Vision. Paradyne Confidential & Proprietary Page 2

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1 Building One Access Network For Voice, Video & Data Ralf Sattler (Senior Sales Engineer)

2 Vision Paradyne builds dependable equipment used by service providers to deliver voice, video and data services to residences and businesses over the most cost-effective and reliable means available: the existing telephone wire infrastructure. Our vision is to transform the TDM access network into a packet-based architecture at the edge, enabling service providers to profitably deploy voice, video and data technologies. Paradyne Confidential & Proprietary Page 2

3 Broadband Adoption Accelerating Global Broadband Access Subscribers Millions Other Metro Ethernet Cable DSL Source: IDC, 8/03 Paradyne Confidential & Proprietary Page 3

4 Voice Circuit Migration to VoIP Worldwide Switch Markets in Transition Circuit Switch Market Packet-based Switch Market Sales in Billions Sales in Billions Source: Gartner and Prudential Equity Group, Inc. estimates, 2003 Market Discontinuity Presents Opportunity: Traditional TDM voice circuit switching equipment is in decline Telco service delivery infrastructure is changing as local voice migrates from TDM to VoIP Paradyne products are at the network edge, positioned to take full advantage of the opportunity Paradyne Confidential & Proprietary Page 4

5 Telco Video Coming of Age Worldwide Digital Telco TV Subscribers (Subscribers in Millions) Source: In-Stat/MDR, 4/04 Paradyne Confidential & Proprietary Page 5

6 Today s Multiple Overlay Networks Class 5 Switch PSTN Phone Access TDM Voice Network Remote Terminal Phone PSTN Telco TV Video Headend Access Packet Video Remote Network Terminal Telco TV PSTN Internet Broadband DSL CO Switch Router Access WAN PSTN TDM or Packet Data Network Remote Terminal Broadband DSL Paradyne Confidential & Proprietary Page 6

7 Building One Access Network Business-Class VoIP, Dynamic T1/E1, Frame Relay Video Head End Internet WAN Broadband Access Concentrator IP Voice & Data Over Ethernet Loop Bonding Remote Terminal Softswitch PSTN Voice Gateway Class 5 Switch VoIP Consumer Broadband Bundles: VoIP, Telco TV & Internet Paradyne Confidential & Proprietary Page 7

8 Voice Concentrator Broadband Access Platform Core Business or Home POTS IP / ATM CONSUMER IAD or MTA Softswitch Voice Gateway PSTN BUSINESS IAD PBX Class 5 Switch LAN Paradyne Confidential & Proprietary Page 8

9 Video Headend Video Concentrator Broadband Access Platform Home Set Top Boxes IP / ATM ADSL IP Video Features: IP Multicast including IGMP Snooping & Proxy Latest in standards-based ADSL2+ High-quality video using 802.1Q/p VLANs with Priority Crisp Channel Changes Paradyne Confidential & Proprietary Page 9

10 Core Data Concentrator Broadband Access Platform Business or Home Internet IP / ATM ADSL2+ ReachDSL SHDSL 10 Meg Ethernet T1/E1 IMA Frame Relay WAN Paradyne Confidential & Proprietary Page 10

11 Evolution of Wide Area Networking Ethernet Extends Frame Relay the LAN Leverages Creating Efficiency a Single of Ubiquitous Shared Packet Business Network; Class Network; Service Mission Level Management Critical Networking Again Legacy a Key Enabled TDM Ingredient Data by Network Service for Enterprise-wide Level Management Applications 10 Mbps 27 Mbps 55 Mbps Frame Ethernet Multiple Relay Shared Dedicated Loop Bonding Packet E1 TDM Network Circuits End-to-End Service Level Management Ethernet over fiber in limited metro areas Paradyne Confidential & Proprietary Page 11

12 Building One Access Network Business-Class Packetized Voice & Data Video Head End Packetized T1/E1, Frame Relay or Metro Ethernet Internet WAN Broadband Access Concentrator Softswitch PSTN Voice Gateway End-to-End Service Level Management Remote Terminal Class 5 Switch VoIP Consumer Broadband Bundles: VoIP, Telco TV & Internet Paradyne Confidential & Proprietary Page 12

13 Broadband Access Concentrators Small Medium Large 24 Ports 1u Stackable IP or ATM Standards-based DSL ADSL2+ & SHDSL ReachDSL Ideal for remote cabinets, poll-mount & small COs Ports/shelf IP, ATM and TDM ADSL2+ & SHDSL Bonding up to 24 Ports ReachDSL T1/E1 POTS Ideal for COs, remote cabinets & in-building Ports/shelf IP, ATM and TDM ADSL2+ & SHDSL Bonding up to 24 Ports ReachDSL T1/E1 POTS Ideal for high-density COs & remote cabinets Paradyne Confidential & Proprietary Page 13

14 Packetized Voice Equipment Voice Gateway ATM to Class 5 Switch GR303, V5.1, V5.2 Supports 16k subscribers Carrier-class availability (5 9s) Mass subscriber management Integrated Access Devices & MTAs POTS Line Termination Card Installed at Customer Premises VoIP or VoATM ADSL, SHDSL & SDSL T1/E1 Ethernet 1 72 POTs ports PBX support Full routing & bridging Ideal for SOHO, small to medium business & MxU Installed in BAC to terminate POTS VoIP or VoATM 24 long-haul POTS ports/card Softswitch or Media gateway support Full class feature support Paradyne Confidential & Proprietary Page 14

15 Customer Premises Equipment Residential, Small/Medium Business-class DSL Modems Network Extenders Featuring Ethernet Loop Bonding Standards-based ADSL with WiFi Bandwidth as high as 55 Mbps between locations over wireline infrastructure Combination ADSL & ReachDSL in one modem 2, 4, 8, 16 & 24 voice port integrated access devices ADSL, SHDSL, SDSL & E1 IADs Point-to-point and pointto-multipoint configurations SHDSL, ADSL2+, T1/E1, DS3/E3 Enterprise-class Intelligent CSU/DSUs 4 new products launched in 2003 including router series IP and frame relay service level management Frame relay, frame relay over DSL, MPLS & IP DSL and DS3 Paradyne Confidential & Proprietary Page 15

16 Summary VoIP, telco video, high-speed Internet and other packetbased applications present excellent market opportunity for volume deployments of DSL DSLAMs are transforming into Broadband Access Concentrators to facilitate packet architecture for access Our worldwide installed base of DSL Service Providers recognizes market advantages of our key differentiators Excellent financial position to capitalize on the movement to One Access Network for Voice, Video & Data Paradyne Confidential & Proprietary Page 16

17 Thank You!