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

To: Gall who wrote (11992)	7/10/1998 11:31:00 AM
From: Neal Hopper	Read Replies (1) \| Respond to of 21342

Gall,,Good points but it works a little different than you outlined. ADSL is a Point Of Presents solution. Think about it, the ADSL Modem in your home must convert your analog signal to digital and transmit to a modem at the phone co which will multiplex the signal into a protocal for the PSTN. IMHO, the business model for ADSL deployment will be as follow. Bellsouth, the phone company, will provide the ADSL infrastructure in return they will wholesale ADSL to any ISP. Of course, one of those ISP will be Bellsouth.net (indepentant comp) along with mindspring and anyone else. The ISP is out of the equip loop. US West has a different biz model, but I believe in the end every RBOC will operate this way. This is how Bellsouth has set up their biz model. The closes thing you will ever see to a standard in the adsl biz is g.lite(UAWG's BABY). And I wouldn't expect see that until early 99 (I still wouldn't hold my breath on that). With that you and I could buy a adsl modem at the grocery store, Plug and Play(I wouldn't hold my breath). After you install modem you call your phone company and tell them who your adsl provider is. The RBOC is just a wholesaler. With the example above, several co will compete to get your dollar at the grocery store, and yes that could get bloody competative. BUT that's not what going on now. What's happening now is the RBOC are contracting out to a few ADSL vendors. Those vendors get both sides of the line. That being said Westell has what just a few companies have in the ADSL industry a contract with a phone company. I.E. Bell Atlantic. 3com, Daimond lane, billy bob's moDEM shop have no place to sell their product( Although 3com has been conducting quite abit of interop agreements). IMHO I believe wstl has signed some really smart agreement.I.E. DSC litespan 2000(CAP) and Lucents (SLC and ANY MEDIA,, CAP,DMT,G.lite). In both of these agreements Westell gets the modem. No one elses' modem will work on these two solution. So let's say Lucents or DSC wants to resell their solution to US west or Bellsouth, the solution DSC/Lucent resells will only interop with a Westell modem. I wouldn't count on alot of interop early. On the mobile user, Good question..