1. 1 Cable Telephony & VoIP: SP-6

2. Cable Telephony and VoIP SP-6 2 Agenda  Technology choices and issues  CBR (Constant Bit Rate)  Hybrid VoIP  PacketCable TM VoIP  SIP VoIP  Build versus outsource  Cable telephony market forecast

3. Cable Telephony and VoIP SP-6 3 CBR - Constant Bit Rate (Circuit Switched) NIU: Network Interface Unit HDT: Headend Digital Terminal CMTS: Cable Modem Termination System  Proprietary technology  Over cable/HFC  Provides same features and user experience as legacy networks  Uses legacy billing systems, announcement servers and OSSs

4. Cable Telephony and VoIP SP-6 4 Hybrid VoIP (Circuit Switched and VoIP)  PacketCable LCS network architecture  Over cable/HFC, DSL, fiber, wireless  Provides same features and user experience as legacy networks  Uses legacy billing systems, announcement servers and OSSs Router DSLAM CMTS Cable Modem DSL Modem Local Exchange RDT-8 GR-303 Gateway PSTN

5. Cable Telephony and VoIP SP-6 5 PacketCable VoIP (Client/Server)  PacketCable VoIP network architecture  Softswitch (CMS/MGC) control  Secure voice and signaling  E-911 and CALEA (wire tapping) compliant IP Network SS7 CMS/MGC LE Switch PSTN Media Servers Broadband Access Network TGCP BTX-8 NCS NCS: Network Call Signaling TGCP: Trunking Gateway Control Protocol CMS: Communications Management Server MGC: Media Gateway Controller

6. Cable Telephony and VoIP SP-6 6 SIP VoIP (Peer to Peer) Source: BroadSoft  IETF SIP architecture  SIP application server control  Open standard with broad range of services  CALEA (wire tapping) compliance issues

7. Cable Telephony and VoIP SP-6 7 To Outsource or Not To Outsource  Outsource advantages Many cable MSOs have no experience with telephony Telephony service providers know how to offer reliable service Either way, offnet calls have to be handled by the PSTN Lower capital expenditures  Outsource disadvantages Who owns the customer? It has to be the cable company. Integrating billing systems: Customer gets one bill Who gets the trouble call? Cable company reputation in the hands of its outsourcer Are you getting PacketCable compliant service?

8. Cable Telephony and VoIP SP-6 8 Outsource Issues  Outsource only call control  Cable company owns media gateways  Telco owns the softswitch  Outsource only off net media handling  Cable company owns the softswitch  Telco owns the media gateways  Outsource the whole VoIP network  Integrate the billing and customer management systems

9. Cable Telephony and VoIP SP-6 9 Market Forecast (IDC 2/04)

10. Cable Telephony and VoIP SP-6 10 Market Forecast (Friedman, Billings, Ramsey – 12/03)

11. Cable Telephony and VoIP SP-6 11 Thank You! Larry Greenstein Director of Product Management Nuera Communications 10445 Pacific Center Court San Diego, CA 92121 +1 (858) 625-2400 LGreenstein@nuera.com http://www.nuera.com