May 20081Proprietary and Confidential10G EPON: The Next Generation PON TechnologyGilad Aloni, EPON Product Line Manager, FTTH 29 May 2008May 20082Proprietary and ConfidentialAgendaAgenda?PMC-Sierra introduction?Key technologies in 1G EPON ?10G EPON first live demo of 10G EPON worldwide at OptiNet 2008May 20083Proprietary and ConfidentialPMC-Sierra OverviewPMC-Sierra Overview PMC-Sierra (NASDAQ: PMCS) provides an extensive range of communications and storage semiconductor solutions for leading OEMs. Approximately 1,000 employees worldwide. Areas of products focus include the following:Communications Wireline (Access, Metro), FTTH (EPON/GPON), Wireless InfrastructureEnterprise Storage (FC/SAS/SATA), Laser Printers, Enterprise NetworkingCustomer Premises Network Attached Storage, WiMAX, Residential GatewaysMay 20084Proprietary and ConfidentialComplete Portfolio for End-to-End Connectivity SolutionsComplete Portfolio for End-to-End Connectivity SolutionsTransport NetworkADMGE SwitchVideo on DemandBroadcast TVData CenterMetro NetworkMetro NetworkRadio towerADMSwitchBTSCentral OfficeT110/100ADMOLT xPON CPEWiMAX/WiFiPMC-Sierras Digital Home Products (VoIP; NAS; Gateways)May 20085Proprietary and ConfidentialPMC-Sierras Global PresencePMC-Sierras Global PresenceDesign CenterSales CenterDesign & Sales CenterVancouverPlanoOttawa MontrealAllentown ShanghaiYokohamaSeoulShenzhenGermanyFranceUKBeijingTaipeiIsraelWorldwide headquarters in Santa Clara, CA Operations headquarters in Vancouver, BCBangaloreBostonRaleighSanta ClaraSwedenRosevilleHong KongPortlandMay 20086Proprietary and ConfidentialFTTH BU overviewFTTH BU overview?Market leading 10G EPON development?200+ engineers in the FTTH BU?Additional PMC resources allocated to the BU: Analog and ASIC teams enabling breakthrough next generation designs?Only chip vendor with both EPON & GPON product lines?Market leader in 1G EPON, shipped over 6M ONUs to dateMay 20087Proprietary and ConfidentialPON Semiconductor Market Share 2007PON Semiconductor Market Share 2007Teknovus 13%Freescale 6%Broadlight 9%PMC-Sierra 60%Cortina 6%Others 7%Source: The Linley Group, Oppenheimer & Co. May 20088Proprietary and ConfidentialKey Technologies in EPON (The 5 As)Key Technologies in EPON (The 5 As)?Adjustable platforms- OLT (DBA) Standard and adaptable Quality of Service implementation- ONU Powerful integrated CPU Reduces systems costs and power consumption (e.g. MDU application)?Advanced Diagnostics lowering carrier OPEX?Adjacent technologies such as Residential Gateway and VoIP to allow rapid integration?Analog expertise to enable new technologies and cost optimize current ones (e.g. 10G EPON SERDES)?ASIC vendor expertise to enable a cost effective and predictable supply chainMay 20089Proprietary and ConfidentialAdjustable DBA (Dynamic Bandwidth Allocation)Adjustable DBA (Dynamic Bandwidth Allocation)?PMC enables an adjustable DBA to meet specific carrier service needs.?A few carriers have already chosen to develop their own DBA when EPON matures in order to fine tune it to their own needs.?In China for example the DBA was adjusted to enable guaranteed bandwidth per service and weighted fair queue based on the standard compliant Single LLID QoS mechanism and without any bandwidth overhead.“All things change, and we change with them.” - Chinese saying“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. ” Charles DarwinMay 200810Proprietary and ConfidentialAdjustable ONU MDU exampleAdjustable ONU MDU exampleEPON MDU ONUPAS6301EPON MACStandard Single LLID QoS EngineARM9 CPUSDRAMFLASHTrXEPON24 port switchSLICVoIP DSP24 FE portsFull software stack supporting CTC spec, VoIP, switch management and end to end diagnostics16 VoIP channelsSignificant cost and power consumption reduction achieved by utilizing the integrated ARM to support an MDU application eliminating the need for an host subsystem and dedicated VoIP devicesMay 200811Proprietary and ConfidentialAdjustable ONU MDU example (cont.)Adjustable ONU MDU example (cont.)Device DriversAPIPAS6301 HardwareLinux Operating System DSP DriverSystem ConfigurationApplicationPMC PackagesCustomer ApplicationCTC ManagementWebDiagnosticsPMC 6301 LibraryIntegrated ProtocolsOAM802.1x SupplicantIGMPv3 SnoopingPeripheral AccessRTP/RTCP VoicePacketizerVoice APIATA Phone ManagerOS service callsPeripheral read/write API functions6301 APIPOTS APISwitch APICall ControlSIP StackSLIC DriverAdjustable ONU enabling a rich and flexible software stackMay 200812Proprietary and ConfidentialAdvanced Diagnostics lowering OPEXAdvanced Diagnostics lowering OPEX?As EPON matures, enhanced diagnostics are becoming critical, enabling carriers to provide high quality service with lower operating expenses?PMC has enabled a rich set of diagnostics capabilities through the development of analog products (TIA/LIA) designed into the EPON transceive