iSMART Consortium Successfully Tests High‑speed DSL Range and Speed-multiplying Technology

First Demonstration of Working iSMART Consortium DSM L3 System, Practically Eliminating VDSL2 Crosstalk

PARIS, September 8, 2009 - ECI Telecom and Actelis Networks®, founding members of the iSMART Consortium, have completed the first successful customer tests of the consortium’s Dynamic Spectrum Management Level 3 (DSM L3) technology. Testing conducted by three leading Tier-1 operators has proven that the iSMART Consortium’s DSM L3 technology practically eliminates crosstalk interference between twisted copper pairs so that the highest-speed DSL services can be more efficiently provided over longer distances in existing copper access loops.

Most of the world’s existing access wire-line infrastructure is still copper-based. Using existing copper wire, VDSL2 technology enables operators to offer service exceeding 100Mb/s. But without DSM L3, VDSL2 is limited in its practical reach. Testing shows that iSMART DSM L3 technology can dramatically increase the reach of high-speed, high-value VDSL2 services, effectively multiplying the coverage area of VDSL2 equipment by a factor of 10 in some cases.

 “For years, the high cost of FTTH implementation has hindered widespread adoption of GPON or point-to-point fiber access networks, making it extremely expensive – even for leading operators – to deliver advanced service bundles increasingly demanded by customers. But iSMART’s successful leveraging of DSM L3 technology makes VDSL a far more viable and cost effective choice for operators who are still not ready to migrate their access networks to full-fiber end-to-end FTTH systems,” said Erik M. Keith, Principal Analyst for Broadband Infrastructure at Current Analysis.

According to the 2Q09 ‘Broadband Aggregation Hardware and Subscribers’ report from Infonetics, between 2009 and 2013 the number of worldwide VDSL subscribers will increase by 45%. Although the growth of PON FTTH subscribers will continue to grow, VDSL will unquestionably play an important role in the future strategy of high-speed broadband providers through the next decade.

DSM L3 technology could lead to a significant change in the economics of high volume DSL traffic. By enabling operators to multiply the range and speed of VDSL2 equipment, DSM can translate into significant savings in capital investment. Taking advantage of existing infrastructure, operators who implement DSM technology can profitably provision more valuable high-speed broadband services to residential and business customers.

“Today, we have truly revolutionized DSL with the world’s first demonstration of the iSMART Consortium’s DSM L3 technology. We are addressing operators’ needs for increased competitiveness and cost-effectiveness in today’s challenging marketplace,” said Ido Shargil, chairman of the iSMART Consortium and head of system engineering at ECI Telecom.

"DSM L3 technology virtually eliminates the most significant source of crosstalk in VDSL2-based networks, enabling cost-effective wide-scale deployment of high-speed, high-value services over existing copper pairs," said Ioannis Kanellakopoulos, PhD, chief technology officer at Actelis Networks. "Actelis is delighted to leverage our extensive crosstalk cancellation experience in the iSMART Consortium, where the technology we and our consortium partners are developing is expected to result in products that deliver an unprecedented combination of rate, reach, and reliability over copper."

The iSMART Consortium was launched at Broadband World Forum 2006 with the goal of developing and commercializing DSM technology. In addition to operators in Israel and Europe, iSMART combines the expertise of leading NGN telecom vendors and academic researchers in algorithm science, digital signal processing and telecommunications. iSMART is backed by the Magnet Program of Israel’s Office of the Chief Scientist.
                                                                                                                           
Visit the Broadband World Forum Europe, ECI Telecom booth (#360), to experience a live demo of this breakthrough technology from the iSMART Consortium.

About the iSMART Consortium
The iSMART Consortium was established in order to develop and materialize the next generation DSL access technology and solutions, based on Dynamic Spectrum Management (DSM). The consortium is a joint program of leading telecom vendors and senior researchers, together with Israeli and European operators. It is supported by the Magnet program of the Office of the Chief Scientist (OCS) of Israel's Ministry of Trade and Industry. For more information, please visit www.ismart.org.il

About ECI Telecom
ECI Telecom delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services.  Founded in 1961, Israel-based ECI has consistently delivered customer-focused networking solutions to the world’s largest carriers. The Company is also a market leader in many emerging markets. ECI provides scalable broadband access, transport and data networking infrastructure that provides the foundation for the communications of tomorrow, including next-generation voice, IPTV, mobility and other business solutions. For more information, please visit www.ecitele.com.

Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties as well as other risks.