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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: 4-UR-Eyes-Only who wrote (3059)	10/30/1997 1:54:00 AM
From: Frank Byers	Read Replies (1) \| Respond to of 4429

I don't know about this. Looks like a weak attempt (too little too late) by DSC to get into GSM. DSC does not have any switches in GSM systems to my knowledge, couldn't they develop the software necessary to convert their existing switches to handle the GSM standard for less than $165M?? I'm in the GSM biz, having spent 9 months this year working on a GSM sytem in Asia. We looked at buying a Celcore system for a small, non-contiguous coverage area in the country of operation, but decided against it as it would have been too steep a learning curve to get the team up to speed on a new vendor. These systems are quite complex to integrate with billing systems, etc... I know Celcore has sold some systems, but not anything large. I, as a GSM customer, would need some significant $$ incentives to even consider risking my system on a new vendor. DSC will have to significantly undercut the Ericssons, MOT's and Nokia's in order to win any contracts and this mean margins will be nil. Sorry to throw a damp towel on the party, as I've been in and out of DIGI a lot in the last year and have made some $$, and believe it or not I got back in today at 24 just before the stock fell. I'd like to believe this is a good acquisition, but to me it looks like about as good an investment as all the dough they spent on Airloop or Airspan whatever their CDMA WLL system is called. Notice how in the 2 years since it's been ready for deployment they haven't sold squat?? I'd rather see the company focus on their strengths, which is landline access and transmission products and forget about the wireless. It just ain't happening for DSC. Lets hope for the best, FB