E1/T1 Transceivers (LIU/Framer) Market Shares, Strategy, and Forecasts, Worldwide, 2011 to 2017

Table of Contents

E1/T1 Transceivers (LIU/Framer) Executive Summary

E1/T1 Transceivers (LIU/Framer) Summary ES-1

E1/T1 Transceivers (LIU/Framer) Market Driving Forces ES-1

E1/T1 Transceivers (LIU/Framer) Market Shares ES-4

E1/T1 Transceivers (LIU/Framer) Market Forecasts ES-6

E1/T1 Transceivers (LIU/Framer) Market Description and Market Dynamics

1. E1/T1 Transceivers (LIU Framer) Market

Description and Market Dynamics 1-1

1.1 Broadband Communications 1-1

1.1.1 Semiconductor Communication Solutions Markets 1-3

1.1.2 Communications Infrastructure 1-3

1.1.3 Enterprise Infrastructure 1-5

1.1.4 Fiber Is Key Technology 1-7

1.2 Ethernet Only Solution For Next Generation MBH Networks 1-8

1.2.1 Alternative to Reselling Leased Lines 1-13

1.2.2 SS7 Links over an IP Network 1-13

1.3 Mobile Backhaul 1-13

1.3.1 Migrating to IP Communications 1-16

1.3.2 Video Surveillance Backhaul 1-16

1.4 Service Provider NGN Systems 1-17

1.5 Network Service Needs 1-19

1.5.1 Network Service Solutions 1-21

1.5.2 Enterprise Network Services Market Description 1-22

1.5.3 Converged Voice, Data, And Video Using Internet Protocol (IP) Standards Technologies: IP Telephony 1-23

1.5.4 Broadband Voice Next Generation Network (NGN) 1-24

1.5.5 Value-Added Services 1-24

1.5.6 Voice Over IP (VoIP) Service Providers 1-25

1.5.7 Web GUI 1-25

1.5.8 Charging Micro Payments 1-25

1.6 Increasing Average Revenue Per User (ARPU) 1-26

1.6.1 Improved Quality Of Service 1-26

1.6.2 Reduced Capital And Operational Costs 1-27

1.6.3 Enhanced Operability 1-28

1.7 Market Growth Dynamics 1-31

1.8 Converged Voice And Data Networks 1-33

1.9 Wireless Networks 1-34

1.9.1 New Generation Of Wireless Systems 1-38

1.9.2 Provides Flexibility 1-39

1.9.3 User Experience 1-39

1.9.4 Protects Investments 1-39

1.9.5 Increases Efficiency 1-40

1.9.6 Integrated Management Tools 1-42

1.9.7 Cost-Effective Capacity And Coverage 1-42

1.10 Multimedia Markets 1-43

1.11 IP Telephony Service Solutions 1-45

1.12 Web Services 1-45

1.13 Strategies To Improve Performance 1-46

1.14 Internet Traffic 1-49

1.14.1 LIU Framer E1 T1 Transceiver Design Wins 1-50

E1/T1 Transceivers (LIU/Framer) Market Shares and Market Forecasts

2. E1/T1 Transceivers (LIU/Framer) Market Forecasts 2-1

2.1 E1/T1 Transceivers (LIU/Framer) Market Driving Forces 2-1

2.2 E1/T1 Transceivers (LIU/Framer) Market Shares 2-3

2.3 E1/T1 Transceivers (LIU/Framer) Market Forecasts 2-7

2.4 E1/T1 Transceivers (LIU/Framer) Market

Segments and Applications 2-14

2.4.1 Maxim / Dallas Semiconductor DS26528

Octal T1/E1/J1 Transceiver - Description 2-15

2.4.2 Backhaul Solutions: Mobile Backhaul 2-17

2.4.3 Microwave Transmission Market 2-19

2.4.4 ATM and PBX 2-19

2.4.5 T1/E1/J1 Transceiver Markets Growing In Response To The Implementation Of Broadband Communications 2-21

2.5 E1/T1 Transceivers (LIU/Framer) Regional Market Analysis 2-23

