New Modem Chip Can Be Reprogrammed

Conexant Systems Inc. today will unveil the industry’s first programmable cable modem chip, which manufacturers say will cut the cost of building modems by 25% and give them an easier way to upgrade their devices.

Conexant’s chips let modem makers use software to add new features to the modem without forcing customers to swap out the old chip or buy a new modem.

The two-way chips can be upgraded with software, but those programs will be determined by individual modem manufacturers. By using the Conexant chip, analysts say, cable operators could let customers try out new features--such as telephone service over the Internet--without forcing them to buy a new modem or new chips.

Though analysts praise the Newport Beach firm for its chip design, they warn that the company could face trouble because technical standards for some cable modem functions still have not been established.