached the limit of the
standard POTS (Plain Old Telephone Service). It's not a
question of the modem chipset, or even the software - both
of which can run faster. Modems running 33.6K and 56K are
really depending on your local network to handle the higher
data rates.

Which leads us to...

PROBLEM #1: WHAT'S MY LINE?

The new modems depend on a clean phone signal so that
1) the improved sampling technology can extract the data
from the reference signal in a shorter amount of time,
2) it can more quickly analyze finer changes in the signal
amplitude (loudness) and pitch (phase).

If the modem doesn't receive the high-speed reference signal
(because the line hasn't been upgraded or if there is a lot
of noise), the modem drops down to a slower speed until a
connection is made.

The degree to which your local network has been upgraded
varies depending on what part of the country you live, what
part of the state, or even what part of the city.

In addition, some local phone companies don't want to clean
up their lines. Like Southwestern Bell, they are hesitant
to improve the quality of the "local loop" because it will
interfere with their higher-priced dial-up Internet ISDN
(64 kbps/128 kbps) sales efforts.

PROBLEM #2: DIDN'T YOU SEE THE SPEED LIMIT?

U.S. Robotics has run smack into an obscure Federal
regulation governing telephone line transmissions. The 56K
Technology relies on a higher amplitude signal to transmit
data to your computer. Unfortunately, the new signal strength
exceeds Federal Communications Commission regulations.

FCC rules limit the signal level between connected servers
over a phone network. Without the specifications, we'd be
hearing cross-talk all the time. However, this signal
limitation effectively limits the 56K download speed.

U.S. Robotics either didn't know, or forgot about the signal
limits. Now they are asking for a waiver claiming a "mostly"
digital phone network can support stronger signals.

However, the FCC hasn't decided what they are going to do
and it could take months before the government acts on any
rule change.

Problem #3: THE WAIT FOR SPEED

This delay has left U.S. Robotics stalling for time with
conflicting upgrade announcements and no clear explanation
for the problems. What is most annoying is they knew about
the FCC problem in early January but went ahead with the
marketing announcements anyway.

The U.S Robotics modems (with chipsets from Texas Instruments)
has lost their huge "first-to-market" advantage as all this
delay has given the other modem manufacturers (like Hayes) who
are using the Rockwell or Lucent chipset a chance to catch up.

By the time the FCC acts, both 56K technologies will be
released - the end of February for U.S. Robotics x2 (along
with Cardinal and Logicode) and March for the Rockwell
K56flex (Hayes, Boca Research, Multi-Tech, and many others).
The initial introduction will include software upgrades
($60 - $90) to some existing modems, as well as the
introduction of completely new 56K units.

PROBLEM #4: CAN'T YOU TWO TALK TO EACH OTHER?

Since the two camps don't seem to be willing to agree on a
defacto standard, without a compromise the U.S. Robotics and
the Rockwell/Lucent modems WILL be able to talk to each other
at the 33.6K and 28.8K speeds, they just won't be able to
connect at the full 56,000-bit speed.

PROBLEM #5: SO, WHO GAVE YOU PERMISSION?

Meanwhile, the U.S. Telecommunications Industry Association
and the International Telecommunications Union will still
have to make a decision as to the final standard. Whoever has
the losing approach, "x2" or "K56flex" will have to switch
over to the other's specification - an easy software upgrade.

PROBLEM #6: DOES THE SUIT FIT?

Who came up with the V.34 technology that allowed modems to
transmit data at 33.6 kbps? Why, it was Motorola. And who is
using the patented technology - without permission - in their
existing modems, as well as in the upload data rate for the
new 56K modems? Why, it's U.S. Robotics and Rockwell (and
everyone else who uses their modem chipset). So, who is suing
U.S. Robotics and Rockwell? Why, Motorola, of course.

Actually, Rockwell has just settled out of court. But U.S.
Robotics still hasn't agreed to a final license fee to
Motorola. So, to put pressure on U.S. Robotics, Motorola has
decided to roll out their own 56K modems using the Rockwell
chipset.

Will this delay the introduction of U.S. Robotics 56K?
Will it kill the U.S. Robotics standard?
Probably not. But, it sure puts a lot of pressure on USR
and makes things even more messy.

IF YOU ASK OUR OPINION...

If you are thinking of buying a new modem anyway, we still
think it's O.K. to upgrade to a 56K compatible modem now.
Most of the units will come to market under $200 and be
software reprogrammable. You will always have the capability
for 33.6 kbps data and you won't get stuck with an expensive
"paperweight" because you'll be able to take advantage of the
faster 56K rate - whatever it is and whenever the standard
becomes final.

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