“Driving Global Standards and the Ingredients for Ubiquity” Matt Theall President, HomePlug Alliance

2 Standards or Darwinism? * “On the Origin of Species by Means of Natural Selection”, Charles Darwin, 1859 Life is a competitive struggle to survive, often in the face of limited resources. Living things must compete for food and space.* Notes and Specifications from prehistoric SIG meetings Collaboration assures the survival of the species, while leaving the room for competition among individuals.

3 Proprietary Technologies Limit Growth Proprietary Technologies –Typically exhibit good performance in one dimension –Confirm the feasibility (or the lack of it) –Develop subject matter expertise How Do You Recognize a Proprietary Technology? –Single Source of Silicon –IP Controlled by One Company –Typically Demonstrate a Slow Rate of Innovation –Cost Reduction Velocity is Reduced

4 Standards Ingredients: Based on Open Specifications RaND Terms –Reasonable and Non-Discriminatory Sharing of IP Open Specifications Foster Competition –Lower Price among the ecosystem players –Higher Performance through Innovation –Reduced TTM

5 Standards Ingredients: Industry Collaboration Market Leaders Drive Total Market Size –Global Reach –Remove cultural barriers –Create a natural ecosystem harmony –Jump starts rate-of-adoption Multiple Sources of Supply –Drives cost through market efficiencies –Removes single-source risk –Engenders process innovation Innovative Small Companies –Promotes market agility –Focuses the market on technology and performance improvements Competition Based on Value Add of Solutions –Assures multiple, healthy ecosystems develop –Provides for market segmentation and assures winners in all HomePlug Alliance

6 Standards Ingredients: Compliance Programs Compliance Checklist –Assures a robust technology is experienced Common Test Code –Homogenizes all applications Standardized Platforms –Develops a consistent consumer experience Test Specifications –Allows the SIG to exercise the technology in a more robust fashion A Variety of System Profiles –Seeks to create differentiation at market app level Industry Plugfests –Insures interoperability among multiple vendors

7 Standards Ingredients: Existing Product Compatibility Must Be Compatible with Standards-based Products Already in the Market Harmful Interference Cannot be Allowed Coexistence Cannot Result in Performance Degradation Across Multiple Technologies No One Wants to Buy a Product That Stops Their Old Product From Working!

8 Standards Ingredients: Cross Industry Solution Enablement Core Technology Must Coexist or Interoperate in Multiple Market Segments –BPL, in-home networking, command and control Allows Broad Deployment of Technology Allows Vast Ecosystem to Develop

9 Standards Ingredients: Product Interoperability Allows Products to Communicate with one Another Allows Management of Bandwidth Ensures Quality of Service (QoS) Ensures Performance Across Technology Tiers Assures Product Innovation and Cost Efficiencies Enables a Robust Consumer Experience

10 Applying the “Ingredients” to Powerline Communications (PLC)

11 Powerline Already Widely Used Over 4.5 Million HomePlug Devices Shipped –~8 Million expected by end of 2006 Based on an Open & Global Standard Other Powerline Standards Must Coexist or Interoperate with These Legacy Devices

12 Powerline Deployed For Multiple Purposes Broadband Over Powerline In-home Networking (both data and content) Command and Control A Single Powerline Standard Must Comprehend All These Market Segments

13 Powerline is Being Deployed Globally Powerline Already Deployed on 6 Continents –Europe, Americas, Asia, Africa… In Different Types of Houses –Stone, Concrete, Wood, Steel… With Different Types of Electricity –110V, 220V, 2-Phase, 3-Phase… A Ubiquitous Powerline Standard Must Address All of These Requirements

14 Powerline Requires Compliance & Interoperability Compliance Program Required Interoperability Program Required Certification Program Required A Ubiquitous Powerline Standard Must Comprehend All These Requirements

15 HomePlug

16 Home Networking Using HomePlug HomePlug Shipping Since Mbps PHY Multiple silicon providers: Arkados, Conexant, Intellon, Maxim, Spidcom. More soon Millions of products now in the market worldwide. Millions More in ’06 Next Gen HomePlug AV Spec Ratified in Aug ’ Mbps PHY Based on best in class technology components 1 st silicon shipping, 1 st products Q2’06

17 HomePlug Meets All Market Requirements Open Standard Compliance Program Interoperability Coexists with Millions of HomePlug Devices Already in Market Core Technology Used for Multiple Applications BPL In-home Networking Command and Control

18 HomePlug Organization HomePlug Industry Alliance - 65 Members and Growing Fast!

19 Summary There are Many Ingredients Required for Ubiquity Meeting Only One Requirement Isn’t Enough HomePlug is Open Standards Based and has Developed Best-of-Breed Technology Through a Global Multi-Vendor Contribution Process HomePlug is the Leading Powerline Technology Interoperability & Coexistence Must Allow for a Robust Consumer Experiences