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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: riposte who wrote (1236)	11/28/1998 8:59:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 3299

Here are some recent announcements regarding xDSL technology and what AFCI has accomplished this year. ....AFCI recently signed a license with AWARE to obtain their DSL Lite Technology(May 15, 1998 aware.com. Also in May AFCI introduced a networking card feature for their UMC 1000 DSL product. Aware and 3COM jointly manufacture this card and AFCI says that it will be available in quantity by the 4th quarter 1998. (http://www.americasnetwork.com/issues/98issues/980501/980501_dineradvanced.html). Beta trials have been on going since 4th quarter 1997. According to AWARE they see quite a bit of demand for their technology. From the article: "...With the addition of DSL Lite technology to the ADSL family and the availability of carrier-scalable equipment, the promise of true high-speed Internet access using ADSL is about to be realized,'' said John Brandte, director of telecommunications products business at Aware. ''As momentum builds to set universal standards and achieve interoperability among vendor offerings, we are excited about deploying our technology to AFC's growing customer base of over 600 customers and 1,000,000 lines worldwide...." Then on June 10,1998 AFCI and 3Com announced that they have "broadened the scope" of their strategic relationship to include end-to-end standards compliant DMT ADSL solutions. AND just this week Nov. 16 /PRNewswire/ -- Lucent Technologies Microelectronics Group announced that Compaq Computer Corp. has selected Lucent's digital subscriber line (DSL) modem chip set (note: they use AWARE's DSL-Lite software) for use in Compaq's new Presario Internet personal computers(PCs). (http://www.americasnetwork.com/issues/98issues/980501/980501_dineradvanced.html) =============================================================== Bell South seems to be pushing their ISDN services and are slow to migrate existing lines to xDSL. It's possible that for new service installations both GTE and Bell South will offer some form of xDSL service. AFCI provides one of the most cost effective price per end-user xDSL line available on the market. Their upgrade solution for the exchange carriers does not require a significant capital investment if lines are installed on a prepaid regional basis. End-users are demanding faster data speeds. Many next generation PC's are being manufactured "xDsl ready". The RBOC's can not afford to miss the boat especially with the CLEC's (Competitive Local Exchange Carriers) on their heels. Companies such as US LEC have already inked exchange carrier switching contracts with GTE and Bell South in Florida and there are rumors that they have financed some AFCI products for installation early next year. ===================================== Summary: ------------- End-Users will drive the growth in demand for xDSL services. The industry is just begining to gear up to offer this technology. AFCI is one of three vendors (LU,NT and ALA) that have the products, expertise and facilities ready to deliver this service now. There are several other companies that would love to compete in this market. CSCO, ASND, and 3COMS come to mind for supplying hardware products while a LU or a NT might provide the complete "out source" service and could buy more market share by simply acquiring AFCI (Note: AFCI had 35% of the market according to ML report). Therefore, I continue to remain bullish on the Industry in general and AFCI's market position specifically. A few new contract announcements or an Industry merger will make the street notice this company again. Keep your eye on Lucent. EKS