2!

About Lantiq: Product Portfolio

DSL

VoIP

WLAN

DECT

Ethernet Network

Processor

GPON, VDSL, ADSL, SHDSL, VoIP, MELT, Vectoring Legacy: ISDN, POTS, TE-Carrier

GPON, VDSL, ADSL, SHDSL, WLAN, DECT, CAT-iq, VoIP

WLAN, Ethernet, G.hn, G.hnem

Legacy: PBX, ISDN, POTS

20% less power Reach doubled

(bonding/ vectoring)

Legacy compliance, IOP ADSL/VDSL

QoS for highest IPTV trans robustness

Scalable from entry-level route to high-end gateway

Proven IOP ADSL/VDSL

Three media solution Up to 1 Gbps Mesh Network Wideband and Narrowband Wireless: 802.11 n 1x1, 2x2,

3x3

Access Network Customer Premises Home Networking

Benefi

ts

Technolo

gie

s

3!

About Lantiq: Company Overview

$500 million revenue

1,000 worldwide (~700 R&D engineers)

20 locations worldwide

330 different products

Over 200 million devices shipped annually

Over 800 patent families

#1 in addressable access networks markets #2 in broadband DSL

100% third party outsourced (i.e. “fabless”) Capex less than 2% of sales

Lantiq enables carrier innovations for Next-Generation Networks and the Digital Home

Revenue

Employees

Locations

Products

Unit Volume

IP

Market Position

Manufacturing

4!

Increasing number and types of broadband-connected devices

6 years ago 3 years ago Today 2 years from now

Bandwidth needs growing EVEN FASTER in the home network than in the access network

5!

Video Services Pushing Limits of Existing Networks !  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)

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

7!

Home networks will experience capacity crunch – and most users won’t even know why…

Peak Data Rate Required in the Home Network

Increased service penetration and

device availability

2.5 Mbps

5 Mbps

20 Mbps

40 Mbps

80 Mbps

10 Mbps

“Youtube”-type video

“Netflix”-type video

Netflix on HD client

Multiple client devices per subscriber

Multiple subscribers in

the same block or MDU

Multi-room DVR function

160 Mbps

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

9!

Bandwidth demands push physical limits of wireless-only networks

Residential Gateway

Broadband Access Network (xDSL, Cable,

Fiber)

Wireless Networks for Mobile/

Portable Devices

ITU-T G.hn over “any wire”

Blu-Ray Player

Gaming Console

HDTV Media Center

Kids’ PC Printer Dad’s PC

Coaxial Cable

Electric Wires

Phone Lines

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

Hi-Fi System

Mom’s PC

10!

HD video anywhere – using the wired home network to offload wireless spectrum

Telco Video Network

OTT Video & Open Internet

DSL/Cable/GPON

1 – Recording Movie to DVR

2 – Watching football game

live

3 – Watching last week’s

recorded TV show

STB HD Gaming Console PC

4 – Watching TV show from

Hulu+

5 – HD-quality audio call

6 – HD-quality Video call

Home Server

7 – Periodic back-up

11!

Integration into the Home Gateway

Next Generation Hybrid Residential Gateways will integrate xDSL, GPON, Gigabit ethernet, WiFi, VoIP, DECT and G.hn

xDSL/GPON Access

Network

AC Wiring

DSL/GPON modem

Wi-Fi Access Point

VoIP Adapter

DECT Base Station

Powerline Adapter

Router

POTS phone

Wi-Fi Network

DECT Network

PC

Internet

Next-Generation Hybrid Residential Gateway

xDSL/GPON Access

Network

AC Wiring

DSL/GPON modem

VoIP Adapter

POTS phone

Wi-Fi Network

DECT Network

PC

Internet

Non-integrated CPE solution

14!

Highly Integrated Residential Gateway Silicon Platforms available Now

Next Generation Hybrid Residential Gateway

ADSL/VDSL Residential Gateway

ADSL/VDSL AFE + LD

G.hn wired modem G.hn AFE

WiFi baseband WiFi RF

SLIC DECT/CAT-iq

Flash

RAM

PCI

PCIe Phoneline

Coaxial

PLC

WiFi

4x 10/100 BaseT Ethernet

VDSL2/ADSL2/2+

SSI SPI

2x FXS

DECT/CAT-iq Cordless Handsets

Lantiq Silicon 3rd Party Silicon

15!

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

16!

Our Vision