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    Analyst Perspectives

    “Actelis continues to lead the fast-growing EFM (Ethernet in the First Mile) bonded-copper EAD segment. Copper has an important role for Ethernet services because, while some operators are moving to fiber as they upgrade building sites and mobile backhaul from TDM to Ethernet, copper-based EFM solutions fit in many business places where the expense of fiber is not justified.”
    Michael Howard
    Principal Analyst and Co-founder, Infonetics Research

    www.infonetics.com

    Just 15.3% of all U.S. commercial buildings with 20 or more employees have direct access to optical fiber provided by one or multiple service providers. Alternative access options, like the Actelis solution, that utilize the near-ubiquity of copper increase the availability of carrier Ethernet services. Now service providers can meet market demand and deliver a full range of business Ethernet services to more enterprises, particularity SMBs.
    Erin Dunne
    Director of Research Services, Vertical Systems Group
    www.verticalsystems.com

    "Ethernet in the first mile over copper technology quickly and economically delivers advanced broadband services with fiber-like performance to almost any customer because it utilizes the existing copper infrastructure. As a result, service provider deployments of Ethernet over copper access services have rapidly moved from the innovation to the early adopter phase. Actelis Networks has distinguished itself as the clear leader in this fast emerging market, because of the capabilities of its carrier Ethernet over copper platform as exemplified by its most recent product, the ML640. The company’s global customer base, which includes Tier 1 carriers like Qwest Communications and PCCW (formerly Hong Kong Telecom), confirms that the vendor has successfully addressed the needs of the market, and has built an impressive customer base that is balanced across the geographies."
    Prayerna Raina
    Research Analyst, Carrier Infrastructure Practice, Frost & Sullivan
    www.frost.com

    Worldwide revenue from bonded-copper portion of EADs will nearly double from 2006 to 2007, fueled by the rapid growth of Ethernet services. Worldwide sales of all EAD equipment are forecast to more than quadruple between 2006 and 2010, when they will reach over $900 million. “Ethernet is less expensive than other technologies and demand for business Ethernet connections is skyrocketing, forcing service providers to upgrade their networks with various types of EADs. In 2007, the EMEA region will account for 36% of all EAD equipment revenue.”
    Michael Howard
    Principal Analyst and Co-founder, Infonetics Research
    www.infonetics.com

    "While fiber is the talk of Wall Street, it reaches only a lucky handful of businesses and consumers. Most fiber trenching in metropolitan areas today is handled by special construction resulting in point-to-point installations to key customers. It doesn't reach the majority of nearby businesses even if it is present in a given city street. And very little fiber is deployed to the suburbs, where affluent consumers and new business parks abound. Without access to fiber most consumers and businesses are limited to services with bandwidth of 1.5 Mbps or less despite their need for substantially more (3-20 Mbps.) The Actelis solution, which mines bandwidth from existing copper facilities, creates a win-win situation for users and carriers by enabling the delivery of bandwidth to a market one or two orders of magnitude larger than that currently served by fiber with very little capital investment. Customers escape the bandwidth drought and carriers realize significant profitability boosts."
    Michael Kennedy, Ph.D.
    Managing Partner & Co-founder, Network Strategy Partners, LLC.
    www.nspllc.com

    "The Actelis solution is a natural fit for the telecom marketplace, since so many carriers cannot get last-mile fiber today, and those that can incur steep capital expense penalties during build-out. These situations reduce carrier revenue potential, forcing them to limit service to low-bandwidth, low-margin alternatives or worse, to forgo service altogether to certain subscribers. By allowing carriers to capitalize on their existing copper assets for high-value service delivery, the Actelis solution proves out the business case for pervasive broadband deployment."
    Scott Clavenna
    President, PointEast Research, Director of Research Reading
    www.pointeastresearch.com

    "The industry needs a way to get broadband to all commercial customers, not just a few  locations on fiber or a few locations on copper near the CO. The Actelis approach is the first truly scalable approach to serving the business market. The technology will be most effective in multi-tenant buildings where DSL is too limiting and fiber is too expensive."
    Peter J. Sevick
    President, NetForecast
    www.netforecast.com

    "Some other companies have considered the same approach, but Actelis is out in front. If it's as promising as it looks, it could easily write off fixed wireless access technology. With that kind of speed over existing copper why go for new infrastructure?"
    John LaPrise
    Analyst, New Paradigm Resources Group
    www.nprg.com

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    Market Leadership

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