Westward wireless expansion ADC swallows PCSI unit

ADC Telecommunications tightened its clamp on the wireless market last week with a $23 million acquisition of the infrastructure equipment division of Pacific Communication Sciences Inc.

The move to acquire the PCSI unit is the most recent component of ADC's strategy to develop a diverse cache of wireless holdings by accumulating vendors that have already established themselves in different specialties. ADC also announced last week that it has formed a new Wireless Systems Group, to be headquartered in San Diego, that will oversee all the company's wireless properties (see box on page 10).

The former PCSI division manufactures base station equipment based on the Japanese personal handy-phone system (PHS) standard for wireless local loop applications. ADC's interest stemmed from a desire to roll wireless local loop into its existing wireline platform to create a combined transport/wireless access solution, said Jack Reily, vice president of business development at ADC.

"Our primary thrust is our Homeworx loop transmission system," he said. "We've been wanting a wireless local loop capability to add to that product.

The company believes there are market opportunities worldwide for such an integrated wireline/wireless platform, but its first targets will likely be in the region where PHS originated. "The Asian markets are likely to be the most receptive initially," Reily said.

The PCSI unit also manufactures base stations for cellular digital packet data (CDPD) systems and personal air communications technology (pACT), a two-way paging technology originally designed by AT&T Wireless Services.

"ADC has been looking to build a presence in the mobile wireless market," Reily said.

ADC's other wireless units have product lines encompassing analog and digital microcellular systems, linear power amplifiers, equipment for PCS-over-cable systems and wireless network management software.

In light of the acquisition, PCSI-a subsidiary of Cirrus Logic-has reorganized into two business units. Its semiconductor products division supplies chipsets for PHS and pACT. The subscriber unit division supplies the Personal Access Link phone with CDPD capabilities and Ubiquity wireless/wireline modem.

"Cirrus Logic has been intensifying its focus on its core competencies, and base stations fall outside that area," said a spokeswoman for PCSI.

David Brandos, vice president and general manager of PCSI's infrastructure division, will move to ADC and retain that position in the acquired unit. The division will remain co-located in PCSI's facilities in San Diego for the time being, the spokeswoman said.

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