Broadband. Joe Crupi. Vice President Broadband Communications Group
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1 Broadband Joe Crupi Vice President Broadband Communications Group
2 62 72 Growing Broadband Communications Markets 81 Ports (M) 28% CAGR Demand driven today by highspeed, always-on data service home networking: multiple PCs and home Internet appliances; handhelds on the go; hot spots for mobility VoIP: consumer telephony in Japan, enterprise applications, service provider infrastructure Broadband reaching critical mass in major economies TI shipped the most ports in Cable DSL VoIP Sources: 2002 Frost and Sullivan, Pyramid Research, In-Stat, Kinetic Strategies, TI Analysis
3 Worldwide Broadband Landscape Germany 8.1% household penetration; Internet usage at 30% WLAN 500 Hot Spots; GRIC leading the rollout China 1.8% household penetration Internet; usage at 6% WLAN China Mobile & China Telecom attacking each other s position using WLAN South Korea 77% household penetration; avg. cost $20 USD WLAN KT has 8.5K Hot Spots, more than half the world s total; 112K KT broadband subscribers have taken Wi-Fi ($8.30/month) US 21% household penetration by year-end 03; prices falling to $35/mo. WLAN T-Mobile public network/enterprise network model Taiwan S. Korea model; 45% household penetration WLAN Chunghwa rollout slow (50APs); reduced pricing to NT$1/Minute Japan Fastest Growth WW 27% household penetration; VOD, VoIP experiments WLAN NTT Trials into Prince Hotels and MOS Burgers; 63% of Notebook owners willing to pay US$15/mo. for service
4 TI Broadband Momentum ($M) 13% CQGR 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03est
5 Growing Importance of Wireless Solutions x Cluster HOME OFFICE TRAVEL
6 Winning the Next-Generation CPE Cable Modems Cable WLAN/Cable Gateways VoIP WLAN/DSL Gateways WLAN IP Phones WLAN DSL Modems DSL World-Class Interoperability Labs Common Software Platforms Common Processors/Peripherals System-on-Chip Processes/Methodology Multiple Products from Common Technology Optimized Vertical Solutions
7 Leading-Edge Solutions Fuel Momentum 2 of top 3 Cable modem OEMs choose TI #1 in cable modem performance 100% DOCSIS cert. pass rate #2 in wireless LAN in 2002 Source: Forward Concepts 4 of top 5 WLAN manufacturers choose TI TI has shipped over 20 Million DSL Ports to more than 100 OEMs worldwide 5 of top 10 DSL OEMs choose TI TI has shipped over 14 Million VoIP Ports to more than 250 OEMs worldwide #1 in VoIP silicon and software solutions in 2002 Customers Choose TI Broadband DOCSIS 2.0 Cable Modem IC TNETC4401 TNETV3010 DOCSIS 2.0 certified cable modem chipset Single-chip a/b/g baseband/mac 1 st fully integrated single-chip DSL modem SOC voice processing with unprecedented throughput TI Continues Technology Leadership
8 First Single-Chip DSL Modem Higher TI Content Comms Processor Digital PHY Analog Codec Comms Processor Digital PHY 0.9 inches AR7 0.9 inches Driver Analog Front End Receiver Bill of Materials D chips Memory 740 discretes AR5 3 chips Memory 415 discretes AR7 1 chip Memory ~150 discretes
9 All Single-Chip Modems Are Not the Same Competitor C: MultiChip Module Comms Processor Digital PHY Analog Codec Analog Codec Receiver Driver Comms Processor Receiver Digital PHY Power Management Power Management ~300 Components Driver $$$ A single package, but not one piece of silicon X Multiple power supplies required X Competitor B: Missing Key Pieces ~270 Components $$$ X Needs extra power supplies X Increased BOM for external line driver Complete SingleChip Solution Power Mgmt Analog Codec Comms Processor Receiver Digital PHY Driver ~150 Components $ X Integrates major chips plus hundreds of passives on one piece of silicon X Single power supply X 18-25% lower system component cost
10 Sampling g Ready to Ramp! Fully standards compliant no changes or upgrades needed No-excuse, high-performance operation in mixed-mode b/g networks Lowest BOM for g AND a/g Optional g+ mode 50% higher throughput. Compatible with 5 million units of b+ products in the field
11 Customers Engage Across Breadth of TI Broadband Product Cable, VoIP DSL, VoIP DSL, VoIP Cable, VoIP VoIP, WLAN VoIP, WLAN VoIP, WLAN DSL CO, WLAN VoIP, Wireless Infrastructure WLAN APs, Routers DSL RT & CO, WLAN Routers Cable, WLAN DSL RT & CO Cable, VoIP
12 Covering the Breadth of Broadband Technology Needs Cable DSL Wireless Networking VoP TI Broadcom Intel Conexant Analog Devices GlobeSpanVirata Intersil Strong Good Fair
13 TI Broadband in 2003 Expect strong market growth Provide SOC solutions for all CPE markets Leverage strong position in software and interoperability capabilities Increase TI market share in Cable, DSL, WLAN; maintain in VoIP #2 in Cable #1 in DSL #1 in VoIP #1-2 in WLAN
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