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To: Frank Ferrari who wrote (1488)11/25/1998 12:49:00 PM
From: Kenneth E. Phillipps  Read Replies (1) | Respond to of 14638
 
Arris statement on Cornerstone IP Telephony
News Releases

Arris Interactive Unveils IP Capabilities for Cornerstone Cable Telephony

States Commitment to Premium Quality and Investment Protection for IP Services

Arris Interactive's IP Capabilities for Cornerstone Cable Telephony Diagram

Atlanta -- Arris Interactive, the leader in the cable telephony equipment market, today announced its
plans to add Internet Protocol (IP) capabilities to its Cornerstone cable telephony system for hybrid
fiber/coax (HFC) networks. With the new Cornerstone IP Access Gateway, the Cornerstone
platform allows cable operators to capture local telephony customers today with assurance of future
migration to support IP networking. The Cornerstone IP Access Gateway joins the Cornerstone Host
Digital Terminal (HDT) and a portfolio of Voice Ports that currently comprise the product family.

The company articulated three principles on which its evolution plans are based:

1) Consumers care about premium quality service and features – not technology.

2) Cable operators can capture local telephony subscribers now.

3) Arris will protect the cable operator's investment in current systems with a smooth migration
to future IP services.

"The key to successfully competing for local telephony revenues is to offer service quality and
performance parity with the incumbent phone company," said Guy Gill, Arris Interactive President and
CEO. "The Cornerstone system delivers service today which exceeds that of the incumbent phone
company. Arris will deliver the same premium quality service on future IP networks."

"Our cable operator customers have found that primary-line replacement is a must for a successful
local telephony business," said Gill. "Our product plans are based on this business strategy. Arris is
committed to providing cable operators a flexible platform for delivering premium services in the local
loop – regardless of the transport protocol."

The current Cornerstone system consists of a Host Digital Terminal located at the cable headend
connected to Voice Ports located at homes or businesses. The new Cornerstone IP Access Gateway
can be added to existing HDT's to carry traffic across an IP network.

The Cornerstone IP Access Gateway protects the cable operator's investment in today's system by
giving them the ability to transition to IP protocol-based voice servers when these mature to the point
of supporting premium quality services. The IP Access Gateway will take traffic from the Cornerstone
HDT and translate it to an IP protocol for transport to the IP backbone. With the IP Access
Gateway, operators who are already in service with Cornerstone systems can gracefully migrate their
traffic from the Public Switched Telephone Network (PSTN) onto an IP backbone without replacing
installed Voice Ports. And since the HDT supports interface groups to multiple switch or IP hosts,
Cornerstone lines can be flexibly provisioned onto either the IP network or the PSTN.

Major features of the Cornerstone IP Access Gateway are:

• Provides client proxies for up to 3,360 Cornerstone voice lines

• Supports up to 672 simultaneous voice calls over DS1 or E1 connections to Cornerstone
HDT's

• Consolidates traffic from up to five Cornerstone HDT's onto the IP network

• Provides a 100BaseT interface to the IP network

• Provides premium quality reliability via card redundancy and hot swappable cards

• Supports premium quality service including basic call services, CLASS and custom calling
features

Scheduled availability of the Cornerstone IP Access Gateway is aligned with the emerging
PacketCable standards and development of other standards-compliant end-to-end IP network
components.

Arris also plans to expand its portfolio of network interface units (NIU) to include new packet-based
devices for delivering data and voice service to consumers. Arris will apply its leadership in
developing low-power, outside plant-hardened, highly reliable NIU's towards IP devices. Arris
Interactive is an active member of the CableLabs PacketCable consortium and will incorporate
emerging VoIP standards as they are adopted.

The Cornerstone IP Access Gateway concept will be demonstrated at the Western Cable Show
December 2-4 in Anaheim by ANTEC (Hall D, Booth 4214) and Nortel Networks (Hall D, Booth
5184).

The Cornerstone system has been deployed commercially for over two years and has proven to be
robust and reliable in over 23 different cable systems around the world with capacity to serve over
1.7 million subscribers. It delivers premium quality service including a full set of enhanced telephony
features (e.g. Caller ID, call waiting and high speed modems) which consumers have come to expect
from their local telephone provider.

Arris Interactive is jointly owned by Nortel Networks (Northern Telecom) and ANTEC. The
company sells its products through ANTEC for US cable operators and through Nortel for other US
operators, international network operators and Canadian cable companies.



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