T-301-I Positioning Your Network for 4G/LTE with Fiber and Wi-Fi Offload

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1 T-301-I Positioning Your Network for 4G/LTE with Fiber and Wi-Fi Offload Kevin Morgan Director - Marketing ADTRAN

2 Global Market Trends Broadband / Ethernet Access Exponential growth in bandwidth access IP traffic will increase 4x over next five years VoIP proven and continues significant growth Mobility Mobile data demand growing 15-25x over next three years Users have growing number of end-points 3 to 5 devices per person Smartphone, ipad, laptop, machine-to-machine Cloud Services & Applications Shift to cloud computing drives demand for Enterprise and SMB connectivity Virtualization Applications running on virtual machines increase efficiency, reduce space and carbon footprint

3 New Devices and Applications New Mobile Devices ipad, tablets, smart phones, etc.. New Applications Video, gaming, etc.. Cloud services Voice over Wi-Fi Major Usage Changes Netflix is now 30% of Internet traffic Over 50% of the 800M Facebook users are active daily Over 350M users access Facebook on their mobile device Two-way video chat Skype Apple s Facetime

4 Mobility Demand is Exploding 5B Mobile Phones Globally Smart phones are Pervasive True Mobility is no Longer a Convenience Voice over Wi-Fi, Facetime New Devices Rely on Wireless Connectivity ipads Mobile Data Traffic is Growing Exponentially Wi-Fi Data Offload to Fixed Network is Necessary Source: FCC

5 Cloud is the Future Cloud services level the playing field for businesses of all sizes and deliver global scalability IDC estimates the market for public cloud products and services will grow to $56 billion by 2014 Amazon s S3 Cloud Storage Service skyrocketed from 262 billion in 2010 to over 566 billion in 2011 Over 370,000 requests per second Small business public cloud computing spending is estimated to reach $6 billion by 2014 (Source: In-Stat - December 2010)

6 It s a video-centric world In 2015, the Exabyte equivalent of all movies ever made will cross the global IP network every five minutes. Source: Cisco VNI Report 2011

7 Multiple Drivers for Edge Transformation All Segments Services are Scaling Business Services Metro Ethernet Services 100Mbps 10Gbps Mobile Backhaul 4G/LTE Backhaul Ethernet over Fiber Residential Broadband FCC Mandate for 100Mbps per Home

8 Residential Broadband: History and Trends 100,000,000,000 10,000,000,000 1,000,000, ,000,000 Headed Toward 1 Gbps Peak Speed 1 Gbps bps 10,000,000 1,000, ,000 10,000 1, But Usage only 1-5 Mbps ( %) Ave Peak Usage: 1-5 Mbps Speed Usage Year

9 Access Network Traffic Projections 500 Internet traffic data Cisco VNI, Procera, Sandvine, other sources Reported as aggregate totals (e.g., Petabytes per month per region) Downstream traffic (kbps) kbps 287 kbps Traffic (kbps) kbps (service provider data) 172 kbps Internet video Web, , data File sharing Gaming Video/VoIP Extracts per-subscriber traffic Upstream and downstream Busy Hour traffic (BHOL) Enables sizing of access networks 50 0 Cisco Procera Sandvine Web/ /data File sharing Gaming Video/VoIP Internet video Other

10 Realized Speeds from Broadband Access Systems Both GPON and Ethernet FTTH can provide 1 Gbps speeds Good for 10+ years DOCSIS performance drops as load increases above projection FTTN-VDSL2 has plenty of capacity, but is limited by peak speed Need to address top speed limit Megabits per second 1, Realized Speed 2020 Projection 1 Mbps 5 Mbps 10 Mbps 20 Mbps Load per subscriber FTTN-VDSL2 10G DOCSIS 3.0-8ch DOCSIS ch Ethernet FTTH FTTH- GPON

11 Mobile Video and Tablets Mobile video traffic exceeded 50 percent for the first time in Mobile network connection speeds will increase 9-fold to 2.9Mbps by Source: Cisco VNI 1012

