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Tuesday smiled on Terayon Communication Systems (Nasdaq:TERN), which rocketed up 51% to $6.3 on Wall Street after announcing that CableLabs has included its technologies in the next-generation standard for cable data systems.

Also, Lehman Brothers and UBS Warburg both upgraded the Israeli broadband technology developer, according to

CableLabs established and manages the DOCSIS process to ensure interoperability among cable network equipment.

To get technical about it, CableLabs, the North American cable television industry's research and development consortium, has included S-CDMA (synchronous code division multiple access) and A-TDMA (advanced frequency agile time division multiple access) advanced physical layer technologies in DOCSIS 2.0 (data over cable service interface specification). DOCSIS 2.0 is the next major version of the successful specification for cable data systems, Terayon explains.

Terayon has been at the forefront of S-CDMA technology since 1994, and has a patent on it. The prototype cable data system it provided to CableLabs for evaluation included both S-CDMA and A-TDMA technologies.

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"S-CDMA basically takes a two lane upstream highway and turns it into a six lane highway," describes Rich Prodan, Terayon's chief scientist. "And then it triples the speed limit."

With DOCSIS 2.0, cable operators can provide upstream-intensive broadband applications, including voice over Internet protocol (VoIP), peer-to-peer networking, video conferencing, web hosting, video-on-demand, on-line gaming and application services.

The inclusion of S-CDMA in combination with A-TDMA also increases capacity, and reduces susceptibility to noise and interference.

CableLabs will complete the 2.0 version of the specification this year, and intends to accept DOCSIS 2.0 devices for certification and qualification in 2002.

"The cable industry's decision to include S-CDMA and A-TDMA in DOCSIS 2.0 is a boon for the entire industry," said Terayon CEO Zaki Rakib.

With PR Newswire