TRW Wins $19 Million Contract
8 October 1998
TRW Wins $19 Million Contract to Supply Gallium Arsenide-Based Transceiver Modules for Nortel Networks
REDONDO BEACH, Calif.--Oct. 8, 1998--Under terms of a $19 million contract with Nortel Networks (TSE:NTL.) announced Thursday, TRW will design, develop and manufacture transceiver modules for Nortel Networks' Reunion broadband wireless access system.
The TRW modules, which transmit and receive radio signals, simplify production of wireless telecommunications equipment for new services.
"This contract marks another major step in TRW's rapid expansion into the wireless components market," said Timothy W. Hannemann, executive vice president and general manager of TRW's Space & Electronics Group. "TRW's gallium arsenide millimeter-wave monolithic integrated circuits (GaAs MMICs) are proven performers.
"The mutually exclusive contract extends through first quarter 2000 for TRW integrated MMIC-based modules operating at frequencies from 24 GHz to 42 GHz," he said.
TRW's volume production of the Nortel Networks modules begins in the fourth quarter of 1998. Annual module production could grow to more than 100,000 units per year by the period 2000-2001.
"Transceiver modules capitalize on the higher functionality of TRW's GaAs MMICs. The payoff is lower part counts, simpler design engineering, and higher performance for original equipment manufacturers supplying the market for broadband point-to-multipoint and other new wireless systems," Hannemann said. "This contract emphasizes the added value our modules provide."
Nortel Networks took the strategic view in selecting TRW, according to Doug Smith, chief operating officer, Broadband Wireless Access, Nortel Networks: "TRW has the engineering and the automated production facilities needed to develop and deliver modular, off-the-shelf, fully MMIC-based transceivers for a continually evolving market.
"That ability will keep Nortel Networks a leader in the broadband wireless access market and enhance the already excellent customer service our Nortel Networks Reunion product line delivers."
According to industry analysts, the broadband wireless access equipment market is expected to reach more than $2.2 billion in 2002, with services exceeding $11 billion. Broadband wireless access will reach over 1.1 million business and multi-unit residential subscribers by 2002.
Nortel Networks is a leading hardware supplier and system integrator to developers of new digital, broadband services. Its networks enable transmission of voice, data and video via a point-to-multipoint fixed wireless architecture.
Benefits of Transceiver Modules
Each transceiver module contains a number of TRW high-performance GaAs MMICs in a compact housing. A single module takes the place of multiple, larger "hybrid" components, reducing cost, size and system complexity.
TRW plans to manufacture the Nortel Networks modules at the highly automated facility of its TRW MilliWave subsidiary, located in Diamond Springs, Calif.
"The high levels of integration provided by TRW GaAs MMICs drive down costs and let us produce millimeter-wave modules at highly competitive prices," Hannemann said. "Supplier agreements, such as with Nortel Networks, ensure that TRW will continue to provide the most competitive products to our partners. That helps them meet the changing demands of the exploding telecommunications market."
Nortel Networks works with customers worldwide to design, build and deliver telecommunications and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies; cable television carriers; and utilities.
Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel, had revenues of US$2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide.
TRW is an industry leader in the design, development and production of low-cost gallium arsenide MMICs and MMIC-based modules for worldwide markets.
With headquarters in Cleveland, Ohio, the company provides advanced technology products and services for automotive, space and defense, and information technology markets worldwide. TRW Inc.'s 1997 sales totaled nearly $12 billion (including the BDM acquisition). Additional information on TRW GaAs MMICs and modules is available at www.trw.com/mmic.