TelcoTV 2008

ZyXEL Expends ZyNERGY towards IPTV and Digital Home Comprehensiveness

| Nov 11, 2008 | Digital Media Infrastructure | Show Update

| Analyst: Ron Westfall

Current Perspective: Neutral Vendor Importance: Moderate Market Impact: Low

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Event Summary

November 10, 2008 -- ZyXEL Communications, Inc. announced it will demonstrate its technological expertise in access and digital home solutions at the Telco TV 2008 conference November 11 – 13 in Anaheim, California. The company will showcase the power of “ZyNERGY,” the synergy that occurs when broadband access, home connectivity, and digital apps devices are designed and built by the same vendor.

Analytical Summary

• Current Perspective: Neutral on ZyXEL touting its portfolio wares in the areas of digital application devices, home connectivity, and broadband access to showcase the company’s ability to meet the key needs of telcos and their partners in delivering and supporting more attractive multimedia experiences to customers as an integral part of their broadband services. However, it is difficult to decipher why ZyXEL’s particular portfolio mix is more compelling than a swath of rival portfolio packages that simply outflank and outsize the overall ZyXEL portfolio.

• Vendor Importance: Moderate to ZyXEL, since the company needed to use the Telco TV event to champion how its ZyNERGY package and its portfolio pedigree in areas such as DSL CPE and powerline home networking products can enhance and improve the home entertainment aspect of emerging multi-play consumer broadband services.

• Market Impact: Low on the overall digital media infrastructure (DMI) market and the CDS segment, because ZyXEL is a familiar broadband and video equipment player that did not unveil any particularly new innovations, partnerships, or customer advances to oblige rivals to respond directly to ZyXEL portraying the portfolio combination of its broadband access, home connectivity, and digital app devices as the ZyNERGY proposition.

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