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Rollout of Ethernet Services Accelerates As OEMs and Carriers Gain Confidence

Posted on: Tuesday, 16 August 2005, 18:00 CDT

Pioneering advanced, state-of-the-art testing techniques, TranSwitch(R) Corporation (NASDAQ: TXCC), a leading provider of high-speed semiconductor solutions for voice, data and video communications, has conducted extensive tests on its EtherMap(R) family of devices over the last several years. Positive results from these tests and field trials of OEMs' equipment are now leading to the confident deployment of carrier-class Ethernet services by service providers.

Agilent Technologies, a leading SONET/SDH test equipment vendor, has been using TranSwitch's EtherMap-3 device to demonstrate Ethernet-over-SONET/SDH (EoS) to carriers and OEM customers. "Agilent and TranSwitch have collaborated over the past year to perform EoS field demonstrations using the EtherMap-3 device and the Agilent OmniBER," said Ted Duffy, director of DND Business Development for Agilent. "We also have combined TranSwitch's EtherPHAST(TM)-48 Plus EoS/SAN Mapper-Framer with the Agilent OmniBer and N2X Multi-Services Test Solution to demonstrate Ethernet over RPR (Resilient Packet Ring) traffic, along with the GPF (generic framing procedure), VCAT (virtual concatenation) and LCAS (link capacity adjustment scheme) protocols at the OC-48 rate."

TranSwitch also worked very closely with Tier 1 OEMs to successfully complete interoperability testing for critical EoS features such as LCAS and VCAT. Testing of next generation SONET/SDH networks with VCAT, GFP, and LCAS is much more complex than the testing and installation required for the original TDM networks with standard concatenation. VCAT in particular increases the number of operational modes to a degree far greater than telecom providers have ever had to deal with before.

"Traditionally, an OC-12 container could be configured in about 100 different ways. However, with the advent of VCAT, the number of configurations for that same OC-12 container can be virtually unlimited. The only way to deal with testing requirements of this magnitude is through innovative automated testing and experience," said Dr. Hoshang Mulla, vice president of Marketing for TranSwitch Corporation. "We believe the service providers need the maximum assurance of reliability and with our parts that is what they should get.

"TranSwitch was the first semiconductor developer to produce carrier-class merchant silicon for EoS applications and because of the installed base, we simply have more data packets going through our parts than anyone else," continued Dr. Mulla. "Having launched EtherMap-3, the first Ethernet-over-SONET/SDH (EoS) device, ahead of competitors in 2001 and having pioneered state-of-the-art testing techniques, TranSwitch has the unique ability to deliver the highest level of reliability for EoS transport."

A recent Light Reading article (June 28, 2005: "BT's Bross: Ethernet Will Deliver" http://www.lightreading.com/document.asp?doc_id=76472) confirms carrier concerns about the interoperability of Ethernet technology and specifically the ability to conduct testing and diagnostics at a level consistent with what is being performed on today's networks. With TranSwitch's family of EtherMap devices already running in thousands of systems around the world, the Company is able to give OEMs and carriers the peace of mind they need.

According to a recent report by industry analyst IDC, Ethernet technology, once dedicated to LAN environments, is shifting to the metro area. This trend, which is expected to increase at a 26 percent compounded annual growth rate through 2009, is being driven by next-generation broadband applications that combine video with IP voice and high-speed Internet access. Carriers expect a high-degree of network reliability and therefore need to ask their suppliers about testing techniques and their installed base. Because of its level of experience, TranSwitch is in the unrivaled position to address these issues with confidence.

Currently, new products including the EtherMap family, accounted for one third of TranSwitch's revenue in the second quarter of 2005 as customers moved into production of EoS services. (For more information on performance metrics in EoS transport, see TranSwitch white paper, "Moving Toward Mass Deployment of Ethernet over SONET," available at www.transwitch.com.)

About TranSwitch

TranSwitch Corporation designs, develops and markets innovative semiconductors that provide core functionality and complete solutions for voice, data and video communications network equipment. As a leading supplier to telecom, datacom, cable television and wireless markets, TranSwitch customers include the major OEMs that serve the worldwide public network, the Internet, and corporate Wide Area Networks (WANs). TranSwitch devices are inherently flexible, many incorporating embedded programmable microcontrollers to rapidly meet customers' new requirements or evolving network standards by modifying a function via software instruction. TranSwitch implements global communications standards in its VLSI solutions and is committed to providing high-quality products and services. TranSwitch, Shelton, CT, is an ISO 9001:2000 registered company. For more information, visit www.transwitch.com.

Forward-looking statements in this release, including statements regarding management's expectations for future financial results and the markets for TranSwitch's products, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements regarding TranSwitch, its operations and its financial results involve risks and uncertainties, including without limitation risks of downturns in economic conditions generally and in the telecommunications and data communications markets and the semiconductor industry specifically; risks in product development and market acceptance of and demand for TranSwitch's products and products developed by TranSwitch's customers; risks relating to TranSwitch's indebtedness; risks of failing to attract and retain key managerial and technical personnel; risks associated with foreign sales and high customer concentration; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks of dependence on third-party VLSI fabrication facilities; risks related to intellectual property rights and litigation; risks in technology development and commercialization; and other risks detailed in TranSwitch's filings with the Securities and Exchange Commission.

TranSwitch and EtherMap are registered trademarks of TranSwitch Corporation. EtherPHAST is a trademark of TranSwitch Corporation.

Source: Business Wire

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