New EFM STandard Delivers Scalable Ethernet Bandwidth over Existing Copper
Loops
Oakland, CA -- April 25, 2006
- A survey by Infonetics Research
shows continued expansion and market growth potential for Ethernet Over
Copper in the First Mile, as service providers offer an increasing array of
bandwidth-intensive services and applications. Zhone Technologies, Inc., (Nasdaq:
ZHNE) the BLC market leader and the first company dedicated to building
total-delivery solutions for voice, data and content services worldwide,
announced the survey results which further validate the market for Ethernet
over Copper.
Infonetics Research reported in September 2005 that the worldwide total
Ethernet Access Device segment quadrupled between 2004 and 2005, and is
forecast to jump from $91 million in revenues to nearly $682 million by
2009.
According to another Infonetics Research report issued in April, 2006,
Ethernet services are expected to generate more than $5 billion in U.S.
service revenues by 2009. With IP-based voice, video and network-based
content services providing new revenue opportunities for service providers,
the ability to offer Ethernet-based access services that can accommodate
innovative, high-value application services is critical to income growth.
Despite an ever-growing need for bandwidth, only 11.7% of commercial
buildings in the U.S. with 20 or more employees have access to fiber,
according to Vertical Systems Group (www.verticalsystems.com). With Zhone's
extended rate Ethernet over Copper solutions, service providers can
significantly reduce the need for trenching and installing expensive fiber
connections while capitalizing on the latest 5.7 Mbps per pair capabilities.
Not only is Ethernet increasingly at the core of nearly every business
network - no matter the size - it is also the foundation transport
technology for higher layer application services (voice, video, and more)
based on TCP/IP. Small and medium-sized businesses as well as corporate
branch offices are seeking a way to make the WAN like their LAN and extend
their Ethernet (and IP-based applications) infrastructure to connect to
customers, business partners and the corporate home office.
The recognized leader in the rapidly growing Ethernet over Copper market,
Zhone Technologies just announced its new
EtherXtend™ solution, which
delivers cost-effective, high-bandwidth Ethernet services over existing
copper loops throughout a carriers' serving area. Zhone's EtherXtend offers
the broadest range of scalable EFM solutions in the industry, with support
for T1, E1 or DSL connections, providing up to 5.7 Mbps per copper pair. By
combining multiple copper pairs using Zhone's copper bonding technology,
carriers can deliver data rates over 45 Mbps over existing copper loops.
Zhone was the first vendor to deliver products in the fast-growing bonded
Ethernet over copper market, and Zhone still leads that market today.
About Zhone Technologies
Zhone designs and manufactures network equipment for network operators
worldwide. Zhone's products allow network operators to deliver a rich array
of voice, data, video, and entertainment services over their existing
networks while simultaneously retooling for converged packet-based voice
(VoIP) and video (IPTV) over copper or fiber access lines. Zhone's advanced
networking solutions include the Single Line Multi-Service architecture (SLMS(TM)),
Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) and GrandSLAM ATM/IP
DSLAMs, Ethernet in the First Mile bonded solutions, Zhone Residential
Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone
Management System (ZMS(TM)). With deployments at over 400 carriers including
among some of the world's largest networks, Zhone has enabled network
operators to reinvent their businesses. For more information, please visit
www.zhone.com.
About Infonetics Research, Inc. (Infonetics)
Infonetics is the premiere international market research and consulting firm
specializing in data networking and telecom. Infonetics provides a complete
view of the market through constant interaction with equipment
manufacturers, service providers, end-users, chip and component
manufacturers, sales channels, and the financial community. Infonetics
offers quarterly market share and forecasting, end-user and service provider
survey research, and service provider capex analysis. Infonetics is
respected in the industry for its objectivity, accuracy, and ability to
deliver on time all the time. For more details on research services,
including study excerpts, prospectuses, sample data, press releases, tables
of contents, etc., please visit www.infonetics.com
Contacts:
Investors
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
Media
Tel : +1 510-777-7020
Fax : +1 510-777-7001
Email: public-relations@zhone.com
Zhone, the Zhone logo, and all Zhone product names are trademarks of
Zhone Technologies, Inc. Other brand and product names are trademarks of
their respective holders. Specifications, products, and/or product names
are all subject to change without notice.
Forward-looking statements
This press release contains forward-looking statements that are subject
to the safe harbors created under the Securities Act of 1933 and the
Securities Exchange Act of 1934. Forward-looking statements include,
among others, statements that refer to anticipated growth and trends in
Zhone's business or key markets, including growth in the Ethernet
market. Readers are cautioned that actual results could differ
materially from those expressed in or contemplated by the
forward-looking statements. Factors that could cause actual results to
differ include, but are not limited to, fluctuations in demand for
network access products and general economic conditions as well as those
specific to the communications, internet and related industries. In
addition, please refer to the risk factors contained in Zhone's SEC
filings available at www.sec.gov, including without limitation, Zhone's
annual report on Form 10-K for the year ended December 31, 2005. Readers
are cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made.
Zhone undertakes no obligation to update or revise any forward-looking
statements for any reason.
Zhone's Single Line Multi-Service architecture (SLMS™), allows
carriers to concurrently deliver voice, new premium data and video
services over copper or fiber access lines.
©2006 Zhone Technologies. All Rights Reserved.
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