2.5.1 Zarlink Semiconductor Asia Pacific 2-24

2.5.2 Zarlink Semiconductor Europe 2-25

2.5.3 Zarlink Semiconductor Americas 2-25

E1/T1 Transceivers (LIU/Framer) Product Description

3. T1 / E1 Transceivers (LIU Framers) Product Description 3-1

3.1 E1 T1, LIU Framer Products 3-1

3.2 Maxim / Dallas DS21455N 3-2

3.2.1 Dallas Semiconductor Quad T1 Dual Framer LIU 3-2

3.3 PMC Sierra 3-5

3.4 Zarlink MT9074 T1/E1/J1 Single Chip Transceiver 3-13

3.4.1 Zarlink MT9074 3-17

3.4.2 Zarlink Semiconductor MT9074 Receiver 3-19

3.4.3 Zarlink Semiconductor MT9074 LIU Transmitter 3-20

3.5 Mindspeed Bt8370/8375/8376 3-21

3.5.1 Mindspeed T1/E1 Framer and LIU Not Recommended

For New Designs 3-22

3.5.2 Mindspeed Bt8370/8375/8376 3-23

3.6 IDT Quad T1/E1/J1 Transceiver 82P2284 3-24

3.6.1 IDT Access and Transport 3-29

E1/T1 Transceivers (LIU/Framer) Technology

4. E1 / T1 Transceiver (LIU Framer) Technology 4-1

4.1 SAToP and Clock Synchronization 4-1

4.1.1 Network Clock Synchronization 4-1

4.1.2 Adaptive Clocking Recovery 4-2

4.1.3 Tellabs Solutions Deliver Maximum Interoperability 4-2

4.2 Pseudowire 4-3

4.2.1 Pseudowire Technology Challenges 4-3

4.2.2 • “Packetization” and Encapsulation of TDM Traffic 4-3

4.2.3 • Attenuate Packet Delay Variation (PDV) 4-3

4.2.4 • Compensate for Frame Loss and Out-of-Sequence Packets 4-4

4.2.5 • Recover Clock and Synchronization 4-4

4.2.6 Pseudowire Types 4-4

4.3 Evolution from Sonet / SDH to Ethernet 4-5

4.3.1 Mobile Backhaul Deployments: Overlay vs.

Integrated Network Model 4-8

4.4 Network Synchronization Issues 4-9

4.5 4G Business Case for 2.6 GHz 4-10

4.6 E1 / T1 Transceiver Cells Collected Asynchronous

Functionality 4-11

4.6.1 Cell Buffer Increment Read Pointer 4-12

4.6.2 Start-Up Phase 4-12

4.7 Rate Recovery 4-12

4.7.1 Cell Buffer/RAM Controller 4-13

4.7.2 Cell Sequence Recovery 4-13

4.7.3 Cell Sequence Faulty Conditions 4-14

4.7.4 Delay Between Links 4-14

4.8 TDM Interface 4-15

4.9 Multiplex Mode 4-15

4.9.1 Multiplex Mode - 2 Link Multiplexing 4-16

E1/T1 Transceivers (LIU/Framer) Company Profiles

5. E1/T1 Transceivers (LIU/Framer) Company Profiles 5-1

5.1 Conexant 5-1

5.2 IDT 5-1

5.2.1 IDT Seeks To Differentiate Products 5-3

5.2.2 IDT Competition 5-4

5.2.3 IDT Total Revenues International Sales 5-5

5.2.4 IDT Communications Segment 5-7

5.2.5 IDT Revenues 5-7

5.2.6 IDT Communications Segment 5-8

5.2.7 IDT Computing and Consumer Segment 5-8

5.3 Infineon 5-9

5.3.1 Infineon Automotive 5-10

5.3.2 Infineon Industrial & Multimarket 5-11

5.3.3 Infineon Chip Card & Security 5-11

5.4 InterPhase 5-20

5.4.1 Interphase Market Strategy 5-25

5.5 Maxim / Dallas 5-25

5.5.1 Maxim / Dallas Semiconductor Revenue 5-26

5.5.2 Maxim / Dallas Semiconductor Revenue 5-27

5.5.3 Maxim / Dallas Semiconductor Principal Competitors 5-29

5.5.4 Maxim / Dallas Semiconductor 5-29

5.5.5 Maxim / Zilog 5-29

5.5.6 Maxim / Vitesse 5-30

5.6 Mindspeed Technologies 5-30

