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Technology Stocks : George Gilder - Forbes ASAP -- Ignore unavailable to you. Want to Upgrade?

To: M. Charles Swope who wrote (4187)	5/10/2000 5:21:00 PM
From: Dan B.	Respond to of 5853

Charlie, Re: "You wrote "Terayon offers non-proprietary Docsis certified modems for sale."" It is good that Terayon has the DOCSIS base covered, I do believe. Re: "Now, do you think this company's valuation is based upon its ability to make and sell "non-proprietary Docsis" modems or on the S-CDMA technology that is the issue in the lawsuit and the magazine article?" Both. I'd note that not only have S-CDMA sales done so well outside the U.S.(an issue Mr. Gilder has covered well, alerting readers plainly and long ago that S-CDMA sales were largely outside the states, and why) that even anti-S-CDMA forces such as Bernard Levy of SI have commended Terayon for the effort(though I think it's accurate to say he felt simultaneously that the good results must end, they haven't yet so far as I can tell). S-CDMA is indeed the only significant historical basis for the stock valuation(oh, the cherrypicker product was "hyped" by Gilder too though), but the fact that Terayon has the TDMA base covered too is surely a reasonable consideration now. But as for S-CDMA as the main consideration, it does continue to blossom. I'll note again, that despite S-CDMA/DOCSIS issues raised, Terayon just sold both its proprietary S-CDMA and the non-proprietary Docsis TDMA technologies to the sixth largest cable operator in the U.S., which includes an S-CDMA deployment in Los Angeles. Yes, both. S-CDMA, I gather, speeds the time to revenue generating service offerings, and simultaneously lowers costs for operators around the world today. Some operators have found it beneficial even where Hybrid Fiber Coax exists, as I understand it. If such is found to be the case by others in the future, the market valuation may turn out to be justified and then some, as S-CDMA use continues to grow rapidly, and finds itself wanted more and more in the U.S. to boot, right along side TDMA, IMO. Dan B