1. 1 UDSL UDSL Uni-DSL - One DSL for Universal Service

2. 2 DSL Cable VoIP Wireless LAN TI Broadband - From Infrastructure to Endpoints Infrastructure PremisesEndpoints Public Telephone Network IP Network Cable modems DSL modems Wi-Fi routers Wi-Fi broadband gateways Small/medium business and Enterprise voice gateways DSL infrastructure products (central office, DLC, remote terminals) Carrier-class Voice-over-IP gateways Handhelds Consumer electronics PCs IP phones

3. 3 Worldwide DSL Market – Full of Opportunity  DSL maintaining 70% share of broadband market worldwide for data services  VoIP services are starting to be provided by operators  Video is the next opportunity for DSL market growth… Source: TI estimates based on various industry reports

4. 4 Operators’ Next Generation DSL Battleground Need to deliver maximum bandwidth and near ubiquitous coverage in a converged network  Video services (HDTV and PPV)  Near 100% coverage with data service  Managed networks  Voice services: convergence of various voice networks Carrier Network Topologies are Changing  All major operators are shortening their loops  Deployment at wiring cross connect cabinets is starting  More deployments for MDU/in- building networks  Multiple line card designs  Interop issues will be extensive with multiple standards  High level of development resources required  Carryover from existing designs Creates Major Issues for Equipment Providers

5. 5  Today everyone thinks VDSL solves their problems, however it is limited  Requires Specific Line Cards in the CO  New CPEs need to be deployed  Limited Reach  Not Symmetric  Complicated Provisioning  Interoperability Problems TI’s Proposal – A DSL Platform Providing Universal Service Uni-DSL - UDSL VDSL – Limited for the Future

6. 6 Uni-DSL (UDSL) One DSL for Universal Service  Multicarrier solution based on DMT  Single chipset support of DMT standards  VDSL1, VDSL2, ADSL, ADSL2, ADSL2+, and Ultra-high speed DSL (UHDSL)  Ultra-high speed end to end solution up to 100 Mbps symmetric over existing wiring (200 Mbps aggregate)  Scalable 800 Mbps digital device for port density for DSL infrastructure  4 ports at 100 Mbps symmetric or 200 Mbps aggregate  8 ports at 50 Mbps symmetric or 100 Mbps aggregate OptDS1 f 3.75 MHz UDSL* 0138 kHz * Example spectrum; flexible spectrum allows any combinations of upstream and downstream US1DS2US2DS3 5.2 MHz8.5 MHz12 MHz

7. 7 UDSL Offers Support for All DSL Flavors Central Office Equipment Shelf Remote Terminal or Vault Cross Connect/ Primary Connect Neighborhood Wiring Pedestal Basement In Building MDU 1Kft – 3Kft4Kft – 6Kft1 ft 300 ft – 500 ft Home NID 18+ Kft ADSL/ADSL2 READSL2 ADSL2+ VDSL/VDSL2 FTTU Remote/Short Loop DSL Ultra High Speed DSL Uni-DSL Distance from the CPE 9Kft – 12Kft VDSL Head End VDSL: Up to 52 Mbps MDU Head End VDSL: Up to 52 Mbps UDSL: Up to 200 Mbps PON Termination (ONT) FTTU Various Home Networks Remote DSL/ Short Loop DSL Short Loop IVD ADSL2+: Up to 24 Mbps ADSL2: 1.5 to 12 Mbps Long Haul IVD Next Generation DLC ADSL2+: Up to 24 Mbps ADSL2: 1.5 – 12 Mbps ADSL: 1.5 – 8 Mbps Traditional DSLAMs ADSL2: 1.5 – 12 Mbps ADSL: 1.5 – 8 Mbps READSL2: 192+ kbps Long Haul IVDs

8. 8 Uni-DSL – A Universal Service Platform UDSL equipment in the cross connect ADSL – up to 8 Mbps ADSL2+ – up to 24Mbps VDSL – up to 52Mbps Ultra-high speed – 100Mbps symmetric Fiber Cross Connects: In almost every neighborhood. At most 6000 ft from consumer. Each holds about 600-800 consumer lines.

9. Next Gen Needs for U.S. Operators  Long loops and older loops, but natural deployment location at cross connect < 6kft  Need migration path to 3 simultaneous HDTV channels over DSL (minimum)  Remote DSL from cross connect can potentially supply up to 20% of current voice subscribers, who are not reachable by ADSL today

10. 10 Next Gen Needs for Asian Operators Korea  Maximum loop reach required is 1 km now  FTTC and FTTH is next step with VDSL or higher data rates Japan  Fiber + VDSL is long term strategy for operators; most loops under 1 km  Fiber to the building with VDSL or 100baseT to provide 100 Mbps symmetric capability for data is needed China  ADSL with Reach Extension now to improve coverage followed by ADSL2+, VDSL

11. 11 Next Gen Needs for European Operators France  Current video strategy focused on lower data rate DSL; i.e., 6 to 10 Mbps, solution for single channel SDTV over 3 km; eventual evolution to ADSL2+ for multi-channel Italy  Incumbents are rolling out video service in 2004 to compete with CLEC (FastWeb)  Interested in high speed symmetric (10+ Mbps) offering to home and small business UK  Primarily focused on providing data services and 100% coverage  Interested in deployment at primary connection points (cross connects) if political hurdles can be overcome  Starting to look at deep fiber deployment with VDSL Germany  Longer loop plant than most others European operators; up to 4.2+ km  Concentrating on delivering data-only services at a relatively low data rate  Sees remote DSL as potential method to extend reach and lower cost

12. 12 TI’s Current UDSL Activities  Discussions with worldwide operators on concept  Strategic discussions with key customers  Potential to leverage incumbency and capture DSLAM/DLC market opportunities  Looking at standards activity  Have over 20 submissions into the standards bodies related to UDSL concepts  No one is at this level of leadership to drive universal services  Goal to make Uni-DSL an industry-wide effort to drive growth in the DSL market

13. 13 UDSL Makes Video Over DSL Possible  Operators need an affordable option to support all of their network requirements and services  Uni-DSL (UDSL) provides support for ADSL, ADSL2, ADSL2+, VDSL, VDSL2 and a 100 Mbps symmetric ultra- high speed mode  Operators will be able to provide all DMT-based services off of one line card or home gateway, making deployment more affordable  TI is taking a leadership position in making video over DSL services a reality

14. 14 Back Up

15. 15 Performance Comparison: ADSL vs VDSL

16. 16 Performance Comparison: ADSL vs. VDSL

17. 17 UDSL’s Performance Enhancing Features Bonding  Extend high data rate reach  Leverage excess copper pairs Dynamic Spectrum Management (DSM)  Level 0 with AC7/AR7  Levels 1 to 2 with software upgrade  Level 3 ideal in short loop and MDU type deployment with UDSL Optimize transmission latency to match applications  Throughput improvements with priority queuing at the CPE  Multi-latency for voice vs. video vs. data