WTRS Executive Interview
Interview with Jason Ellis, Director of Business Development & Marketing, Staccato Communications.
Jan 30, 2006
1. Can you tell us a bit about your background?
I’ve been in UWB since 2000. Started at General Atomics, started
off looking primarily at impulse radio which is what UWB was
back in 2000. In the process the industry secured people [who]
figured out exactly what they would do with this UWB thing. To
be honest with you, it has changed dramatically. Originally it
was a technology based on impulse radio and people did not know
how to use it; and for that matter, people did not know how to
build it because the original people involved in UWB were all
systems guys and not chip guys. My involvement with UWB has been
from an engineering perspective, from wireless communications
and network architecture. I’ve got several patents in both
architecture for communications and wireless USB, and I’ve been
actively involved in all the standard activities and quite a bit
in regulatory and even part of the ITU. I was the second
employee in UWB over at GA and when I moved in late 2003, I
joined Roberto and his team having had the opportunity to work
with them before when I was at General Atomics and they were
consultants. Now I’m direct Developing and Marketing at
Staccato, still doing some standard activities but really
managing partnerships and doing corporate marketing.
2. Who is Staccato?
Fantasma Networks was a company that spun out of Interval
Research, Interval being based in the Bay Area and funded by
Paul Allen. Interval Research spun out Fantasma in 1998.
Fantasma secured 1st round funding and went out of business in
2001. A lot of the employees were recruited by General Atomics
which is how I ended up getting to know Roberto and all of his
team. But the assets, which weren’t that many, became a fire
sale, and PulseLink’s John Santoff purchased the assets. Those
assets were primarily computers, lab equipment and some
intellectual property. But a lot of that intellectual property
was based on a very old technology, impulse radio, and actually
that radio architecture was using pulse amplitude modulation. I
don’t even think PulseLink is using that at this time. So
Roberto, Larry Taylor, and Mark Bowles, and Dan Meecham started
off as a consulting entity doing work for General Atomics. They
intended to start up a low bit rate company for UWB, but being
that there is so much interest in high data rate, the company
could only secure funds by going to high data rate products. And
since it was already looking like there was already a bit of
competition, what Staccato recognized was no one was doing
single chip in CMOS. If you look at the history of most
transceiver products including WiFi, Bluetooth and Ethernet,
none of those markets actually became active from an adoption
standpoint until the price point dropped significantly. For many
of them it [became active] when they got below $25, below $10,
and it really took off when it got sub $10 and continued to
mature as it drove the price down further. The only way to
accomplish that, as is evident by our own analysis and many
people’s analysis but also based upon just observation, is when
it gets to single chip CMOS. Staccato was funded in April of
2003 to pursue a single chip CMOS strategy. I joined Staccato
just a few months after they got funding and the original scope
or purpose of Staccato was to a single chip integrated RF based
band in CMOS. Immediately when we took on new employees, this
coincides with where the IEEE was at that point. Oh, by the way,
I was also IEEE 15.3a technical editor when it was in its study
group phase. I was extremely involved in the IEEE, as were a few
of my colleagues. Roberto and I went to the first 15.3a
meetings. And actually there’s something worth pointing out
there in a moment, how the 15.3a arose from 802.15.3, but I’ll
come back to that. It was when Dan Meecham, our VP of
engineering, and a few other people came to the scene and they
saw that we were doing UWB impulse radio. Maybe it’s not the
same impulse radio that had been done, but even the more
innovative impulse radio being proposed by Freescale and also
being proposed as multi-bands, we called it pulse multi-band.
They looked at that and said you guys will never be able to
implement that in a low cost silicon solution, let alone in CMOS.
And at the same time Texas Instruments had a great amount of
resource through their UWB acquisition, also recognized that you
really want to do this using OFDM. Staccato came to that
realization and early on started to support not only multi-band,
which we had supported originally. Roberto, myself, a gentleman
from Intel, and a gentleman from Alereon are the four
co-founders of what became the multi-band coalition. Then we
were able to grow that into what became the MBOA which became
the MBOA SIG, which finally became WiMedia. All the silicon guys
came to the same conclusion and said you need to do something
differently because this other stuff is all very nice but you’re
only looking at it from a strictly communications perspective.
