Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Terayon - S CDMA player (TERN) -- Ignore unavailable to you. Want to Upgrade?

To: Dan B. who wrote (50)	2/17/1999 1:06:00 AM
From: Bernard Levy	Read Replies (1) \| Respond to of 1658

Dan: The new cable modem they are currently developing will be extremely expensive owing to its dual DOCSIS 1.0/S-CDMA mode. Longer term, the one advantage S-CDMA has, which is that it can run on old CATV plants, will go away, as old plants will be upgraded to HFC. TERN has huge accumulated losses and negative margins on its modems and no medium term prospects of becoming profitable. I would not hang many hopes either on the next generation DOCSIS standard, since I expect that all operators will see to it that their earlier DOCSIS 1.0 investment will be preserved, which will favor the type of solution proposed by BRCM. S-CDMA technology may ultimately be usable in other contexts (PCS through cable, fiber applications), but I don't expect TERN will be around when this occurs. So in essence TERN has a small market share, which I expect to get smaller, even though the cable modem market will grow rapidly.