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Technology Stocks : COM21 (CMTO)

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To: pat mudge who wrote (440)5/26/1999 1:20:00 PM
From: riposte  Read Replies (1) of 2347
 
Differentiation

Hi Pat -

Browsing Com21's Web site, three product features strike me which seem very important:

1)Privacy from Other Subscribers. ComPORTs can be configured by the cable operator to block all non-IP protocols, preventing subscribers on the same cable network from accidentally gaining access to others' files.

I seem to recall that, if you don't have a feature like this, another cable user could potentially connect to your PC using NETBEUI.

2) Data Security. Data Encryption Standard (DES) encryption (56-bit
N. American/40-bit International) and public key management enable secure upstream and downstream data communications between the ComCONTROLLER and associated ComPORTs.

High-Value Business Networking. The ComUNITY Access system enables cable operators to establish private, secure VPNs for business applications such as corporate telecommuting or remote access. Using NMAPS, the cable operator can easily group like users into a virtual local area network (VLAN). That VLAN's traffic is directed to a dedicated port on the ComCONTROLLER, allowing for easy connection to the corporation's private network. Although users share the same downstream channel, Com21's VLAN feature prevents co-mingling of traffic between users in different VLANs, thus satisfying a critical requirement of corporations to have their sensitive data protected from outsiders.


3) Superior Noise Technology. Com21 has developed noise conntainment technologies that allow the system to tolerate higher levels of noise, thereby enabling cable operators to install the system on noisy cable plants that could not otherwise be used for two-way data transmission.
I believe TERN makes similar claims; I do not know if these claims are true, or not. If it is true, this would be a strong differentiator.

I don't know if features 1 & 2 are part of the DOCSIS, or some other, proprietary standard, or are unique to Com21. If they are unique to Com21, they (especially #2) would be a HUGE differentiator and reason to chose Com21. Of course, it rather contradicts the purpose of everyone getting behind a standard, so I'm not sure how to interpret these features. I definitely need to do more research on this.

Just because a product conforms (or will conform to) a standard, doesn't mean that some can't be better than others. For proof, look at "regular" computer modems, and other things, like cell phones. Not all cell phones perform the same, although they all conform to common standards.
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