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December 2006
VIEW FROM THE TOP
PAGE 2
by Karen Hoppe, Editor
 Eric
Guerrazzi
President, Tampa Microwave
Q: It looks as though
mobile WiMAX is a near certainty. Is your company addressing
this potentially immense market? If so, how?
A: Tampa Microwave and our sister company
Morrow Technologies have designed an affordable remote
carrier monitoring solution for cellular tower maintainers.
The revenue stream from advanced cellular services is
increasing rapidly. Tower operators will want to know
instantly when local interference arises or when transmitter
performance begins to degrade. Using our products, a technician
with minimal training can remotely diagnose operational
problems to determine if there is a need to send technical
personnel to a site. The spectrum analysis features of
our VigilCom series of products will permit alarming,
data logging and remote troubleshooting over existing
IP based data links. This equipment will lower tower operating
costs significantly and provide an added measure of security
to keep the data services revenue stream flowing.
Q: What is your view of short-
and long-term opportunities in the defense sector for
manufacturers of microwave components?
A: Prosecution of the war on terror depends
on reliable, broadband communications. The vision for
America's future fighting force cannot be realized without
the robust, joint communications architecture currently
envisioned by the leadership in the Department of Defense.
The hardware required to implement this architecture will
need to be smaller, more reliable, contain multiple frequency
capability and most important of all be affordable.
The microwave companies that embrace aggressive design-to-cost
goals, miniaturization and integration of communications
functions can prosper in both the long and short term.
Any budget pressure that exists will affect the big ticket
platforms (aircraft, ships, submarines) more than the
communications infrastructure. Timely execution of funded
programs will be a prerequisite for continued support
from the war fighters. There will be no tolerance for
delays and budget overruns.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: The programs that Tampa Microwave
and Morrow Technologies choose to pursue will be those
that permit our customers to conserve manpower and reduce
the maintenance costs associated with revenue-producing
communications hardware.
Q: What do you feel
are the most significant advances (from design to manufacturing)
that occurred in the microwave industry during 2006?
A: We see a growing desire by second
tier manufacturers to outsource their production. More
complex communications solutions require sophisticated
system engineering expertise. These companies have decided
to make that type of engineering their core competency
This creates opportunities for third tier companies such
as Tampa Microwave to bid on microwave component and sub-system
contract manufacturing. The focus on system engineering
by integrators will help insure that the proper tradeoffs
(cost vs. performance specifically) are performed prior
to entering production.
 Bruce
Hueners
President, Palomar Technologies
Q: It looks as though mobile WiMAX
is a near certainty. Is your company addressing this potentially
immense market? If so, how?
A: Palomar Technologies specializes in
the equipment that attaches the chip to the package, so
we're more involved in the infrastructure rather than in
the end products. I'm not sure how the popularity of mobile
WiMAX will trickle down and affect the base stations and
networking infrastructure.
Q: What is your view of short- and
long-term opportunities in the defense sector for manufacturers
of microwave components?
A: In some cases the "war on terror" fuels
more of an interest because defense electronics, especially
homeland security R&D, has brought about more opportunities
and advanced technologies, such as in security and tracking.
We've seen an increase in business in homeland security
which has offset any downturn in military electronics. Although
our company, which was formally part of Hughes Aircraft
and has historically done much military and aerospace business,
hasn't seen much of a downturn.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: Obviously, one that already is getting
some traction is the automotive market, especially for radar
applications such as adaptive cruise control. Although Palomar's
enabling technologies are two or three steps removed, we
see that these applications create many packaging challenges
because of pad size, materials, package size, thermal considerations,
and applications for devices such as FETs and MMICs that
are very sensitive to bonding.
Q: Would you agree that China has the
potential to be the biggest international market for our
industry's products?
A: Yes, if China bypasses putting in telephone
lines and cable and builds out its telecommunications structure
with local multipoint distribution systems (LMDS) or similar
microwave based systems. However, as a state run economy,
they will assess the size of that potential market and may
build their own internal infrastructure and products so
it will be more an internal Chinese market than an international
market.
Q: What do you feel are the most significant
advances (from design to manufacturing) that occurred in
the microwave industry during 2006?
A: Microwave technology is a difficult
and challenging technology. The mantra for years has been
to build a circuit so no tuning is required. Tuning has
been minimized, but my sense is that we're not there yet.
I don't see that many changes except that the package is
getting more complicated and the equipment is getting more
capable. I also see the diversity of microelectronic and
microwave packages becoming less standardized.
 Joe
Thomas
Vice-President of M/A-COM's Integrated Products Group
Q: It looks as though
mobile WiMAX is a near certainty. Is your company addressing
this potentially immense market? If so, how?
