Press Releases

SALIRA ANNOUNCES DOCSIS OVER EPON (DePON) SOLUTION

Latest Solution Enables Cable Operators a Migration Path to Fiber-based Networks While Maintaining Existing DOCSIS Management Platforms

SANTA CLARA – June 11, 2008 – Salira Systems, Inc., today announced a DOCSIS over EPON solution that will enable cable operators to compete more effectively with the telcos' current FTTx offerings. Operators will be able to use the new DePON™ solution to begin the migration to fiber-based networks while continuing to leverage existing DOCSIS and OSS operating procedures. Compared to existing and emerging HFC-based solutions, Salira's DePON systems increase bandwidth levels dramatically. Salira DePON provides symmetrical capacity of up to 4Gbps per fiber feeder that can easily deliver the bandwidth-intensive applications that are at the center of the battle for customers in the telecommunications industry.

"Working closely with our operator customers has given us keen insight into the issues facing the cable industry," noted Jeff Stribling, VP Marketing and Customer Service for Salira. "We developed a solution that enables a robust migration path to a high-capacity fiber-based network while maintaining operational continuity using existing DOCSIS standards. With DePON, we've developed a cost-effective way for operators to implement significantly higher bandwidth to complement services delivered using existing HFC-based solutions."

Salira's DePON solution will allow cable operators to grow their residential customer base in greenfield applications while they simultaneously compete for a larger share of the commercial market. Salira's DePON systems can seamlessly coexist with existing DOCSIS-based systems such that cable operators can opportunistically implement solutions that best fit the requirements of varying deployment types.

Consumers are demanding ever-more bandwidth capacity and value-added services. DePON's fiber-based infrastructure makes the bandwidth capacity for such services virtually limitless. Recent studies of fiber-based telco offerings indicate that consumers of premium services exhibit price inelasticity, improving margins at the high end. As bandwidth-intensive applications evolve, forward looking operators who invest in fiber-based networks will be less susceptible to pricing pressure as more of their subscribers demand these bandwidth-intensive services.

DePON also provides an innovative approach for cable operators to attack the market for business customers compared to existing point-to-point Coarse Wave Division Multiplexing (CWDM) solutions. Salira's point-to-multipoint solutions are far more economical than point-to-point configurations. Furthermore, point-to-point CWDM solutions require their own network management systems. In contrast, Salira's DePON system allows one pre-existing OSS to control both residential and commercial deployments simultaneously. All current billing and maintenance systems are unchanged, and there is no need to re-train network operators familiar with DOCSIS. Furthermore, as the 10Gbps EPON standards are ratified, operators will be able to increase bandwidth capacity and expand service offerings accordingly without any changes to the fiber plant or the management platform.

At the recently-completed Cable Show in New Orleans, Salira announced another product designed for the cable industry. Salira's Multi-Wavelength PON or MW-PON™ solution enables carriers and operators to quadruple the bandwidth capacity of existing fiber networks. Salira's solution uses an elegant implementation of CWDM to increase bandwidth capacity from 1 Gbps to 4 Gbps on each fiber feeder without any upgrades to the outside plant. MW-PON and DePON can be used together to leverage the benefits of both solutions in one implementation.

Salira's products are based on the IEEE 802.3ah protocols for Ethernet Passive Optical Networks (EPON). Salira was the first EPON equipment provider to attain MEF-9 and MEF-14 certification status for its Carrier Ethernet services. The company's EPON platform is ideally-suited for the high-speed transmission of voice and data – the most critical applications for business customers. Salira is also working with service providers worldwide to deliver IPTV, High Speed Internet Access and VOIP to consumers.

Salira will be exhibiting at the SCTE Cable-Tec Show in Philadelphia from June 25 through 27 in support of the new DePON and MW-PON solutions. To emphasize the company's commitment to the cable industry, Salira will be giving away one Hitachi Flat Panel TV each day at the Cable-Tec show. Visit Salira at Booth 150 for more information.

About Salira Systems, Inc.
Based in Santa Clara, California, Salira is a wholly-owned subsidiary of Hitachi Communication Technologies, Ltd. and Hitachi, Ltd. (NYSE: HIT). Salira builds standards-compliant Gigabit Ethernet Passive Optical Network (GE-PON or EPON) systems that are used to deliver advanced IP-based broadband services (voice, video and data) to both business and consumer end-users. For more about the company, visit www.salira.com.