12 Drivers for Packet Optical Market Market Demand for Broadband FCC Vision for 100M Squared 100M to 100 Million Households by G/LTE enabling 100Mbps+ 250,000 cell sites in U.S. Launching in Business Ethernet Services Demand for Higher rate 1 & 10Gbps services rising Replacing Lower rate Fractional T1 (< 1M) services All Segments Services are Scaling

13 Drivers for Edge Transformation All Segments Services are Scaling Business Services Metro Ethernet Services 100Mbps 10Gbps Mobile Backhaul 4G/LTE Backhaul Ethernet over Fiber Residential Broadband FCC Mandate for 100Mbps per Home

14 A good backhaul solution Maintains a reliable, low cost connection between cell sites and mobile exchange Assures compliance to service level agreements (SLAs) via the use of performance monitoring customer web-portal Provides a scalable architecture supporting future growth in service, customer, and network size Supports both legacy and next generation service (including synchronization) delivery and transport Minimizes the operational costs associated with end to end service activation, assurance and diagnostics.

15 Reliable, Low Cost: Sooner and Later Reliable, Low Cost Quality and Availability Building a Strong Reputation Define, Deliver, Demonstrate, Develop Maintaining Reliability in the Presence of Growth Delivering Scalable Reliability

16 Always-on Reliable, Low Cost High QoE, High Availability, Simple Service Availability via Network Resiliency Quality of Experience (QoE) Low latency <5ms one-way delay Predicates fiber; home-run point to point Limited switch points and router hops Prioritizes Real-time applications Hierarchical QoS mechanisms Policing, Queuing, Scheduling, Shaping MEF compliant traffic management Low-cost, simplified network Ethernet access/aggregation Minimal re-architecting Typical Mobile Backhaul SLA SLA Attribute SLA Requirement Max 1-way frame delay < 5ms Max frame delay variation +/- 1ms Bit Error Rate (BER) < 1E10-9 Frame Error Rate (FER) or Frame < 1E10-6 Loss Ratio (FLR)

17 Building a Strong Reputation Supporting SLA Monitoring and Reporting Understanding SLAs Meeting stringent demands of Applications Circuit-based Packet-based Performance measurement and monitoring Traffic Management Performance Monitoring Proving compliance in near real-time Because All Packet Networks are not Created Equal

18 Customer Viewable Web Portal Collect/ Store Stats Proving SLA Compliance in Real-time Measure Accurately to <1ms Compare against SLA Present Compliance (Infractions) Creates a Precarious Situation

19 Reliability in the Presence of Growth Scalable architecture Delivering Scalable Reliability Accelerating service delivery Lowering network complexity Preserving QoE through the explosion Now what? More Fiber trenching? 40G or 100G upgrade?

20 Low Cost, Low Latency Low Scale? Layer 3 (IP-connection) Layer 2 & 2.5 Layer 1 & 2 Mobile App Client Mobile Network 2G DS0/1/T1 Backhaul Optimization Backhaul Network SLA Assurance & Sync Delivery Backhaul Optimization Mobile Network MNO 1 Mobile App Server 4G IP/Ethernet 3G ML-PPP/T1 or ATM IMA/T1 CSU M13 or ADM GigE 10 GigE 10 GigE DCS SGW Router Router SGW Router MME IMS EPC Internet EPC IMS CSR MME MNO 2 Access Aggregation Metro Mobile Core

21 Scalability Through Packet Optical Being Ready for Layer Ethernet 3 (IP-connection) Services Growth Layer 2 & 2.5 Layer 1 & 2 Mobile App Client Mobile Network 2G DS0/1/T1 4G IP/Ethernet Backhaul Optimization 3G ML-PPP/T1 or ATM IMA/T1 CSR CSU M13 or ADM Backhaul Network SLA Assurance & Sync Delivery EoF GigE EoF Dual Homing 10G λ Ethernet or OTN ROADM Backhaul Optimization DCS Router Router Router SGW SGW Mobile Network MNO 1 MME EPC EPC MME Internet Mobile App Server IMS IMS EoF MNO 2 Access Aggregation Metro Mobile Core

