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Optical Business Services Choosing the Right Solution Mano Nachum Packet Optical Networking Product Line Management November 16, 2010

2 Drivers for Packet Optical Access & Edge Cloud computing, Smart Phones, Video, new apps are stressing backhaul infrastructure Fiber access offers improved scalability and reliability Fiber plant constraints addressed with WDM or PON Pseudowire emerging as legitimate TDM transition option Bandwidth demand blurs the distinction between access and transport

3 Market Trends in Business Services Business Fiber Trend % of Commercial Buildings with 20+ Employees 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 US Europe Source: VSG Fiber penetration has doubled in last 5 years to U.S. Commercial Buildings with 20+ employees Carriers have developed a think fiber first mindset Service quality/reliability Growth potential/scalability Investment is accelerating in fiber access Fiber penetration has more than doubled in last 5 years Solutions must be fiber-ready

4 SONET / SDH Point-to-Point Ring Notes: Dedicated bandwidth per service interface Deterministic transport performance Single Class of Service - guaranteed Very mature OA&M capabilities Ideally suited for TDM transport DS1/E1 VT1.5/ VC-2 DS3/E3 STS-1/ VC-3/4 Adapted for packet based transport 10/100 Mbps GFP VT/VC GE/ 10GE GFP STS/VT/VC Modular, carrier grade architecture

5 Ethernet over Fiber Point-to-Point Ring Notes: Possibility for shared bandwidth per service interface or trunk Engineered transport performance Multiple Classes of Service Emerging OA&M capabilities Ideally suited for packet based transport Adapted for TDM based transport DS1/E1 PWE3/CES DS3/E3 PWE3/CES Modular architecture Emerging carrier grade architecture

6 GPON Point-to-Multipoint Notes: Shared bandwidth per service interface Engineered transport performance Multiple Classes of Service Emerging OA&M capabilities Ideally suited for low bandwidth, best effort packet based transport Adapted for TDM based transport DS1/E1 PWE3/ CES DS3/E3 PWE3/ CES Typically fixed access architecture Emerging carrier grade architecture

7 OTN (G.709) Point-to-Point Ring Notes: Dedicated bandwidth per service interface Deterministic transport performance Single Class of Service guaranteed Improved OA&M capabilities Designed for high bit rate multi-service Ethernet (from 1 GbE) SONET/SDH SAN (Fiber Channel) Video and other non standard services Adapted for low bit rate services ODU-0 ODUflex Efficient, modular, carrier grade architecture

8 C/DWDM Point-to-Point Ring Notes: Dedicated bandwidth per service interface Deterministic transport performance Single Class of Service guaranteed OTN OA&M capabilities Designed for high bit rate multi-service Ethernet SONET/SDH TDM Wavelength Adapted for low bit rate services Integrated aggregation and electrical switching Efficient, modular, carrier grade architecture

9 Technology Comparison Technology Availability Ability for network to survive failures Reliability Ability to detect and react to local faults Packet Efficiency How efficiently Ethernet is carried TDM Efficiency How efficiently DS1/E1, DS3/E3 is carried Performance Tools to monitor error rates Capabilities in testing/ reporting Cost per bit Overall cost to transport service SONET/ SDH Ethernet over Fiber GPON OTN WDM Highest High Medium Highest Highest Highest High Medium Highest Highest Medium Highest Highest High Medium Highest Medium* Medium* Highest High High Medium** Medium** Highest High High Medium Low Medium Medium- Low * Pseudowire solutions available for DS1/E1 ** Ethernet OAM standards are maturing

11 OPTI 6100 Family of Systems LMX chassis MX chassis SMX chassis 4 Line Card Slots Wall or rack mount 28 DS1, 6 DS3, Ethernet OC-3, OC-12, OC-48 24 Line Card Slots Rack mount 336 DS1, 48 DS3, OC-3, OC-12 Ethernet OC-48 12 Line Card Slots Wall or Rack mount 84 DS1, 12 DS3, Ethernet OC-3, OC-12, OC-48 Network interfaces (OMM) OC-3 TM, UPSR, 1310 nm IR and LR, w, w/o XC, ADM, 1550 LR OC-12 TM, UPSR, 1310 nm IR and LR, w, w/o XC, ADM, 1550 LR OC-48 Linear, UPSR SFP based Low-speed (tributary) interfaces DS1 (28 ports, M13, or VT1.5 mapped) DS3 (3 port) OC-3 (1 port, 2 fiber, SFP) OC-12 (1 port, SFP) Ethernet (10/100) (3 ports)(8 ports w, w/o tagging) Transmux (1 port and 3 port) GigE (copper, SM, MM, SFP) Tilt-down Wall Enclosures for MX and SMX application

