Report from Panasonic New Product Press Conference in New York

Big news:

(1) KX-TDA systems "on hold" because of Iraq war.

(2) New made-in-USA systems for business and home.

(3) New phones made in Mexico.

(4) Several tech support people have new executive positions.

IMPORTANT NOTE: In previous years I included some deliberately inaccurate and humorous 
information in my new product reports. Because of the current world situation, I don't 
think it's appropriate to fool around. You can believe everything on this page.

Michael N. Marcus, AbleComm, Inc. www.ablecomm.com etc.

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For the last few years, Panasonic's annual new product press conferences have been 
held in hotels. This year's venue was the luxurious Copter Club, at the top of the 
PanAm Building in Manhattan. This is where Panasonic showed new products back in the 
early 1970s, including such milestones as the first cassette changer, and the first 
consumer electronics product with a Liquid Crystal Display (LCD).

Monday's press breakfast was expected to be the official US debut of Panasonic's 
long-awaited "new platform" - the KX-TDA phone systems. The system was first shown at 
the CeBIT exposition in Germany in March of last year, and has been on sale in Britain 
and Russia for several months.

According to Panasonic phone system sales manager Mark Balsama, "we planned to be 
offering the KX-TDA systems in the US right now; but the KX-T factory in the Wales is 
devoting most of its production for replacing the telecommunications infrastructure in 
Iraq, probably starting in a few months."

"British Prime Minister Tony Blair was under tremendous political pressure not to send 
British troops into Iraq," Balsama continued, "and the only way he could gain support 
in Parliament was to promise rebuilding business to companies in the UK. Matsushita 
management in the UK was pressured by Blair's political party, to produce products for 
Iraq rather than the US, so the increased employment would be perceived as a benefit 
of Britain's participation in the War."

New assistant sales manager Martin Padula pointed out that "Most Panasonic system 
products for the US market have been made in Wales and most of these models are also 
made in Japan. Unfortunately, Panasonic here in the US can't obtain phone systems from 
Japan because Japanese production is allocated for other countries, years in advance."

"We are very fortunate," Padula stated, "to have production facilities available right 
here in the US, where we will be able to produce two exciting new lines of products, 
designed in the US to better meet the specific needs of American businesses and 
consumers."

For the "foreseeable future," Panasonic will not distribute the KX-TDA systems in the 
US, but will instead focus on the new KX-TD5000000 for business applications (in sizes 
ranging from 48 to 4800 ports), and a new KX-TQ series for homes and smaller 
businesses, that can go up to 6 x 16 or 12 x 32.

The KX-TD5000000 will be manufactured in Virginia, at the former DBS factory. The DBS 
division closed yesterday.

The KX-TD5000000 model number may be pronounced "KXTD five million" or "KXTD ooooh" 
according to Panasonic's new media relations manager Kirt Morose, who was introduced 
by Balsama at the presentation in the PanAm building.

Hai Du, newly named assistant director of product development, told the audience that 
the new system is based on 19-inch rack-mountable components, including power 
supplies, Universal Circuit Modules, and feature modules, each measuring just 1.75 
inches high. 

The modules are painted in a distinctive "Panasonic blue" color, and have LEDs and LCD 
panels to show operational status, and for diagnostics. The LCDs on power supplies, 
for example, can show current draw for each output voltage, as well as internal 
temperature of seven different internal components. An abnormally high current draw or 
temperature will trigger an audible/visible alarm, plus automated phone calls to key 
people within the business, and at the phone system dealer. Panasonic will offer 
color-matched blue racks in three different heights, but the components can also be 
mounted in industry-standard 19-inch racks and brackets.

The Universal Circuit Modules are equipped with 48 ports, and can be configured for 
any mix of lines and phones, such as 3 X 16, 6 X 8 or even 48 X 0 or 0 X 48 if needed. 
Type 2 Caller ID is built-in, but can work on only 36 of the 48 ports. Product manager 
Michael Gillespie said "I know we're calling this a universal module, but it would 
have been just too expensive to provide Caller ID on all possible ports. On the other 
hand, we can provide Caller ID with Call Waiting on up to 36 single-line phones, 
displays or PCs from each module; so we think we've come up with a good set of 
features at the right price."

