2Wire Raises the Bar on Fixed-Mobile Convergence by Integrating Femtocells into its Residential Gateways

HomePortal BaseStation with 3G/UMTS and CDMA to Deliver New Levels of Functionality and Performance

San Jose, CA - March 21, 2007 - 2Wire, a provider of broadband service delivery platforms, is extending its family of products to include femtocell functionality in its DSL residential gateways, to deliver the most cost effective, end to end solution available for fixed-mobile convergence (FMC).

A femtocell is a miniature cellular base station specifically designed for use in the home, vastly improving cellular voice and data coverage and quality throughout the home. By communicating with the mobile carrier’s network through the subscriber’s own DSL connection, the mobile operator’s backhaul costs are also greatly reduced. This new functionality contained within a residential gateway creates attractive opportunities for bundled voice and data services, as well as discounted billing for home usage, and improved “family” service plans.

“Our femtocell solution reinforces the 2Wire reputation for introducing game-changing broadband products and services,” said Pasquale Romano, president and CEO of 2Wire. “2Wire was the first company to launch intelligent residential gateways and wireless gateways, and we are now demonstrating that our gateways are also the ideal platform for the ultimate FMC solution.”

The 2Wire HomePortal® BaseStation™ will provide whole-home coverage for both UMTS 3G voice and data (HSPA) services and CDMA-2000 EVDO 3G services. Backwards compatibility with GSM/GPRS/EDGE and IS-95/1xRTT will also be provided.

“With the HomePortal BaseStation, subscribers will enjoy uninterrupted mobile data and voice service that rivals fixed line quality,” said Romano. “It will also provide simultaneous coverage for up to four different mobile handsets, with seamless handoffs between the larger cellular network and the home network. This brings the vision of having one phone per subscriber—with universal coverage and service—well within reach.”

2Wire is uniquely positioned to deliver the ultimate FMC solution, based on its software and silicon design expertise, and its experience deploying and managing over eight million HomePortal intelligent residential gateways around the world.

By combining femtocells with intelligent residential gateways, 2Wire is resolving some of the most difficult challenges of femtocell functionality: DSL integration with intelligent routing, and QoS for voice and video service for simultaneous broadband usage by multiple users.

The HomePortal BaseStation will add to 2Wire’s existing portfolio of broadband voice products and services, which includes the HomePortal 2700HGV, with built-in VoIP capability and differentiated QoS functionality. Sold in conjunction with the BT Fusion service, the HomePortal 2700HGV delivers dual-mode phone service with mobile and Wi-Fi calling capabilities from the same cellular device.

2Wire will be launching two new families of femtocell products in early 2008, including femtocells that connect with residential gateways via Ethernet, and the HomePortal BaseStation, which fully integrates the femtocell into the residential gateway itself. The HomePortal BaseStation will provide complete femtocell functionality while retaining the form and functionality of traditional HomePortal residential gateways, including full TR-069 standards compliance, a high performance ADSL or VDSL modem, a high-speed router, professional-grade firewall, integrated voice over IP, remote access capabilities, and flexible home networking options.

About 2Wire
2Wire provides global telecom carriers with broadband services platforms that enable an integrated triple play of networked data, voice, and media services. 2Wire's award-winning products and services include residential gateways, broadband multimedia set top boxes, remote management systems, and call center customer support. 2Wire's customers include global DSL market leaders AT&T, TELMEX, BellSouth, BT, Embarq, SingTel, and others. For more information, visit www.2Wire.com.

2Wire, HomePortal, and HomePortal BaseStation are the trademarks or registered trademarks of 2Wire, Inc. in the United States and in other jurisdictions throughout the world. For more information, visit www.2Wire.com.