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

To: bill c. who wrote (29481)	11/30/1997 2:05:00 PM
From: pat mudge	Read Replies (3) \| Respond to of 31386

[Westell chat] Let's just say Pollyanna woke up. <<<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.>>> I hear you. I know all this. I simply want contracts with numbers and dollar signs and starting dates. Don't promise me a rose garden. Give me the deed to the land --- the rest will come. <<<..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... >>> This is where they're beginning. The exact same place Westell had hoped to begin with Amati --- integrating DMT into the DSLAM. This is fantastic. I applaud their decision. BUT, before I'll buy Westell stock, I want to see 1) a definitive agreement in print beyond a "strategic alliance," and 2) contracts with teeth as I stated above. <<<Westell's ramp starts in 1998. Bell Atlantic indicated mid-98, the GTE ILEC indicated 1Q98 with approval.>>> If these time schedules materialize, again, I'll buy Westell with both hands. I'm just not willing to bank on promises and take the chance of riding the stock lower. <<<Westell will provide both the DMT and CAP solution to GTE>>> I'm going to be absolutely ruthless and ask, What on earth makes you so sure???? If you knew how closely Cisco was working with GTE, you'd go outside and be sick. Believe me, when I found out, that's exactly how I felt. I get nauseated just remembering being told. If --- and granted, this is still a big if --- all Cisco needs is a linecard to pop in their Dagaz system, whose do you think they'll use? <<< What is wrong with a 40million line region, which will start deploying in mid-98? How many 5-10million line regions did AMTX win?>>> Again, you're absolutely correct and my argument of time to market is still untouched. You think I'm being unkind. This is not my intention. I'm just trying to say the realities of being a small company in an emerging market faced with enormous competition are pretty harsh. Westell has to go against Alcatel, Siemens, Cisco, NEC, and God knows who else, and without some powerful help getting from here to there, their journey is going to make Burma Road look like a walk in the park. They are being asked to develop new technology and compete against companies who've been at it far longer than they and the question isn't whether they have support --- they do: TI wants them as a client --- but if they can succeed in time and be price competitive if they do. The other question you have to ask is who will buy them out if they can't make it on their own? What do they have to offer and what price will they command? Are the giants sitting back with pen and paper in hand, waiting for their share price to drop further and then come in for the kill? They did it with Amati and it worked. IF the market were here NOW, this wouldn't happen. It wouldn't have happened with Amati and it probably wouldn't happen with Westell. Okay, let's say I'm wrong about the timing of the market. Let's say GTE announces ILEC deployment within three weeks. If Westell's named, you've got a stock that will surge ahead. It's the "if not. . ." that has me worried. Just my take and I hope I'm wrong. Pat