1. Home Gateway Initiative Vision Brian Levy Vice Chairman April 2005

2. Drivers for home networking  WiFi enablement of the home  More than one PC in use  Music and Video going on line  Future two way multimedia services What’s the role for the Telco ? 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 200120022003200420052006 2007 2008 Sales (millions) Global sales of Wifi-enabled laptops

3. Drivers for home networking  Lots of companies producing WiFi gateways – Growing market worldwide – Prices falling rapidly – Technology changing rapidly  Consumer electronics companies WiFi enabling devices

4. But for the customer its all very confusing  Its still all too complex  No one is responsible for end to end quality assurance – I cannot rely on it working when I need it  Services cannot be guaranteed  The technology is changing rapidly  There appears to be little standardisation

5. Broadband market development EstablishmentGrowthMaturity Customers Chasm Innovators 2.5% Early adopters 13.5% Late majority 34% Laggards 18% Mass marketingBroad segmentsMicro segments Early majority 34% Broadband is here

6. Double-infinity problem time Bandwidth Telco Price It’s not about bandwidth…. It’s about services

7. It’s not about the PC either Internet Broadband modem PC

8. It’s not about the PC either Home Gateway Broadband modem Security Internet Entertainment Personal content Gaming Voice and video services

9. PC Security Gaming Entertainment Internet Personal content It’s about services Home Gateway Voice and video services This is complex to manage !

10. Issues for the home network  The Home network will become increasingly complex to manage  Customers will require: – a range of services…. delivered to a range of devices …. with end to end quality assurance across the network  Home gateway manufacturers, telecommunications operators and consumer electronics companies must work together to develop common standards to enable this…  Key areas that require standards to be agreed include: – Service management – Service performance – Security  Seamless integration of many different devices and the ability to deliver managed services to these will be key to the future customer take-up of broadband services

11. Addressing the issues  HGI will focus on the following areas: – Architecture – ensuring the right integration of features – QoS – managing QoS end-to-end – Home networking technologies – what are the right standards – Remote Management – configuration, diagnosis and support – Device Management – identify, configure and support – Security –securing the Gateway, home and end devices

12. Internet Home Gateway PC Voice services Security Entertainment Personal content Gaming What will HGI enable….. End to end service delivery Security Services QoS control Service integration Device Management Home Network

13. A new experience for the customer  Simplicity of set up and installation  End to end service management  Quality reliable services  Support for multiple devices  Service Integration  Security

14. For the Industry….  Increased customer satisfaction  Increased demand for Broadband driven by new services – Which span devices and networks  Increased demand for the enabling devices  Lower costs driven by common standards  Support by major telecommunications operators and suppliers world wide  A powerful voice for the customer and market

15. Join HGI  So join with us in the HGI as we enable this new world for the customers and our industry