1. Voice Over IP in Cable Broadband Venture Seminar Doug Jones Chief Architect YAS Broadband Ventures, LLC September 7, 2001 Presented for

2. VoIP Economics 135 billion VoIP minutes in 2004 Economic advantages of IP solutions –IP increases NPV per home from $210 to $285 (Increases over to $320 per home by 2002)¹ –Equipment cost of IP equipment estimated to decline at a more rapid rate than circuit switched (Predicted annual cost reductions of 15-20% on IP equipment) –Convergence will requires fewer technicians to install CPE, service the customer ¹Morgan Stanley Dean Witter Broadband Venture Seminar Sep 7, 2001 Page 2

3. Cable VoIP Scope Develop an architecture to enable Internet Protocol (IP) based services over cable using “best of breed” technology –Build on Cable Modem standard (DOCSIS™) –Keep it Simple –Open and interoperable interfaces => multiple suppliers Initial focus: Voice over IP/Telephony Migrate to other multimedia services Broadband Venture Seminar Sep 7, 2001 Page 3

4. PacketCable™ Framework Broadband Modem Physical LayerMedia Access ControlInternet ProtocolPacketCable Protocols Voice/Video Telephony Conferencing Interactive Video/Data Applications D O C S I S P A C K E T C A B L E Broadband Venture Seminar Sep 7, 2001 Page 4

5. CM - Cable Modem MTA - Multimedia Terminal Adapter HFC - Hybrid Fiber Coax Network CMTS – Cable Modem Termination System CM Embedded MTA PacketCable Network PSTN Gateway Call Management Server HFC CM MTA Back Office Servers Managed IP Network CMTS Broadband Venture Seminar Sep 7, 2001 Page 5

6. End-to-End IP (Inter-domain) Architecture Cable system ACable system B Cable system C Managed IP Backbone Network Cable system A City 2 Border Proxy Border Proxy Border CMS V Gateways V V PSTN City 1 Broadband Venture Seminar Sep 7, 2001 Page 6

7. Why PacketCable?

8. Technology Advantages Opportunity to leverage advanced HFC plant and DOCSIS 1.1 Quality of Service –Bandwidth efficiencies of real-time VoIP IP Scalability –IP components can be used in conjunction w/ PSTN –Software based architecture simplifies expansion and allows progressive deployments –Multi-vendor approach leads to rapid innovation Convergence of multimedia services –Combine the best characteristics of real-time voice communications and Internet data applications Broadband Venture Seminar Sep 7, 2001 Page 8

9. Project Phase Summary PacketCable 1.x - Core Architecture –1.0Baseline voice capability, single zone –1.1Adds primary line functionality –1.2Interdomain interfaces to allow members to exchange traffic PacketCable 2.x - Enhanced capabilities to support multimedia services –Video telephony, interactive gaming, unified messaging, peer-2-peer, etc. Broadband Venture Seminar Sep 7, 2001 Page 9

10. 1.0 Interop 1.1 Interop 1.2 Interop Project Timeline 1998200120001999 PC 1.0 - Done! PC 1.1 -Done! 2.0 PC 1.2 - Done! Specifications Interoperability Under Definition 1.0 Compliance Testing PC 1.3 2002 Broadband Venture Seminar Sep 7, 2001 Page 10

11. Who’s involved? Cable operators finalizing plans Several PacketCable-based technical trials have been launched –Primary and Secondary line services –Large variety of vendor product combinations RFIs for PacketCable solutions have been issued by several cable operators PacketCable Certification Program established Broadband Venture Seminar Sep 7, 2001 Page 11

12. Where are the PacketCable products? Vendors are becoming more active –Strong participation by CPE vendors in certification waves: MTA/CMs –CMTS development expected to increase after DOCSIS 1.1 –New visiting engineers at CableLabs Some components, such as the MTA and Provisioning Server, could be ready for CableLabs qualification by year end Broadband Venture Seminar Sep 7, 2001 Page 12

13. Products (cont.) VoIP Economy: remains challenging for equipment manufacturers Few purchases orders on the horizon But… –Industry is moving past fundamental technical challenges –Innovative VoIP products/services are appearing –Long term commitment to end-game (IP) hasn’t changed Broadband Venture Seminar Sep 7, 2001 Page 13

14. PacketCable Testing Program CableLabs primary focus is on PacketCable 1.0 Testing and Interoperability –Establish Baseline PacketCable Network –Complete all 1.0 Compliance Test Plans –Ability to execute all compliance tests for all PacketCable components –Demonstrate multi-vendor interoperability Actively working with vendors to bring PacketCable ‘qualified’ products to market Broadband Venture Seminar Sep 7, 2001 Page 14

15. PacketCable Next Steps Extending the Architecture –Define additional capabilities needed to support multimedia services –Develop migration path from circuit switched to PacketCable via GR-303 interface –Ensure PacketCable services can be accessed throughout the home Continue to promote acceptance of PacketCable specifications in national and international standards bodies Additional PacketCable cost/financial modeling and analysis Broadband Venture Seminar Sep 7, 2001 Page 15

16. PacketCable Summary PacketCable architecture complete, stable Specification-based systems available 2002 CableLabs is YOUR resource for getting interoperable solutions to market Broadband Venture Seminar Sep 7, 2001 Page 16