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Passave Achieves Breakthrough in Ethernet and FTTH Technology

FTTH Leader First to Provide Forward Error Correction in an Ethernet-Based Device, Proving Ethernet`s Robustness as a Technology for Access Networks.

Santa Clara, Calif., March 8, 2005 – Passave, the leading provider of semiconductors for fiber to the home (FTTH), has extended its leadership position by releasing a sophisticated error-correction mechanism for Ethernet-based passive optical networks (EPONs). Known as forward error correction (FEC), the mechanism enables the use of low-cost, low-power lasers in optical networks, and enables Ethernet to successfully transmit data over low-quality transmission lines, such as lines using aging fiber. The announcement demonstrates that Ethernet is an ideal communications protocol for access networks, effectively making Ethernet a seamless link from consumers all the way to metro and long-haul networks.

FEC doubles the reach of a FTTH network and doubles the number of customers that can be served from a single optical line terminal (OLT) in the central office. FEC improves the cost-performance curve for FTTH, further driving FTTH as a technology cost-competitive with DSL and cable modem services while providing approximately one thousand times the bandwidth of those technologies.

“Our focus at Passave is to provide carriers with the advanced technology they require in building cost-effective yet advanced FTTH networks,” said Ariel Maislos, president of Passave. “By integrating FEC in EPON, Passave enables carriers worldwide to offer FTTH service to more customers in a highly cost-effective manner. FEC is proving to be one of the most innovative enhancements to the Ethernet standard, and we are pleased to provide this to the market.”

FEC is available today with Passave`s PAS6201 EPON Optical Networking Unit (ONU) device.

FEC is a mechanism by which a transmitting system encodes data, enabling the receiving system to use redundant data to correct transmission errors. Error-correction mechanisms are used widely in data communications, but, until this announcement, had not been adapted to Ethernet. FEC is an important enhancement to Ethernet-based systems as they migrate beyond corporate or other internal networks.

About Passave, Inc.
Passave is a fabless system-on-a-chip vendor offering integrated solutions for broadband fiber access. Passave delivers complete, standards-compliant and interoperable solutions for passive optical networks (PONs) that expedite the original equipment manufacturer (OEM) design process and dramatically reduce product cost. Leveraging Ethernet and IP technologies, Passave offers complete chipsets for fiber to the home (FTTH) systems. Founded in 2001, Passave has received strategic backing from leading venture capital firms and private investors. For more information about Passave, visit