5.6.1 Mindspeed Single-Chip eNodeB Solution for

LTE Small Cells 5-33

5.6.2 Mindspeed Technologies, Inc. Revenue 5-35

5.6.3 Mindspeed Technologies, Inc. Net Revenue by

Geographic Area 5-36

5.7 PMC Sierra 5-37

5.7.1 PMC-Sierra Semiconductor Solutions 5-39

5.7.2 PMC Sierra Competition 5-40

5.7.3 PMC Sierra Revenue 5-41

5.7.4 PMC Sierra Products 5-43

5.8 RAD 5-44

5.8.1 RAD TDM Pseudowire Support 5-44

5.8.2 RAD Connectivity Topologies 5-45

5.8.3 RAD Service Connectivity 5-50

5.8.4 RAD Selected Customers 5-51

5.9 Tyco Optical Market 5-53

5.10 Zarlink Semiconductor 5-53

5.10.1 Zarlink Semiconductor Products and Customers 5-54

5.10.2 Zarlink Distributor Revenue 5-55

5.10.3 Zarlink Product Categories 5-56

5.10.4 Zarlink Semiconductor Line Circuits 5-56

5.10.5 Zarlink Semiconductor Timing and Synchronization 5-57

5.10.6 Zarlink Semiconductor Telecom and Voice Networking 5-58

5.10.7 Zarlink Semiconductor Medical Products 5-58

5.10.8 Zarlink Semiconductor Medical Implant ICs 5-59

5.10.9 Zarlink Semiconductor Optical Products 5-59

5.10.10 Zarlink Semiconductor Revenue 5-60

5.10.11 Zarlink Semiconductor Communication Products 5-61

5.10.12 Zarlink Business Strategy 5-65

5.10.13 Zarlink Business Overview 5-65

List of Tables and Figures

E1/T1 Transceivers (LIU/Framer) Executive Summary

Table ES-1 ES-3

E1/T1 Transceivers (LIU/Framer) Business Strategy

Figure ES-2 ES-5

E1 and T1 Transceivers (LIU/Framer) Market Shares, Dollars, 2010

Figure ES-3 ES-9

E1 T1 LUI Framers Market Forecasts, Dollars

Shipped, Worldwide, 2011-2017

E1/T1 Transceivers (LIU/Framer) Market Description and Market Dynamics

Table 1-1 1-2

Network Operators Investing In New Equipment Or

Retro-fiting to Existing Infrastructure

Table 1-2 1-6

Communications Semiconductor Market Segments

Figure 1-3 1-9

Migration From Legacy Networks

Figure 1-4 1-10

Ethernet Options Address Backhaul Cost

Figure 1-5 1-14

First Mile Mobile Backhaul Solutions For Colocated

2G/3G Base Stations Over Diverse Infrastructure

Table 1-6 1-18

Service Provider NGN Service Solutions

Table 1-7 1-29

Network Systems Functions

Table 1-8 1-30

Telecommunications Market Shifts

Table 1-9 1-32

Change In Telecommunications Equipment Markets

Table 1-10 1-33

Response To Change In Telecommunications Equipment Markets

Table 1-11 1-35

Service Provider Build-Out Of The Next Generation 3G Systems 3

Table 1-12 1-36

Factors Impacting Build-Out Of 3G Wireless Infrastructure

Table 1-13 1-37

Factors Impacting Implementation Of 3G Wireless

Table 1-14 1-41

Wireless IP Network Benefits

Table 1-15 1-44

Key Benefits Of Multimedia Solutions

Table 1-16 1-47

Strategies To Improve Telecommunication Equipment

Company Performance

E1/T1 Transceivers (LIU/Framer) Market Shares and Market Forecasts

Table 2-1 2-2

E1/T1 Transceivers (LIU/Framer) Business Strategy

Table 2-1 2-3

E1/T1 Transceivers (LIU/Framer) Business Strategy

Figure 2-2 2-4

E1 and T1 Transceivers (LIU/Framer)

