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NEW VISUAL TECHNOLOGY INFORMATION

NV Technology is the developer of a revolutionary proprietary transmission technology that allows data to be transmitted across copper telephone wire at speeds comparable to fiber optic data transfer rates. The company
will market this pioneering technology to leading chipmakers, equipment makers, and service providers (such as telephone companies), in the telephony and telecommunications industries. This technology will allow these entities to reliably and cost-effectively provide voice, video and data content over the existing copper telecommunications infrastructure, eliminating the need for fiber optic cable to the home or office. NV Technology is a wholly owned subsidiary of New Visual Corporation.

The Need

The desire to easily, affordably, and quickly access voice, data, and video has increased as applications for media rich content have become more widely available. And, while the backbone of the Internet has been enriched with the extreme capacity and speed associated with fiber
optics, the local telephone network of copper wire remains a “bottleneck” barrier to accessing bandwidth-hungry applications such as music and video. To meet this need, a myriad of potential broadband solutions are being developed and introduced that attempt to replace (fiber) or bypass (wireless) the last mile of copper telephone wire across the globe. Most of these solutions are facing serious barriers to entry when deployed, either the needed infrastructure isn’t completely built out, or the cost for service providers is exorbitantly high.

Many have suggested fiber is the transport technology of the future, but excitement is waning as the expen-sive realities of laying fiber have surfaced. Industry analysts estimate that fiber will reach only 40 percent of U.S. businesses within the next 10 years. By the end of this decade, 10.9 million U.S. businesses out of 18.2 million will not be reached by fiber. Analyst firm Gartner Group estimates that the cost of providing fiber optic cabling to individual homes ranges from approximately $1,000 to $6,000 per household.

DSL technologies have been pointed to as the way of the future but have also run into significant barriers. According to Gartner Group, waning demand for the service
and the hesitancy of service providers and infrastructure investors to commit financially, have dulled many of the initial expectations for VDSL, the fastest version of DSL technology. One key reason for this cooling interest is the fact that current VDSL technology, like all existing copper-based technologies, has a distance limitation that prevents its use in remote areas.

By delivering fiber optic speeds over copper and increasing the range associated with high speed techologies such as VDSL over the existing telephone infrastructure, NV Technology can dramatically improve the status of broadband communications– allowing for the delivery of high-speed data without the complexity and financial burden of rebuilding national telephony infrastructure with fiber optic technology. Assuming no significant technology advancements, analyst firm Cahners In-Stat estimates the technology sector of the broadband industry will grow to a $24 billion market segment.

The Technology – Cu@OCx

Pronounced “copper at OCX,” this patent pending digital transmission technology allows data to be transmitted across existing telephone and Local Area Network cabling, either twisted copper pairs or coaxial cable, at unprecedented speeds and distances.

Using a proprietary multi-channel modulation technique, coined Group Frequency Modulation (GFM), Cu@OCx addresses the problems that limit effective bandwidth and distance capability of other high-speed transmission technologies, such as Discrete Multitone (DMT) or Single Carrier Modulation (SCM). GFM combines transmission characteristics of telephone cable with technology advancements from other fields such as signal processing and information theory. The result is a more robustly transmitted signal and a unique method for recovering data from received signals that are severely attenuated.

In February 2001, NV Technology reached an important proof-of-concept milestone. NetworkCare Professional Services, a division of Lucent Technologies, verified Cu@OCx’s ability to transfer raw data at a rate of 52 Mbps over 9,000 feet. In contrast, the most renowned and anticipated residential broadband technology today, VDSL, is limited to 52 Mbps at 1,000 feet, or 26 Mbps at 3,500 feet. In its initial demonstrations Cu@OCx has shown the ability to provide access up to 133 times faster than typical DSL service, and up to a 900% distance improvement over competing technologies in the residential marketplace.

As importantly, because Cu@OCx runs over existing copper lines (the DSL Forum estimates 750 million copper lines worldwide), telecommunications providers are spared the expense of laying costly new fiber optic lines in every region it wishes to extend coverage and can increase the offering of convergent services quickly and cost-effectively.

Potential Markets

Multiple telephony market sectors could successfully adopt and benefit from Cu@OCx, including the WAN, MTU, LAN and xDSL markets – and ultimately, consumers. NV Technology is developing core broadband technology and IC-based (silicon) solutions that address specific areas of need within three primary high-speed communications markets:
***** Residential
***** Business class
***** LAN – Local Area Network

NV Technology is currently exploring potential relationships with leading ILECs, CLECs, RBOCs, DLECs, IC manufacturers, and telecom equipment manufacturers to determine the most strategic and profitable options for the growth of the company.

Press Inquiries
Rich Wilson
Vice President, Marketing
NV Technology New Visual Corporation
619.692.0333
[e-mail] [e-mail]

Investor Inquiries
John Howell
Executive Vice President, Director
619.692.0333
[e-mail]

Bridget Stachowski
Fleishman-Hillard for NV Technology
Account Supervisor
619.237.7717
[e-mail]

source: http://new.newvisual.com/nvc_background.pdf



Excel - Greg