Major Applications @ Home Networking 家庭網路各式應用的發展現況 James Wang, CEO SerComm Corp. Sep 16, 2004

1. Major Applications @ Home Networking 家庭網路各式應用的發展現況 James Wang, CEO SerComm Corp. Sep 16, 2004

2. SerComm Corporation • The Leading Embedded Solutions Provider to “Timely” Make Networking “Simple” and “Affordable” • Top 3 Suppliers for Broadband Wireless Router • Global Market Share Leader for Printing Sharing • Monthly Shipping 400K Embedded Devices to Global SOHO Market • Founded in 1992, IPO’ed in 1999, US$160M Sales in 2004 • Located in Taipei, Silicon Valley, Suzhou with 200+ Design Engineers

3. Digital Home Applications • Broadband Access • 1. Broadband Modem • 2. Wireless AP Router • Networked Printing • 3. Print Server • Content Storage • 4. NAS Photo/MP3/Video Album • Surveillance • 5. Network IP Camera • Communication • 6. VoIP ATA/WiFi Phone • 7. Video conference • Music/Video Streaming • 8. Media Gateway • 9. Wireless Media Adapter Cable DSL (9) (5) (7) (8/9) (4) (2) (6) (1) (3)

4. Internet Application Building Blocks Home AP Router Gateway Network Attached Storage Wireless Media Gateway Wireless Print Server Wireless Media Adapter Wireless Speakers WiFi Phone & Video Conference VoIP Box Wireless Network Camera

5. Data/Media Streaming TV NAS / Media Center WMA retrieve media contents from HomeNAS content streams to Remote PC Via Internet WNC records video streams onto Media Center WMA Home Gateway WMA display media contents TV WNC transfer video streams to WMA54G IP Camera PS prints photo & image to printer WMA retrieve media contents from Host PC WNC transfer video streams to PC for viewing and recording PC / Media Center PS

6. Broadband Access • Two-Box in US, Japan, China v.s. One-Box in EC • TI’s AR7W First Launched by SerComm in Q4 2003 Prevails EC • All-in-One Box Market • WiFi-Based Router Dominant in Developed Economy • 11b Obsolete by the End of 2004 • 11g Price Collapsed • 11a/g Getting Momentum in Japan • 11n Become “Noisier” • Does WiFi Change Broadband Access Terminating Point?

7. Network Printing • A Niche Segment Dominated by Two Players – HP and SerComm • WiFi Networking Drives Demand Handsomely • Compatibility and Ease-of-Use Presents Major Road Blocks • 80% Market Remains Un-addressed

8. Content Storage • Study Room v.s. Living Room • PC-based v.s. Embedded Media Center • NAS v.s. Networked HDD v.s. Dongle NAS • What Content to Store • JPEG Photo, MP3 Music, Back-up Data for Safety Are Proven • MPEG Video Is Constrained by DRM Issues • Local Sharing v.s. Internet Sharing

9. Home Surveillance • DSP SOC & WiFi Enabled IP Camera Is Replacing CCTV • US and Japan Are Leading the Trend and Gathering Momentum • WiFi Security and Reliability Issues • Home-Plug as a Feasible Alternative • Daddy’s Toys @$99 v.s. Professional CCTV Replacement @$499

10. Voice Communication • SIP-Based Service Is Proven and Overwhelming US/Japan Market • All-in-One Gateway (TI’s AR7VW or Titan) v.s. Simple ATA • Both Have Been Deployed in US Retailing in Q3 2004 • Heavy Subsidy from Service Providers – Vonage/AT&T • WiFi Phone @ $149 v.s. ATA+Codeless Phone @ $89 • WiFi Phone Bundled with Traveler router as a Promising Applications

11. Wireless Media Adapter • Initial Experiment with Photo/Music Streaming in NA Is Struggling • Where Is Media Center Situated • Whose Middleware to Drive Streaming, Manage Content/DRM • What Medium Should Streamed Data Ride on • 11g? 11a? 11n? E/N? HomePlug? • When Will Available Wireless Bandwidth > 20X Ave. Bit Rate