Teknovus, KDDI Tout EPON

PETALUMA, Calif. -- Teknovus, the leading provider of Ethernet Passive Optical Network (EPON) chipsets for the deployment of IPTV in broadband access networks, and KDDI, one of Japan's largest and most progressive telecom carriers, today announced a Next Generation Ethernet Passive Optical Network (NGEPON) roadmap with speeds of up to 10 Gb/s. This development program is driven by the new, bandwidth-intensive IPTV services that carriers will be introducing in the near future. As a member of the Ethernet Alliance, an industry group dedicated to the continued success and expansion of existing and next-generation IEEE 802.3 Ethernet technologies, Teknovus plans to further the development of NGEPON.

1 Gb/s EPON networks currently are being deployed successfully in volume by KDDI and other carriers around the world for IPTV and triple-play services. Upgrading these networks to faster speeds in the future will allow carriers to expand their service offerings; NGEPON systems will support hundreds of interactive channels, a rich mix of high-definition content, narrowcasting, and virtual personal video recording capabilities. Bandwidth requirements to support these services likely will exceed 100 Mb/s per user thus demanding a solution such as NGEPON. Progressive operators targeting the $150 billion entertainment television market can build confidently 1 Gb/s EPON networks today knowing that a roadmap allowing migration to higher-speed NGEPON is now in place.

Dr. Rex Naden, CEO of Teknovus, observed, "There is worldwide interest in the PON community for the next generation of EPON, especially from carriers who demand smooth upgrades to their current EPON investments. The need is clear, cost-effective technology is available, and the first products based on higher speed NGEPON will be announced during 2006. It is an honor to welcome a partner as prestigious as KDDI to join us in extending the capabilities of EPON."

Mr. Shigeo Morita, Senior Manager of KDDI's Terminal System Development, stated, "KDDI already is deploying 1Gb/s EPON in Japan. Our exciting triple-play service offering is attracting customers as fast as we can roll out the service. At the same time, we recognize that Ethernet technology and customer needs will not stand still and we will in the future have the capability to offer even more advanced IPTV and other services to the broader customer base. In this case it is critical that the next generation products be compatible with our installed base to minimize additional cost and maximize revenue. We believe the NGEPON roadmap will meet these objectives. Further, we plan for Teknovus and other semiconductor vendors to supply interoperable NGEPON chipsets to keep costs down and keep our options open."

Mr. Brad Booth, President of the Ethernet Alliance, stated, “The Ethernet Alliance is pleased to welcome Teknovus as a member of the Ethernet Alliance. As part of their membership, Teknovus can use our incubation process to assist in the initiation of an IEEE 802.3 standard development project related to next-generation EPON. As part of our broader goal, the Ethernet Alliance supports enabling next-generation Ethernet to be the technology of choice for carriers and service providers worldwide.”

Teknovus Inc.

KDDI Corp.