Feature modules will be available this year for ISDN (BRI and PRI), DID, OPX, T1, T3, 
T6, message-on-hold, amplified and equalized 6-way conference calls, door intercoms 
(with optional video), remote programming, hotel message waiting lights, call 
accounting, and multiple cordless handsets.

Panasonic will be marketing color-coordinated rack-mountable back-up battery systems 
("UPSes") that will be made for Panasonic by Tripp-Lite in Chicago. 

According to Jason Laboy, recently named manager of diversified market development for 
the Communications Systems Division, a number of industry-specific feature modules 
will be introduced in 2004, including hotel/motel (with room status indication, stolen 
TV alert, and guest billing), answering service, casino, education, medical center, 
apartment house, church, synagogue, mosque, restaurant and law enforcement.

A new line of rack-mount voice processing systems, with capacities ranging from four 
to 180 ports will be available starting in the fourth quarter of 2003. The voice 
processors can alert users with a phone call or display icon when a mailbox is nearly 
full. (The current KX-TVS line of voice processors, which are made in Japan and are 
not affected by British politics, should be available for three years or more, 
according to Laboy.)

Each rack-mount power supply can support up to four Universal Circuit Modules, four 
feature modules, and a voice processor. All modules and the power supplies have 
multiple USB connectors, and the modules can be connected directly to a power supply, 
or chained together with USB cables. Some modules also require a power cable connected 
to other modules or the power supply. Programming for an entire system, including a 
voice processor, can be done with a PC or Mac connected to any USB port, or remotely. 
Programming software is imbedded in the system modules, and can be accessed with any 
general-purpose Windows or Macintosh terminal software.

The KX-TD5000000 system supports all previous KX-T analog and digital proprietary 
phones, and will provide a number of new features (such as flashing message waiting 
lights) when used with KX-T7500 series phones, that were previously unavailable in the 
US. 

These phones will be made in a 600,000-square-foot, state-of-the-art manufacturing 
facility in Guadalajara, Mexico, supervised by Hermes Vargas and Richard Rodriguez. 
The factory was built by AT&T in 1990, transferred to Lucent Technologies in 1997, and 
sold to VTech in 2000. VTech abruptly closed the plant in 2001, idling about 2,400 
workers, when it moved phone production to China. Matsushita purchased the facility 
last summer, and has used it to manufacture televisions, DVD players and some telecom 
products, including the black and white KX-T30865 door intercom speakers.

Phone system technology administrator Frank Goode showed a prototype of a new 
made-in-Mexico KX-TD7995 cordless system that can work with current digital systems 
and the new KX-TD5000000. Two different base units will be available, handling up to 
four or 32 handsets. Repeaters will extend signal coverage, and will require just one 
wire pair, plus local AC power. The wiring for the repeaters can be home-run back to 
the base, or daisy-chained. Maximum usable distance to the farthest repeater, 
according to Goode, should be three miles or more with 24 gage wire. The cordless 
handsets have built-in speakerphones that can also carry paging announcements. 

Newly named assistant director of wireless technology Aubrey Lawton said that 
Panasonic is working on a full-functioning 12-line desk phone, similar to the 
KX-TGA400 SO/HO phone, which requires AC power but no phone wiring.

A new line of residential/small business phone systems will be produced in a 
Matsushita facility in Elgin, IL, a suburb of Chicago. Until it was sold to Matsushita 
in 1974, this manufacturing plant had belonged to Motorola, and produced the famous 
Quasar easy-to-fix "works in a drawer" television sets. 

Douglas Lambert, recently named to the post of associate vice president for domestic 
manufacturing quality assurance administration, told the audience that "while owned by 
Motorola, the plant had high production costs and poor quality control, but Matsushita 
management made major improvements in efficiency and quality, and achieved ISO 9001 
certification three years ago."

The Quasar name has been used by Matsushita intermittently on a wide range of 
products, including air conditioners, microwave ovens, televisions, VCRs and cordless 
phones; and will now be used on a new line of phone systems aimed at the small 
business and residential markets. 

Matshushita's purchase of the Quasar factory nearly 30 years ago was subsidized by the 
State of Illinois, and one condition of the subsidy is that all products coming from 
the factory must bear the "Quasar" label, to help instill pride in employees and 
taxpayers. Quasar-branded products are exhibited in "Made-in-ChicagoLand" display 
cases at O'Hare and Midway airports and the McCormick Place convention center.

