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

To: bill c. who wrote (7849)	11/20/1997 1:50:00 PM
From: SteveG	Read Replies (3) \| Respond to of 21342

<... I still don't see the argument about owning the patents. A strategic alliance with TI doesn't provide the ability for breakthrough technology? The only company near TI on the DSP solution "that I'm aware of" is Lucent...> Owning current and future patents (and the R&D that generates them) versus BUYING it at some "favorable" (and perhaps eventually, less favorable) rates could make a BIG difference. This favorable status will go along only so far. If COMS (say, or any large networker or telco integrater) wants to buy a C6X-DMT chipset, they will also likely get volume pricing and can FURTHER sell at a loss to win market share. And unlike the tone-swapping algorithm which is used in the ANSI standard and needs to be sold at fair and equitable prices, any proprietary solutions specific to C6X COULD generate an appreciable revenue stream from selling high-performance ADSL chips. WSTL/AMTX would not have had an EASY time in any case, IMO. And I can certainly see where it could now be harder as a result of the above. If AMTX owns or are working on patents that make the C6X work a lot better, that is more substantial to have lost. As I have often said, the time frame for significant ADSL deployment is a year or 3 off. This will be a challenging time for WSTL, IMO. But if one believes in WSTL's abilities, compelling buying opportunities may continue to present themselves. Steve