Teknovus and KDDI Announce Next Generation EPON Roadmap

Development program features data rates progressing to 10 Gb/s for tomorrow’s IPTV services

PETALUMA, Calif. -- January 17, 2006 --Teknovus, the leading provider of Ethernet Passive Optical Network (EPON) chipsets for the deployment of IPTV in broadband access networks, and KDDI, one of Japan’s largest and most progressive telecom carriers, today announced a Next Generation Ethernet Passive Optical Network (NGEPON) roadmap with speeds of up to 10 Gb/s. This development program is driven by the new, bandwidth-intensive IPTV services that carriers will be introducing in the near future. As a member of the Ethernet Alliance, an industry group dedicated to the continued success and expansion of existing and next-generation IEEE 802.3 Ethernet technologies, Teknovus plans to further the development of NGEPON.

1 Gb/s EPON networks currently are being deployed successfully in volume by KDDI and other carriers around the world for IPTV and triple-play services. Upgrading these networks to faster speeds in the future will allow carriers to expand their service offerings; NGEPON systems will support hundreds of interactive channels, a rich mix of high-definition content, narrowcasting, and virtual personal video recording capabilities. Bandwidth requirements to support these services likely will exceed 100 Mb/s per user thus demanding a solution such as NGEPON. Progressive operators targeting the $150 billion entertainment television market can build confidently 1 Gb/s EPON networks today knowing that a roadmap allowing migration to higher-speed NGEPON is now in place.

Dr. Rex Naden, CEO of Teknovus, observed, “There is worldwide interest in the PON community for the next generation of EPON, especially from carriers who demand smooth upgrades to their current EPON investments. The need is clear, cost-effective technology is available, and the first products based on higher speed NGEPON will be announced during 2006. It is an honor to welcome a partner as prestigious as KDDI to join us in extending the capabilities of EPON.”

Mr. Shigeo Morita, Senior Manager of KDDI’s Terminal System Development, stated, “KDDI already is deploying 1Gb/s EPON in Japan. Our exciting triple-play service offering is attracting customers as fast as we can roll out the service. At the same time, we recognize that Ethernet technology and customer needs will not stand still and we will in the future have the capability to offer even more advanced IPTV and other services to the broader customer base. In this case it is critical that the next generation products be compatible with our installed base to minimize additional cost and maximize revenue. We believe the NGEPON roadmap will meet these objectives. Further, we plan for Teknovus and other semiconductor vendors to supply interoperable NGEPON chipsets to keep costs down and keep our options open.”

Mr. Brad Booth, President of the Ethernet Alliance, stated, “The Ethernet Alliance is pleased to welcome Teknovus as a member of the Ethernet Alliance. As part of their membership, Teknovus can use our incubation process to assist in the initiation of an IEEE 802.3 standard development project related to next-generation EPON. As part of our broader goal, the Ethernet Alliance supports enabling next-generation Ethernet to be the technology of choice for carriers and service providers worldwide.”

EPON’s Ubiquity and Cost Advantage

Over one billion Ethernet ports have been shipped over the last two decades, and new ports are shipping at a rate of 230 million annually. Ethernet PON is on track to reach 50 million homes and businesses by the end of the decade. Teknovus alone has shipped more than two million EPON ports to more than thirty original equipment manufacturer designs worldwide for deployment by KDDI and many other progressive carriers. “EPON and NGEPON will dominate the PON market,” stated Dr. Lowell D. Lamb, Vice President of Marketing for Teknovus. “Ethernet began in the enterprise but rapidly has won acceptance in the metro and access markets due to the ubiquity of IP. This trend continues in the most rapidly growing market of all, namely optical access. NGEPON will carry on Ethernet’s tradition of simplicity, low cost, and high volume.”

Numerous carriers, equipment manufacturers, and semiconductor and optical component vendors have expressed their support for NGEPON. As a contributing member of the IEEE 802.3ah EFM standard for EPON, Teknovus brings a deep understanding of the importance of robust standards for the successful introduction of a new technology such as NGEPON, and is committed to supporting this vital industry-wide effort. Additional NGEPON announcements will be made as standards activities unfold.

About Teknovus
Teknovus delivers the only Ethernet Passive Optical Network (EPON) chipsets that fully support low-cost, IPTV-triple-play services via optical fiber networks. Teknovus has shipped over two million EPON ports into ten carriers worldwide. Teknovus EPON chipsets are changing the design of broadband access networks by increasing transport capacity, optimizing fiber infrastructure, improving manageability, integrating services functionality, and reducing the cost of optical access. To learn more about Teknovus, see www.teknovus.com.

About KDDI
KDDI is a diversified telecommunications operator formed by the merger of DDI, KDD and IDO in 2000, and is the only domestic company that provides both mobile communication services and broadband services in Japan. The number of subscribers to the fixed-line services is approximately 9 million and the number of mobile-phone subscribers under the au and TuKa brands is over 23 million. At KDDI, aggressive improvement of the communication environment in preparation for the coming ubiquitous network society is underway and KDDI is aiming to become a "ubiquitous solution company" which provides high value-added solutions. KDDI recently announced joint promotion of FTTH with TEPCO – the largest power supply company in Japan.

About Ethernet Alliance
The Ethernet Alliance was created to promote industry awareness, acceptance and advancement of technology and products based on existing and emerging IEEE 802 Ethernet standards. The organization accelerates industry adoption and removes barriers to market entry by providing a cohesive, market responsive, industry voice on IEEE 802 Ethernet projects. For more information, visit www.ethernetalliance.org

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