December 9, 2005 AT&T Inc. today announced that a $43 million, one-year contract has been awarded to 2Wire to deliver new Internet Protocol (IP)-based residential gateways for the AT&T U-verseSM suite of services.(1) The residential gateway device will create a home network that delivers IP-based services throughout the home — IP-based video, high-speed Internet access and, eventually, voice over IP service. "2Wire is a proven leader in the broadband gateway market and has now developed innovative IP gateways to help us deliver AT&T U-verse services to our customers," said Lea Ann Champion, senior executive vice president, in charge of operations for AT&T Project Lightspeed. "The residential gateway plays a significant role in ensuring customers have access to IP-enabled services throughout the home and on various IP-enabled devices." AT&T companies plan to use the 2Wire HomePortal® 3000 series, which supports fiber-to-the-premises and VDSL technologies. The residential gateways support multimedia coaxial networking within the home for distribution of bandwidth-intensive applications, such as high-definition video, over existing home wiring. The gateways come equipped with an integrated wireless access point, remote management capabilities, and advanced security features such as a professional grade firewall and automatic wireless security. "2Wire's residential gateways will extend the AT&T network directly into the subscriber's home, taking the burden of home network management off of the subscriber, and making the enhanced digital experience as simple and enjoyable as it is powerful," said Brian Hinman, president and CEO of 2Wire. "We are proud to be part of this project, continuing our relationship with the AT&T companies, and collaborating on the delivery of these important IP-based services." In September 2005, the AT&T companies, formerly the SBC Communications Inc. family of companies, announced an agreement with Motorola and Scientific-Atlanta to provide set-top boxes for AT&T U-verse TV. These set tops will connect to the residential gateway to deliver the IP video to TVs. Project Lightspeed is the initiative to expand the fiber-optics network deeper into neighborhoods to deliver AT&T U-verse TV, high-speed Internet access and, eventually, Voice over IP services. AT&T companies expect to reach approximately 18 million households by the first half of 2008 as part of initial deployment, using fiber-to-the-node (FTTN) and fiber-to-the-premises technologies.