A: As we see it, mobile WiMAX has the
capability to be a very positive force in the microwave
industry. There is a significant effort underway to get
systems rolled out as quickly as possible and the industry
is actively pursuing applications to take advantage of
this technology. From M/A-COM's standpoint, WiMAX is about
the entire infrastructure and vast array of devices that
will enhance the user experience. We have positioned ourselves
to provide a broad range of Silicon and GaAs components
that meet the requirements of the fixed and mobile versions
of WiMAX in all the commonly used frequency bands. On
the public safety side, M/A-COM's VIDA (Voice Interoperability
Data Access) broadband system is the only truly open,
standards-based, public safety grade solution on the market
today applying the WiMAX 802.16 standard to the 4.9GHz
band.
Additionally, while the industry has initially deployed
"fixed WiMAX," we are very excited about the prospects
of mobile WiMAX. We see opportunities for both WiMAX technologies,
an area of the market with which we have a deep level
of understanding with a variety of applications and solutions.
Q: What is your view of short- and
long-term opportunities in the defense sector for manufacturers
of microwave components?
A: There certainly are promising opportunities
for defense electronics R&D due to the "war on terror."
It has been our experience over the last few years that
the Department of Defense (DoD) has not applied pressure
to manufactures to alter their approach to long term systems
planning. On the other hand, there has been a rush of
short-term projects originating from the Pentagon. These
have lead to a number of new technology developments,
some of them ours, which have been deployed in Iraq and
Afghanistan to protect American soldiers. Many of these
technologies are needed immediately, which lead to Congress
passing the Rapid Acquisition Authority (RAA) in early
2005. As a result the Pentagon can 'waive any provision
of law, policy, directive, or regulation' regarding the
testing, development, solicitation or actual awarding
of the contract. These vital, short-term opportunities
have included technology solutions to protect and replenish
existing programs/equipment as well as devices designed
to help the military deal with Improvised Explosive Devices
(IED) attacks.
Long-term, the DoD is working very hard to prepare for
the new multi-national paradigm that demands a more mobile,
flexible force. These initiatives include interoperable
radio communications capabilities that will connect troops
from different units and branches of the armed services
with local and national public safety agencies in one
unified, joint network. A perfect example of this is a
system we have designed and implemented in the National
Capital Region (NCR) by the Army's Director of Information
Management (DOIM). The P25 system, Phase I of the NCR
project, has linked more than 5,000 Federal personnel
and up to 58 public safety agencies in and around the
NCR region. The system is the first completely operational
DoD Land Mobile Radio (LMR) IP-based P25 system to serve
the U.S. Army. NCR Phase I provides interoperable mission-critical
voice communications with civilian public safety agencies
in the NCR region, including greater Washington D.C.,
Maryland, Virginia and Fort Hamilton, NY and is one of
the first tri-service DoD LMR systems.
Q: What do you feel are the
greatest opportunities going forward for microwave manufacturers
in the commercial markets?
A: Some of the opportunities for growth
are in the WiMAX, RFID and Ultra Wide Band arenas for
applications that can deploy the latest in communications
technology. We expect these to grow rapidly in the next
few years.
To take advantage of these opportunities, M/A-COM has
its dedicated "RFID by M/A-COM" Series, which is a line
of specially designed RFID components that includes circulators,
IQ modulators and demodulators, switches, amplifiers and
antennas which are utilized by RFID manufacturers around
the world. We have leveraged this knowledge to build complete
RFID portal units which integrate RFID antennas, a reader
and all of the associated electronics into a complete
system. We also have a line of Ultra Wide Band radar sensors,
including the recently introduced 24 GHz sensor for automotive
and military applications. These sensors use the latest
Ultra Wide Band technology for high resolution radar imaging
and can be deployed in security, military and unmanned
vehicle operations, as well as mining and industrial sensing
applications.
For a wider view of opportunities for microwave manufacturers,
we are already seeing city-wide WiFi networks becoming
more and more commonplace in North America. Soon we will
see WiMAX networks complementing these existing WiFi networks.
However, a major concern with WiFi is security, especially
among government, public safety and military users. A
solution to these security vulnerabilities and the need
for interoperable communications equipment is M/A-COM's
VIDA network platform. VIDA is a "system of systems" approach
built on a unified Internet Protocol (IP) architecture.
Because VIDA is a network, many of the barriers between
an organization's fixed and mobile environments can now
be removed whenever necessary, while retaining their independence
and security.
Q: Would you agree that China has
the potential to be the biggest international market for
our industry's products?
A: China certainly has the potential
to become the world's leading market for microwave products.
It has the world's largest population and as the economy
rises, so will its demand for consumer products that rely
on microwave technology. The increased need for these
products will not happen overnight, but in our view, China
will be one of the biggest markets for microwave products
within a few years.
In addition to the Chinese market for consumer products,
the other BRIC countries (Brazil, Russia, India and China)
will continue to expand their respective economies similar
to the dynamic growth happening today in China.
Q: What do you feel are the most
significant advances (from design to manufacturing) that
occurred in the microwave industry during 2006?
