1. Property of the HomeRF Working Group Voice Capabilities This presentation is provided by the HomeRF Working Group. Direct questions or requests for softcopy to: Info@homerf.org, 503-291-2563 Or contact HomeRF Communications Chairman, Wayne Caswell (wayne.caswell@icm.siemens.com, 512-335-6073)

2. Property of the HomeRF Working Group Voice Topics Voice Revenues Dominate Data HomeRF is Global DECT Enables Convergence on Phone –Handset Phone Alternatives Enables Convergence on other Devices

3. Property of the HomeRF Working Group Data revenues are Rising … but Voice revenues DOMINATE! Source : IDC

4. Property of the HomeRF Working Group Worldwide IP Telephony Revenue by Application (commercial & residential) Source: IDC, June 2000 0 2 4 6 8 10 12 14 16 18 $20 1998199920002001200220032004 Enhanced services Voice-enabled e-commerce Long distance voice calls Revenue in Billions

5. Property of the HomeRF Working Group Analog Voice vs. IP Telephony Source: IDC, 2001 Worldwide Traditional Voice vs. IP Telephony Minutes of Use, 1999-2005 (Millions including wireless) Circuit Switched Voice 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1999 2000 2001 2002 2003 2004 2005 IP Telephony

6. Property of the HomeRF Working Group Implications of Internet Telephony $ per Minute 1998200020022004 Number of Services VoIP/VoBB VoTDM (TDM = time division multiplexing, or POTS) 2006 VoTDM VoIP/VoBB

7. Property of the HomeRF Working Group Voice Topics Voice Revenues Dominate Data HomeRF is Global DECT Enables Convergence on Phone –Handset Phone Alternatives Enables Convergence on other Devices

8. Property of the HomeRF Working Group Is Global DECT DECT (Digital Enhanced Cordless Telephony) is the world’s most successful cordless standard. –Cordless Phone market is 10x WLAN –> 50M radios in 2000 alone –> 200M DECT handsets in the field by 2003 –> 100 certified DECT suppliers, plus proprietary 2.4 GHz –5th generation silicon with complete chipsets << $10 1.9 GHz DECT requires license in Americas –By using 2.4 GHz, HomeRF moves DECT to worldwide markets as “Global DECT”

9. Property of the HomeRF Working Group DECT Annual Sales Voice and Data Source : DECT Forum Cordless phones outsell WLANs 10:1 DECT is “the” cordless standard

10. Property of the HomeRF Working Group DECT Cumulative Sales by App Source : DECT Forum >300M DECT phones installed by 2005

11. Property of the HomeRF Working Group Is Global DECT … PLUS High-speed Data Networking –WLAN at Ethernet speeds (DECT limited to 24Kbps – 2Mbps) –Excellent immunity to 2.4 GHz interference –Avoids security problems of Wi-Fi –Scales better than Wi-Fi (apartments, office parks) Entertainment Networking –Key Broadband apps – Internet Radio, TV and Gaming –Multimedia needs QoS and Interference Immunity Enables New Convergence Apps and Devices –PC enhances the phones – Phones enhance the PC –Notification / Email on Phone – Caller ID on TV –Unified Messaging – Video Phone –Voice access to PC & Internet apps –Adds Value and Improves Margins

12. Property of the HomeRF Working Group TDMA technology from DECT Supports 4 active handsets, 8 registered –HomeRF supports up to 8 lines (PSTN or derived from BB) –HomeRF enhances Homes wired for just 2 lines Toll Quality –HomeRF has MOS (Mean Opinion Score) of 4.1 MOS scale = 1 (lowest) – 5 (highest) –Land-line typically produces MOS of 4.3 –Digital Cellular typically produces MOS of 3.4 Rich suite of Phone Features –DTMF tones, CLASS features (caller ID, call waiting, call forward, intercom…), and 911 breakthrough This is not possible at consumer price points with VoIP over Wi-Fi

13. Property of the HomeRF Working Group Voice Topics Voice Revenues Dominate Data HomeRF is Global DECT Enables Convergence on Phone –Handset Phone Alternatives Enables Convergence on other Devices

14. Property of the HomeRF Working Group supports services on the Handset PC controls the handset display, receives all key presses. First Step: Text menus Text display Next Steps: Scripting Extensions UPnP Proxy SDK Speech recognition Text-to-Speech

