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1 6.0Mb Max Digital DSL/ 56K Modem (G.DMT/G.Lite/V.90) Technology Description: Compaq's 6.0 Mb Max Digital DSL/ 56K Modem (G.DMT/G.Lite/V.90) builds on Compaq's commitment to provide the latest communications technology to consumers -- it supports today's 56K V.90 standards and allows for free updates to a faster G.Lite & G.DMT DSL future. Compaq's new 6.0 Mb Max Digital DSL/ 56K Modem (G.DMT/G.Lite/V.90) is included with select Presario PCs. This revolutionary combination modem allows you to access the highspeed broadband data communications technologies known as 100X Faster Up to Asymmetrical Digital Subscriber Line (ADSL). The Digital DSL than 56K! Modem makes it possible to download rich multimedia and large files in minutes rather than hours. It will offer the "Surf and Talk" feature in some homes that allows you to talk on the phone while surfing the Web -- all on one phoneline. It will also allow for the "Always On" connection in some markets meaning "Instant Access to the Web". If you would like more information 56K 1.5Mbps 6.0 Mbps about this technology, please visit Compaq on the Web at: Internet Access About ADSL ADSL offers the fastest possible Internet access speeds over existing phone lines. In addition to providing the highest speeds, ADSL provides the user with a constant connection to the Internet that does not interrupt regular voice phone service. ADSL uses new electronic components at the telephone company central office (CO) to transmit and receive information over the same phone line as regular voice service. Global standards from the International Telecommunications Union (ITU) allow the CO equipment to work with the Compaq DSL/56K modem. The modem supports the ITU standards for ADSL known as G.DMT (ITU G.992.1) and G.Lite (ITU G.992.2). G.DMT is the full rate ADSL standard the provides for downstream (toward the home) data rates of up to 6Mbps. G.Lite is an interoperable extension of the full rate ADSL standard that provides maximum data rates of 1.5Mbps, with lower power and complexity than G.DMT. Typical Connection Voice Network To the left is a sample diagram for a typical ADSL connection from the home that requires a splitter. G.Lite solution is designed in most cases to operate without this device. This makes it faster and easier for the consumer to install and removes consumer costs associated with additional phone lines and installation.

2 Positioning: The Digital DSL Modem for the Emerging High-Speed Internet Key Messages/Supporting Features: Faster Internet access over standard phone lines -- up to 100x faster than today's 56K modems. Talk on the Phone and Surf the Web at the same time using a single phoneline (no interrupted use of your Internet or Phone usage -- should not require second phoneline!). Your PC is equipped for the Emerging High-Speed Internet. Always On -- Your PC is always connected to the Internet (instant access to the Internet with no more lengthy connection process). Compaq Differentiation/Value Add: Investment protection: Use today's highest performance at 56Kbps with off-the-web software upgrades to G.Lite and G.DMT as it is locally deployed for the consumer. Simple, low cost consumer oriented implementation for future obsolescence protection. High Performance: Digital DSL Modem is up to 100 times faster than current analog modems. Compatibility: Digital DSL Modem plugs into the same phone jack as your existing telephone or analog modem. Convenience User selectable operation mode between G.Lite, G.DMT, and analog V.90 modem. User Benefits: 6.0Mbps Dedicated Connection Download sound and video clips, Web pages, and large files up to 100 times faster than today s 56K modems (G.DMT mode). G.DMT Standard (G.992.1) Provides compatibility with G.DMT DSL service that is currently being deployed across the nation. G.Lite Standard (G.992.2) Provides compatibility with G.Lite DSL service that will be widely deployed across the nation. Surf and Talk at the Same Time Surf the Web and talk on the phone at the same time using your existing phoneline. Does not require an additional phoneline. Always On Connection Instant Internet access without the wait of dialing your Internet Service Provider (ISP). Market Research Findings: Compaq and many other information gathering companies have conducted extensive studies and focus groups of the consumer and home markets. The overwhelming consumer desire is for:

