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


To: P314159d who wrote (16167)5/15/1999 9:08:00 AM
From: Michael F. Donadio  Read Replies (1) | Respond to of 21342
 

<<Who says Glite is even in the minds of the RBOCs?>>

Pi,
While I think g.lite is inferior technology and would prefer full rate ADSL, I know it wouldn't be the first time that inferior technology succeeds in the market place for the sake of expediency, especially in the beginning of deployment. Recent announcements by first AWRE & Siemens and then TXN & Siemens show the growing role of g.lite:

AWRE and Siemens: biz.yahoo.com

Siemens Broadband Chipset Enables Highly Integrated DSL-Lite Line Card

SAN JOSE, Calif.--(BUSINESS WIRE)--March 22, 1999--Siemens Microelectonics Inc. (Infineon Technologies Inc. as of April 1), a leading supplier in semiconductors for communication equipment, has unveiled a new splitterless voice/DSL-Lite central office chip set, B-MuSLIC (Multi-channel Subscriber Line Interface Concept).

The chip set uses DSL-Lite technology from Aware (Nasdaq: AWRE - news) and is at the heart of a broadband DSL-Lite line card presented by Siemens Information and Communication Networks (ICN), one of the worldwide leading manufacturers of Central Office equipment.


******************************************************************
Texas Instrument and Siemens
biz.yahoo.com

Texas Instruments and Siemens to Cooperate on ADSL G.Lite

New Solution Delivers World's Highest Port Density With Fewest Components


NICE, April 22 /PRNewswire/ -- ....
The performance of TI's 'C6000 DSP allows cost-effective deployment with reduction of space, power and cost. TI's fully programmable chipset provides a future-proof solution that can be upgraded in the field via software download. The TI chip enables Siemens to accomplish the first fully integrated silicon G.Lite solution for the upcoming merger of voice and data into the media network. ...

****************************************************
TXN/Amati recognizes the virtue of a splitterless ADSL implementation in speeding up deployment and has a position paper on it.("Universal DSL Deployment of G.Lite" from September, 1998 (http://www-s.ti.com/sc/psheets/spaa007a/spaa007a.pdf):

<<g.lite is a splitterless ADSL modem leveraging the standards of "ANSI T1.413i2 for full-rate ADSL" wherever possible. Texas Instruments is developing their own g.lite version by "leveraging its world class programmable C6x DSP technology, mixed signal technology and Amati's DMT leadership and field trial expertise".>>

If AWRE receives a patent on g.lite, (which Hambrect & Quist are presenting as part of their buy recommendation on AWRE) I presume TXN/Amati would have to pay royalties to AWRE. TXN/Amati, however, own key patents for ADSL/DMT upon which g.lite is based and from AWRE's Edgar 10-K405:

<<Aware has also received notice from Amati of the pendency of various patent applications which Amati considers to be pertinent to the design and operation of ADSL modems. Unless and until a patent actually issues, there can be no infringement, and Aware has not examined any such patent applications or received an opinion of patent counsel with respect thereto. Aware has not received any further communication from either Texas Instruments/Amati or Telebit regarding the foregoing since 1996.>>

It's hard for me to believe TXN would pay royalties to AWRE for g.lite if their g.lite algorithms come from their Amati subsidiary. Any patent issued to AWRE for g.lite they would consider to be in violation of their own TI/Amati patents.

I favor Westell because of their affiliation with TXN/Amati. I've been very disappointed, however, in the lack of news and contracts coming from TXN/Amati and feel that this is one of the reasons for Westell's poor performance. TXN/Amati's falter is also why Westell had to jump to Alcatel. The perception of AWRE having, or will have, the g.lite patent, rightly or wrongly, only further degrades TXN/Amati significance in the market perception and WSTL by association.

I agree that part of Aware's success comes from reports like the one from H&Q that present AWRE as a potential patent holder in what will be a very hot market, and does not do justice to their downside. Perception in the marketplace, however, is very important, and AWRE shows visibility and control while Westell and TXN/Amati seem to currently have their heads in the sand.

In the long run this may mean little for the technology, but as investors in ADSL right now, it can be significant.

All the best,
Michael