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To: R. Bond who wrote (3881)	5/10/1999 8:46:00 AM
From: B.Long	Read Replies (2) \| Respond to of 18366

Thought we would be in here.... Maybe we are? B.Long Lucent Technologies Announces World's First Single-Chip Internet Telephone Solution LAS VEGAS, May 10 /PRNewswire/ -- Lucent Technologies (NYSE: LU) Microelectronics Group, the world's leader in communications semiconductors, today announced the first single-chip solution for Internet telephones. By integrating multiple system-level functions on a single chip, Lucent has the capability to design a solution that reduces the electronics costs of currently available Internet telephones by approximately 30 percent. Lucent's solution is also capable of decreasing the number of semiconductor chips typically required for Internet telephones from five to only one. Such significant cost and chip reduction should help accelerate market acceptance of this rapidly emerging technology. Lucent is announcing its Phone-On-A-Chip* capability this week at the Networld + Interop trade show here in Las Vegas (Booth #1476). "The Internet telephone market has been limited so far by prices that now hover in the $250 range per phone," said Greg Sheppard, an analyst with Data-quest/GartnerGroup based in San Jose, Calif. "Lucent's highly integrated system-on-a-chip solution addresses the key market stimulant of cost reduction that will help lower Internet telephone prices below the $150 range." Lucent has available today all the building blocks with which customers can design a customizable single-chip product. To meet immediate time-to-market needs, Lucent plans to initially offer a two-chip solution by this year's fourth quarter priced at less than $30 in quantities of 100,000. Lucent's fourth quarter two-chip product delivery plans mean that the company will have transitioned from initial product conceptualization to product availability in less than 12 months led by Bell Labs, the company's research and development arm. Internet telephones converge voice and data on a single Ethernet wall outlet jack, thereby reducing existing cabling costs. Today's business offices typically require two connections, one carrying voice and the other data, on two wall jacks. Internet telephone systems are initially expected to be used by medium- and small-size businesses, including the small office/home office market. Such early users are likely to include those interested in setting up cost-effective new office systems that integrate voice and data on a single network. Internet telephone sets, which this chip enables, are targeted to work with Internet Protocol (IP)-enabled Private Branch Exchange (PBXs) switches and voice-enabled local area network routers. The market for Internet telephone sets is expected to average annual growth of more than 250 percent for the next three years and amount to 8.8 million units sold by the year 2002. Lucent's solution incorporates Bell Labs technology that enables higher quality voice telephony over local area packet networks by giving priority to real-time voice traffic. The solution also draws upon Bell Labs extensive digital signal processor (DSP) resources and system-on-a-chip leadership. System-on-a-chip technology combines multiple functions on one chip, thereby reducing system costs and increasing design efficiency and performance. "Packing more functions on a single semiconductor chip has been pivotal to decreasing costs and growing the market for cellular phones," said John Dickson, president of Lucent Technologies Microelectronics Group. "Now, we are applying our system-on-a-chip expertise to help ignite the Internet telephone market." More than half of the revenues of Lucent Technologies Microelectronics Group were derived from system-on-a-chip technology last year. The planned architecture for Lucent's solution involves the integration of 13 electronic functions onto a single chip. The functions include a digital signal processor (DSP1627) core; a microprocessor (ARM940T) core; a telephone handset analog-to-digital converter (codec); a speakerphone codec; a speaker amplifier; a microphone amplifier; an Ethernet Media Access Controller (MAC); two Ethernet 10/100 megabit per second transceiver interface drivers (PHYs) and a repeater for using a single Ethernet wall jack for both the Internet telephone and personal computer (PC); a Universal Serial Bus interface, which enables a single connection between PCs and peripheral devices such as modems; an Infrared Data Communications Interface; a telephone keypad controller; and liquid crystal display drivers. Taking advantage of Lucent's integrated offering, Internet telephone manufacturers can spend less time debugging chip interfaces, which is typically necessary using silicon parts from multiple manufacturers. For more information on the single-chip, Internet phone design, customers may call the Microelectronics Group Customer Response Center, 800-372-2447, Dept. R94 (in Canada, 800-553-2448), Dept. R94; fax number 610-712-4106 (especially for callers outside of North America) or write to Lucent Technologies, Room 30L-15BA, 555 Union Boulevard, Allentown, Pa. 18103. For more information about the two-chip offering (Part Number T8301 for the DSP-based chip; and T8302 for the microprocessor-based chip), customers may use the same contact information. Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its web site at lucent.com . Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronics components for the computer and communications industries. More information about Lucent's Microelectronics Group can be found at lucent.com . Phone-On-A-Chip is a trademark of Lucent Technologies. The Dataquest market forecast is based on document PCSW-WW-MS-9802. * ARM is a registered trademark of ARM Limited. SOURCE Lucent Technologies