3 Faster, more affordable access to the Internet. High-speed Internet access for the home market is a compelling subject that is attracting broad media attention. Consumers and SOHO are eager to tap into "broadband" capabilities of the Internet, and the high-tech industry is eager to deliver new products and services to fully exploit its potential. There are a number of industry initiatives underway to deliver high-speed Internet access to the home market including ADSL, cable modems, and satellite.. Performance Benchmarks/Competitive Analysis: Current performance information on the Digital DSL Modem is based on calculation of projected speeds of the data downstream from the host system. Up to 6.0Mbps (G.DMT) and 1.5Mbps (G.Lite) is the defined rate for the 6.0 Mb Max Digital DSL/56K Modem. Actual performance will depend on the service provided by the ADSL service provider and the conditions of the customer s phone line. Performance Considerations Most Telcos will market DSL as a best efforts service, meaning they will pre-qualify a user based on minimum guidelines before offering service to the user (distance from CO, type of local loop, etc.). Actual DSL performance will vary as current 56K modems do today. The performance qualifiers will be the quality and type of user s copper phone wire (local loop) running from the local telephone company central office to the user's house, the type and condition of the user s actual in-house wiring, and the user s phone, fax, or analog modem being used in conjunction. There are some options for improving performance and these may add cost to your installation. The Telcos can optionally install a splitter on the outside of a house which may be required for some lines, or the user can install a filter (to be defined) on phones and fax machines -- needed to eliminate interference with G.Lite. G.DMT service requires the installation of an external splitter. Competitive Landscape Consumer DSL solutions started emerging late Q4/98. 3Com and others will offer retail G.DMT/ G.Lite / 56K modem combo products (expected list price of $199). Specific retail providers may selectively market ADSL modems, probably in conjunction with local ADSL service providers (telcos or ISPs). Dell currently offers an optional internal G.Lite-only modem and an external ADSL modem in select regions.

4 Select Presario Features for the Emerging High-Speed Internet 6.0 Mb Max Digital DSL/ 56K Modem (G.Lite/G.DMT/V.90) Supports today s 56K standard and is equipped for the emerging digital communication revolution. 10 Mbps Ethernet Port: Allows connection of an external modem for ADSL or Cable connection. Technologies of the Emerging High-Speed Internet 56K V.90 G.Lite - ADSL G.DMT - ADSL Cable Overview 56K V.90 technology provides the easiest path to getting connected to the Internet. Any user who has a phoneline can sign up with an access provider that supports V.90. With a few more keystrokes they are surfing the Web. V.90 modems provide backward compatibility with all previous analog modem standards. Data/fax modems also allow you to send and receive faxes right from your PC. Today you can get V.90 support from many Internet Service Providers (ISPs). G.Lite ADSL supports download speeds of up to 1.5 Mbps or more than 25 times faster than 56K. G.Lite reduces the complexity and cost of an ADSL installation. In addition to providing high-speed Internet access, G.Lite ADSL also provides the user with a constant connection to the Internet that does not interrupt regular phone service all with your existing phone line. Asymmetric Digital Subscriber Line (ADSL) offers the fastest possible Internet access speeds over existing phone lines. In addition to providing high-speed Internet access, ADSL also provides the user with a constant connection to the Internet that does not interrupt regular voice phone service. Cable modems allow download speeds of up to 10 Mbps depending on the number of users on the shared line. Cable modems provide users with a constant high-speed connection to the Internet without disrupting cable television service. Feature/Benefits 56K Connection: Fastest analog connection allows rapid downloading of Web pages and files. V.90 Standard: The unified standard for 56K that is backward compatible with all analog modems and enjoys widespread ISP support. 1.5 Mbps dedicated connection: Download sound and video clips, Web pages, and large files up to 25 times faster than today s 56K modems. G.Lite Standard (G.992.2): Provides compatibility with the DSL service that will be widely deployed across the nation. Surf and Talk at the same time: Surf the Web and talk on the phone at the same time using your existing phoneline. Does not require an additional phoneline. Constant Connection: Instant Internet access without the wait of dialing your ISP. Up to 6.0 Mbps dedicated connection: Watch broadcast quality streaming video and download Web pages and large files at speeds up to 100 times faster than today s 56K modems. ADSL Standards: ADSL consists of two international standards, G.Lite and G.DMT. In addition, a few local phone companies deployed prestandard ADSL implementations. Contact your local phone company or ISP for availability and compatibility. Surf and Talk at the same time: Surf the Web and talk on the phone at the same time using your existing phoneline. Does not require an additional phoneline. Constant Connection: Instant Internet access without the wait of dialing your ISP. 10 Mbps shared connection: Watch broadcast quality streaming video and download Web pages and large files at speeds up to 100 or more times faster than today s 56K modems. DOCSIS Standard: This emerging standard will ensure compatibility of cable modems with cable Internet services. Surf and Talk at the same time: Surf the Web and talk on the phone at the same time using your existing phoneline. Does not require an additional phoneline. Constant Connection: Instant Internet access without the wait of dialing your ISP.