A: Some of the most significant advances
in 2006 have been a result of the continuing evolution
of SiGe technology. Using more economical Si IC manufacturing
processes, we have created technical and application breakthroughs
on the 24 GHz band for short-range radar sensor applications.
These technologies are real and will certainly be deployed
more often as the market grows rapidly over the next few
years.
Another exciting advancement has been the rapid maturation
of the WiMAX market. Thanks to the increased investment
by various manufacturers, including M/A-COM, this 'concept'
has quickly transformed WiMAX from a promising technology
to something that will offer a range of applications that
will hit the mainstream very soon.
Finally, the acceleration of the deployment of RFID technology
noticeably picked up in 2006, especially in the management
of the supply chain. M/A-COM offers a complete line of
RFID antennas, fixed and portable readers, fully integrated
RFID systems, RF reader components along with value added
design, assembly, and support services. Additionally we
have designed custom integrated RFID stands and full turnkey
portal systems for any RFID application. We have partnered
with a number of industry leading RFID companies in order
to offer state-of-the art solutions for almost any RFID
application.
 Ron
Nersesian
Vice President, General Manager, Agilent Technologies
Q: It looks as though
mobile WiMAX is a near certainty. Is your company addressing
this potentially immense market? If so, how?
A: There is little denying that WiMAX
is currently riding a wave of achievement, spurred on
by recent developments in worldwide spectrum allocation
and standardization, product announcements and ongoing
research and development. This wave, along with the expanded
coverage of WiMAX, has created a wealth of opportunity
for an increasing number of consumer devices to incorporate
wireless capability.
As a world leader in test and measurement solutions, Agilent
Technologies, has and continues to be at the forefront
of this emerging market, offering solutions which span
the entire WiMAX lifecycle -- from R&D and design
verification to manufacturing, conformance and interoperability
test. As a member of the WiMAX Forum since September 2004,
Agilent is an active participant in the development of
WiMAX Radio Conformance Tests (RCT). We were first to
provide standard-compliant 802.16 design and test tools
for fixed and mobile WiMAX applications, and the first
to enable RF and baseband engineers working at the 802.16-2004
PHY layer to create, analyze and troubleshoot signals.
We are now extending our expertise into manufacturing,
as well as fostering the strategic partnerships necessary,
such as with AT4 Wireless, to continue bringing innovative
WiMAX solutions to market.
Q: What is your view of short- and
long-term opportunities in the defense sector for manufacturers
of microwave components?
A: If test equipment sales are a good
indication of how the microwave component industry is
doing, then things appear to be looking just fine. In
fact, since 2001, Agilent has seen a steady growth increase
in the sales of component measurement instrumentation.
Of course it is true that high-tech research and development
programs for the Department of Defense (DoD) have slowed,
but that does not mean that they have shut down completely.
On the contrary, microwave components like antennas, filters,
amplifiers and mixers are building blocks that are used
in many existing defense weapons and DoD systems. These
components will continue to find new life as the military
re-tools its missions and objectives. Emerging applications
in communications, monitoring and screening will all be
built on the backs of microwave components.
The nature of today's battlefield threats beg for new
and innovative technological weapons. Imagine, for example,
the impact of a fully network-centric ground force on
the insurgency in Iraq. Or, consider the affect of space-based
radar on missions that involve tracking enemy movement
in the mountains of Afghanistan. Even exotic microwave
beam weapons and robotics may find a use in advanced defense
applications. In these examples and others, increased
monitoring, signal interception and surveillance will
be the key to preventing terrorist incidents - all of
which rely heavily on the use of microwave components.
From Agilent's perspective, the microwave component business
not only looks healthy today but has a healthy outlook
for the future as well.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: Some of the greatest opportunities
for today's microwave manufacturers lay in communications
infrastructure where emerging standards like EVDO, WLAN
(e.g. IEEE 802.11n), HSDPA/HSUPA, WiMAX, and ZigBee, are
now helping to define a new range of communications possibilities
for the commercial sector. While this creates new opportunities
for microwave manufacturers, it also leads to additional
regulatory/compliance constraints - especially given that
how a device is built is left up to the implementer as
opposed to defined by the various standards. Standards-compliant
devices can vary widely from one company to another. As
a result, the ability to take advantage of emerging market
opportunities is closely tied to the manufacturers ability
to test its products for regulatory and standards compliance.
Use of test solutions like those available from Agilent,
which have been specifically optimized for the R&D
and manufacture of applications based on emerging standards,
must therefore be an integral component of any manufacturers
arsenal of tools. Agilent's fixed and mobile WiMAX test
solutions, for example, provide the conformance and regulatory
testing that manufacturers now need. Solutions like these
that will enable today's manufacturers to take full advantage
of market opportunities in the commercial sector.
Q: Would you agree that China
has the potential to be the biggest international market
for our industry's products?
