ST and Telia Announce Partnership to Develop Zipper-VDSL.PARIS/STOCKHOLM, Sweden--(BUSINESS WIRE)--June 17, 1998-- First chipsets on market will provide 1000-fold increase in capacity of existing telephone lines for multimedia Internet access See how to access the Internet. , video-on-demand, and future communications services STMicroelectronics (NYSE NYSE See: New York Stock Exchange : STM (Scanning Tunneling Microscope) A microscope that can image down to the atomic level. An STM uses a piezoelectric tube with a tiny sharp tip at the end that is moved within nanometers of the object being sampled. ) and Telia Research AB today announced a partnership to develop a Very high bit-rate Digital Subscriber Loop Digital Subscriber Loop - Digital Subscriber Line (VDSL See DSL. VDSL - Very high bit-rate Digital Subscriber Line ) system for world standardization. The two companies will work together to develop microelectronic components for the manufacture of VDSL modems that will be used to provide users with broadband communications facilities for services such as interactive multimedia Internet access, video-on-demand, and other services for the 21st century. By using innovative signal processing techniques, VDSL offers a data carrying capacity carrying capacity the number of animal units that a farm or area will carry on a year round basis, including that needed for conservation of winter feed. Usually stated as dry cows or dry sheep equivalents per hectare. of up to 52Mbit/s over conventional telephone lines - equivalent to sending 10 feature films down the telephone line simultaneously. This offers nearly a 1,000-fold increase in capacity compared to today's 56kbit/s modems and a 10-fold improvement over the Asymmetric Digital Subscriber Loop Asymmetric Digital Subscriber Loop - Asymmetric Digital Subscriber Line (ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line ) system, which is now starting to be deployed by certain telephone operators. In addition to eliminating the cost of replacing existing cabling, the Zipper-VDSL system developed by Telia and ST provides telecommunications service providers with the flexibility to adapt to customers' service demands in the future. "We are elated by this agreement - ST has proven to be an outstanding partner," said CG Larson, Chief Executive Officer of Telia Research. "The business case for VDSL can be made much more solid with a system that allows the flexibility needed to adapt to future changes in customer demand for as-yet unknown services. This partnership is a perfect match: Telia's experience in network and service issues and in designing communication systems is complemented by ST's solid competence in signal processing and implementing advanced technologies in cost-effective silicon." Andrea Cuomo, ST's Advanced Systems R&D Vice President, said "By partnering with a telecom operator, we actively participate in the creation of a world standard for VDSL and become one of the first companies to offer integrated circuits on the open market optimized for the needs of customers. The operational flexibility offered by Zipper- VDSL, combined with its use of existing infrastructure and the new services that users will receive thanks to the increased capacity, should generate strong demand for VDSL technology in the 21st century." Both companies believe that VDSL can become a reference in the field of providing broadband communications to a mass market - Telia's vision of Internet to the home. Telia and ST are in discussions with other companies about joining this partnership. Zipper-VDSL modems are expected to be available on the mass market in the year 2000. About ST STMicroelectronics is a global independent semiconductor company with strong European roots, whose shares are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE: STM), on the Bourse bourse (b  rs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent. de Paris and on the Milan
Stock Exchange Milan Stock ExchangeThe largest regional stock exchange in Italy, facilitating more than 90% of the country's trading volume. . It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. For the year 1997, the company had revenues of $4.02 billion and net earnings of $406.6 million. Further information on ST can be found at www.st.com. About Telia Telia is the leading supplier of telecom-based information services See Information Systems. in the Nordic/Baltic region. At the same time, "seamless" pan-European and global services are being realized through powerful alliances and partnerships in Europe and around the world. Annual turnover 1995 reached 46,444 MSEK MSEK Meyer, Suozzi, English & Klein (New York law firm) MSEK Million Swedish Kroner and the number of employees amounted to approximately 32,500. Notes to Editors Zipper-VDSL is based on the Discrete Multi-Tone (DMT See DSL. ) technology. The Zipper-VDSL concept originally proposed by Telia and developed with ST uses a filter-less frequency-division duplexing scheme that allows enormous flexibility in assigning the ratio between up- and down-stream capacity. The total capacity is divided into 2048 frequency bands that can be accessed individually, optimizing the capacity utilization. It also facilitates backwards compatibility with existing transmission systems, such as ADSL. The term "Zipper zipper Device for binding the edges of an opening, as on a garment or a bag. A zipper consists of two strips of material with metal or plastic teeth along the edges, and a sliding piece that interlocks the teeth when moved in one direction and separates them again when moved " comes from the possibility to 'zip' together the different bands so the capacity can be used in any configuration. Unlike conventional VDSL technology, Zipper-VDSL offers the possibility to deploy at an early stage VDSL from the Central Office without requiring the huge investment in fiber-to-the-curb networking. Both companies are active participants in numerous industry bodies, including the European Telecommunications Standards Institute's TM6 sub-committee for VDSL, the American National Standard (standard) American National Standard - (ANS) A common prefix for ANSI documents or standards, e.g.: "ANS Forth", or "American National Standard X3.215-1994". Institute's T1 E1.4 group for VDSL, and the DMT Alliance. ST and Telia will initially develop a three chip set to implement the Zipper-VDSL modem - comprising an analog front end, DMT processor and microprocessor - migrating quickly to a two chip solution.
CONTACT: For further information, please contact :
ST:
Simon Loe
Technical Press Relations Manager
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Tel : +33 4 50402558
Fax : +33 4 50402860
E-mail : simon.loe@st.com
or
Telia Research:
Claes Nycander
Manager Network Research
Phone: +46 8 713 81 00
email: Claes.X.Nycander@telia.se
or
Asa Dahlgren-Sundquist
phone: +46 8 713 82 10
email: Asa.D.Dahlgren-
Sundquist@telia.se
or
Investor Relations:
STMicroelectronics
Francois Guibert, Group Vice-President
Business Planning and Development
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or
Morgen-Walke Europe
Caroline Bruel/Madeleine Resener
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Tel: 33.1.47.03.68.10
or
Morgen-Walke Associates, Inc
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Jonathan Rebell
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Tel: 1.212.850.5600
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