That’s when the OFDM started to gain momentum. There are two
fundamental reasons why OFDM was able to garner a tremendous
amount of support within the IEEE so quickly. One was the
ability to capture energy with a very efficient receiver. One of
the problems with impulse radio is how much dwell time you
needed in order to capture energy or, for that matter, how
complicated you wanted to make your receiver. Given the
constraints of low cost, and also given some of the new
requirements that were coming in for the IEEE about being 480
MB/sec for wireless USB, there was a real need to move a lot of
data. There were 23-26 proposals, I think 23 real ones in the
end, maybe 25. Of those, the majority of them, including SONY,
who originally advocated a single band radio architecture, ended
up supporting a multi-band OFDM architecture. In June of 2003
the MBOA was formed and the proposal came forward with a merger
of 16 different proposals. They were very distinct, including
multi-band, pulse multi-band, multi-band OFDM and single band
architecture. The other key benefit why people were supporting
the multi-band approach was that they liked the fact that it was
OFDM, which means that it was very digital in nature, which is
very conducive to implementing in low cost semiconductor
processes including CMOS. Some of the other radio architectures
require a substantial RF portion of the chip. Here, by having it
digital, you really get the benefit of Moore’s Law being able to
scale with process technology. The analog sections don’t
typically change a whole lot with Moore’s Law but digital
certainly does. The other piece of it is the regulatory
situations with a lot of early engagements outside of the US. It
was evident that in Japan there were concerns about radio
astronomy and being able to protect other native, legacy
services or new services. Being able to have a radio that could
easily adapt to it’s environment was the right thing to do. In
addition, you also get other benefits by being able to control
the spectrum, including protecting yourself from interferers. So
that’s kind of the background of that and where Staccato ended
up going.
At that point there was a consortium of 7 companies in Japan,
not all Japanese, but they had consolidated in Japan. They also
included Phillips and Samsung. They were consumer electronic
companies that recognized that yes, it’s nice to have wireless
1394 and yes, it’s nice to have wireless USB. They really saw
UWB as something amazing and they wanted to have a MAC
architecture that would really allow for new types of device
connectivity, not just simply cable replacement. And so as such,
they started working on their own MAC in lieu of 802.15.3 MAC
which the 15.3a would have been forced to use, and is actually
today what Freescale still uses. So in hopes of bringing that
activity into a more structured organization, the MBOA invited
those consumer electronic companies to present their problem
statements to the group at large, which at that point also
included Appairent, which Bob Heile was affiliated with. They
presented their statements. There were some proposals that
remedied solutions to make the 15.3 MAC work better, but
ultimately Sony, Phillips and Intel led a proposal which gained
a lot of momentum for a distributive MAC architecture. That
folded into the MBOA and that’s where you get your second
difference between the IEEE 15.3a which at this point was in a
heated debate. Originally the IEEE process started of on a
technical note and as a result, the MBOA specification really
matured and really benefited from the critique of other people
supporting the technology, as well as those that were adamantly
against it, including folks from Freescale.
The 802.15.3a MAC was completely different because it was a
fundamentally new architecture. Staccato saw the opportunity to
influence a new MAC and took it. Where Staccato is today, we now
have a series of products which we introduced at CES. We also
support all the software that’s required so we really are now a
complete solution provider and what we don’t provide ourselves,
we have a partner program so depending on what our customer’s
interests are, we can provide almost turn-key services. That’s
not necessarily what Staccato is about, but through our
partnerships, we can make that happen because traditionally a
lot of the customers we’re engaged with have never dealt with
wireless before. If you look at a hard drive or a digital still
camera, there are a couple products that now have wireless. But
for the case of a wireless USB hard drive, the hard drive
manufacturers have never dealt with wireless before.
