Press Release

Zhone Technologies Sees Immediate Demand for New Intelligent FTTH Network Gateway and ITU G.984 GPON Multi-Service Platform

Customers Cite Layer 3 Gateway Intelligence and Multi-Service Platform Integration as Key to Profitable Roll-Out of Multi-Play

Oakland, CA — June 12, 2007 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines today announced new customer wins for its zNID(™) Intelligent Home Network Gateway and GPON Multi-Service Broadband Loop Carrier (BLC) Platform. Zhone's FTTH-GPON system simplifies installation and consolidates management of 100+ Mbps IPTV, VoIP and Ethernet services. Layer 3 intelligence paired with Zhone's TR-069 standard management system enables service providers to upgrade and remotely manage advanced services as seamlessly as managing DSL.

Zhone's announced customers include:

  • Consolidated Communications Holdings Inc., (NASDAQ:CNSL)
  • Taylor Telephone Cooperative
  • Yadkin Valley Telecom

All three customers cited Layer 3 intelligence in Zhone’s FTTH Home Network Gateway and Zhone’s Multi-Service BLC platform strategy as key motivators in their decision processes. Customers can rapidly deploy GPON powered services by simply adding Zhone's OLT line card to the MALC BLC. Zhone's GPON and Intelligent FTTH Network Gateway provides carriers with increased network agility and end to end management of voice, media, ultra high-speed Ethernet and home networking services with one integrated system. This translates into compounded efficiencies, from consolidated equipment and management systems, to space and energy conservation.

"Enriched video including HD, VOD and HDVR is the key driver for GPON," said Teresa Mastrangelo, principal analyst for broadbandtrends.com. "Zhone has the advantage of delivering standards-based GPON using a field proven platform with customers that have a track record of profitability delivering next generation video services using Zhone's Multi-Service BLC."

"Zhone's FTTH gateway and GPON system will speed the rollout of our HD service portfolio," said Tom White vice president of engineering for CCI. "Layer 3 integration with guaranteed QoS will greatly simplify management while ensuring excellent service and media quality to our IPTV customers."

In addition to improved management and QoS, by using standard coax and the phone wire existing in most homes for installation and battery power, service providers eliminate the risk and customer disruption of in-home drilling. Conservative savings estimates in installation alone are 70 percent. Zhone's dual wiring ability also ensures complete home coverage.

"We've integrated ultra high capacity bandwidth throughout the entire home so it becomes as inconspicuous and intuitive to the end-consumer as electricity," said Eric Presworsky vice president of product management and advanced technology.

zNID mounts to the outside of the house in a sturdy thermal enclosure so all the customer sees within the home are intuitive interface jacks for VoIP, Ethernet and IPTV. The zNID Intelligent Home Gateway also supports pre-provisioning so the enclosure can be installed in greenfield housing developments and the electronic panel can be added after services have been ordered.

Designed to address today's evolving network infrastructures, Zhone's integrated platform strategy lets Operators deliver a breadth of advanced services using fiber or copper. Rather than kludging network elements and disparate equipment, service providers can provision Gigabit Passive Optical Networks (GPON), Ethernet in the First Mile (EFM) DSL and traditional TDM services from one powerful converged platform.

"Instead of installing single purpose GPON in anticipation of future revenues, the system is delivering core voice and data services today," said Steve Singletary, manager of operations for Taylor Telephone Cooperative "We can still configure subscriber bandwidth in granular increments. Adding OLT line cards to our existing MALC systems enables us to serve more customers with less equipment and energy while ensuring scaleable capacity to add IPTV, HD and VOD to our service portfolio as demand grows."

"Zhone has an extremely well planned solution," said Jim Crabtree, general manager of Yadkin Valley Telephone Membership Corp., a regional provider extending IPTV, VoIP and data services to communities in the Southeast. "Post installation we can upgrade or change services without future truck rolls and manage the system using the same server we use for standard DSL services."

In addition to state of the art digital media services, Zhone's GPON –FTTH Gateway system supports traditional voice and video. End-consumers also have anytime-access to their home networks by mobile phone or web browser via a password protected Virtual Private Network (VPN).

"Due to fast decision cycles, and the drive to provide competitive services, Independents, PTTs and CLECs are some of the earliest movers in provisioning differentiated packet media services," said Mike Fischer, vice president of sales for Zhone Technologies. "We believe we’re delivering the system of choice for this market by offering scaleable, consolidated systems that help service providers maximize existing assets."

The Zhone Difference

Zhone's MALC GPON platform coupled with the zNID Intelligent Home Network Gateway simplifies the provisioning and management of FTTH multi-play services while providing unique consumer offerings for true next generation home networking.

MALC GPON & zNID Intelligent FTTH Media Gateway System - FTTH Simplified

  • ITU G.984 standard GPON
  • Fully configurable bandwidth per subscriber up to 2.5 Gbps
  • Dedicated IP Video Multicast Channel with RF Overlay support
  • Auto discovery for easy service tune up
  • Simple line card upgrade for large existing MALC installed base
  • Optimized price/capacity for first-moving Independents, PTTs and CLECs

Zhone's zNID Intelligent Home Network Gateway

  • Easy installation and management of advanced media and home networking services
  • Dual wiring support guarantees complete home coverage with no new wiring
  • Intuitive end-user interfaces and value added networking features
  • VoIP, Ethernet and IPTV via standard coax and/or phone lines, POTs and SDTV support
  • Remote monitoring & addition of new services – advanced QoS
  • Standard management system already used with millions of DSL installations
  • Supports HomePNA the preferred international home networking standard
  • Single system solution includes firewall security
  • Password protected VPN for anywhere connectivity
  • Rapidly deploy 100 + Mbps to every home for state of the art multimedia networks

Related Information

About Zhone Technologies – Access for a Converging World

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone’s market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company’s products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS™), Multi-Access Line Concentrator (MALC™), Raptor™ ATM/IP DSLAMs, Zhone Residential Gateways (ZRG™), GigaMux™ Optical Transport Systems and Zhone Management System (ZMS™) www.zhone.com

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