Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Wayne Caswell HomeRF Communications Chairman Siemens Information & Communication Mobile

Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Living Room Home Office Game Room Bed Room Electronic House Expo/Fall 2001 Long Beach S59: Installing Wireless - The Configuration Choices DSL into the Office Wireless throughout the House Whole-house DSL Applications: Voice, Data and Entertainment

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home What DSL Applications? When ? TRADITIONAL DSL Market drivers –Shared Internet Access, Multi-PC Homes –Mobile Convenience of un-tethered computing –Easy Installation and flexible configuration NEAR TERM DSL Market drivers –Cordless phones: Multiple hand sets, lines –Multimedia: New appliances and wireless media extend benefits and drive consumer acceptance (Audio now, Video soon) Integrating Wireless

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home DSL Application Bundles Carrier benefits –improved operational efficiencies (digital capacity vs. analog), –improved customer loyalty, –revenue protection (e.g. long distance), –new revenue sources (more phone lines), and –competitive barriers (limit switching incentives). Individual services become commodities. Carriers bundle or perish. Consumer benefits –lower monthly costs, –new sources of value, –new functions for existing devices, and –the simplicity of a single bill and support #. will happen even without consumers demanding it.

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Application Bundle Value Shared Internet/Wireless Mobility/Easy Installation –EquipmentTAM - X units –Service$ monthly increment Streamed Audio –EquipmentTAM – ½ X units –Service$ new service Cordless/IP Telephony –EquipmentTAM - ½ X units –Service$ new service VPN/Service and Support –EquipmentTAM - ½ X units –Service$ new service Video Distribution –EquipmentTAM - ?? units –Service$ incremental

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Application Bundle Value Shared Internet/Wireless Mobility/Easy Installation –EquipmentTAM - 2X units –Service$ monthly increment Streamed Audio –EquipmentTAM - 2X units –Service$ new service Cordless/IP Telephony –EquipmentTAM - 2X units –Service$ new service VPN/Service and Support –EquipmentTAM - X units –Service$ new service Video Distribution –EquipmentTAM - ?? units –Service$ incremental

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home How comfortable are you in receiving bundled services from … ? Source: CableLabs 2001 (% of PC households)

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home How likely are you to switch to a new service provider if offered bundled services? Source: CableLabs 2001 (% of PC households)

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Desired Services in Telecom Bundle Source: The Strategis Group 2000

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home What services are Networked Broadband Households willing to pay More for? Source: Parks Associates, 4Q 2000 Only HomeRF supports Voice, Data & Entertainment

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Interest in New Services among Existing broadband and Soon-to-be Broadband HH Source: Parks Associates, Bundled Services & Residential Gateways, 2001 (% of households interested in service)

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home What DSL Applications? When ? TRADITIONAL DSL Market drivers –Shared Internet Access, Multi-PC Homes –Mobile Convenience of un-tethered computing –Easy Installation and flexible configuration NEAR TERM DSL Market drivers –Cordless phones: Multiple hand sets, lines –Multimedia: New appliances and wireless media extend benefits and drive consumer acceptance (Audio now, Video soon) Integrating Wireless

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Broadband Market Growth Subscribers (M) Source: FCC Composite of Various Analyst Forecasts (Merrill Lynch, Morgan Stanley, Bear Stearns, Bernstein/McKinsey, Dain Raucher, Veronis Shuler, Strategis, Lehman, Pioneer, DLJ)

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Source: IDC DSL: Data revenues are Rising … but Voice revenues DOMINATE!

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Subscribers (M) DSL Telephony - Market Oppy.

