Harmonic Streamlines the Introduction of Cable-Based Commercial Services
COLOGNE, Germany, May 11, 2004 (BUSINESS WIRE) -- Harmonic Inc. (Nasdaq:HLIT) today announced a Commercial Services Solution that permits cable operators to leverage their existing infrastructure to provision high-speed network access services to business, government and education. Based on Coarse Wavelength Division Multiplexing (CWDM) technology, Harmonic's solution makes it feasible and practical to deliver commercial-grade Internet access and Virtual Private Network (VPN) services -- with speeds of 100 Megabits per second (Mbps) -- over the same fiber that distributes residential broadcast and on-demand television. This secure solution enables an important new line of business for the operator while minimizing its cost of ownership by eliminating active solution elements between the operator's facility and the customer's site.
Today, cable networks can span vast distances and reach millions of subscribers. In the course of delivering residential services, these networks also pass thousands of businesses, schools and government facilities that require very high-speed data communications. Commercial Services represent a significant market that has been challenging for operators to access due to the bandwidth requirements and complexity of taking fiber to the business.
"As operators bring the video, voice and data triple play to consumers, there is a growing interest in using the same network to deliver high-speed data services to business customers," said Sunil Frida, Solution Manager for Commercial Services at Harmonic Inc. "During the past few years, Harmonic has worked with operators around the world to introduce commercial services and, in doing so, has gained essential insights into the associated business and operational models. This understanding combined with our video transport leadership has yielded a more cost-effective and easy to operate CWDM-based solution that delivers approximately 70 times the capacity of a T1 service to each commercial customer, without affecting the scope and quality of residential services."
Harmonic's Commercial Services Solution employs CWDM technology to transport up to 10 wavelengths -- each offering 100 Mbps of capacity -- via an existing network. Each wavelength is targeted to a specific customer -- a business, office park, multi-tenant building or campus -- to bring an added degree of transport security to the service.
Harmonic maximizes service availability while reducing operating costs by making the network between the operator and customer sites completely passive. A wavelength-specific CWDM network interface unit (NIU) is deployed at each location to provide a bi-directional transmission capability as well as electrical to optical media conversion. The unit in the operator's facility is housed in a platform with high availability features such as redundant and hot-swappable power supplies. At the remote site, a companion NIU uses a CAT-5 interface to connect to standard customer premises equipment such as a firewall, router or computer.
The entire CWDM Commercial Services Solution can be controlled using the platform-based Element Management Card. A web browser interface allows operators to remotely monitor and manage their infrastructure, simplifying the verification of network and equipment status, which reduces the number of onsite service calls.
About Harmonic Inc.
Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access.
Harmonic (Nasdaq:HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company's customers, including many of the world's largest communications providers, deliver services in virtually every country. Visit www.harmonicinc.com for more information.
This press release contains forward-looking statements within the meaning of Section 27(A) of the Securities Act of 1933 and Section 21(E) of the Securities Exchange Act of 1934, including statements related to growing interest in using the cable network to deliver high-speed data services to business customers and expected benefits of the Commercial Services Solution.
Our expectations and beliefs regarding these matters may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission including its Annual Report filed on Form 10-K for the year ended December 31, 2003. Harmonic does not undertake to update any forward-looking statements.
EDITOR'S NOTE -- Product and company names used herein are trademarks or registered trademarks of their respective owners.
SOURCE: Harmonic Inc.
AxiCom (for Harmonic) Stephen Orr, +44.20.8392.4056 or 408-543-2360 (Media Relations) stephen.orr@axicom.com or StreetConnect (for Harmonic) Michael Newman, 408-542-2760 (Investor Relations) mnewman@stct.com
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