A: Yes. China, given its immense population
and area, represents one of the largest markets of any
developing country in the world today. It ranks as the
third-largest research and development market in the world
and is expected to move up to number two, behind the United
States, within the next five years. Its $200 billion electronics
industry alone is growing at roughly 20 percent each year.
This growth is in part driven by China's motivated and
educated workforce, as well as pent up demand for technological
contributions.
With many companies now moving their manufacturing bases
to China, the need for industry-leading test and measurement
solutions to meet China's competitive demands, has become
more crucial then ever. Agilent it is a prime example
of one company that has demonstrated a strong commitment
to furthering growth in China. This commitment began in
1999 with the launch of Agilent Technologies China. In
2005, Agilent's Chengdu Instruments Division was established
to focus on product generation, services and support for
China's electronics industry. It continues today via partnerships
and support services which are specifically geared toward
empowering China's burgeoning electronics market and helping
to establish it as a true superpower in the technology
industry.
Q: What do you feel are the most
significant advances (from design to manufacturing) that
occurred in the microwave industry during 2006?
A: The key word this year is innovation:
innovation in the development and commercialization of
emerging communications standards like WiMAX and WiMedia-based
Ultra Wideband (UWB) and, just as critically, innovation
in the test and measurement solutions which enable those
communications standards to be realized in the real world.
For example, LXI - the next-generation LAN-based standard
for test systems - has made significant strides forward
in helping to reduce the cost of test. As the successor
to GPIB, LXI combines the advantages of Ethernet with
the simplicity and familiarity of GPIB. Its flexible package,
high-speed I/O and prolific use of LAN enables it to address
the needs of a broad range of industrial and commercial
applications. As a true leader in LXI development and
adoption, Agilent now offers 75 LXI-compliant solutions.
Over this year, we have launched a slew of new and innovative
products that provide engineers with a level of performance
and functionality not currently available. The MXA solution
from Agilent, for example, is the industry's fastest signal
analyzer with the highest performance of any midrange
analyzer. Agilent's mid-performance MXG analog and vector
signal generators feature the industry's best ACPR performance,
simplified self maintenance, and provide the fastest switching
speeds available on the market today. Additionally, Agilent's
next-generation E6601A wireless communications test set
flaunts industry-leading speed and lower wireless device
manufacturing cost of test. Solutions like these will
play a crucial role in advancing the state of test and
measurement for wireless communication applications; heralding
in a new era of wireless test.
 James
Spoto
CEO, Applied Wave Research
Q: It looks as though
mobile WiMAX is a near certainty. Is your company addressing
this potentially immense market? If so, how?
A: Absolutely. We have been working with
several WiMAX chip and system suppliers for over a year
now to enable them to be at the forefront of this market.
One customer has applied our newly-introduced VSS RF system
simulator in developing their WiMAX transceiver design
with great success. The increasing use of higher frequency
bands above 5GHz is a compelling reason to consider AWR's
extensive experience and capabilities in circuit and chip-in-package
design tools. This is definitely a sweet spot for the
application of our EDA solutions.
Q: What is your view of short- and
long-term opportunities in the defense sector for manufacturers
of microwave components?
A: There is no doubt that some of the
funding flowing into the defense electronics industry
for the "war on terror" is being invested in microwave
applications. There is a big push to make defense-related
wireless communications systems more secure and more consistent.
And many of the systems are in the higher GHz range where
only microwave components and III/V technologies can be
used. That said, I do think there will be a push to move
to silicon germanium (SiGe) RF and MMICs for those applications
requiring more integration, smaller form factor, and lower
power. AWR, already an expert in the microwave sector,
has been developing design tools for SiGe RF and MMIC
design for some time now, and is working closely with
customers to make this transition a smooth one.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: I think opportunities continue to
arise out of the exploding build out of the existing and
new wireless infrastructure. Base station deployment and
upgrading are driving microwave manufacturers to full
capacity. With the advent of a whole new crop of wireless
communications applications and standards (WiMAX, 3 &
4G cellular.), there will be further demands for higher
performance and more integrated microwave electronic products.
Q: Would you agree that China has
the potential to be the biggest international market for
our industry's products?
A: Sure, with over one billion potential
subscribers and virtually no wireline infrastructure,
wireless voice and data equipment will be the primary
vehicle for China's exploding communication needs. I believe,
though, that India will not be far behind!
Q: What do you feel are the most
significant advances (from design to manufacturing) that
occurred in the microwave industry during 2006?
A: Without a doubt, one of the most significant
advances in 2006 is the emergence of the system-in-package
(SiP) platform for cost-effective product and technology
integration. Unified chip-in-package design tools are
enabling SiP solutions that mix the best technologies
for the application, offer dramatic form factor reductions,
and deliver rapid time-to-market on top of lower costs
in many cases.
 Scott
Schober
President/CEO, Berkeley Varitronics Systems
Q: It looks as though mobile WiMAX
is a near certainty. Is your company addressing this potentially
immense market? If so, how?
