There appears to be a great deal of confusion relative to the Comtech Model CS6716, CS67200 and the TM-20 tropo modems and related issues judging from the number of questions we continue to receive from our International and Government customers and potential new customers. We are therefore posting this message on our website to help clear the confusion.
1. Who owns the TM-20 Modem?
Comtech owns the intellectual property to the TM-20 modem and, as successor to Radyne, has an agreement to sell to General Dynamics ("GD") the TM-20 tropo modem. With respect to the TM-20 modem, the patent rights and trade secrets embodied in the Radyne/ Comtech agreement with GD states that the designs, drawings, technical information and equipment supplied by Radyne/Comtech, are the property of Radyne/Comtech. Further, any specifications, drawings, technical information or data furnished to GD remain the property of Radyne/Comtech.
2. Who can I buy the TM-20 Modem from?
Comtech has an agreement to supply the TM-20 modem exclusively to GD. Under the agreement, GD has the exclusive marketing rights only, worldwide, to sell the TM-20 tropo modem, subject to certain conditions of exclusivity. The exclusivity period will end on February 25, 2010 unless GD orders an additional specified number of TM-20 tropo modems to extend the exclusivity period.
3. What is the future of CS Series Modem and the TM-20 Modem?
Comtech has continuously improved its digital tropo modem technology, taking the modem capability from its original 8 Mb/s in the 1980’s to 22 Mb/s today. With our patented TPC and LDPC error correcting algorithm technology, we will be taking our modem performance to even higher limits. Comtech, as the owner of the CS series and TM-20 modems, has conducted side by side tests of the TM-20 and the CS6716 and CS67200 with a group of highly experienced tropo engineers and outside consultants using a tropo simulator previously owned by Radyne and now used by Comtech EF Data for production testing of the TM-20. The tests determined that the CS line of modems is the superior platform for future development, improvements, and technology insertions. Therefore based on a thorough comparison of the two modems, we believe it is in the best interests of our customers to focus our resources on improving the superior CS6716 and CS67200 tropo modems.
Since Comtech believes its CS6716 and CS67200 tropo modems have superior performance, Comtech will only sell those modems and discontinue the manufacture and sale of the TM-20 tropo modem when the GD exclusivity period lapses.
4. Is GD the only one who is able to buy the TM-20 modem from Comtech?
As stated in paragraph 2, GD has the exclusive marketing rights worldwide to purchase and sell the TM-20 tropo modem subject to certain conditions of exclusivity.
GD's investment in the TM-20 modem consists solely of purchasing the exclusive worldwide marketing rights only. GD does not have any ownership rights related to the intellectual property of the TM-20.
5. Is COMTECH going to invest more money on the TM-20 technology since COMTECH has now acquired Radyne and owns the Modem?
As stated in paragraph 3, Comtech does not plan to invest in the TM-20 modem. Based on a thorough comparison of the two modems, we believe it is in the best interests of our customers and Comtech to focus our resources on improving on the superior CS6716 and CS67200 tropo modems.
6. Is COMTECH teamed or partnered with GD in the pursuit of US Military or International Programs?
Comtech is neither teamed nor partnered with GD in the pursuit of any programs either international or for the US Government.
7. What modem has the US Government chosen to upgrade their AN/TRC-170 Digital Troposcatter Terminals?
Comtech was chosen as the exclusive supplier of digital troposcatter modems for the US Government upgrade of its tactical AN/TRC-170 troposcatter terminals. The Government chose the Comtech CS6716 Modem over the TM-20 modem after evaluating the performance of both modems.
Conclusion:
It is important to Comtech that its customers and potential customers have full and complete insight and understanding of the modem issue. Comtech is the sole owner of the intellectual property of both the CS series and TM-20 troposcatter modems. Comtech has been supplying both transportable and fixed tropo terminals since the early 1970's and as such has supplied higher rate digital troposcatter systems than any other company in the world so it has a very deep understanding of the technology behind the equipment and system design. If there are further questions on Comtech, its modems or troposcatter in general please contact Mr David Stephenson, Vice President Marketing and Sales at 407-854-1950 or by email at david.stephenson@comtechsystems.com.
Yours sincerely,
COMTECH SYSTEMS, INC.
Richard L. Burt
President
Comtech Systems Inc.
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