3. What types of sales channels are in place today for
Staccato and how do you plan to develop them over time?
Our customers are varied - OEMs and ODMs primarily. At this time
for our first generation product in order to accelerate the
market, reduce risk and really get through the market, we offer
our solution complete as a system in package. So that leaves us
as providing system in package and that means that ODMs and OEMs
are our key customers. Some of the OEMs will do it themselves
and some of them have us engage with ODMs. We have a direct
sales force with additional offices in Japan and London. We have
a number of sales people, inside sales, vice president of
worldwide sales, and then we have regional sales. On top of that
were bringing on distributors and we have a worldwide agreement
with Fujitsu for them to be an authorized sales channel.
Worldwide, Fujitsu’s 2000-plus employees and their sales team
and engineering support are being trained to represent
Staccato’s products. What’s unique about that is Fujitsu is the
foundry as well for Staccato. We have a number of very strategic
relationships with Fujitsu. As such, our customers are really
assured that they’re dealing with a big company if they choose
to use Fujitsu as opposed to coming directly through us. It
gives us a lot more advantage and a lot more capability than the
average fabless company. For a fabless semiconductor company
that has no product in production with a history, it’s very
difficult to assure the major customers that you have what it
takes to deliver. Typically the team you assemble would have a
proven record with a previous company, but really beyond that
what assurance do they have? Naturally people will question
Fujitsu much less because Fujitsu’s got a very good track record
and a lot of these companies have already purchased silicon from
Fujitsu. One of the reasons we chose to have a channel
relationship with Fujitsu is that it really provides an extra
level of assurance that we can deliver as promised.
4. Based on your experience with the customer requirements in
this space, how do you think end users will adopt these new UWB
wireless technologies? What are some of the typical applications
you are seeing?
Staccato for over one and a half, if not two, years has been the
one strong company aside from Freescale because they were one of
the early companies to actually have their sales team out there.
Now Staccato being a small company, we were very aggressive. In
addition to that we also had conference calls and e-mail
discussions with many customers but we had sixty face-to-face
meetings every month or more. We really feel we’ve matured with
our customers and that in many ways we may have a better
perspective on the industry than any one customer in particular,
especially if it’s a big company. Sometimes divisions within a
big company don’t know what’s going on.
In so doing, we’ve talked a lot about the products and what the
needs are. The first thing I’m going to correct you on is your
question of “What is a consumer experience, what do they want
from a UWB product?” The answer is they don’t want a UWB
product. They want a recognizable brand name. The name that so
many of them have grown familiar with and have a lot of comfort
with is USB. What they specifically like about USB is the fact
that it’s plug-and-play, has the software drivers ready to go,
and they know exactly what it means. When they look for USB they
know about the USB implementers forum; maybe not the forum but
they know the logo. In fact if you ask people what the radio is,
WiFi or Bluetooth, they wouldn’t know. What they care about is
that it works with every device that they have. So they will get
more and more exposure to certified wireless USB and that is
what they will look for. USB 1.1 transitioned to USB 2.0 pretty
well, so far. Now USB 2.0 is transitioning and morphing into
certified wireless USB. When certified wireless USB uses the
same class of device drivers, the same infrastructure, and a
very similar logo, people understand “Oh, its wireless USB - it
just gets rid of the cable”. It’s very intuitive to explain that
to anyone.
Staccato has already run a number of focus groups which I think
my colleague explained to you at CES. The focus groups, within
seconds of beginning the session said, “Oh, this is cool, it’s
going to do this or it’s going to do that or it’s going to allow
new usage models.” Actually even with the recent announcement
and excitement of Belkin’s pre-standard product, there’s a huge
amount of industry momentum building up around the concept of
wireless USB cable replacement. What it’s really focused on is
getting rid of a lot of those cables. But the only way it really
works is if products from many, many, many different
manufacturers are all using the same radio scheme, and that,
right there, is why certified wireless USB is important.