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Source: DSL average (FCC Composite), VoDSL average (Parks, Telechoice, Infonetics) Subscribers (M) DSL Telephony vs. DSL Modems

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home DSL DSL Telephony - Market Drivers Driven by growth in Narrowband Market –Requirement to add 2nd line for dial-up access Driven by SOHO –Most cost effective for lines Local Loop Enhancements –Automation to turn new services on/off –Need intelligence: activate, monitor, measure, etc. Continued Deregulation –Increasing Maturity of Broadband Technology –Competitive access requires multiple operators

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Cable Cable Telephony Deployments AT&T BSI San Francisco, Chicago, Dallas, Denver, Hartford, Pittsburgh, Salt Lake City, Seattle, Los Angeles, Detroit, Atlanta, Jacksonville, Pompano, Boston, Richmond Cablevision Long Island NY & Fairfield County CT Charter N/A Comcast Alexandria & Prince William Counties VA and Price George County MD Cox Orange County CA, San Diego, Phoenix, Oklahoma City, Hampton Roads VA, Omaha, Hartford Insight Indiana Time Warner Rochester NY, Portland ME Source: Pulver.com

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home +37% +11% +27% +9% Sources : CEA & Intersil US Cordless Phone Market 900MHz Digital 2.4GHz 2.4GHz Digital MultiHandset 900 MHz 2.4 GHz

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Video-on-Demand is set to Take Off VoD Revenue ($M) Source: Source: Yankee Group, 2000

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home What DSL Applications? When ? TRADITIONAL DSL Market drivers –Shared Internet Access, Multi-PC Homes –Mobile Convenience of un-tethered computing –Easy Installation and flexible configuration NEAR TERM DSL Market drivers –Cordless phones: Multiple hand sets, lines –Multimedia: New appliances and wireless media extend benefits and drive consumer acceptance (Audio now, Video soon) Integrating Wireless

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home What Wireless Technology Can Deliver These Applications? HomeRF is ideal for broadband homes. Other home net technologies fall short. Addressing only near term apps may not yield a proper base for service providers to build upon. Interference may become a key issue for service providers in dealing with wireless networking.

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Existing Upper Layers TCP UDP IP DECT HomeRF MAC Layer HomeRF PHY Layer CSMA/CA Priority CSMA TDMA Network Layers “Ethernet” Data Path Streaming Media Path Toll-Quality Voice Path

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home 20 ms f N+5 Data#8 Hop Ack #8 Data#10Ack #10 Data#9Ack #9 20 ms fNfN Data#1 Hop Ack #1 Data#2Ack #2 Data#3Ack #3 All asynchronous traffic f N+1 Dn #1 Up #1 Data#4 B Hop Ack# 4 10 ms Beacon is added for Isochronous traffic and frame length is reduced to 10ms f N+3 Up #3 Up #1 Data#6 B Hop Ack# 6 Dn #3 Dn #1 Second call is added B Hop 10 ms Dn #1 Up #1 Data#5 Ack# 5 f N+2 B Hop Dn #3 Up #3 Data#7 Ack# 7 First call ends. Frame reordered. f N+4 Superframes and Subframes

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Hops Out of Interference FHSSDSSS Time Frequency

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Interference 1 contacts f N 10 ms Active data traffic HopBeacon fNfN Data 1Ak1 Active calls Dn5Up5Data 2Dn2Up2 Normal calls continue Dn5Up5Dn2Up2 Data packet succeeds on retry Ak2Data 2 HopBeacon f N+1 Control point allocates retry of up/down 2 Dn2Up2 Active Interference Avoidance Latency is bounded to 10 ms even in the presence of interference

Add Wireless to existing Ethernet Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Internet Modem Router Electronic House Expo/Fall 2001 Long Beach S59: Installing Wireless - The Configuration Choices Base Station

Add Wireless to existing Ethernet Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Secure and intuitive user authentication – –standardized ASCII character entry for 24 bit NWID – –standardized teach/learn procedure – –avoids “promiscuous” security holes of IEEE specification compliant networks Powerful 128 bit data encryption specified in standard Excellent immunity to denial of service attacks – –random frequency hopping sequence for each NWID makes mass external denial of service difficult – unlike Powerful anti-tampering measures – –Effective and efficient techniques to prevent unauthorized packet insertion into network – unlike Modem Router Electronic House Expo/Fall 2001 Long Beach S59: Installing Wireless - The Configuration Choices Home Gateway Internet

Electronic House Expo/Fall 2001 Long Beach S73: Integrating DSL and Wireless in the Home Service Provider Deployments of Routers vs. Web-centric RGs Source: Parks Associates, 4Q 2000

HomeRF Communications Chairman Q&A Electronic House Expo/Fall 2001 Long Beach S59: Installing Wireless - The Configuration Choices