A: Yes WiMAX is here, the R&D monies
we have invested in WiMAX products in 2005 have paid off
in 2006. Many carriers/service providers are looking
to test WiMAX in the mobile environment before spending
millions to engineer the network. BVS has developed
a WiMAX Gator test transmitter in the 2.5-2.7 GHz band as
well as 3.4-3.6 GHz that transmits signals that can be received
by a Dual Band Coyote receiver system. In addition,
BVS has released a software package called ForeCaster mapping
solution that will allow users to plot out coverage of the
WiMAX network to determine how many base stations would
be needed, how well the signals propagate, as well as location
for base station placement. WiMAX signals are not
just simple "line-of-sight" waves. Prior to actual
"field tests" many engineers had to rely on expensive predictive
propagation models that greatly change with the change of
seasons. When the topography is complex or foliage
is dense, the RF signals tend to be absorbed by greater
moisture and thus the base station placement and signal
coverage can greatly vary from spring to winter. By
actually measuring signal transmissions in a particular
WiMAX band and receiving and plotting them on a map one
can effectively build out and plan the network for the changing environmental
conditions.
Q: Much of the money supposedly budgeted
for defense electronics R&D and procurement has been
diverted to our "war on terror." What is your view of short-
and long-term opportunities in the defense sector for manufacturers
of microwave components?
A: Since no one can be certain where test
equipment really ends up (or they would have to shoot you)
we can only guess. There has been a tremendous
demand for determining secure WiFi space. Since the
government has changed thinking over the past few years
and now tends to use "off-the-shelf" commercial products
and add layers of encryption which can be deployed
much faster, and save a significant amount of money.
The downside is the government is much more vulnerable to
"hacks" and "attacks" from "war drivers" that are looking
to disrupt communications. As a result, we have focused
our WiFi efforts to provide unique DF-Direction Finding
capability on our popular products. The most anticipated
product release for this year, and most likely in the 34
year history of Berkeley Varitronics is the Yellowjacket
802.11 b/a/g analyzer. This is the only hand-held
ruggedized analyzer that boasts powerful direction finding
capability for locating rogue AP's (Access Points) as well
as 2.4 & 5.8 GHz Spectrum Analysis for finding interfering
sources that plague WiFi network performance. Many
IT managers know they have poor network performance, and
know they have interference, but do not have the right tools
to trouble shoot and actually pin point where the interference
is coming from. Berkeley has put forth a significant
investment in designing a custom calibrated Direction Finding
antenna that mates to the Yellowjacket b/a/g series analyzer
to guarantee directionality.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: RFID has reached a turning point where
many companies are now accepting the RFID tags as a viable
business solution for asset tracking, logistics, and inventory
control. By knowing what and where items are in a
given store or warehouse companies can leverage this information
to insure they have proper stocking at all times which translates
to more items being sold. The ROI has finally gotten
attractive with the many studies that have been published
in conjunction with the RFID tag prices dropping significantly.
That being said, the RFID market is still at early stages
and problematic because of deployment concerns. Many
of the environments are not RFID "friendly" such as
warehouses with products that have metal or liquids which
make tag readability tricky. Placement of tags on
particular pallets is challenging. There are
many instances where good old fashion bar coding scanner
works better/faster than repeatedly trying to read an RFID
tag. We have developed an RFID BumbleBee Spectrum
Analyzer that can identify interference (860-960 MHz &
2.4-2.5 GHz) as well as provide a sanity check by independently
reading tag with the BumbleBee. By using an
independent tool one can provide an audit of the RF space
to better visualize the RFID Bubble and know where the fringe
coverage is. The RFID Bumblebee will be an essential
"must have tool" to the installers to make sure they properly
design the system and locate the RFID antennas properly.
Q: Would you agree that China has
the potential to be the biggest international market for
our industry's products?
A: BVS has appreciated good growth over
the last few years in China. Now that WiMAX (2.5-2.7
& 3.4 GHz) deployment has officially begun, we now expect
to see exponential growth in propagation analysis equipment
as the service providers build-out. We are also
excited to have a major distributor throughout India that
is selling and supporting our entire wireless product line
of more than 45 instruments. India is a prime market
that is actively building out their wireless market.
The sheer growth in population coupled with the acceptance
of the mobile phone has stimulated a need for higher data
rates for video and other services that can now be offered
which is motivating carriers to invest in the newer technologies.
2007 we will grow our business in India and continue to
expand our sales throughout China and Europe.
Q: What do you feel are the most significant
advances (from design to manufacturing) that occurred in
the microwave industry during 2006?
A: Since BVS is a privately held engineering
and manufacturing firm with 35 employees we need to always
remain focused on the emerging standards and provide the
latest test equipment ahead of the competition. Being
smaller helps us steer development and bring products to
market much quicker. Our niche is to provide a cost
effective solution that the engineers in the field require.