5. So, are you paying attention to some of the attempts like
the HANA Alliance where they’re trying to do wireless 1394, or
is that more of a future activity rather than something you’re
looking at today?
Last year I was on the board of directors of the 1394 Trade
Association and was very involved with 1394, especially in the
wireless working group, to really enable wireless 1394. It was
when I was involved that the 1394 Trade Association really
started to look at UWB and at that time adopted the WiMedia
Alliance and MBOA MAC, and had started a project to define
wireless USB over WiMedia. The challenge with 1394 was that
there was not enough support by the industry. By industry I mean
companies that actually use 1394, not the semiconductor
companies, but the actual companies that would use it. There was
a light attendance of those companies. I think that a lot of
that has to do with Internet Protocol and the DLNA. HANA’s using
1394, but the DLNA, which has gained a lot of industry momentum,
may have taken away some of the allure that 1394 had garnered
over the years. Specifically, Sony had become a huge advocate in
DLNA and, as you know, Sony was a huge advocate of 1394. From
the WiMedia’s perspective, and also from the Staccato
perspective, we said “if there will be a wireless 1394, we’d
like that to happen over a WiMedia radio platform, and to make
sure that it is coordinated between wireless USB, Bluetooth, IP
and USB.” To this date, I’m not aware of a whole lot of activity
going on in the wireless working group. I think that’s
unfortunate and I think the lack of activity is happening on a
much larger level, not just wireless, but just 1394 in general.
6. Do you think a common signaling mode is possible for UWB?
Possibly at specified frequencies?
What WiMedia has created with the involvement of folks from
companies that represent Bluetooth, WiFi, 1394, USB, and IP
networks, is a master plan that encompasses all the network
types. This is why WiMedia developed a convergence layer which
is a common radio architecture that includes a set of policies
that, for example, govern bandwidth use. If you don’t need to be
over the air all the time, then you need to not be over the air
all the time. Or, if you’re over the air all the time and
another system comes in, and it requires you [to] pull back on
the number of reservations you make over the network, then so be
it. That’s a good-neighbor policy concept. Right now it’s
difficult for me to tell you if there will be support for 1394,
Bluetooth, or IP. The thing I can tell you is that the thing
that’s gained the most amount of momentum right now, the thing
that’s published, the thing that people are introducing products
for, is certified wireless USB. That will happen. And that will
be a large market. The next thing is, when will Bluetooth
happen? Maybe it’s in ’07, but those discussions are happening
now. When will IP happen? Maybe sooner, maybe the same time.
When will 1394 happen? Right now, I haven’t seen a lot happening
there, except for proprietary radios being connected to 1394.
Bluetooth and IP are exciting because there are current
discussions going on that say that you use the Bluetooth PAN
profile, and therefore IP-based networks are really Bluetooth.
So instead of having IP and Bluetooth as separate, if you
support the Bluetooth PAN profile with some modifications,
you’re actually running IP connectivity. In the end, you could
actually have certified wireless USB and this Bluetooth PAN/IP
going under the brand name of Bluetooth or next generation
Bluetooth, whatever they call it. Then you have a very optimized
solution on top of the WiMedia radio, one of them very optimized
for host-to-device type connectivity and the other very
optimized for peer-to-peer connectivity.