"Initially, I was not too happy about using the Quasar brand name," said phone system 
product manager Michael Gillespie, "but when I visited the plant and met the 
employees, I was very impressed. This is definitely a world-class operation, ready to 
produce top-level products; and it's nice to have a name for our new product line that 
has a heritage in home entertainment, since the new products will have substantial 
crossover between communications and entertainment." 

The "Quasar by Panasonic" phone systems to be sold in the US have been designed to 
distribute broadband media as well as telecommunications. Connections between phones 
and control unit ("KSU") can be made with RG6 coaxial cables, or can be wireless using 
WiFi.

There will be a new series of KX-TQ8000 phones (from the Guadalajara factory) with 
stereo intercom, touch-sensitive video screens and coaxial "F" connectors. The 
top-of-the-line KX-TQ8456 model comes with a 6 x 9 High Definition plasma color 
screen, a subwoofer, and can use downloadable ringing sounds and screen savers. Phones 
will be available in white, charcoal and silver.

Panasonic will offer modular-to-coaxial adapters to accommodate older phones, 
single-line analog phones, faxes, etc. A new KX-TQ8280 corded phone with a 
Trimline-type handset will be available in August, and will be compatible with 
existing and new systems. It has a Caller ID display, plus eight flexible buttons with 
multi-color LEDs, and speakerphone. It is expected to be very popular for bedrooms and 
bathrooms, and will be available in six different colors. Handsets and bases can be 
ordered separately, so dealers can provide a black and orange phone for a Princeton 
grad, blue and white for a Yale student, or violet and silver for a teenager.

A new baby monitor (available in pink, blue, yellow, and white) is due in September or 
October, and can be listened to through one channel of the stereo intercom on the new 
phones, while the other channel is used for regular intercom calls. It's also possible 
to monitor two baby's rooms through speakers on two intercom channels, while the 
handset is used for a phone conversation. The plasma screen on the KX-TQ8456 can be 
used with a video baby monitor or video door intercom.

Two new door intercom models will include color and monochrome zoomable cameras, with 
both wired and WiFi communication links. Panasonic will also be distributing several 
door intercoms with brass, chrome and bronze finishes, made by Channel Vision. 

There will be two new control units, replacing five current models. 

The KX-TD308 digital control unit and the KX-TA624 analog control unit will be 
discontinued this summer. They will be replaced by the Quasar KX-TQ616, equipped for 
six lines, 16 phones, and four door intercoms. Type 2 Caller ID is standard, for both 
proprietary and single-line phones. It is not expandable and there is just one option: 
a 2-port/4-hour/16-mailbox voice processor module.

The last shipments to distributors of the KX-TD816 and TD1232 will be in October. They 
will be replaced, in the residential and small business market, by the Quasar 
KX-TQ1232, which is based on the current KX-TD1232, with new features including Type 2 
Caller ID for both proprietary and standard phones, dual XDP, and video door intercom.

The KX-TA1232 is no longer in production.

The new KX-TQ models are digital, but Panasonic will not mention analog or digital 
technology in describing new phone systems. "Digital is a basic fact of life today," 
said Gillespie. Just as we went through a period when radios were advertised as 
"transistorized" or "solid state," we promoted "digital" for a decade, but it's no 
longer appropriate. It was getting pretty silly, anyway, with KX-TA, KX-TD and KX-TDA 
product lines, and some potential customers may have held back because they thought a 
KX-TD system required DSL or ISDN phone lines." 

Panasonic's new sales promotion manager Manny Ruivo described a new dealer sales 
incentive program, called "Dash'n for Fashion." 

Dealer salespeople can earn points for selling the new KX-TQ and KX-TD5000000 
products, which can be redeemed for Panasonic "e-wear"-- an integrated series of 
jackets with built-in miniature video cameras, pants with digital audio/video players, 
sneakers with foot massagers, and a cellphone in a hat. "We expect that the e-wear 
will be a lot of fun for personal use," Ruivo pointed out," but it's also useful on 
the job. Installers can view digitized manuals on their e-wear sleeve screens, and can 
even call tech support from a hat phone linked to a phone system with WiFi, so 
Panasonic's technical staff can perform remote diagnostics and upgrades."


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