12 Advanced Ethernet Modules vs. VLAN1 Customers Individual VLANs in shared VCAT Group Individual VCAT Groups Shared VCG VLAN1 OPTI-6100 Router GigE or 10/100 HO/LO VCAT OPTI-6100 OPTI-6100 VLAN1 VLAN2 Customers GigE VLAN trunk OC-12/48 SONET Ring VLAN3 Applications EVPL service with VLAN separation of customer traffic ELAN service with VLAN separation of customer traffic

13 Ethernet over Fiber Components TA5000 8-port Gigabit Ethernet Access Module 8 GigE SFP cages Link Aggregation Link OAM NetVanta 8044M 4-10/100/1000BaseT WAN or LAN 4 - GigE SFP WAN or LAN 2 - Expansion Slots 1 and 2.5G ERPS Ring support with optical bypass option. Clock Sync over Packet Ready e.g. G.8261/62 SyncE Dual fed DC options (+/-24V, -48V DC) Carrier Ethernet MEF 9, 14, 18 Eth OAM CFM and PM TACASC+ and RADIUS Authentication, Authorization 8-port GigE Access Module NetVanta 8044M Modular NTE

14 Total Access GPON Solution Total Access 5000 OLT GPON 2/4-Port Optical Line Terminal 21 OLTs/84 PONs per Total Access 5000 2,688 SUBs 2.488 Gbps downstream,1.244 Gbps upstream Completely GEM based Voice support via SIP GPON Optical Network Terminals SFU Support for triple-play delivery 2 POTS, 1 Ethernet port 2 POTS, 2 Ethernet ports Voice, HS data, IPTV TA300s Total Access 5000 GPON OLTs AE OLT

15 Total Access 372 SBU Total Access 372 SBU ONT 8 POTS, 2 Ethernet, 4 DS1 Loop and Ground start 10/100/1000Bt Ethernet TLS Support MEF Compliant (future) DS1 PWE GR950 Compliant Enclosure GPON and Active Versions 372 - SC APC GPON 372E - SFP Active Ethernet

16 Converging Service Delivery & Transport 1GE 10GE, Wavelength Enterprise SMB Packet Ethernet Optical Core Packet Ethernet Optical Edge 3G/4G Mobile Backhaul Fiber or Copper Residential Leveraging installed base Service and transport scalability Simplified operations and reduced network cost

17 Multi-Service Scalable Edge Ethernet / MPLS TA 5000 OTN SONET/ OTN Core OTN OTN OTN P-OTS Metro Optical Network P-OTS WDM/OTN/Ethernet P-OTS P-OTS Extension of Core Functionality with Efficient Scalable Edge

18 Scalable Packet Optical Edge Residential Enterprise Mobile Backhaul Fiber/Copper Service Delivery TA 5000 WDM or (mini) ROADM GbE GbE Carrier Ethernet 10 GbE 155M-10G SONET/SDH GbE Fiber Channel Multi-Service OTN C/DWDM or miniroadm WDM or (mini) ROADM OC-3/STM-1 OC-12/STM-4 OC-48/STM-16 SONET MSPP On a Card WDM or (mini) ROADM

19 Business Class Offering Ethernet, SONET/SDH Ethernet Packet Optical Core 2.5/10G Ring Packet Optical Edge GigE DS1s Ethernet Business service delivery choices for best ROI GPON, Active Ethernet, TDM, SONET/SDH, GigE, SAN, wavelengths Pay as you Grow Modular design Multi-function cards Lower cost of ownership with integrated service delivery, switching and transport

20 Lower Network TCO AOE TA5000 IAN Integrated Access and Edge Service Delivery and Transport Vs. BB Access mini-roadm OTN Aggregation Ethernet Networking More than 20% CapEx saving 5%-10% annual maintenance and upgrade saving Faster time to revenue Simplified operations

21 Conclusions Fiber the preferred access media for business services Choices available, each has strengths and weaknesses SONET/ SDH The most mature Ideally suited to TDM services Comparatively expensive Ethernet over Fiber Suitable for packet based services over a wide range of speeds Moderate cost Excellent scalability GPON Ideally suited to services up to 100Mbps Can be engineered for business services Lowest cost OTN Multi-service capabilities with simple transport architecture Med-low cost WDM Highest scalability and service transparency Low cost Choice of technology is dependant upon service needs and cost objectives