Adaptive Broadband and Hitachi Partner to 'Consumerize' AB-Access for Residential Market
SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 19, 2000--
Companies Sign Joint Development, Licensing, Manufacturing
and Distribution Agreement
Adaptive Broadband(TM) Corporation (Nasdaq:ADAP) announced it has signed an agreement with Hitachi Kokusai Electric Inc. under which Hitachi will design and produce components to further reduce the cost and size of AB-Access(TM) fixed wireless broadband equipment to target the global residential market. Additionally, Hitachi will develop market access and sales channels for AB-Access in Japan and in other markets in Asia.
Joint Development of Lower Cost Products
Hitachi designs, manufactures, markets, and sells Application Specific Integrated Circuits (ASIC) and other integrated modules for enhancement and cost reduction of electronics products. Adaptive Broadband has already initiated Phase I of its cost-reduction program for AB-Access by incorporating ASIC chips into the product. Further, Adaptive Broadband believes that it can reduce its AB-Access production costs by leveraging the Hitachi partnership to design and produce additional ASIC devices to improve performance and enhance other product features, such as reducing its size. With its current dimensions of 10" x 10" x 3" in the 5 GHz frequency band, AB-Access' fully integrated unit already is smaller than most competing products.
Licensing, Manufacturing and Distribution
Under terms of the agreement, Adaptive Broadband and Hitachi have negotiated a non-exclusive license to grant Hitachi the non-exclusive right to manufacture AB-Access. Additionally, Hitachi and Adaptive Broadband have negotiated a distribution agreement whereby Hitachi will sell AB-Access in Japan, and in other markets as mutually agreed upon by the two companies.
Japan: 10% of the World's Internet Users
According to industry sources, Japan is the world's second largest national market, with 10% to 20% of the world Internet, telecommunications and e-commerce markets. Internet users number 19 million, (10% of the world's users) up 28% one year ago. According to Makoto Suzuki, Board Director General Manager, International Operations Division, Hitachi Kokusai Electric, "Japan is more advanced than other countries in terms of our citizens' adoption of wireless communications and Internet usage. It is appropriate then, to introduce AB-Access fixed wireless broadband for ultra high-speed Internet access to Japan's vast residential market."
"With Hitachi as our partner, AB-Access, which was designed to meet the heavy data transmission needs of the business market, can be transformed into a small, inexpensive high-speed wireless Internet access device for the consumer market within 12 months. Additionally, with Hitachi's wealth of experience with consumer electronics they are a natural for assisting us with the packaging of our portable AB-Access," commented John Zhang, Adaptive Broadband's executive vice president for business development. "Currently, cable modems and DSL are the only options for broadband access in Japan and the limitations of those technologies are driving the demand for fixed wireless broadband communications, just as they are driving the demand in the U.S. market," continued Zhang.
About AB-Access
The AB-Access fixed wireless broadband platform bridges the last mile, replacing the local loop for corporate and small business subscribers. Combining a leading packet-on-demand technology and time division duplexing, it offers data transmission at rates up to 25 Mbps
-- providing the capability for voice, real-time video conferencing, transmission of full streaming video, web surfing, and transmission of data files -- all simultaneously and over one connection.
About Adaptive Broadband
Adaptive Broadband (www.adaptivebroadband.com) is a data networking solutions company that is developing leading-edge technology for the deployment of broadband wireless communication over the Internet. Its AB-Access platform is a leading commercial choice for fixed broadband wireless communication. AB-Access technology spans the frequency range from 2 to 42 GHz. While the first releases for AB-Access are for applications using the 5 GHz U-NII (Unlicensed National Information Infrastructure), 2.5 GHz MMDS (Multi-channel, Multipoint Distribution Service) and 3.5 GHz (International WLL) products are also available. Additionally, Adaptive Broadband recently announced an LMDS (Local Multipoint Distribution Service) version of AB-Access. Currently being deployed at the ultra-high speed of 25 Mbps, both transmitting and receiving, product capacity is planned to increase in 2001, as requested by customers. Currently positioned as a fixed offering, portable versions of AB-Access are planned to coincide with the expanded roll-outs of wireless broadband services in 2001.
About Hitachi
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 2000 half-year (ended September 30, 2000) consolidated sales of 4.0 trillionyen ($37.1 billion(a)). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at hitachi.co.jp. (a) At an exchange rate of 105 yen to the dollar
The foregoing includes forward-looking statements, such as Adaptive Broadband's potential success in product development, that involve risks and uncertainties. Actual events or results may differ materially from those suggested by the forward-looking statement. Factors that could cause actual events or results to differ materially include, but are not limited to, fluctuations in quarterly results, delays in receipt of orders or in the shipment of products, delays in the development of data communications and Internet markets and delays in product enhancements. For a more detailed discussion of these and other factors, see "Risk Factors" contained in Adaptive Broadband's Annual Report on Form 10-K for the fiscal year ended June 30, 2000. |