Now, you asked a different question which was looking at a
common signaling mode between different radios and I think the
answer to that is a couple-fold. First off, the WiMedia radio
itself has a base rate mode. That radio operates at 640Mbps per
second over the air and it gets coded into about 7 or 8
different data rates ranging from the lowest one which is 53Mbps
all the way up to 480Mbps in the current version of the spec. I
am already aware that 7+ companies, and many more in
development, have actively worked on product in this area. As of
today, 3 of those companies; Alereon, Staccato and Wisair have
demonstrated interoperability between those radios. Probably by
the end of this week, we’ll be able to announce that there are
more companies that have interoperated amongst the five. Within
the WiMedia spec, there is a base rate already of 53 Mb/sec. Now
your question specifically was, communicating with other radios
such as a Freescale radio or a PulseLink radio. I think you have
to stand back and say, why would we do this? Why would we impose
a common communication scheme between proprietary radios and
standardized radios? I think the other part of the question we
have to answer is, if we were to do that, at what cost will it
happen? Let’s look at that part first. If a common radio
signaling mode was to happen, the first thing you would
experience is (there hasn’t been a whole lot of investigation,
so I can only speak from a theoretical standpoint) one would
expect the radio architectures would have to change, and it’s
also possible you’re looking at having complexity in cost to the
chip itself. The other thing is a performance impact. By
operating in a different mode, what are you doing to the overall
capacity or performance of the radio or system? One easy way to
understand that is if you take a look at 802.11g. It is mandated
that 802.11g must be backward compatible with 802.11b, which is
11 Mbps. The motivation for that is ‘11b’ is widely deployed,
really huge amount of infrastructure out there, and ‘11g’ was
supposed to be a new version of it. The consequence of doing so
has significant impact on the overall system. An 11g, happily
operating at 54MB/sec between nodes in that network, will have
to start doing a lot of their transfers down at the 11Mbps mode
in the presence of an 11b. As such, 11b has impacted the
performance of the network. And now if you take that back to the
common signaling mode proposed by PulseLink, is there an
installed base, or is there sufficient market interest or
companies developing those types of product? The answer to all
that is, “no.” There is no infrastructure, there [are] no
deployed radios and as far as I’m aware, there’s only one
company, PulseLink, doing their stuff. I don’t know how many
companies plan to do it, or how many companies even know exactly
what their technology is. The same is directly applicable to
Freescale. So to begin with, there isn’t the motivation that
there was with 11b development. But in that, look, I think as
such, that’s why there hasn’t been a terrific amount of
investigation into what type of performance or cost impact will
take place on the system. Had that answer come back “yes” which
at this point in the game doesn’t seem like it will, even if
Freescale gets product out before other companies get product
out, it doesn’t seem to have the momentum, directly. That was a
significant justification for why companies chose not to even
engage in those technical discussions because they said, “if we
can’t justify it, then why would we ever do it?” But in UWB none
of us have product. I’m saying, can you go to the store today as
a consumer and buy a UWB-based product? The answer is no. Who
knows really what status anyone is in until you can actually go
to the store and buy something.
Now where Staccato is, and where a lot of the companies in
WiMedia are, is in pre-production phase. I don’t think anyone’s
in production yet. I know when Staccato will be in production
and I know when many other companies will be in production and
hopefully all of that will enable late 2006 consumer products.
That’s what our customers are going for, that’s what the ODMs
are shooting for, that’s what everyone’s production cycles are
shooting for. The software from Microsoft Windows Vista will be
there, certification from the regulatory agencies and from the
USB implementers forum and from WiMedia will all start to happen
at the beginning of the summer, the end of Q2. Not only will
there be consumer products by the end of the year, but also
those products will have silicon or solutions from multiple
companies which is very powerful because some companies – if you
look at Hewlett-Packard for example – when they chose to
implement Bluetooth in the HP995C printer, they used both
Silicon Wave and Cambridge Silicon Radio chips. It was important
for the [HP] purchasing department that they had the capability
to buy from two vendors. And when they introduced the product,
maybe they didn’t have both in there right away, but they knew
that they were interoperable.
7. What is your interpretation of the turmoil in the IEEE
802.15.3a working group?
