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Mitel Corporation. (55PT)

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Tuesday 29 February, 2000

Mitel Corporation.

Co-Development of Module

Mitel Corporation
29 February 2000


TSE SYMBOL:  MLT
NYSE SYMBOL:  MLT
LSE SYMBOL:  MLT.L
ME SYMBOL:  MLT

Mitel and Philsar Co-Develop Bluetooth Module with Panasonic: Module
accelerates the market by cutting power consumption in half while increasing
performance

OTTAWA, ONTARIO--Mitel Semiconductor, a division of Mitel Corporation (TSE:
MLT, NYSE: MLT), Philsar Semiconductor, and Matsushita Electronic Components
Co., Ltd., best known by its Panasonic brand name, today announced the
co-development of a module for next-generation Bluetooth systems.   The
companies are combining a silicon chipset designed by Mitel and Philsar with
Panasonic's high-density packaging and RF expertise to provide a
high-performance and power-efficient route to Bluetooth 1.0-compliant systems.

The collaboration advances a vision shared by the three companies to
accelerate the adoption of Bluetooth in personal wireless connectivity
solutions.  Designed for small form factor and minimized power consumption,
the module accommodates mobile applications including cellular and handheld
phones, PDAs, wireless headsets, laptop PCs and peripherals. According to
Cahners InStat, by 2005 the market opportunity for radio and baseband
solutions for these and other Bluetooth-enabled devices will surpass US $3
billion.

'The Mitel/Philsar solution enables our module to be competitive in the
Bluetooth market,' said Keisuke Utsunomiya, general manager at Matsushita. 
'The silicon provides significant benefits in terms of low power, physical
size and flexibility.   As a result, we are well-positioned to lead the
industry in mobile applications where power consumption and robustness are of
critical importance.'

Silicon for a robust, low-power solution

The Bluetooth module is designed specifically to meet the cost, power
consumption and small form factor requirements of mobile applications.  The
compact solution measures only 16 x 21 x 2.7mm, and is expected to achieve
power consumption of 20mA in transmit mode and 17mA in receive mode.  This is
an improvement of up to 43 percent in transmit and up to 57 percent in receive
compared to alternative solutions.

'We are committed to getting customers to market fast with silicon that
addresses all of the requirements of this emerging market,' said Mike O'Neill,
vice president of sales and marketing at Philsar Semiconductor.  'Together
with Mitel and Matsushita, we are developing a module that will provide the
most power-efficient and robust solution available.'

Bluetooth devices operate in the unregulated ISM band, where a broad range of
applications, from microwave ovens to two-way radios, create a high level of
interdevice interference.  The Philsar/Mitel chipset includes a receiver
architecture that uses a locally recurrent, globally feedforward structure to
deliver robust performance under crowded conditions, eliminating effects such
as signal fading, while consuming very little power.

Complete module for emerging Bluetooth-compliant devices

'The Asia-Pacific region is the powerhouse of consumer goods manufacturing,
and our complete solution is a significant step in realizing the potential of
this market,' said Ginji Nojima, Japan country manager, Mitel Semiconductor. 
'The collaboration will accelerate the adoption of Bluetooth in consumer
systems for companies that lack the experience to integrate RF and Baseband
hardware and software into their host systems.'

Based on Matsushita's proven history in the design and mass production of
miniature RF modules, the chipset integrates Philsar's PH2401 radio
transceiver with Mitel's MT1020A baseband controller, software and
applications information. The PH2401 is a short-range radio transceiver that
provides all of the circuitry required for complete transmit and receive
functionality.  The new MT1020A includes a Firefly embedded microcontroller
core and the Bluetooth Baseband Peripheral (BBP) block including audio CODEC,
program memory, a general purpose ADC, and USB and UART host interfaces. The
system architecture is designed for ultra low power applications, and
implements the Bluetooth protocol stack in hardware as opposed to software to
keep power consumption down.

Availability

Complete modules will be available from Matsushita in sample quantities by
September 2000.

About Matsushita Electronic Components

Matsushita Electronic Components supports industrial growth by supplying
high-quality electronic components and devices to companies around the world.

      Company name: Matsushita Electronic Components Co., Ltd.
      Head office: 1006, Oaza Kadoma, Kadoma City, Osaka 571-8506, Japan
      Date of foundation: February 21, 1976
      Authorized shares: 1 billion shares
      Paid-up capital: 23 billion yen (304.5 million shares)
      Employees: 8,000 employees, 4,700 in domestic affiliate companies

About Mitel Semiconductor

Mitel Semiconductor specializes in connectivity solutions for the
communications and medical industries with a product range that includes
components for both wired and wireless networks; microelectronics for enabling
the convergence of voice and data; optoelectronic devices for high-speed
Internet systems; customer-specific communications Systems Level Integration
(SLI) solutions and applications-specific integrated circuits (ASICs) for
medical applications such as pacemakers and hearing aids.

Mitel is a growing global provider of converging voice and data systems and
applications, and specialty semiconductors for the communications industry.
The company has annual revenues of more than $1.3 billion and employs some
6,000 people worldwide.

About Philsar Semiconductor

Philsar Semiconductor Inc. is the leading developer of semiconductor solutions
for Personal Wireless Connectivity.  Philsar delivers ultra-low power, highly
configurable, high-performance semiconductor solutions.  Designers are thus
able to get to market sooner with lower total system costs.  Markets such as
mobile and handheld computing, home and enterprise wireless connectivity and
others promoted by standards such as Bluetooth and HomeRF, are targets for
Philsar chipsets.  For more information on Philsar, visit us at
www.philsar.com


FOR FURTHER INFORMATION PLEASE CONTACT :

Mitel Semiconductor
Patti Dalby
(613) 592-2122
E-mail: patti_dalby@mitel.com
Web Site: www.mitel.com
or
Philsar Semiconductor
Mike O'Neill
(613) 274-0922
E-mail: moneill@philsar.com
or
BW&A (Media for Mitel, Philsar)
Tiana Wiersma
(503) 241-1574
E-mail: tiana@bwapr.com
or
Panasonic (Media)
Kurt Praschak
(201) 392-6124
E-mail: praschakk@panasonic.com
or
Panasonic (Product)
Ash Chabra
(201) 392-4734
E-mail: chabraa@panasonic.com