Market Shares, Dollars, 2010

Table 2-3 2-5

E1 and T1 (LIU/Framer) Transceiver

Market Shares, Dollars, Worldwide, 2010

Table 2-4 2-6

Maxim / Dallas Semi Conductor 4-Port Cell/Packet

Over T1/E1/J1 Transceiver Key Applications

Figure 2-5 2-10

E1 T1 LUI Framers Market Forecasts, Dollars Shipped,

Worldwide, 2011-2017

Figure 2-6 2-11

E1 T1 LUI Framers Market Forecasts Number Shipped,

Worldwide, 2011-2017

Table 2-7 2-12

E1/T1 Transceivers (LIU/Framer) Market Forecasts

Worldwide, 2011-2017

Figure 2-8 2-13

E1/T1 Transceivers (LIU/Framer) Target Market

Installed Base Forecasts Worldwide, Dollars and Units, 2011-2017

Table 2-9 2-15

4-Port Cell/Packet Over T1/E1/J1 Transceiver Key Applications

Table 2-10 2-22

Gigabit Backplane Functions

Table 2-11 2-23

E1/T1 (LIU/Framer) Transceivers Regional

Market Share, Dollars, 2010

Table 2-12 2-24

E1 T1 Transceiver LIU Framer Regional Market Segments, 2010 24

E1/T1 Transceivers (LIU/Framer) Product Description

Table 3-1 3-1

Selected E1T1, LIU framer Products

Table 3-2 3-3

Dallas Semiconductor DS 2196 Key Features

Table 3-2 (Continued) 3-4

Dallas Semiconductor DS 2196 Key Features

Table 3-3 3-6

PMC Sierra E1 and T1 (LIU/Framer) Transceiver Features

Table 3-4 3-8

PMC Sierra E1 and T1 (LIU/Framer) Transceiver

PM4351 Transceiver Access Speecifications

Table 3-5 3-9

PMC Sierra E1 and T1 (LIU/Framer) Transceiver

PM4351 Receive Functions

Table 3-6 3-10

MC Sierra E1 and T1 (LIU/Framer) Transceiver PM4351

Transmit Functions

Table 3-6 (Continued) 3-11

MC Sierra E1 and T1 (LIU/Framer) Transceiver

PM4351Transmit Functions

Table 3-7 3-12

PMC Sierra MC Sierra E1 and T1 (LIU/Framer)

Transceiver PM4351 Features & Benefits

Table 3-8 3-13

PMC-SIERRA LIU Framer T1 E1 Transceiver Applications

Table 3-9 3-14

Zarlink MT9074 T1/E1/J1 Single Chip Transceiver Features

Table 3-10 3-16

Zarlink MT9074 T1/E1/J1 Single Chip Transceiver JTAG

Boundary Scan Applications

Table 3-11 3-24

IDT Quad T1/E1/J1 Transceiver 82P2284 Features

Table 3-12 3-28

IDT Quad T1/E1/J1 Transceiver 82P2284 Applications

E1/T1 Transceivers (LIU/Framer) Technology

Figure 4-1 4-6

Evolution from Sonet / SDH to Ethernet

Figure 4-2 4-7

Fujitsu Mobile Backhaul Deployments: Overlay vs. Integrated

Table 4-3 4-8

Difference between Overlay Network model and Integrated Model

Figure 4-4 4-9

Network Synchronization Issues

Figure 4-5 4-10

4G Business Case for 2.6 GHz

E1/T1 Transceivers (LIU/Framer) Company Profiles

Table 5-1 5-3

IDT Differentiates Products

Table 5-2 5-5

IDT Clock And Timing Solutions Target Markets

Figure 5-3 5-12

Infineon Revenue

Figure 5-4 5-13

Infineon Revenue increase in Q3 FY2010

Figure 5-5 5-14

Infineon Revenue Increase in all Segments

Figure 5-6 5-15

Infineon Revenue By Focus Area

Figure 5-7 5-16

Infineon Target markets

Figure 5-8 5-17

Infineon Automotive Segment Revenue

Figure 5-9 5-18

Infineon Automotive Applications

Figure 5-10 5-19

Infineon Industrial and Multimarket Segment

Figure 5-11 5-20

Diverse Range of Power Electronics Growth Markets

Figure 5-12 5-21

Interphase Challenge of Shift in Signaling Markets

Figure 5-13 5-23

Interphase Strategy Shift to Diversification

Figure 5-14 5-24

Interphase Rapidly Deployable Network

Table 5-15 5-26

Maxim Major End-Markets

Table 5-16 5-31

Mindspeed Technologies Network Infrastructure

Equipment Target Markets

Table 5-17 5-32

Mindspeed Technologies Customers

Table 5-18 5-45

RAD Connectivity Topologies

Table 5-19 5-46

RAD Connectivity Product

Table 5-20 5-48

Rad Product Benefits

Figure 5-21 5-49

Rad Topologies

Figure 5-22 5-50

RAD Service Connectivity

Table 5-23 5-51

RAD Customer Base

Table 5-23 (Continued) 5-52

RAD Customer Base

Table 5-24 5-53

Zarlink Semiconductor Core Capabilities

Table 5-25 5-55

Zarlink Semiconductor End-Markets And Industries Served

Table 5-26 5-56

Zarlink Product Categories