5 dialing your ISP. Questions & Answers: What is ADSL? ADSL, or Asymmetric Digital Subscriber Line, is a broadband modem technology that utilizes standard phone lines for high-speed digital transmission. ADSL enables ultra-fast Internet access and maximizes telecommuter access to corporate networks. ADSL even improves performance of interactive multimedia applications such as multiplayer gaming, video on demand, and video catalogs. How does ADSL work? Through the use of digital coding techniques, ADSL modems increase a phone line's capacity without affecting your standard phone services. With ADSL, you can surf the World Wide Web or retrieve your while you talk on the phone or send a fax. What is the difference between G.lite ADSL and G.DMT ADSL? G.lite ADSL are compatible with and complementary to higher speed (full-rate ADSL) deployments by telecommunications companies. Full-rate ADSL enables speeds up to 6 Mbps downstream and 1.5 Mbps upstream, but requires installation of a special signal "splitter" to separate voice and data. G.lite ADSL is designed to be less complex with less power requirements and consequently lower speed, with a trade-off of reduced complexity of installation and lower cost of implementation. When will G.Lite be available? Compaq is developing plans with the North American service providers to fully support G.Lite services starting in year Your local telephone service provider can tell you if it is available in your area. In the meantime, the Compaq 6Mb Max Digital DSL/56K modem supports current deployments of G.DMT ADSL, which is widely available in major metropolitan areas. How do I get DSL Service? (Compaq s Recommended DSL Provisioning Process) A customer learns of Digital DSL Modem from Compaq, in-store collateral, or in the box learning material provided by Compaq. 1. The customer contacts the Compaq High-Speed Internet Website (http://www.compaq.com/mypresario/highspeed) to find out about upgrade availability. 2. The customer contacts their local phone company or ISP for service availability, service class options, and pricing. 3. The local phone company or ISP communicates a service offer to the customer. 4. The customer accepts the service offer and places an order for DSL Internet service. 5. The local phone company or ISP provides a startup package and information to the customer and installs any necessary equipment at the customers home. How does DSL compare to ISDN, 56K Modems, cable modems, and satellite services? Besides Internet access, dial-up ISDN service has many other applications, including voice and video conferencing. Whereas the bandwidth used in ISDN communications is equal in both directions (symmetrical), DSL is unequal (asymmetrical). Dial-up ISDN operates at 128 Kbps, whereas DSL operates at much higher speeds. Because ISDN is a circuit-switched technology, its use contributes to congestion on the public voice network. The fact that ISDN is based on older,

6 less flexible technology than DSL means that ISDN is a more complicated technology to operate, leading to an installation process that often is far more complex than what we anticipate will be the case for DSL. 56K modems are limited in speed and multitasking capability because they operate over the telephone voice network. In contrast, DSL supports simultaneous high-speed voice, data, and video transmissions over a single standard phoneline. Because older cable systems are designed only for one-way transmission, cable modems for these services require a phoneline for two-way transmissions. It takes time and considerable financial investment to upgrade existing cable systems for two-way transmissions. In addition, since cable modem users share bandwidth, issues of performance and security arise as more users subscribe. DSL's dedicated, point-to-point connections provides users with consistent performance in a secure environment. Satellite systems allow downloads of up to 400 Kbps, but they require line-of-sight from the user's satellite dish to the transmitting satellite and thus cannot be used where trees, tall buildings, and other obstructions may interfere with the signal. Satellite systems must also use a phoneline for return transmissions.

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