Unfortunate that it deadlocked from a political standpoint. But
to be honest, the IEEE should be given a lot of credit for
having helped achieve a very mature UWB standard. The reason I
say that is there was a tremendous amount of technical
discussion before January 2003, when the call for proposals
started to come in. UWB was kind of cloak and dagger. It was
under NDA, people weren’t talking about it. Universities
couldn’t even get information on it because no one really spoke
about it. It was still a classified technology and those
companies that had nothing to do with anything classified found
it very NDA oriented material. I was at General Atomics and we
spoke of spectral keying but we never told anybody without an
NDA what spectral keying was, definitely the same thing for
Freescale or XtremeSpectrum at the time. There was very little
information being shared. Through that process, through that
first year and even a little bit into 2004, there was a
tremendous amount of technical work going on. At Freescale they
have some very, very good engineers. They found a lot of holes,
and a lot of authors of the multi-band proposals took very
seriously those considerations and really used that as an
opportunity to improve the technology. It was only when the IEEE
was deemed too much of an unknown [entity] that the MBOA
actually decided to formalize into a special interest group, and
go through the incorporating process and actually plan to
release it’s own specs. Up until that point, which was, I think,
November 2004, the MBOA was only an off-line group trying to
build support momentum, and absolutely wanted the IEEE process
to work.
After the MBOA SIG became a SIG, there was still a tremendous
amount of value seen in rejoining, providing back to the IEEE.
But one of the problems that continued to persist was the
political deadlock, which many of the companies involved saw as
being a potential detriment to technology adoption. That’s why
Ecma International ended up publishing a UWB specification in
December of 2005. And Ecma is actually at the same level in the
hierarchy of ISO-based standards. So you have IEEE and Ecma at
the same level. Above that you have ANSI and above that you have
ISO.
8. One of the leaders in the WiMedia effort seems to be
Intel. Is this an indication that the WiMedia Alliance is
focusing on the PC space as the first market space to enter and
then you would expect to extend into some of the industries at a
later time?
First off, the only specification that’s complete all the way up
to the protocol level with an industry-recognizable logo is
Certified Wireless USB. There is very active work going on
inside the WiMedia Alliance and in collaboration with the
Bluetooth SIG to determine the next generation Bluetooth. Mike
Fowley of the Bluetooth SIG has engaged with both Freecale’s UWB
forum and WiMedia. At this point in time, the Bluetooth SIG is
still engaged in a lot of politics.
The WiMedia Alliance is also extremely active in IP. In fact
they even have their own specification for IP, called WiNet.
WiNet is IP over UWB and that is being married with a number of
upper layer protocols which could include DLNA and UPNP for an
IP-based network. The 1394 Trade Association has an engagement
with WiMedia as well, but at this time, even within the 1394
Trade Association, the Wireless Working Group is fairly
inactive. A lot of that is the same companies engaged all across
the board. Within the WiMedia Alliance, the answer is all four
markets: personal computing, consumer electronics, mobile
devices, mobile phones and the automotive industry are all very
critical markets.
In Europe, most mobile telephones have mini USB ports on them
because it’s not only a good way to get on and off data, but
it’s also become a universal charger plug. I have a smart phone.
I charge my phone through the USB on my PC when I’m traveling so
I don’t have to carry an extra adapter. So USB is certainly
becoming more and more pervasive. It’s not only in PCs and PC
peripherals but its gaining share in mobile phones, its gaining
share in more typical consumer electronics like set top boxes.
The answer is that if there’s one standard that’s fully defined
today with a logo and a compliance and interoperability program,
that’s months away from being complete. The answer is, what can
ship and be standard-compliant this year: Certified Wireless
USB. So who are the early products to use that? And the answer
is, its Wireless USB-enabled hard drives, printers, its digital
still cameras, but it’s not embedded in the camera, it’s built
into the docking station. Its Port/Port hubs like those Belkin
introduced, its hubs that are integrated into a flat screen
monitor.