From the business perspective we have invested most heavily
in the WiMAX propagation tools which have already begun
paying off as we have a two month backlog of WiMAX tools
including spectrum analyzers, propagation receivers, and
test transmitters. As we play catch up to our back
orders the demand seems that it will not end anytime soon.
Our staff continues to grow as we have taken on additional
staff members to meet the continued demand for products.
Looking ahead we are excited to see the payoffs of our hard
work and efforts that we have put forth in R&D for our
WiMAX and RFID test equipment.
 John
J. Mikulsky
Chief Operating Officer and Executive Vice President,
Endwave Corporation
Q: Mobile WiMAX is
a near certainty. Is your company addressing this potentially
immense market? If so, how?
A: There seems to be little doubt that
mobile broadband will be a big opportunity. Recent market
studies indicate that 3G subscribers now represent over
10% of the total cellular subscriber base and the penetration
of broadband into homes is growing rapidly. Some 50 million
of the 110 million US households are reported to have
broadband connections. Demand is there, however the question
is exactly what form it will take.3G, WiFi hot spots or
WiMAX networks. Our best guess is that all three will
have a place in this market. A key element of all these
approaches is the method by which backhaul from the wireless
access point to the internet is accomplished. Microwave
radios are an increasingly cost-effective backhaul method
and, since we have a major market position in supplying
the "microwave engines" (more accurately, the transmit-receive
subsystems) used in these radios, we believe that this
will be a significant growth opportunity for Endwave.
Q: What is your view of short- and
long-term opportunities in the defense sector?
A: As a result of the high cost of the
Iraq and Afghanistan actions, we have seen some instances
of delays in procurement for some US defense programs
that have tempered our growth this year in this area.
Nonetheless, we see these delays as temporary in nature,
and still believe the long-term outlook in defense electronics
is very positive. Today's armed conflicts are not so much
about shear fire power as they are about knowing where
the enemy is and maintaining excellent communications
within your combat group.in short, "seeing and talking".
Microwave technologies are key elements in serving these
needs, with examples including IED detection systems and
advanced sensors that enable surveillance and strike capability
for unmanned aerial vehicles. High resolution radars can
now find an individual intruder penetrating a secured
perimeter. Microwave cameras and portals can penetrate
clothing and determine if someone is carrying a weapon
or explosive. Microwave imagers can see through sand and
dust to guide landings in dessert areas. Broadband satellite
links can beam detailed battlefield imagery virtually
anywhere so commanders have real time views of resource
deployments and locations of the enemy. Communication
systems can provide rapid deployment of information networks
anywhere in the world. Going forward, I believe we will
see the continued production of today's fielded systems,
but more interestingly, the development of far more capable
systems. Private and government funding has supported
the fundamental research for these systems and seems like
their time has come.
Q: What do you feel are the greatest
opportunities for microwave manufacturers in the commercial
markets?
A: We believe it is wireless telecom
and datacom in all its forms. It seems as though the world's
appetite for both wireless connectivity and mobile broadband
data access is almost insatiable. More importantly, this
is real demand from real customers, not the hopes, dreams
and hype that the "bubble" was built on.
Q: Would you agree that China has
the potential to be the biggest international market for
our industry's products?
A: While China will definitely be a large
market, I would tend to focus more on Asia as a whole,
with nearly 60% of the world's population, than a single
country. As importantly, the emerging economies of Asia
are seeing unprecedented growth rates and there is a palpable
level of energy and excitement driving this rapid economic
development. This growth will require enormous investments
in infrastructure throughout the region and telecommunications
systems, including their respective microwave elements,
will be a big part of this infrastructure. The business
potential is obvious.
The more pressing question for most companies is how to
participate in this growth. Finding the right opportunities,
engaging with the right partners, introducing intellectual
property in a protected manner, finding synergies with
the region's low cost manufacturing capabilities and accommodating
cultural differences are all elements of this process.
While the opportunities are large, it certainly will not
be a "business as usual" scenario and significant care,
effort and investment will be required. Interestingly,
the timing of the IEEE MTT-S show near the Pan-Asian market
in Honolulu in June 2007, will provide microwave companies
a unique opportunity to capture some critical information
and prospects. And Endwave will be there.
Q: What do you feel are the most
significant advances that occurred in the microwave industry
during 2006?
A: For me, it is not so much pinpointing
individual advances as it is noting the overall maturation
of the industry and the continual march of improvements
in all parts of the field. A walk down the aisles of the
MTT exhibition in San Francisco or the EuMW exhibition
in Manchester reveals advancements of all sorts. At the
core, are new semiconductor device capabilities and more
cost-effective foundries to produce them throughout the
globe. Enhanced design software that allows engineers
to better simulate physical systems rather than repeated
cycles of "cut and try". New generations of test equipment
that enhance measurement capabilities, speed data collection
and provide far more lucid display and analysis of results.
Also, there are advances in passive and packaging components
that reduce size, weight and cost. The combination of
all these factors now allow us to produce devices and
systems that were simply unimaginable a few years ago.
