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ZyXEL - Worldwide Leading DSL Vendor 2006 Worldwide 3rd DSL CPE Vendor
No. 3 in worldwide total DSL CPE shipments No. 1 CAGR (2005-2006) among top 5 CPE players 9.4% market share in 2006

Source: Gartner Dataquest (May 2007)

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ZyXEL - Worldwide Leading DSL Vendor 2007 Worldwide 6th DSLAM Vendor

2007 DSLAM (ADSL, SHDSL, VDSL) port shipment by vendors

Vendor
Alcatel-Lucent Huawei ZTE Nokia Siemens Ericsson ZyXEL TOTAL Ports

1Q07
7,342,000 5,048,864 2,982,000 2,300,584 1,911,000 948,757 24,923,715

2Q07
9,597,000 6,061,301 3,775,000 1,678,586 1,500,000 892,957 28,217,569

3Q07
7,987,000 6,485,931 3,952,500 1,141,696 1,024,000 738,774 25,161,005

4Q07
8,333,000 6,340,875 3,608,300 1,584,728 1,652,000 1,155,786 26,676,355

QoQ Change
4% -2% -9% 39% 61% 56% 6%

Rolling 4Q Total
33,259,000 23,936,971 14,317,800 6,705,594 6,087,000 3,736,274 104,978,643

Rolling 4Q Mkt Share

31.7% 22.8% 13.6% 6.4% 5.8% 3.6% 100.0%

Source: Broadband trend 4Q07 DSL Market Share ZyXEL Confidential

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ZyXEL - Worldwide Leading DSL Vendor 2007 Worldwide Top2 VDSL Vendor

2007 VDSL port shipment

Vendor ALU Port shipment 2,536,650

ZyXEL
NEC Sumitomo Nokia Siemens Others

2,334,928
1,447,000 872,100 449,792 319,088

Source: Broadband trend 4Q07 DSL Market Share

2006 VDSL market share ZyXEL Confidential

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FTTB/FTTC/FTTH/ETTH
100 60 VDSL2 20 ADSL2+ 8 2 SHDSL 1km 2km 3km 4km 5km

ADSL2

Soft Switch

Central Office Video Server

AggregationBRAS Network

Fiber
(Ethernet)
Aggregation DSLAM CO Switch Access Node

FTTB/FTTC (IP DSLAM)

Copper (DSL)

Home Network

FTTH(PON)

CPE (Modem)

ETTH (CAT5) Access Network

CPE (ONT)

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FTTB/FTTC/FTTH/ETTH
IP Convergence - PSTN migrate to Soft Switch - IP TV Deep Fiber Reach Bandwidth Demand Bundle services to reduce churn and increase ARPU

Soft Switch

Central Office Video Server

AggregationBRAS Network

Fiber
Aggregation Switch Access Node

FTTB/FTTC (IP DSLAM)

Copper (DSL)

Home Network

FTTH(PON)

CPE (Modem)

ETTH (CAT5) Access Network

CPE (ONT)

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IPDSLAM Product Portfolio

IP DSLAM
DSL IES-1000 Mini IP DSLAM
1U with built-in splitter 2 Fast Ethernet Uplink 2 slots for ADSL2+/SHDSL.bis

IES-1248 Remote DSLAM

1.5U built-in splitter 2 Combo Gigabit Uplink Hot swappable Fan ADSL2+/VoIP

Access Node

IES-5000 MSAN
6.5U with Giga Backplane 4 Gigabits Ethernet Uplink 8 horizontal slots ADSL2+/VDSL2/G.SHDSL/VoIP Active Fiber Ethernet Power and MSC redundancy

IES-708-22 IES-612-51
1U high with built-in splitter 2 Fast Ethernet Uplink 12 ports ADSL2+ 1U high 2 Fast Ethernet Uplink 8 ports G.SHDSL.bis

IES-5005 MSAN
4U with 2G Backplane 4 Gigabits Ethernet Uplink 4 horizontal slots ADSL2+/VDSL2/G.SHDSL/VoIP Active Fiber Ethernet Power redundancy

IES-6000 MSAN
12.5U with Giga Backplane 8G or 2x10G+6G Uplink 17 vertical slots ADSL2+/VDSL2/G.SHDSL/VoIP Active Fiber Ethernet Power and MSC redundancy

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Box Type VDSL2 Product Portfolio

Box Type VDSL2
DSL

Access Node

GE Uplink
16/24 port VDSL2 + GbE uplink VES-1616FA-54/55 VES-1624FA-54/55

PON uplink
16/24 port VDSL2 + PON uplink VES-1616PT-54/55 VES-1624PT-54/55

FXS Support
16/24 port VDSL2 & FXS VES-1616FTV-54/55 VES-1624FTV-54/55

Indoor type Temperature Harden

8/16 port VDSL2

+ GbE uplink

8/16 port VDSL2 + PON uplink 8/16 port VDSL2 & FXS
VES-1608PC54/55 VES-1616PC54/55 VES-1608FCV54/55 VES-1616FCV54/55

