Developing IP Phones Karen Hong Director, Product Marketing 8x8 Inc.

Residential Broadband VoIP Market Voice over Broadband Penetration 1% 7% 16% 25% 34% 42% Source: Gartner North American Market

Target Applications: Residential Broadband POTS Internet 10/100 BaseT IP Phone DSL or Cable Modem WAN ATA AND AP Can be integrated today with WLAN Packet Phone Adapter AP / Router / Gateway IAD WiFi card VoWi-Fi ATA POTS 10/100 BaseT Softphone ATA+5.8Ghz cordless Videophone

Residential VoIP Product Segmentation  Current Market Segmentation for Residential VoIP End Points  IP Phones/Phone Adapters (Terminal Adapters): Basic interface device converting analog phone traffic to IP based traffic; a voice only device with no data capability  Residential Voice Gateway (RVG): Standalone voice appliance converting analog phone traffic to IP based traffic AND data routing for home PC connectivity in a single device  Integrated Access Device (IAD): Integrated voice/data/broadband modem solution collapsed into a single standalone unit  VoWLAN (Wifi-phone) Integrated voice/data/broadband modem solution collapsed into a single standalone unit

IP Phones/TAs Key Features  IP Phones/Phone Adapters (Terminal Adapters):  1 to 2 RJ11 ports for phone termination  1 Ethernet port for interfacing to Broadband Modem or router  Supplementary Service Support  SIP  Telephony only features  Low-End Solution  Optimized for low cost  Complete voice feature requirements but no data features  Key Features  Voice Processing: G711, G729ab, G723.1, Echo Cancellation, Tone processing, T.38 fax, etc  SIP protocol, provisioning  Typical Positioning  Lowest cost device for IP residential telephony (ignoring the PC only, peer to peer services)  1 st phase of service provider subscriber offering  Relatively mature market

Residential Voice Gateway Key Features  Residential Voice Gateway (RVG):  2 RJ11 ports for phone termination  2 Ethernet ports: 1 for interfacing to Broadband Modem, 1 for PC or router  Supplementary Service Support  SIP  Telephony  Data (Routing/Firewall/NAT)  WLAN option  Multiple Ethernet ports  WAN connection to an external cable or DSL modem  Single or multiple LAN connections direct to PCs or to home router  WLAN AP Option  Key Features  Voice Processing: G711, G729ab, G723.1, Echo Cancellation, Tone processing, T.38 fax, etc  SIP protocol  Service Provider provisioning  Data/Voice routing, firewall, NAT, DHCP, etc.  Typical Positioning  Low cost device for IP residential telephony  Largest segment of current RGW market deployment with rapid growth  Routing/Data features require networking and voice expertise  Service providers quickly moving to WLAN solutions

Integrated Access Devices Key Features  Integrated Access Devices (IAD):  2 FXS ports for phone termination  1 Ethernet port for PC or router  DSL or Cable modem interface for WAN  Supplementary Service Support  SIP  Telephony  Data (Routing/Firewall/NAT)  Broadband Modem functionality  WLAN option  WAN/Broadband Access  Integrated cable or DSL modem  LAN Ethernet Interface  Single or multiple wired ports  Optional wireless access point  Key Features  Voice Processing: G711, G729ab, G723.1, G729e and G728 for PacketCable, Echo Cancellation, Tone processing, T.38 fax, etc  SIP or MGCP protocol  MSO/Service Provider provisioning  Optional voice/data routing  Typical Positioning  New Broadband subscriber deployment  Driven by cable companies and DSL service providers  Routing/Data features require networking and voice expertise  Service providers quickly moving to WLAN solutions

VoWLAN Phone Key Features  VoWLAN (Wifi-phone):  Low-cost phone which utilizes the WLAN and VoIP infrastructure – not a GSM/CDMA handset or cellular-WLAN combo phone  Significant market interest in potential applications mobility for traditional vertical markets mobility for enterprise desktop and residential / DECT or cordless phone replacement  Solutions in the market today are limited (Spectralink, Symbol), proprietary and expensive – limited to niche vertical markets  Significant barriers to adoption exist: cost must be comparable to DECT / cordless phones low power consumption – minimum 4 hour talk time, 80 hour stand-by time Standards – e (EDCF), i (WEP, TKIP, AES)  Targeted integrated silicon solutions are needed – Broadcom, Agere, TI, etc … SpectraLink

Residential VoIP Product Evolution  IP Phone/Phone Adapter (Terminal Adapters) »Full Voice Features (Supplementary Services, Provisioning, FAX, full vocoder support, etc…) »Video  Residential Voice Gateway (RVG) = Phone Adapter + »DECT or 5.8Ghz cordless phones »Routing/Firewall/NAT »PC interface »WLAN option »Video  Integrated Access Device (IAD) = Residential Voice Gateway + »Broadband Modem (DSL/Cable) Functionality  VoWLAN (Wifi-phone) »GSM/CDMA wireless »Smartphone concept »Video

Quality of Service Network Performance Management Audio and Video Codec Audio: G.729, G.711, G.722, iLBC, G Video: H.263, H.264, MPEG4 Acoustic Echo Cancellation Jitter Buffer Control Management Packet Prioritization

Tandem Silicon Approaches Apps Processor DSP Packet I/FTDM I/F Expansion Bus Packet I/F DSP Core Packet I/F TDM I/F Apps Processor Core Expansion Bus Dual Chip Dual Core VoIP App VoIP Dual chip solution High Power Large Footprint Complex PCB Design Dual track tool chains Increased/specialized training DSP/AP SoC solution Moderate Power Moderate Footprint Complex PCB Design Dual track tool chains Increased/specialized training Source: Trinity Convergence

IP Phone SOC NETWORK Handset Headset Speaker Phone Source: Agere Systems

Moore’s Law MIPS Available MIPS on Edge Device MIPS for VoIP Channel Insufficient MCPS in client device – additional external device (DSP) required Increased device capability means VoIP is now a software- only function, using a fraction of the available processing power Source: Trinity Convergence

Software DSP Applications Processor Approach Apps Processor w/ DSP Ext. Packet I/FHSS Expansion Bus Single chip solution Low Power Small Footprint Simple PCB Design Single tool chain Reduced training requirement Today’s Applications Processors have: Substantial mips Appropriate peripherals and I/O for VoIP Hardware DSP acceleration DSP extensions to instruction set Addressing ubiquitous silicon architectures permits VoIP without disruption ARM Ltd. ARM926EJ, MIPS Technologies MIPS4K 100 MHz processors and greater for application plus VoIP Source: Trinity Convergence

IP Phone SOFTWARE DSP APP Source: Trinity Convergence

VoIP Enabled Home Gateway Source: Trinity Convergence SOFTWARE DSP APP

Silicon Processor based VoWLAN Terminal Source: Agere Systems

Residential Voice Gateway Segment Trends  IP Phone/Phone Adapter  Originally low featured; trend is now toward a complete voice feature set equal to that of RGW products (fax support, Supplementary Services, provisioning, etc…)  Interfacing to home routers in addition to BB modem where many customers already have deployed a home routing solution in advance of subscribing to VoIP  Residential Voice Gateway (RVG)  Rapid movement toward WLAN solution for routing  BOM cost continues to be the #1 driver for development  QOS becoming a more significant requirement  Automated provisioning, billing, & support transparent to end customer  VoWLAN (Wifi-phone)  Trend is moving toward dual mode solution

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