Broadband Wireless World 2001 Achieving Success as a

Broadband Wireless World 2001 Achieving Success as a Broadband Wireless Service Provider: Demand & Business Focused Progressive Network Implementation Strategies Gordon Moller Vice President Ceragon Networks, Inc. gmoller@ceragon-us. com www. ceragon. com

Presentation Outline § § Company Overview Service Provider Challenges Progressive Implementation Concept Real World Network Examples Employing Various Technologies § Wireless Gigabit Ethernet Advent § Conclusions

Our Business Metropolitan Broadband Wireless Infrastructure Broadband Transport and Access Networks for Internet, Voice, Data and Video for Service Providers & Enterprises: ILECs, CLECs, ISPs, Private Networks, Mobile Telephony/Data

Company At-A-Glance § § § Established in 1996 Product Launch in 1998 IPO in August 2000, NASDAQ - CRNT >300 Employees Headquarters: Tel Aviv, Israel New Jersey, USA Birmingham, UK § Offices: 4 in USA, Mexico, Germany, France, Spain § Customers: 54 in 23 Countries § OEMs: Nortel, Siemens, Lucent

Next Generation Infrastructure Where We Fit IXC/Internet Transport Mobile Residential/SOHO Metropolitan SONET, IP, or ATM ring MDU Medium/large business From Within the Core to the Curb: High Capacity Infrastructure & Access

Last/First Mile Options 800, 000 commercial buildings in the US: only 3 – 4% of those have fiber Approximate Building Size (Sq. Ft. ) 25 k – 50 k – 180 k >180 k Mobile Wireless Broadband (128 k – 10 Mbps) PMP Point-to-Point Broadband Wireless DSL/Cable High Capacity (>100 Mbps) Source: CSFB Research High-Capacity Connectivity Fiber

Next Generation Networks Broadband – x. DSL – Cable – WLL – PMP § High Capacity – Fiber § – Wireless 128 Kbps – 10 Mbps Asymmetrical Low deployments in business areas Shared E 1/ T 1 Shared sector capacity >100 Mbps+ Expensive, cumbersome to deploy $150, 000 per mile construction cost Immediate – “same day service” Much lower installed cost per bit Quick revenue generation Easy to redeploy

Challenge: Connect a Variety of Applications to a Variety of Legacy & Emerging Next. Gen Networks Applications Networks Internet ? Data ? ? Video Voice IP SONET/SDH PSTN ? Protocol Converters Add/Drop Muxes Media Translators Aggregation Devices, etc. = ? Cost & Space ATM

Challenge: Multiple Global Standards – Digital Formats & Frequency Bands North America T 1 Format International E 1/ETSI Format 39 GHz 38 GHz 28 -31 GHz LMDS? LMDS/LMCS 24 GHz 23 GHz 18 GHz 26 GHz 23 GHz 22 GHz 18 GHz 15 GHz

Critical Challenges § Network Topology Flexibility – Service Application, not Hardware Technology, Should Dictate § Time to Market – Capture Most Desirable Customers Quickly § Rapid Revenue Generation without Huge Initial Expenditures § Bandwidth & QOS – You Can Never Have Enough § Ability to Cost Effectively Evolve and Scale Services § Compatibility with Existing/Impending Networks § Minimize “Sunken” Costs of Fixed, Unmovable Infrastructure § Lowest Possible Network Installed & Life Cycle Cost

Family § Global standard compliant – North America (FCC, Can. ) – International (ETSI) – Japan (ARIB) § Frequency bands covered – 18, 23, 24, 26 – 28, 29, & 31 LMDS/LMCS – 38/39 GHz § High Capacity/Flexibility/Scalability – 45, 155, 311, 622 Mbps – OC-3, OC-6, OC-12 – N x 100 base. T Fast Ethernet – N x DS 3 – Gigabit Ethernet § SONET, SDH, IP, ATM Modular Architecture

Intelligent Network Element Fast Ethernet OC-3 Data IP Voice SONET/SDH Video Fibe. Air ATM Internet Modular Interface & Protocol Flexibility

System Architecture Physical Interfaces Main Channel Frequencies Optical MM Optical SM 38 GHz Electrical CMI UTP/STP 28, 29, 31 GHz (LMDS) 3 X DS 3/E 3 Fast Ethernet + DS 3/E 3 2 x Fast Ethernet Wayside/User Channel Capacities 622 Mbps 311 Mbps 155 Mbps 45 Mbps 26 GHz 23/24 GHz T 1 E 1/G. 703 V. 24/RS. 232 10 Base T X. 21 Scalable Capacity & Modular Interface Options Architecture 18 GHz