VES-1608FC54/55 VES-1616FC54/55

Outdoor type Environmental Harden

Ready

2008 Q3

2008 Q4

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DSL CPE Product Portfolio

IP DSLAM
DSL

VDSL2 CPE/IAD
P-870H P-870HW P-2802HWL

SHDSL CPE
P-791RV2 P-793H

Access Node

VDSL2 (17a) 3 play ready TR069 ready

VDSL2 (17a) IEEE 802.11g 3 play ready TR069 ready

VDSL2 IEEE 80211g 2 FXS TR069/TR104

G.SHDSL.bis UPnP

G.SHDSL.bis 4wire support VPN MBM

ADSL2+ CPE
P-660RU series P-660HWP series P-662H/HW series P-663H series

ADSL2+ IAD
P-2602HWUL P-2600RDL

ADSL2/2+ UPnP Zero Config Dual mode USB/Eth router

ADSL2/2+ HomePlug AV MBM QoS 200Mbps over Powerline

ADSL2/2+ IEEE 802.11g Firewall Anti-Virus 20 VPN tunnels

ADSL2/2+ Port Bonding Annex L/M DELT and SRA

ADSL2/2+ ADSL2/2+ 2FXS IEEE 802.11g IPSec VPN 6 DECT USB 2.0 printer handset and disk sharing PSTN lifeline

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PON Product Portfolio

PON
DSL

GEPON OLT-2300
Chassis base 16 GEPON ports 16 GE ports

GEPON ONU-634
1 GEPON port 4 FE ports switch built in

Access Node

GEPON OLT-1308
1U high 8 GEPON ports 4 GbE ports L2 Switch built in

GEPON ONU-631
1 GPEON port 1 GE port

GEPON OLT-1308H
1U high 8 GEPON ports 8 GbE ports

GPON IAD P-3201HW

1 GPON WAN port 4 FE LAN port FXS port 802.11 b/g

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Ethernet Product Portfolio

DSL

Ethernet

Access Node

Aggregation switch

Access switch

Ethernet CPE
ES-2108-G
8*100M + 1* 100M/1G

CAT5
MES-3728 ES-315
4*100M + 1* 100M

XGS-4728F
24 * GbE + 2*10G uplink

24*100M + 4* 1G

ES-2108-F
8*100M + 1* 100M

MGS-3712/MGS-3712F
12*1GbE

ES-3124F
24*100M + 4* 1G

ES-315-F
4*100M + 1* 100M

Fiber

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ZyXEL FTTC/FTTB Solution

IPDSLAM Application
Metropolis Access Network
DSL IAD Chassis IPDSLAM
Aggregation Ring
DSL

Home Network

Aggregation Network

Aggregation Switch

Outdoor Cabinet

Outdoor box

DSL

Suburbs

Box typed IPDSLAM

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PON Application
PON Bridge + IAD

Home Network

Access Network Aggregation Network

Aggregation Ring PON VDSL MDU

Fiber

PON IAD

Home Network

Aggregation Switch PON OLT

PON Ethernet Switch

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ZyXEL ETTH Solution

ETTH Application

Access Network Aggregation Network

Aggregation Ring

Access Switch

Premise Switch

Home Network

Aggregation Switch Access Switch

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Biggest ILEC in Taiwan

GS-3012

Aggregation Ring

IES DSLAM Temperature Hardened

VES-1624FT

VES-1608FE Environmental Hardened VES-1624FT Temperature Hardened

2006 Implementation
FTTB + VDSL : 450K

2007 Implementation
FTTC + VDSL2 : 350K

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Biggest Telecom in Japan

Total port shipment: 1700K ports

Data Service

VDSL2 CPE

Analog Phone

POTS Splitter VDSL2 CO Box

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1st FTTB/FTTC ISP in Cologne, Germany

2006 Q4 Trial
2K

2007 Implementation
FTTC + VDSL2 : 100 K

Outdoor VDSL2 MDU

Indoor VDSL2 MDU

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1st FTTB ISP in Paris, France

Total shipment: 110K ports

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ILEC in Norway
Implement ZyXEL IPDSLAMs for Data & IPTV service Total Shipment: 50K ports

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Service Provider in Denmark

ZyXEL total solution for Data & VOIP service
GS3012 (Agg. Switch) IES-5000 (IPDSLAM) P26XX IAD

Total port shipment

25K Ports

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