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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?


To: P314159d who wrote (17251)11/7/1999 3:14:00 PM
From: Michael F. Donadio  Read Replies (3) | Respond to of 21342
 
Hi Pi,
SBC seems to be on a roll with DSL. I expect it should translate to some sales for WSTL. Do you have any insight from the trenches?
xdsl.com\xDSL\6713.asp

SBC First to Surpass 100,000 DSL Subscriber Milestone

SAN ANTONIO--(BUSINESS WIRE)--Nov. 4, 1999-- Fueled by tremendous third-quarter growth, SBC Communications Inc. (NYSE:SBC - ) now is the country's leading provider of high-speed, ''always-on'' Digital Subscriber Line (DSL) service. SBC became the first company to sell DSL service to more than 100,000 subscribers when it surpassed this milestone in October.

''Customer demand for SBC's DSL service has been spectacular, and our subscriber base has more than tripled in the last few months,'' said James D. Gallemore, executive vice president of strategic marketing for SBC. ''DSL is emerging as the broadband service of choice for Internet enthusiasts, telecommuters and small businesses. Our service is widely available, affordably priced and provides guaranteed speeds and a level of choice competing technologies cannot match.''

Today, SBC's DSL service is available to nearly 10 million households and businesses. However, SBC soon will reach significantly more customers through the recently announced Project Pronto, a more than $6 billion initiative that will transform SBC into America's largest single broadband provider and create a platform to introduce a host of next-generation, broadband-powered services.

Project Pronto will make SBC's DSL service available to an estimated 77 million Americans - 80 percent of SBC's customers - over the next three years and raise the minimum DSL connection speeds to 1.5 megabits per second (Mbps) and 6.0 Mbps depending on the package purchased. These speeds are up to 200 times faster than typical analog modem speeds, and are approximately four times faster than the current guaranteed minimum connection speeds the company offers.

To better serve its customers, SBC is creating partnerships with national and regional Internet Service Providers (ISPs) and leading computer manufacturers.

''Customers want the freedom to choose the ISP that best meets their needs,'' Gallemore said. ''We're providing this freedom by enabling ISPs to offer SBC's DSL service to their members. We currently have agreements with more than 100 ISPs, and are continually adding more companies.''

In a related announcement (see separate release for details), SBC and Prodigy Communications Corporation, a leading national ISP, today said the two companies have signed an agreement to provide DSL service to Prodigy consumer and business Internet customers in markets where SBC offers DSL service.

SBC also is making ordering and installation faster, easier and more convenient for customers. Customers can order SBC's DSL service over the Internet, and SBC is developing splitterless technologies that simplify installation by eliminating the need for a SBC technician to install a splitter at the customer's premise. In addition, several computer manufacturers are offering PCs equipped with internal DSL modems.

For consumers, DSL's super-fast speeds and always-on connection enable them to experience the full richness and potential of the Internet. For smaller businesses that previously couldn't afford high-speed access, DSL is helping them revolutionize their businesses. A single DSL line can be networked to support multiple users and IP addresses, making it easier and more affordable for an entire office to receive high-speed access. DSL also provides access to technologies and applications similar to what larger companies enjoy, including enhanced e-commerce and web hosting capabilities.

Enterprise customers such as IBM, PeopleSoft and E-TRADE are providing thousands of their employees and end-users with a DSL-powered telecommuting solution that improves work-at-home productivity. From their homes, these telecommuters send e-mails, download software, videoconference with co-workers and react to breaking financial news, all at the lightening-fast speeds employees experience in the workplace.

SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its trusted brands - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada bell, SNET and Cellular One - and world-class network, SBC provides local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 87.3 million voice grade equivalent lines, 10.3 million wireless customers and is undertaking a national expansion program that
will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 22 countries. With more than 200,000 employees, SBC is the 14th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.



Michael



To: P314159d who wrote (17251)11/8/1999 6:43:00 PM
From: savolainen  Read Replies (2) | Respond to of 21342
 
[BT]

Hi P314159265358979323846264338327950288d

Well, it's been a while... and figure that's got to be you...

Since Pied, you still seem to have the best WSTL IQ around, could you tell me if I've got the BT story right? Am still tracking ORCT and therefore have been watching BT pretty closely.

My understanding is that Westell goes way back with BT, maybe further back than FTEL (?). In any case, FTEL and WSTL have been working together for the last couple of years in trial mode providing primarily CAP based product (?), while Alcatel has been providing DMT.

When WSTL retreated from Europe this year, FTEL simply stepped into their shoes, hiring WSTL europe's employees, and taking over their lease, and certain fixed assets and inventories. Believe FTEL also licensed WSTL's IP and signed an agreement for manufacturing product (including royalties). As part of this deal FTEL is also picking up the tab for some of WSTL's R&D for at least the next year. From what I have been able to gather looking at WSTL's SEC filings, WSTL is expecting FTEL to pay them around $4 million for r&d in the upcoming year. Last quarter (August filing) it looked like they kicked in about $700,000, so this more or less double checks.

Believe FTEL had been supplying BT WSTL's CAP product, but would think that this will be phased out. From what I gather WSTL's DMT product has quite a ways to go as central office product development was all but abandoned during this last year's cash crunch. How am I doing so far?

The big question I guess, is how far WSTL's DMT co equipment has to go to be competitive with the latest and greatest from say Alcatel? My guess is that $4 million or even $8 million/year in R&D isn't gonna do it (if the deployment ramp is steep). The second part of this question is that I am expecting Fujitsu to want to use their new Keywave ADSL silicon for this equipment. To your mind, how much extra effort will integrating/optimizing this new silicon entail?

And must admit, way back in '98, I was overly optimistic on Fujitsu's silicon ramp schedule as well as ORCT's ability to stem the red ink near term, but fwiw, am guessing they're still in the game, and in any case, overall ORCT hasn't treated me too poorly... ;)

til later
s



To: P314159d who wrote (17251)11/8/1999 8:30:00 PM
From: dave turliku  Read Replies (1) | Respond to of 21342
 
pd, Ski, and all...:

Long time no write - although I have been following your posts, and WSTL action, I just have not had the time to click the "Respond" tab. My broker must be thrilled or think I something has happened to me - I have not hounded her for my daily quote - guess that should be a new habit, as it has led to less mental stress. Seems my "real" job is taking more and more of my time, and I am somewhat resigned re: WSTL as I was in Nov of last year, and geez, it finally bolted from 2.88 to 6-ish !

I do have to take issue with your TA Pi - though I concur with you on the Weekly (but how predictive has the weekly been anyways), the Daily looks very bullish indeed. Seems to be tightening up for the next major move, which I am guessing to be up.

My major decision now is whether to weather the tide or sell on the next $1-2 rally. I am seriously concerned that Greenspan is playing this "goldilocks" economy crap just because he knows that the truth about future tightening, combined with Y2K concerns would devastate the markets.

Having said all that, I watch as AWRE climbs again, and DCTM (ouch pi...) breaks from $14 to $40), and can only wonder woulda/coulda.

Disappointed by move off of last earnings announcement, and really wonder if I have the fortitude to anticipate another.

Regards,

Dave