A New World of Applications & Services

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1 A New World of Applications & Services GLOBECOM 2004 IEEE COMMUNICATIONS SOCIETY Telecom Business Forum David Perkins Sr. Vice President, Freescale Semiconductor, Inc. GM, Networking & Computing Systems Group

2 Consumers: A Vital Growth Driver in Global Economics Consumers have become a key growth driver of the GDP. (Macroeconomic supply/demand, linked to semiconductor market growth.) Source: Gartner 4Q2004 Semiconductor Forecast Source: Gartner Nov/04

3 Semiconductor Market Growth Today s growth approaches record set in 2000 despite cautious CAPEX Source: Gartner 4Q2004 Semiconductor Forecast Source: Gartner Nov/04

4 Consumer Semiconductor Consumption by Vertical Market ($B) For the first time, consumers drive more than 50% of semiconductor consumption Source: Gartner 4Q2004 Semiconductor Forecast Source: Gartner Nov/04

5 Semiconductor Growth in 2005: Digital TV Takes Off 2005 Cell Phone Shipments +8% (Units) 2005 PC Shipments +10.5% (Units) 2005 Digital Camera +6% (Units) PC/Computer 42.6% 2005 Digital TV +50% (Units) Cell Phones/Mobile 16.3% Wired Communications 6.5% Industrial/Military 9.2% Automotive 6.9% Consumer 18.5% $214B (0%) 2005 Sources:Gartner/IDC/iSuppli/ Strategy Analytics/SIA November 2004 Forecast

6 Broadband to the Home Digital Content from Multiple Sources Drives Network Innovation Computing Home Office Revolutionizes multimedia access and use Advances drive demand for higher bandwidth Consumers demanding Networksto-Go Triple Play: Voice-Data-Video Enabled networks Wireless everything Kid s Room Entertainment More applications Seamless mobility

7 Communications Electronics Landscape and beyond Stand-alone Devices Next-Gen Devices MultiMedia Interactive Communications Peripheral Connectivity Functional Integration Digital products New Network Elements Home Networking/ Interoperability > DVD Players, > Digital TVs, > Gateways/VPN/FW > Games Machines, > Flat Panel Plasma > xdsl/cable Modem > Digital STBs Displays/TVs > Media Server/WiMax/DRM > PCs > LCD TVs > NAS/s-ATA > Broadband modems > SAT STB > IP STB/DVD (FE, MPEG4, WLAN) - Cable > PC/DVD/USB/ >PC/DVD/USB/802.1x - xdsl > IP Phone > IP Phone Enhanced -PON > Router > PC Server > PVR/NAS > Printers

8 Home Networking Today: Too Many Protocols, Too Little Interoperability and an Emerging Third Wave Oval: Wired Square: Wireless Today Hyperlan 2 54 Mbps USB 10 Mbps IrDA 4 Mbps b 11 Mbps USB Mbps a 54 Mbps Emerging IEEE Mbps IEEE Mbps to 400 Mbps g 54 Mbps e QOS Future 1394 over OFDM 200 Mbps to 400 Mbps Powerline Mbps n Next Gen HomeRF 1.6 Mbps Bluetooth 1 Mbps CableLink 270 Mbps DECT 500 Kbps HPNA 1 Mbps Bluetooth Mbps?

9 Creating Smart Next-Generation Networks CUSTOMER PREMISES CORE METRO ACCESS Voice Network LOCAL LOOP Backbone C.O. Voice Gateway SOHO DLC CMTS DSLAM Access C.O. ATM / IP Data Network SME MSAP Metro Ring (OC-48) Add-Drop Mux Wireless Gateway BSC Wireless Infrastructure BTS MTU Campus/Private Network ISP Network

10 Three Imperatives for Next-Generation Networks Trusted Networks a market imperative Consumer demand for network security growing exponentially Hardware encryption enables both security and high network throughput Voice over IP packet voice comes of age Broadband pipes opening the door to IP telephony VoIP roll-out gaining real market traction End-user demand driving boom in softswitch revenue 69% jump in VoIP equipment sales this year (Source: Infonetics Research) Quality of Service key enabler of IP networks QoS is the key to carrier-class packet voice connectivity DSPs and echo cancellation are enabling technology

11 Smart Networks: At the Center of Everything Banking Home Appliances Security Gaming TV Web Cam Surfing Gambling Services Entertainment Learning Photos Medical Shopping Videoconferencing Tracking Traffic

12 Telecom Recovery: Summary Recovery based on pull from consumers Network as a platform Underlying demand for bandwidth will continue to grow Future demand will require QoS Increasing portion of the Network will be in the home o Ghostbusters (who ya gonna call?) Trusted Networks High Complexity = Significant Opportunity

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