Let me also talk about volume. I’m one of those people that
break the trends of maybe a typical consumer. I keep TVs for a
really long time. Once it’s set up and it’s stuck in the corner,
I don’t touch it. I don’t care if it’s wireless. Once in a
while, when I’m setting it up and I choose a location, I have
had to pull co-ax through the wall to get the TV where I wanted
it. But once it’s there it’s done. I do think there’s a need for
wireless TV. I think it’s cool. But at the end of the day if I
already have a flat screen or a large TV, I’m not going to throw
it out just because. The next time that I go out to buy one,
I’ll give it very serious consideration to buy that one. So the
overall turnover and volume and just numbers on a yearly basis
on TVs is in process, but it’s not dramatically the same on the
order of consumer electronics like digital still cameras which
have a lifespan of maybe 3 years, or a PC which has anywhere
from 18 months to 2-1/2, 3 years, or to a mobile phone which has
huge volumes and has an average lifespan I think of 9-15 months.
Those numbers are larger [than] they have and it’s more likely
adoption’s going to happen in those industries much quicker. How
many TVs do you have around your house that are maybe 10 years
or older? We’re plagued with this thing that if it doesn’t
break, you can’t justify buying a new one.
9. Is there anything else you would like to tell our readers
as a final note?
Staccato is well positioned in this industry. We have an
aggressive product portfolio and we really believe that we’re
enabling the market by having single chip complete solution,
very easy to design in. We understand that a lot of the
companies integrating our solution will have little to very no
area of experience. We’re trying to make it as easy for them as
possible by putting it in the package that we do and providing
the services we do. Ultimately it boils down to: I know there’s
always a lot of attention between what’s going on proprietary
versus what’s standard-based, and it doesn’t always get
presented as proprietary and standard. You have specifications,
but what makes a standard a standard is when you have an
industry that’s building product which is interoperable. I know
Kirsten [West] may differ slightly in her opinion because she
places a lot of emphasis on time-to-market. I think that’s
important, but when the time to market is as nominal as it is
today, I think it’s inconsequential, because it’s time-to-market
of what, time-to-market of first production, or time-to-market
of interoperable products with competitive pricing and
competitive optimization. It’s questionable whether or not
there’s any advantage in the industry right now with regard to
time-to-market. There may be, there may not be. At the end of
the day, we have some customers that will not engage with a
company that is doing a proprietary solution, because they’re
purchasing departments have rules that say there need to be
multiple sources. Additionally, you really need competition to
drive down prices because these are very price-conscious
markets. Staccato’s product at sub $10 for what we offer has
really been accepted by a lot of our Asian customers, especially
the ODMs. And they say that $20 is too much. In fact they say
that $10 is good, but we want to see that your solution is going
to be lower-cost. The thing that I’ve seen a lot of negative-ness
on is the fact that Belkin has priced their product at
130-something dollars. A lot of our ODMs that we’ve engaged
with, that also probably supply to Belkin, think that their bill
of material is much lower. Now Belkin can do this because of
where they stand in the industry. They’re the first-to-market.
There will be a premium, but because of the number of companies
that are going to engage in this, that premium will diminish
quite rapidly. In fact a lot of our customers see wireless as a
feature that will help them maintain or increase market share.
It’s kind of a different strategy. It’s not “if” it will happen,
it’s “when” will it happen.
[As] for the future, let’s say that Freescale decided that their
solution is good for some applications, made a good niche, and
maybe they really want to support Certified Wireless USB in a
mobile phone platform or they want to put it in a Set Top Box. I
have the utmost confidence that if there’s a need for it, they
will acquire the technology that makes the P&L statements work
for the various business groups and they will either take it
through partnerships with companies like Staccato or they’ll
develop it in-house, since they have very good radio expertise,
one of the best, or they will end up acquiring a company that
they can jump on the band wagon real quick. Things happen with
big companies and it doesn’t really matter, because at the end
of the day if Freescale came to us and made a proposal to buy
the company, our board’s going to listen. We are engaged with
groups within Motorola and I’m sure many other companies are as
well. The fact that we started off on a bad foot with some of
the guys at Motorola doesn’t mean anything. All it means is that
my sales guy is going to take a PO from them, no problem.
###
More information about Staccato here...
This interview ran in our Jan 30, 2006 newsletter issue.

emerging wireless marketplace