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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (45693)	4/29/1998 2:34:00 PM
From: djane	Read Replies (1) \| Respond to of 61433

EBN's Daily News Digest. PMC acquisition could signal ATM revival [Excellent trend for ASND] Excerpt: ""ATM is being deployed in end-to-end networks," Ramsden said. "We also see ATM extending into the exchange networks." Among these exchange networks could be DSL. "DSL may create new applications for ATM," Pleasant said. "A lot of DSL equipment vendors are looking to transport the data traffic over an ATM network."" by: Mark LaPedus (4:50 p.m. EDT, 4/28/98) pubs.cmpnet.com Silicon Valley The sluggish ATM equipment business could get a boost this year as several chip makers move to dramatically increase their share of the market. Creating what could be one of the world's largest ATM chip suppliers, PMC-Sierra Inc. late last month announced plans to acquire Integrated Telecom Technology Inc. (IgT) for about $55 million in cash and stock. PMC-Sierra, Burnaby, British Columbia, is already a major supplier of physical-layer-based ATM chips, as well as 1-Gbit Ethernet, T1/E1/J1, Sonet, and other high-end communication ICs. IgT, Gaithersburg, Md., is a major player in the ATM-based segmentation-and-reassembly and switch-IC segments. "PMC was already one of the top three players in the ATM chip market," said Shannon Pleasant, an industry analyst at In-Stat Inc., Scottsdale, Ariz. "The acquisition of IgT will strengthen [PMC's] position." In fact, PMC-Sierra was among the world's top five ATM chip makers last year, according to a list of top semiconductor suppliers published by EBN last March. Other top ATM chip suppliers on the list included Cypress Semiconductor Corp., Integrated Device Technology Inc., LSI Logic Corp., and TranSwitch Corp. Emerging ATM chip makers not on the list include Hitachi Ltd., Maker Communications Inc., and NEC Corp. It's unclear which chip supplier is the overall market-share leader in ATM. Most chip vendors do not break out their total ATM sales, and the market itself is fragmented. The total ATM chip market is expected to increase from $143 million in 1997 to $199.6 million in 1998, according to In-Stat, and appears ready for a revival after some setbacks. Billed as the next desktop-based LAN standard a few years ago, ATM hit a wall in that segment following the emergence and acceptance of Fast Ethernet and now 1-Gbit Ethernet ATM has since migrated from LAN to WAN, but the technology is rapidly moving in new directions, said Ian Ramsden, director of strategic marketing at ATM chip specialist TranSwitch, Shelton, Conn. "ATM is being deployed in end-to-end networks," Ramsden said. "We also see ATM extending into the exchange networks." Among these exchange networks could be DSL. "DSL may create new applications for ATM," Pleasant said. "A lot of DSL equipment vendors are looking to transport the data traffic over an ATM network." The emerging applications for ATM could cause chip makers to consolidate or forge alliances in order to offer a broader range of components, and PMC-Sierra's move to acquire IgT may be the first such move. "This acquisition will allow us to offer our customers a more complete solution in the area of ATM networking applications and will better position our company to further integrate ATM systems into fewer chips," Bob Bailey, president and chief executive of PMC-Sierra, said when the deal was announced. Return to EBN Home Page

To: djane who wrote (45693)	4/29/1998 4:33:00 PM
From: bucky89	Read Replies (1) \| Respond to of 61433

djane, A snip from one of your posts: According to spokesmen for Yurie, ATM concentration fits into the networks of Lucent's big accounts, including the regional Bell operating companies and in the long distance networks of AT&T and others. They want to sell IP services that ride over ATM backbones. Yurie boxes enable Lucent to do that, analysts said. Hmmm, you may be on to something here djane. Sounds like Lucent is backing the concept of VoIP supported by ATM. they now have a campus ATM switch for enterprise networks. Now all they need is a carrier-class ATM switch, like the CBX500 and GX550. Their current product for this space is OEM'ed from GDC, and I know GDC is working hard on voice over ATM (with no IP). This means GDC isn't consistent with LU's strategy. Seems like they could use Ascend. Bucky89