ADI's two modem strategies

Electronic News, August 4, 1997 by Will Wade

Norwood, Mass.-Analog Devices, Inc. is pursuing broadband modem technology on two fronts. Not only have they announced a partnership with Libit Signal Processing to develop a cable modem system (see related story this page); their asymmetrical digital subscriber line (ADSL) technology is poised for deployment in the Japanese market.

Sumitomo Electric Industries has selected ADI's AD20msp910 chipset to develop commercial modems, which they hope to have available this year. The Japanese firm is a major supplier to Nippon Telegraph and Telephone Corp., and other Japanese phone companies.

"We are extremely well positioned for the international ADSL market," asserted Russ Johnsen, VP and general manager of ADI's communications division.

ADSL promises to deliver much faster data transmission over standard telephone lines. The technology involves bundling several different signals into one, then transmitting the merged signal over standard wiring. Existing ADSL technology allows information to be sent downstream at up to 8 megabits per second, and upstream at 640 kilobits per second, speeds which far exceed the existing 56Kps seen in current high-end modems.

Mr. Johnsen said he expects to see ADSL implemented abroad before it comes to the United States. The rapidly developing economies in Asia have placed a strong emphasis on advancing their telecommunication infrastructures, making them likely bets to utilize the broadband technology. Sumitomo's move will advance ADSL usage in Japan, and the company expects to introduce ADSL-based in-house modem systems by the end of the year.

Mr. Johnsen predicts that ADSL usage in Asia will be closely followed by deployment in Europe and North America. "We're pretty bullish about where the market will go in the next year or two," he said.

However, he also expects to see cable modems growing in popularity over the same time frame, which could mean two different technologies competing for the same customers. "It's going to be an interesting battle," he said, "but we're pretty convinced these are going to be coexistent technologies."