22 Optical Network Edge Transformation Voice Centric Video Centric ONE series ROADM + Ethernet OTN OPTI series WDM SONET Voice-centric solutions limit packet services success

23 Traditional Packet Optical Solutions Long Haul/Core transport Optimized for high port and wavelength counts Very high throughput Dedicated NMS & OSS integration High start-up cost & complexity 7 ft Designed for Traditional Applications

24 Right Sized Packet Optical Solution 7 ft 1 ½ ft Long Haul/Core transport Optimized for high port and wavelength counts Very high throughput Dedicated NMS & OSS integration High start-up cost & complexity Cost effective at low port counts Edge optimized performance Shared NMS/OSS with existing access system Low start-up cost and simple to operate Converged access & transport

25 Focusing on the Packet Optical Edge

26 Packet Optical Market Dynamic Core/Long-haul Metro Edge/Access Edge- Optimized Innovators First Movers High Capacity, Static transport applications Focused on Long Haul and Core network Large, high density platforms Limited or non-existence service delivery New Market Entrants High Capacity, Static transport applications Focused on Core and Metro network Mid-sized, cost-effective platforms Added Ethernet services component Dynamic, Flexible networking applications Focused on Metro, Edge and Access network Right-sized, Rural U.S. focused platform Ethernet services component

27 Ethernet Access Synergy Delivering on Every Broadband Initiative Business Services Mobile Backhaul Residential Broadband

28 Broad Ethernet Market Applicability Cost-effective; Time-to-Market Sensitive LTE Backhaul Applicable OR Any Ethernet Service Applicable NOW or FUTURE

29 MNO A Scalable Service Separation Dedicated facilities per MNO or Service N x 1 or 10Gig WDM increments Wavelength separation; fiber preservation Resilient ring protection (<50ms) Dedicated switch fabric per MNO or Service N x System on a blade architecture Physically isolated traffic paths Service Flexibility/Applicability MNO B Hierarchical QoS to the N th degree Ethernet or OTN (SONET/SDH) services MNO C N x 10Gig λ Ethernet or OTN Speed of Light, Uninterrupted, Uncongested Highly Scalable, Resilient, Flexible Multi-Node Ring is really just a group of simple P2P links per customer, per service which uses Low latency Optical switching (Transponding) to limited the number of Switching points or Router hops Ethernet Aggregation Platform IP/MPLS Core

30 Typical Capacity Requirement (>10G) Service Type Mobile Backhaul (4G) Mobile Backhaul (2/3G) 10G services drive need for Packet Optical Bandwidth per Type 300Mbps 30Mbps Service Quantity 3 MNO per cell site x 5 sites 3 MNO per cell site x 5 sites Bandwidth Sub-Total 4.5Gbps (1.5 G per MNO) 0.5Gbps (3 x OC-3/MNO) Client λ allocated λ 1, λ 2, λ 3 (1 Gig per MNO) Network λ allocated λ 1, λ 2, λ 3 (10 Gig per MNO) n/a λ 5 (1 Gig ODU0) FTTH (GPON) 2.5 Gbps 1 Deployment 2.5 Gbps n/a λ 6 Metro Ethernet 1 Gbps 2 Enterprises 2 Gbps n/a λ 6 Total >10 Gbps MNO C Ethernet, xoadm and OTN IP/MPLS Core 3 x GigE λ MNO A MNO B GigE 2.5 GigE GigE FTTH Deployment Metro Ethernet Services MNO Mobile Network Operator

31 Typical Service Expansion (>10G) 10G services drive need for Packet Optical MNO C Ethernet, xoadm and OTN IP/MPLS Core MNO A MNO B 3 x GigE λ 2.5 GigE GigE GigE FTTH Deployment Metro Ethernet Services MNO Mobile Network Operator

32 Thank you Please complete the evaluation

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