15. Property of the HomeRF Working Group Speech I/O Voicemail –Access via speech “or” touch tone Voice dial –Say the name of the person you wish to call –Say a list of names for a conference call Caller ID announce –Use speaker phone capability PC, Internet and Home Control Applications –Command & Control, or full speech recognition (via PC) PC enhances phone systems Phones enhance PC applications BACKUP

16. Property of the HomeRF Working Group Cordless outsells Corded

17. Property of the HomeRF Working Group Sources: Siemens, CEA & Intersil US Cordless Phone Market +37% +11% +27% +9% + 900 MHz Digital + 2.4 GHz Digital + 2.4 GHz + 900 MHz + Multi-Handset Nearly 50% of households buy a cordless phone each year. Many also want broadband, so sell them integrated solutions.

18. Property of the HomeRF Working Group Source : GM Marketing Million units SOHO, high end residential and Internet connectivity kindle this market. Broadband is the fuel on the fire! Multi-Line Telephone Devices (Corded/Cordless) BACKUP

19. Property of the HomeRF Working Group Source: Parks Associates 2000 Multi-Line Phone Support U.S. Phone Lines In Use Driven clearly by demographics: Households with 1-line = 72% 2-lines = 21% 3+lines = 7% 75% of households with income above $41K have 2+ lines 40% of households with 2 or more children have 2 lines 48% of households with 3 or more children have 3+ lines BACKUP

20. Property of the HomeRF Working Group Telephone Handset Alternatives Corded Phones –2 lines meet simple needs but few RJ-11 jacks Cordless Phones add Convenience (900 MHz or 2.4 GHz) –Charging unit tied to RJ-11 jack unless Multi-handset model –DECT (Europe may see little need for HomeRF voice) Cellular service replaces POTS –Service cost is about equal, but residential coverage is poor IP Phones –VoIP over Ethernet, HomePNA, 802.11g, etc. (expensive) –Soft IP Phone (software for PC or HPC) will come first HomeRF (the maturity of DECT + the velocity of 802.11) BACKUP

21. Property of the HomeRF Working Group Sharp HomePNA Phone High consumer pricing expected VoDSL (2Wire) + VoIP (over HPNA) SpectraLink Wireless Phone Expensive (Enterprise focus) $749 phone uses VoIP (over WLAN) $3995 access pt. (supports 5 calls) Symbol NetVision® Phone Expensive (Enterprise focus) $699 phone, $1350 voice/data phone plus access points (>$1500 ea.) Enterprise SOHO Home Expected form factor (Sharp’s L-mode phone in Japan) IP Phones are Expensive BACKUP and power hungry

22. Property of the HomeRF Working Group Voice Topics Voice Revenues Dominate Data HomeRF is Global DECT Enables Convergence on Phone –Handset Phone Alternatives Enables Convergence on other Devices –Several application slides showing voice integration with gaming and TV are left out to save file space but are available upon request.

23. Property of the HomeRF Working Group Voice Topics Voice Revenues Dominate Data HomeRF is Global DECT Enables Convergence on Phone –Handset Phone Alternatives Enables Convergence on other Devices

24. Property of the HomeRF Working Group Caller ID “Plus” on TV Screen calls –Avoid interruptions Forward to –Specific home phone –Another phone # –Voicemail Answer at TV –TV speaker phone –TV video phone –PVR can pause live TV automatically Image source: Sigpro

25. Property of the HomeRF Working Group Universal Messaging on TV Image source: Sigpro Listen, View and/or Respond from TV –Voicemail –Email –Faxes –Short Messages View Logs –On local phone –On PC backup –On external service

26. Property of the HomeRF Working Group Voice Chat on TV Source: Sigpro The TV version of Instant Messager “Did you see that ?!?”

27. Property of the HomeRF Working Group On-line Games Talk enhances play. Already available: –Kids games –Family oriented –Hard-core gamers –Shoot ‘em up (e.g. Doom) –Racing, etc. Image source: Serconet Caroline Dave Adrian with added Voice

28. Property of the HomeRF Working Group Image source: Motorola Visual Communications Conferencing and Collaboration –TV as Screen Phone –Work-at-Home –Family Reunions –Service & Support –Distance Learning –Doctor Visits Shopping Home Surveillance