About Lantiq: Product Portfolio

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2 About Lantiq: Product Portfolio WLAN DSL DECT Ethernet VoIP Processor Access Customer Premises Home ing Benefits Technologies GPON, VDSL, ADSL, SHDSL, VoIP, MELT, Vectoring Legacy: ISDN, POTS, TE-Carrier 20% less power Reach doubled (bonding/ vectoring) Legacy compliance, IOP ADSL/VDSL GPON, VDSL, ADSL, SHDSL, WLAN, DECT, CAT-iq, VoIP Legacy: PBX, ISDN, POTS QoS for highest IPTV trans robustness Scalable from entry-level route to high-end gateway Proven IOP ADSL/VDSL WLAN, Ethernet, G.hn, G.hnem Three media solution Up to 1 Gbps Mesh Wideband and Narrowband Wireless: n 1x1, 2x2, 3x3 2!

3 About Lantiq: Company Overview Revenue Market Position $500 million revenue #1 in addressable access networks markets #2 in broadband DSL Products 330 different products Unit Volume Over 200 million devices shipped annually IP Manufacturing Over 800 patent families 100% third party outsourced (i.e. fabless ) Capex less than 2% of sales Employees 1,000 worldwide (~700 R&D engineers) Locations 20 locations worldwide Lantiq enables carrier innovations for Next-Generation s and the Digital Home 3!

4 Increasing number and types of broadband-connected devices Bandwidth needs growing EVEN FASTER in the home network than in the access network 6 years ago 3 years ago Today 2 years from now 4!

5 Video Services Pushing Limits of Existing s! IP-based video services (both Telco-based and Over-The-Top) increasingly rapidly: " In number of subscribers " In amount of capacity (Mbit/s) required per subscriber " In number of devices per subscriber Average Netflix subscriber uses ~1.3 Gbytes/day (and growing) Average XBOX 360 Netflix subscriber uses ~2.6 Gbytes/day (and growing) 5!

6 The problem is not in the access/core network! Much discussion recently on how new video services (Netflix, Hulu +, etc) are creating difficulties for ISPs in their core and access networks! But those are not likely to be the network segments that will face problems " ISP can easily monitor network load and install new capacity if needed! What about consumer home networks? - Existing Wi-Fi networks alone are not likely to be able to handle increased traffic, as more users move to HD-capable devices like XBOX360 as more users have 2 or more video devices to watch on-line video simultaneously as more subscribers in the same block use the same 2.4 & 5 GHz spectrum during peak hour - Consumers will simply notice that video quality degrades, but will not know the reason why 6!

7 Home networks will experience capacity crunch and most users won t even know why 160 Mbps 80 Mbps Peak Data Rate Required in the Home Multiple subscribers in the same block or MDU 40 Mbps 20 Mbps Multi-room DVR function 10 Mbps 5 Mbps 2.5 Mbps Youtube -type video Netflix -type video Netflix on HD client Multiple client devices per subscriber Increased service penetration and device availability 7!

8 Solving the problem for HD video distribution in the home! Key innovations: 1. Gigabit-class wired home networks - ITU-T G.hn allow devices to use existing home wiring (power wires, twisted pair, coaxial cable) with higher throughput and reliability than Wi- Fi. 2. Automatically offload the wireless network when possible - Use wired connections when available, to ensure precious 2.4/5 GHz Wi- Fi spectrum is conserved. Reserve wireless spectrum for handheld and laptop devices. 3. Active use of QoS inside the home network - Strict Bandwidth reservation for latency sensitive applications, like VoIP, gaming, HD IPTV and video-conferencing 8!

9 Bandwidth demands push physical limits of wireless-only networks Broadband Access (xdsl, Cable, Fiber) Residential Gateway Wireless s for Mobile/ Portable Devices Key Concepts: Use wired networks to off-load wireless networks and to extend coverage Plugged-in devices will use existing wired infrastructure Mobile/Portable Devices can benefit from less congested wireless spectrum Hybrid Residential gateway combine both networks and present a unified view to consumers ITU-T G.hn over any wire Coaxial Cable Electric Wires Phone Lines Hi-Fi System Media Center Blu-Ray Player Gaming Console HDTV Mom s PC Printer Kids PC Dad s PC 9!

10 HD video anywhere using the wired home network to offload wireless spectrum Telco Video 4 Watching TV show from Hulu+ DSL/Cable/GPON 5 HD-quality audio call 1 Recording Movie to DVR 2 Watching football game live 6 HD-quality Video call OTT Video & Open Internet 3 Watching last week s recorded TV show 7 Periodic back-up STB HD Gaming Console Home Server PC 10!

11 Integration into the Home Gateway Wi-Fi xdsl/gpon Access Internet xdsl/gpon Access Internet Wi-Fi Access Point DSL/GPON modem Wi-Fi DSL/GPON modem Router Powerline Adapter VoIP Adapter VoIP Adapter DECT AC Wiring PC POTS phone DECT Base Station DECT AC Wiring PC POTS phone Non-integrated CPE solution Next-Generation Hybrid Residential Gateway Next Generation Hybrid Residential Gateways will integrate xdsl, GPON, Gigabit ethernet, WiFi, VoIP, DECT and G.hn 11!

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13 Wrap-up! Bandwidth needs for access networks growing fast, but for home networks even faster! One technology alone cannot support all the applications, specially with exponential growing in IP video (Telco & OTT)! G.hn and Wi-Fi provide the perfect combination to address the needs of IP video delivery " Wi-Fi for mobile, handheld, laptops, tablets, etc " Everything else (PC, NAS, TV, STB, etc) should be offloaded from wireless network, and should use G.hn (powerline, coaxial, phoneline)! Next Generation Residential Gateways will integrate DSL, GPON, Gigabit Ethernet, VoIP, DECT, Wi-Fi and G.hn 15!

14 16! Our Vision