 David
J. Aldrich
President/Chief Executive Officer, Skyworks Solutions,
Inc.
Q: It looks as though mobile WiMAX
is a near certainty. Is your company addressing this potentially
immense market? If so, how?
A: Absolutely. This is an exciting growth
opportunity and promising technology. The very existence
of high speed data capabilities in the handset opens the
door for many new applications in this nascent market. The
challenge will be to meet the rigorous performance specifications
within the size and cost constraints required for high volume,
mobile applications.
For Skyworks, this means leveraging our semiconductor technology
depth and breadth to develop highly integrated solutions
that reduce form factors and customers' bill of materials.
In fact, we were among the first to introduce integrated
front-end modules and single chip transceivers for handsets
supporting multimode, data rich handsets.
This year, we introduced a number of solutions from our
growing Linear Products business to address the WiMAX market.
These building blocks included a direct quadrature demodulator;
a ground-breaking ceramic packaging process for high-volume,
hermetically sealed devices; and the industry's highest
dynamic range of active direct conversion mixers. We are
also developing a line of switches, power amplifiers and
front-end modules. So, as the market moves to WiMAX, we
believe we are well positioned to be a leading supplier.
Q: What is your view of short- and
long-term opportunities in the defense sector for manufacturers
of microwave components?
A: Because solutions for military applications
operate at higher frequencies and require higher reliability
than those typically found in wireless handsets, there will
always be a need for innovation and products to serve this
market. In fact, when I was at Alpha Industries, which we
later merged with Conexant System's wireless business to
create Skyworks, a large portion of our portfolio supported
military applications.
Today, we view homeland security as a promising market and
are beginning to see the convergence of commercial products
that meet military requirements. This sector is looking
for proven, cost-effective solutions, not unlike the handset
market, while the decision making process is changing to
a more commercial-like model. This will undoubtedly open
up opportunities for high volume-oriented suppliers like
Skyworks.
Q: What do you feel are the greatest
opportunities going forward for microwave manufacturers
in the commercial markets?
A: There are several products and ideas
that come to mind, including highly integrated transceivers,
synthesizers, mixers, modulators, demodulators and innovative
packaging technologies for access points, base stations
and other wireless data infrastructure applications. The
key to success for manufacturers will be in developing solutions
that are highly integrated, have smaller and smaller package
footprints, and are cost effective. These types of products
will help OEMs and ODMs reduce their bill of material costs
and improve their time-to-market.
Q: Would you agree that China has the
potential to be the biggest international market for our
industry's products?
A: China is certainly a growth market,
as well as India and several other countries focusing on
creating mobile connectivity. In China specifically, demand
exists for products that support their emerging 3G standards,
which includes the government supported TD-SCDMA. We have
chosen to offer enabling semiconductor products for all
three of China's prospective 3G standards, including the
world's first TD-SCDMA power amplifier module. As many know,
China completed testing for the majority of all 3G-related
technologies in 2005 and is expected to start issuing licenses
this year, most likely starting with TD-SCDMA.
Q: What do you feel are the most significant
advances (from design to manufacturing) that occurred in
the microwave industry during 2006?
A: We have seen a number of advances this
year, but perhaps the most significant was the continued
product integration of wireless functionality, both at the
component and active device level. Higher integration is
being driven by 3G requirements, where simultaneous data
and voice adds a new level of complexity and interoperability
that can't be achieved simply by cobbling together individual
components. This level of complexity is highlighted by the
need for multiple frequencies and modes of operation in
the RF front end. In other words, OEMs today require more
than a 'bag of chips'. Customers require earlier engagements
with suppliers to marry the complex hardware and software
elements that enable platforms with much shorter product
lifecycles.
At Skyworks, we strive to deliver the technologies supporting
this business shift. This year we introduced our next-generation
HeliosT EDGE radio, which condenses all required EDGE RF
functionality into two compact devices: the transceiver
and front-end module, dramatically reducing board space.
Based upon a closed polar loop approach, HeliosT also eliminates
the need for additional factory calibration, offering handset
OEMs simplified testing and ease with high-volume manufacturing.
To date, three of the world's top five handset OEMs have
adopted Skyworks' HeliosT-based architectures for EDGE cellular
phones. During the year, we also introduced key enabling
process technologies for GaAs-based products, namely BiFET
and PHEMT 6.
The bottom line is that as handsets become more complex,
chipmakers will continue to look for new techniques to remain
in a leadership position with their customers. Those who
are able to innovate, derive more value through integration,
and manufacture the broad range of key RF process and device
technologies, will succeed.
 Monty
Johnson
CEO, Wireless Telecom Group, Inc.
Q: It looks as though
mobile WiMAX is a near certainty. Is your company addressing
this potentially immense market? If so, how?
A: We are excited about every wireless
technology advance that has the potential to increase
high-performance mobile penetration. WiMAX certainly is
in that category, and provides opportunities to each of
our four units.
