News Release

Universal Cable Modem Combines MCNS with Terayon's S-CDMA

Highly Integrated Architecture Allows Multi-Mode Modem at Low Cost
Nov 17, 1997

Santa Clara, Calif., November 17, 1997 -Terayon Communication Systems today announced a newUniversal Cable ModemTMthat combines 100% MCNS compliance with advanced S-CDMAtechnology. With this new system, cable operators candeploy a standards-based modem and still enjoy theadvantages of Terayon's robust S-CDMA technology.The Universal Cable Modem (UCMTM)delivers fast 30 megabit per second performance in boththe upstream and downstream, and supports Quality ofService (QoS) controls, paving the way for a newgeneration of data services.

Terayon Chief Executive Officer Zaki Rakib stated,"We are delighted to join the standards effort withan innovative cable modem architecture that allowsoperators to deploy today, secure that they have the bestmigration path to protect their investment. Equallyimportant, we can offer this enhanced MCNS modem at aprice comparable to any other MCNS modem on themarket."

Dave Fellows, Senior Vice President of Engineering andTechnology for Media One, commented, "Terayon'smulti-mode cable modem is consistent with the MCNSstrategy of encouraging innovation, while allowingvendors to differentiate their products, thus producingmore value for the industry."

Wilt Hildenbrand, Vice President of Technology forCablevision Systems Corp., stated, "Terayon'snew product direction further reinforces our plans forTerayon cable modems in our plants. Their multi-modemodem strategy is welcome, as it protects our currentinvestment, and provides a clear roadmap for thefuture."

According to Steve Craddock, Vice President, New MediaDevelopment, for Comcast, "Terayon's newmulti-mode cable modem answers our need for one modemsystem that supports both business and residentialservices, over any type of cable plant, while stillpreserving both cost and interoperability goals. This newlevel of flexibility will be welcomed by a broad range ofoperators. This is one of the most exciting developmentsthat I've seen from the vendor community thisyear."

George Hart, Director of Advanced Engineering forRogers Cablesystems, stated, "We are delighted tosee one of the most innovative companies in our industryembracing MCNSand building on it."

As the industry's first MCNS-enhanced, multi-modecable modem, the Terayon Universal Cable Modem operatesin any of three modes: as a 100%-compliant MCNS modem, asa current-generation Terayon S-CDMA modem, or as anadvanced-mode modem featuring 30 Mbps upstream anddownstream performance and flexible Quality of Service(QoS) controls.

Shlomo Rakib, Terayon President and Chief TechnologyOfficer stated, "With the UCM, we are extending therange of S-CDMA's upstream to a full 30 Mbps byincorporating 32 QAM and 64 QAM, in addition to ourcurrent 16 QAM/ QPSK implementation. In the downstream,we are leveraging the work of MCNS, including the 30 Mbpsperformance defined by the MCNS DOCSIS specification.Combining this level of performance with the power of anadvanced MAC with Quality of Service controls, makes theTerayon system well suited for the broadband applicationsoperators have told us they will deploy in thefuture."

The UCM's S-CDMA mode incorporates all theadvantages and reliability of Terayon's robust,field-proven technology. The system provides bandwidthprovisioning and Quality of Service support formulti-tiered servicesfrom dedicated data servicesfor business to best-effort residential Internetaccessbased on both the MCNS MAC (Media AccessControl layer), as well as Terayon's cell-based MAC.This ensures precise control of latency and jitter,opening the way for a new generation of multimediaservices, including video conferencing, IP telephony,video streaming, and dedicated data services. Inaddition, the UCM supports high node aggregation,allowing cable operators to significantly reduce costs atthe critical early deployment stage.

Shlomo Rakib of Terayon added, "With ourfirst-generation cable modem, we have successfullydemonstrated that complexity and robustness do nottranslate to a cost premium for operators. Once again, wehave leveraged Terayon's strong core competency inASIC chip design to produce a new level of performance atlow cost. To further reduce costs, we are already indiscussions with several manufacturers regardingtechnology licensing and manufacturing."

Terayon plans to ship the Universal Cable Modem by theend of 1998, priced competitively with comparable MCNSproducts. The company is confident it can deliver acost-effective product, by integrating the core MCNSspecifications and S-CDMA technology into a single-chiptransceiver, based on the advanced deep submicron ICprocess of Terayon's custom circuit supplier, VLSITechnology, Inc.

Richard Beyer, President and Chief Operating Officerof VLSI Technology, added, "Terayon'sintegration of S-CDMA and MCNS technologies, andVLSI's industry-leading custom chip fabricationtechnology, adds up to a cable modem system-on-a-chip.This provides real value for cable operators, who willget a major leap in modem performance in a cost-effectivefootprint."

Terayon has developed a seamless upgrade path forcurrent and future customers. Terayon's UniversalCable Modem is fully compatible with thecurrent-generation TeraLink 1000 headend, as well as MCNSheadend controllers. The Terayon systems provide anend-to-end system, when connected to Cisco Systemsrouters.


Terayon, founded in 1993, delivers cable modem systemswith the flexibility to:

  • operate over any type of cable plantfromall-coaxial to fiber-upgraded systems
  • serve both residential and business customersthrough Quality of Service provisioning
  • provide extensive broadband services-fromInternet access to dedicated data services

The company's patent-pending S-CDMA (SynchronousCode Division Multiple Access) technology is theindustry's most robust cable modem technology,allowing high-speed, two-way communication over cable.Terayon is a privately held company, funded by venturecapital firms, as well as Cisco Systems and SumitomoCorporation. Terayon has corporate headquarters in SantaClara, California, USA.

Note: The Multimedia Cable NetworkSystem (MCNS) consortium is an organization of majorNorth American cable operators. The Data Over CableSystems Interface Specification (DOCSIS) is the cablemodem specification defined by the MCNS consortium.

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