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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Anonymous who wrote (6717)	3/19/1999 12:49:00 AM
From: Diamond Jim	Respond to of 21876

News March 18, 21:37 Eastern Time MAR 18, 1999, M2 Communications - ALLENTOWN, Pa. -- Lucent Technologies Microelectronics Group today introduced a digital signal processor (DSP) chip for Internet equipment that nearly triples the number of voice and data calls that can be processed by Internet Service Providers and telephone service providers and substantially reduces their equipment and related maintenance costs. This chip is the third DSP-based, system-level offering Lucent has introduced this year. The chip, which integrates four separate DSP core subsystems, is targeted for use in remote access concentrators and servers, central office switching systems, and other network access equipment. At one-third the size of the nearest competing chip, Lucent's DSP can process 16 simultaneous voice and data calls--compared to competing chips that can process no more than 6 simultaneous calls-giving service providers greater performance in the same amount of space. The chip also can support multiple services, such as 56 kilobit per second (kbps)* modems, voice- and fax-over-Internet Protocol (IP), Integrated Services Digital Network (64 kbps and 56 kbps support), and wireless data transmission. This reduces the need for ISPs and service providers to purchase and maintain multiple pieces of equipment. Consuming only 50 milliwatts of power per channel--the lowest in the industry for this market--the chip also reduces the need for cooling and power supply equipment. The chip is the first that Lucent has introduced exclusively for remote access equipment. "Lucent's chip is remarkably small yet packed with punch," said Shannon Pleasant, senior analyst with Cahners In-Stat Group based in Phoenix, Arizona. "The low power of this chip combined with the small footprint offer a very compelling solution for service providers faced with the need to squeeze as many ports as possible within the same amount of space and power, while increasing service offerings." "Average selling prices of remote access concentrators declined 30 percent between 1997 and 1998 largely due to new offerings by silicon providers," Pleasant added. "This Lucent chip should enable even greater price reductions than previous offerings." The chip addresses the fastest growing segment of the remote access market: access concentrators sold to service providers, according to Cahners In-Stat Group. Access concentrator shipments increased 59 percent last year, with revenues growing 12 percent to $2.1 billion. Sales to service providers amounted to approximately two-thirds ($1.4 billion) of that total. By 2003, the access concentrator market is expected to reach $3.8 billion in revenue, $3 billion of which will be from sales to service providers, according to Cahners In-Stat Group. "This multi-functional, system chip illustrates Lucent's relentless pursuit of providing the highest-performing system-level DSPs for the fastest-growing communications markets," said Peter Ahimovic, marketing manager for remote access devices with Lucent's Microelectronics Group. Because the chip is configured via software, equipment manufacturers can quickly, easily, and inexpensively add differentiating features to their products. In addition to its best-in-class power, density, and service support, another attractive feature of this chip is that it is software-compatible with existing devices that have been shipping with the Lucent Portmaster product family for more than two years. The chip also illustrates a key technical contribution of Bell Labs, Lucent's research and development arm. The chip uses enhanced Static Random Access Memory (SRAM) technology that shrinks the size of the SRAM used on chip by approximately 35 percent, contributing to the extremely small size of the chip. The DSP1695 is scheduled to begin sampling in this year's second calendar quarter and to start volume production in this year's third quarter. The chip is priced at $120 in quantities of 25,000.