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Motorola ships 500,000 cable modems
By Bloomberg News
Special to CNET News.com
February 15, 1999, 2:05 p.m. PT

SCHAUMBURG, Illinois--Motorola, the No. 3 maker of computer chips, said it has shipped 500,000 cable modems worldwide as demand for high-speed Internet lines increases.

QUOTE SNAPSHOT
February 16, 1999, 9:30 a.m. PT
Motorola Inc. MOT
65.0625	+0.0625	+0.10%
3com Corp. COMS
32.3125	+0.0625	+0.19%
Tele-Communications-TCI Group TCOMA
64.8125	+0.1875	+0.29%
AT&T Corp. T
85.8750	0.0000	0.00%
Time Warner Inc. TWX
63.2500	+2.1250	+3.48%
MediaOne Group Inc. UMG
55.2500	+1.1250	+2.08%
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Users can access the Internet far faster through cable modems, which use cable TV lines. Today's standard Internet hookups use dial-up phone connections.

While cable Net connections are still unavailable in most of the United States, analysts are predicting rapid growth. Motorola said it has shipped 250,000 modems in less than six months.

"Things are accelerating fairly rapidly" in the cable modem arena, said Patti Reali, an analyst with Dataquest. The research firm estimates that 750,000 cable modems were shipped worldwide last year and projects that 1.2 million modems will be shopped in 1999.

Motorola also said it has sold enough routers to support 4 million cable modems. Motorola's modems work only with its routers, which is hardware that directs traffic on data networks.

Motorola sells its CyberSURFR modems to cable TV operators for about $280 each. The cable companies lease the equipment to users for $35 to $45 a month. Other makers of cable modems include No. 2 network-equipment maker 3Com.

Cable-modem access providers @Home and Road Runner together control about 90 percent of the market. @Home is controlled by No. 2 U.S. cable TV company Tele-Communications Incorporated, which is merging with AT&T, and Road Runner is a joint venture between Time Warner and MediaOne.

Copyright 1999, Bloomberg L.P. All Rights Reserved.

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