Within Boonton, advances in our sensing technology, such
as our new ultra fast peak power sensor, have allowed
us to help our customers address the higher bandwidth
requirements and complex modulation schemes for WiMAX
technology. As for our Noise Com unit, our modules, and
instruments have been used in testing communications networks
for many years. The increased signal complexity of WiMAX
even further requires precision noise instruments like
our DNG7500 to create advanced noise signals that will
characterize and stress future designs. WiMAX provides
further challenges to distributing the myriad of wireless
signals within high-rise and other buildings. We like
that, as it provides a great opportunity for our Microlab/FXR
unit, where we continue to enhance our passive RF component
line to handle this application. And finally, as we anticipate
WiMAX will be added into multi-mode wireless mobile phones
and other consumer devices, we plan to add WiMAX into
our test products within our Willtek unit, including our
4400 Mobile Phone Tester. So overall, we see WiMAX as
a very good thing.
Q: Much of the money
supposedly budgeted for defense electronics R&D and
procurement has been diverted to our "war on terror."
What is your view of short- and long-term opportunities
in the defense sector for manufacturers of microwave components?
A: In our Microlab/FXR unit, we see considerable
opportunities for microwave components. The performance
requirements of these "war on terror" systems will be
extreme. Those suppliers who can meet the performance
and reliability needs have significant opportunity.
We also anticipate that a significant portion of the "war
on terror" investment will be in areas directly related
to our Noise Com unit, both as it relates to generating
unique noise interference signals through specialty RF
components and in testing highly sensitive, security-targeted
equipment in the presence of noise. The opportunity includes
supplying noise-based microwave components, and testing
systems that use them. These are areas of strong leadership
for our company, and we see it as increasingly important
for the defense application.
Although not specifically about components but tied closely
to initiatives in homeland security, we are also very
optimistic about the public safety radio market, including
the Tetra and the APCO-25 standards. We see opportunities
for several of our units in this area, especially within
our Willtek unit on both the mobile phone test and the
air interface test side.
So whether potential customers are working in traditional
defense electronic markets or new markets created by the
"war on terror", we see good opportunities for microwave
suppliers.
Q: What do you feel
are the greatest opportunities going forward for microwave
manufacturers in the commercial markets?
A: Boonton, a leader in power meters
and analyzers, has identified a growing need for medium
and low-cost commercial power measurement instrumentation.
As component technology advances, we will increase our
product offerings, and continue our commitment to designing
measurement tools with the best price/performance.
Increasing speeds in digital circuitry have driven backplane
performance characteristics further into the microwave
domain, creating many new measurement challenges for digital
designers. Jitter tolerance budgets have become a critical
design consideration at these high frequencies. Noise
Com is introducing a line of microwave jitter noise instruments
to meet the needs of this demanding high growth market.
As this market continues to evolve, we will work closely
with industry leaders to develop products that address
their needs.
A third challenge has to do with the fact that multiple
air interfaces are being combined, both "over the air"
and within the individual radio devices. This drives the
need for general purpose test equipment that is truly
air-interface independent, such as our Noise Com and Boonton
products. It also drives the need to increasingly integrate
specifics of the different air interfaces into complex
communications test sets, including both the analog characteristics
of the air interface as well as the digital signaling
specifics of the protocols. Finding the right balance
of general-purpose versus application-specific is critical.
We believe that provides considerable opportunity for
our Willtek unit, where our 4400 tester has a flexible
architecture to handle these new air interface and protocol
additions with just a software upgrade.
Q: Would you agree
that China has the potential to be the biggest international
market for our industry's products?
A: Yes, we feel that China, with its
size and rapidly developing telecommunications infrastructure,
represents a large market for microwave products in the
foreseeable future. We also believe that, through the
transition of design and manufacturing to relatively new
companies within China, that the barrier to entry is sometimes
lower than it is when trying to break into customers with
a firmly established supplier network. This provides growth
opportunities, especially if it can be coupled with effective
in-country partnerships. On the downside, due to China's
low-cost manufacturing capabilities and focus on the microwave
market, it will represent a formidable competitive threat
to those who do not find an effective way to compete.
This is particularly the case in the component area where
volumes can be very large. Again, we believe effective
partnerships can be a key advantage.
Q: What do you feel
are the most significant advances (from design to manufacturing)
that occurred in the microwave industry during 2006?
A: Fueled by advances in low-cost GPS
navigation devices, there has been growing interest in
the GPS market, and we foresee continuing growth in this
space going forward with the launch of Galileo, and Glonass
satellites. As new navigation products continue to roll
out, this will help to further drive the need for newer,
higher performance microwave components needed to improve
the performance and drive down the cost and size of these
products. On the measurement side, we have continued investment
in our Noisecom GPS7500 product line that allows customers
developing GPS receivers to test design robustness in
the presence of noise. This is extremely important for
such low-power devices, and thus provides us and others
with significant growth opportunities.
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