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

To: Netnut7 who wrote (12323)	7/27/1998 7:19:00 PM
From: Netnut7	Read Replies (1) \| Respond to of 21342

From the WSTL 10K. Not sure what to make of it. What do you guys think? Various competitors and industry groups continue to introduce several variations of DSL, in addition to the two major transceiver technologies of DMT and CAP. Most recently, in January, 1998, leading companies in the personal computer, telecommunications and networking industries announced the formation of the Universal ADSL Working Group (UAWG) to establish splitterless ADSL specifications ("G.Lite") based upon an open, interoperable, International Telecommunications Union (ITU) standard. G.Lite is being designed to enable simple "plug and play" access by consumers, thereby significantly lowering telcos' initial installation costs. Although the Company is a participating member of the UAWG, this new DSL standard could delay deployment of the Company's full rate ADSL offerings. Based upon simpler implementations and the elimination of the need to install POTS splitter at the Customers premises and/or at the telcos' central office, G.Lite could enable other companies with less technological expertise to more readily enter the DSL market and could place additional pricing pressure on the Company's full rate ADSL products. Although the UAWG is expected to deliver a set of G.Lite specifications to the ITU by the end of 1998, there can be no assurance that the working group will agree upon such specifications in a timely fashion if at all. Additionally, Rockwell International and Nortel are collaborating on development of consumer digital subscriber line (CDSL), a 1Mbps digital modem technology. The companies anticipate that CDSL modems will be priced, sold, and installed similarly to the way 56Kbps modems are handled today. Alcatel has demonstrated a splitterless ADSL service that can be offered over its DSLAM and ADSL modems. Other vendors touting splitterless ADSL solutions include Cisco Systems/Netspeed, and Tut Systems. Like the major transceiver technologies the Company is dependent on it's strategic silicon partners for providing "lite" versions of the transceiver technology and since standards have not been established for these implementations there can be no assurance that this will be available to the Company in a timely manner for the purpose of product development. The attempted introduction of competing standards or alternate implementation specifications could result in confusion in the market and delay any decisions regarding deployment of ADSL systems until various specifications are determined by the various standards bodies. The inability to meet customer requirements or the continual introduction of new DSL offerings could delay the decision process of DSL system implementation and adversely impact sales of the Company's ADSL product offerings and could have a material adverse effect on the Company's business and results of operations.