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

To: Terry Mitchell who wrote (7789)	11/19/1997 9:11:00 PM
From: Skiawal	Respond to of 21342

Nice comments from Telechoice. Seems like this whole thing may have just made DSL the hottest thing since...slice bread or microsoft or Iomega or Intel or... TI/Amati Merger Tremors Run Deep in xDSL Industry ÿ FYI ------------------------------------------------------------------------ Copyright c 1997 TeleChoice, Inc. November 19, 1997 -- If you thought the Amati/TI merger was a big surprise and big news, TeleChoice predicts that this is going to have a lot of major ramifications in the xDSL industry in the near term. Amati and Westell moving to TI's DSP-driven architecture signals major moves among the leading providers. First and foremost on our minds is what happens with Motorola. The three Alpha partners for Motorola are all gone. The Alpha partners are supposed to be your best and biggest customers, and Amati and Westell are clearly in TI's camp now, and Ericsson is with ADI. And then you've got Aware. Lately the rumors have been of a 3COM acquisition, but if you are ADI, you have to be seriously wondering about the strength of TI now, and of having your strategic partner Aware also working with TI. The play may be for ADI to pick up Aware for an expensive but stronger xDSL play. 3COM has been reeling lately with the loss of much of the xDSL braintrust who have gone to startups. But the sheer valuation being put on the chip industry now has to itself be a strong statement of where the leading providers think that xDSL is going. $395 million cash is a lot of money. In order to make back a lot of the money being invested on the chip front, they are going to have to sell a lot of chips. That's good, because we all want more xDSL. Westell's Gary Seamans on the conference call today said to look out for more activity on the Westell strategic relationships front. That was code words for "Now that we've gotten rid of this venture, we're looking for some more acquisitions to make." TeleChoice expects that activity to focus on places like ATM and low-cost cards, where Westell needs a stronger message. So expect more mergers/acquisitions too. This comes on the heels of more consolidation on the small players front, and continuing improvement on the orders and deployment front. Seamans was right when he said that TI's investment was another recognition of the growing strength of DSL, and we agree. Congratulations To ALL!!!