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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (29476)	11/30/1997 8:41:00 AM
From: Michael F. Donadio	Read Replies (2) \| Respond to of 31386

To Pat & bill c: <<MOT is held up, some say it won't be out till mid-'98 at the earliest>> Pat, does anyone know what is going on with Motorola? Your statement would indicate that the earlier report concerning Motorola and the ADSL Forum announcement is not in line with what you have heard. Also, it was you and bill c. who reported at the time of the Westell/Amati merger (beginning of October) that CG was being sent to Amati and Westell. Did that not materialize? Motorola in their Sept.22 reply to Telechoice's report of the CG delay, had said that Amati, Westell and Ericsson would be receiving CG this quarter,(which seemed to be confirmed by you & bill c) but that others would not receive it till next year. Is anything I've said not consistent with your current understanding? Thanks Michael

To: pat mudge who wrote (29476)	11/30/1997 8:46:00 AM
From: bill c.	Read Replies (1) \| Respond to of 31386

Pat: >> I'm referring to the costs of seeding the market at a loss if the telcos delay further. $60M will be gone in a heartbeat. << Westell sold 5,000 lines last quarter for ~4million. Westell is generating cash from their ADSL sales. >> I know of the government contract and one for an apartment complex in Marina del Rey. Are these what you mean? As for BA, isn't that through DSC? << These are long term contracts. The GTE CLEC is for 3 years, BA is for 4 years, and I don't recall the duration of the GTE Gov. Srv contract, but it's exclusive and long term. ...GTE Communications Corporation, "the C-LEC", will commercially offer the ADSL OnSite service in numerous key markets throughout the country over the next year. TeleChoice has been apprised that GTE plans to offer OnSite in 16 states total before EOY '98. Further information relayed to TeleChoice indicates that GTE has no plans to wait for DSLAM deployment... telechoice.com The BA contract was with DSC. When CSCO/ASND/COMS arrive, Westell will fight back with those large equipment providers. This is why the Lucent, Nortel, DSC and Fujitsu partnerships are important. >> MOT is held up, some say it won't be out till mid-'98 at the earliest. << I'm hoping they announce next week. >> Have they signed a DMT contract with TI?.... If they get a TI/DMT solution --- and I hope they do --- they'll have to put something around it. Again, this takes time. << ti.com ..Texas Instruments (NYSE:TXN) and Westell Technologies, Inc. (NASDAQ:WSTL) announced today a strategic alliance that will accelerate the development and deployment of TI's digital signal processing (DSP)-based digital subscriber line (xDSL) technologies with Westell's DSL systems. Westell and TI will initially work together to define and integrate TI's technologies into Westell's SuperVisionT xDSL Access Multiplexer (DSLAM) and customer access equipment... >> Again, these will be lucrative once they begin. When does the starting gun go off? << Westell's ramp starts in 1998. Bell Atlantic indicated mid-98, the GTE ILEC indicated 1Q98 with approval. Westell will provide both the DMT and CAP solution to GTE. >> Amati had all the technology in the world they needed, and some impressive contracts, but without the cheaper chips and without serious deployment, they simply didn't have enough cash to hold on without help. Westell does not have technology and their contracts are no more lucrative than Amati's were. << Building an end-to-end system wins contracts. Westell will integrate CAP, DMT, QAM, 2B1Q into their solutions. I consider the Bell Atlantic contract larger than the GTE ILEC contract. What is wrong with a 40million line region, which will start deploying in mid-98? How many 5-10million line regions did AMTX win? Westell receives the advantages of a TI solution, without funding the AMTX R&D. Patents will take a company just so far, which became obvious in AMTX's case... until later.