Progressive Implementation – 1 A Business Park Initial Off & On Network Campus Deployments IXC/LEC/CAP Fiber

Progressive Implementation – 1 B Business Park SONET/SDH, ATM or IP Wireless Metro Ring Network Connectivity IXC, LEC, CAP, ISP Backbone Fiber

Progressive Implementation - 2 Business Park SONET/SDH, ATM or IP Wireless Metro Ring Access ISP Gateway Network Connectivity VPN Connectivity IXC, LEC, CAP, ISP Backbone Fiber Remote Company Site

Progressive Implementation - 3 PMP Backhaul Wireless PMP Access SONET/SDH, ATM or IP Wireless Metro Ring Business Park Campus DSL Access ISP Gateway Network Connectivity VLAN/VPN Connectivity Multipoint Interconnection Building or Campus DSL, Cable or Wireless Distribution IXC, LEC, CAP, ISP Backbone Fiber Wireless PMP Access In Building DSL Access Remote Company Site

Convergence of SONET & IP: Fast Ethernet, & PSTN Circuits

Wireless ISP Networks 26 GHz Data Center STM-1 Ring Data Center GSR 12000 Router Hong Kong Data Center GSR 12000 Router Relay Router PTMP OC-3

Wireless ISP Networks 26 GHz Hong Kong Internet Telephone TV Cable Modem

Wireless and Wireline SDH Rings Fiber 26 GHz 38 GHz Lisbon E 3 Access PTMP STM-1 Access PTMP Fiber Switching Center + NMC

IP and SDH Network 18 GHz 38 GHz PTMP IP PTMP Amsterdam IP PTMP 2 x 100 Base. T IP Router STM-1 Ring Router 155 Mpbs Router IP PTMP

0 K m 0. 7 0. 80 Km m 6 K 0. 6 m 6 K m m 8 K 7 K 0. 6 0. 75 Km m 4 K 0 K m 0. 6 0. 71 Km 0. 6 7 K m 9 K 0. 6 m m K 5 K 74 0. 6 0. 7 m 0. 73 Km 0. 80 Km 0 K 0. 7 m STM-1 Ring – Paris Single Channel & Single Polarization

Ultra High Capacity Systems n. OC-6/STM-2 n. OC-12/STM-4 n. Gigabit Ethernet

OC-12 Ring Site A ADM-4 Site G Tributaries STM-4/OC-12 Ring 622 Mbps Site B Site E Site C Dual Channel Dual Polarization Site F Site D STM-1

Fibe. Air 10000 Gigabit Ethernet Radio § Wireless Extension of Gigabit Ethernet § Scalable, grow with demand system § Full Ethernet switch compatibility § Eliminates the need for external switches when provisioning Fast Ethernet ports § Modular interface design § Access and Backbone solutions § Quick to deploy and cost effective

Gigabit Ethernet Point-to-Point 1 Fibe. Air Gigabit Ethernet 10000 0 15 ISP Gigabit Ethernet – 0 60 M bp s N x FE Port Provisioning Switch Fibe. Air 10000 Router POP

Gigabit Ethernet Implementation SONET & IP Ring Access ISP Gateway Private Network IXC/LEC/CAP Fiber Data Center ASP Server Farm

Ceragon Customer Base – Feb. 2001 Over 50 Customers Argentina Australia Austria Belgium Brazil Canada Colombia Czech Rep. Denmark Finland France Germany In Over 20 Countries Holland Hong Kong Iceland Israel Japan Latvia Mexico Norway Portugal Slovakia Spain Sweden US UK

Unique Service Provider Benefits: Available Today, Globally Proven § Scalable High Capacity – 45 Mbps to 622 Mbps, DS-3/E-3 to OC 12/STM-4, & N x 100 Base. T Fast Ethernet to Gigabit Ethernet § Flexibility of Interfaces & Bands – Global Applicability: SONET/SDH, DS-X/E-X, ATM, IP; 15 – 38 GHz north American & international bands § Topology Flexibility – Rings, stars, cascade (daisy chain), 1+1, mesh § Seamless Network Connectivity – Compatible with SONET/SDH, ATM, & Next Generation IP global networks; PMP, DSL, cable, & optical access technologies. § Progressive Implementation – Immediate incremental revenue with each link deployment, business grows with the network, not after § Easiest Install or Relocation – Industry standard form factor & minimal site requirements, small size & weights, generic installers = quick & inexpensive installation § Future proof – No sunken costs; easily scaled up/down or redeployed

Making Broadband Accessible – Today! Thank You NASDAQ - CRNT www. ceragon. com