From Infrastructure to Equipment to Ongoing Operations Reducing

From Infrastructure to Equipment to Ongoing Operations Reducing the Cost of Optical Networking Rob Adams, VP Product Marketing/Product Line Management

Who is Ekinops q Private company, founded in 2003 q Headquarters in Lannion, France q Pre-Sales & Post-Sales: Europe, US, APAC q Innovative vendor of Layer 1 optical aggregation & transport equipment for University, Enterprise, and Service Provider Networks q Dynamic Optical Transport Solutions ð Solutions that can be molded to provide value to any application (Enabled via T-Chip) ð Specialize in cost optimization and low first cost ð 40, 80, and 160 channel plans available today. ð Metro, Regional, and Long Haul in 1 Platform ð Very diverse set of protocols supported q Technical expertise ð ð ð Patented technology in Optical Aggregation and Transport Ekinops engineers were pioneers in FEC, 10 Gig and OC-192 protocols We are taking the commodity out of transport through Page 2 innovation!

Enabling Technology T-Chip (Transport on a Chip) Technology Client Card Electronics Composite Services Over Fiber Client Ports, 1 Client Port Per Service (Gig. E, etc. ) Benefits: Composite Services Over Fiber Fully Programmable – Allows for creation of new services quickly (Deliver Services Faster) Fully Programmable – Can be programmed in the field to adapt to new service types (Deliver Services Flexibly) Ease of Manufacturing – Fewer chips on the board (Deliver Services Faster) Lower Power Consumption – Fewer chips to draw power (Deliver Services more cost effectively) Less Space – Cheaper to house equipment (Deliver Services more cost effectively) In general, fewer chips = lower cost Page 3

Tried and True Deployed Globally Ekinops confidential information Page 4

Reducing Network Cost Where should you look to optimize transport network costs? q Reduce your cost of infrastructure ð ð ð Choose lower cost fiber User fewer fibers Minimize Required Wavelengths Eliminate amplifier sites or the need for amplifiers at all Preserve existing hardware and infrastructure investment q Reduce your Capital Costs ð Make sure equipment is not overkill for your application ð Look for platforms designed to lower initial costs with the ability to scale § § If you need amplifiers, scalable amplifier technologies If you need ROADMs, scalable ROADM technologies ð Lower cost technologies for 40 G q Reducing ongoing costs ð Elimination of unnecessary amplifier sites ð Look for lower power consuming systems ð Operational conveniences like automated power management Ekinops proprietary information Page 5

Reducing the cost of Infrastructure Single fiber capabilities Innovations on the Market Ø No need to ever use 2 fibers again! ü In the Past, Support for 8 or 16 wavelengths if at all ü 32 wavelength support available today DWDM network Over a pair of fiber ü 72 wavelength available in September Chassis with an Optical Combiner module DWDM network Over a single fiber Chassis with an Optical Combiner module ü Technology comming soon for 144 wavelengths… over a single fiber! Page 6

Reducing the Cost of Infrastructure Using Fewer Wavelengths Ø Typical Point to Point Transport Solution Ø Ethernet Layer 1 ADM Solution Inconvenients of the solution Less Equipment, Better Utilization of your infrastructure Less Equipment = Lower Ongoing Costs (Power) Can be implemented over a wavelength or leased service Page 7

Reducing the Cost of Infrastructure Longer Distance, Fewer Amplifiers q Combination of better FEC and amplifier technologies help transport systems go further cheaper ð FEC transitioning from 6 -8 d. B to 10 d. B or more today Advanced FEC combined with newer Amplifier technologies ü Longer distances without Inline Amplifiers Up 450 km - 500 km Full to 300 Km with Channel Counts Also reduces ongoing costs Ekinops proprietary information ü Fewer Amplifiers when amplifiers are needed • Evaluate delta terminal costs vs cost of inline amp sites ü Longer Distances over poor fiber • Evaluate delta fiber costs vs. Additional cost of route Page 8

Reducing the Cost of Infrastructure Preserve Existing Hardware Infrastructure Investment ð Legacy System Interoperability, Upgrade § Interoperate with existing systems in the ground Interoperability can be via Foreign Wave or via Native Ethernet/SONET/SDH • The Power of a Standard, programmable line side protocol Page 9

Pulling it all Together Reducing the Cost of Infrastructure 2 3 4 1 Typical Point to Point Ethernet Transport q Multi-Protocol ADM allows for Daisy Chaining of Sites to Provide an Ethernet ADM Capability and Reduce Waves q Combine that with 1 Fiber Capability to Reduce Fibers in fiber constrained or leased environments Page 10 q Eliminate Amplifier and Regeneration Sites Page 10

Reducing Capital Costs Lan Phy to Wan Phy Conversion PM 1001 PC q If an STM-64 is all that is available, no need to buy an expensive Wan Phy Interface for that Router Ekinops proprietary information Page 11

Reducing Capital Costs Scalable ROADM Solution SS W g W De g 8 Deg WSS 8 SS Inside a Typical 8 Degree Node 8 Deg WSS SS 8 Degree Node 8 Deg WSS 8 De g W SS Page 12

Reducing Capital Costs Local Add/Drop 2 Deg WSS Coupler 8 2 Deg WSS West Channels North Channels Scalable ROADM Solution East Channels Local Add/Drop Coupler 2 Deg WSS 8 Deg WSS 8 2 Deg WSS South Channels Coupler 2 Deg WSS Coupler Page 13

Reducing Capital Costs Scalable ROADM Solution Using 2 Degree ROADM Components Using 4 Degree ROADM Components Using 8 Degree ROADM Components Page 14

Summary of Values 40 Gig Technology ü Less than 4 times the cost of 10 G ü Same PMD and Dispersion Performance as 10 G ü Same Approximate Distance Performance as 10 G ü Low cost 10 G drop solution (Dropping 1 10 G out of 40 G) ü No Interference of Adjacent 10 G Waves, no guard band ü Fully tunable for simplicity of sparing and for adaptability to 3 rd party filter plans üCompatible with 3 rd party line systems as a foreign wavelength ü 4 X 10 G Muxponder providing for the highest density system in C-Band, 3. 2 Terabits or 320 Channels of 10 G ü Finally, a Market Ready 40 G Solution Ekinops Proprietary information Page 16

Summary q Lower cost of infrastructure + q Lower cost of equipment + q Lower Ongoing Costs = Lower Cost of ownership Ekinops proprietary information Page 17

Ekinops proprietary information Page 18