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Motorola Enters Switch Business.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| September 04, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: SARAH Z. SLEEPER

Motorola Inc. is looking to fill a gap in its wireless network gear lineup.

The company in July said it will sell the switching products made by privately held Winphoria Networks Inc. Terms weren't disclosed. Executives say Motorola will be able to offer its carrier customers a product that is a tenth the size of older switches but provides much more voice capacity. A switch routes calls, data or both on a network.

"This agreement with Winphoria is a significant step toward addressing Motorola's historical lack of core switching," said Don Willis, a Motorola vice president.

That backs a statement in May from Motorola's then-President Edward Breen. (In July, he joined Tyco International Ltd. as chief executive.) He said that as part of its restructuring, the company needed a switching partner. Analysts have criticized Motorola for its dearth of newer switching products.

Willis says Motorola considered a number of firms before choosing Tewksbury, Mass.-based Winphoria, which he called an "innovator."

Switches accounted for some $500 million of Motorola's $29.3 billion in 2001 sales. ...

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