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Impact of Photonic Integration on Optical Services Serge Melle VP Technical Marketing, Infinera Impact of Photonic Integration on Optical Services Serge Melle VP Technical Marketing, Infinera

Internet Backbone Growth § Industry consensus indicates a sustainable growth rate of 75% to Internet Backbone Growth § Industry consensus indicates a sustainable growth rate of 75% to § § 100% per year in aggregate traffic demand Traffic increased more than 10, 000 x from 1990 to 2000 Traffic projected to increase an additional 1, 000 x from 2000 to 2010 [1] K. G. Coffman and A. M. Odlyzko, ‘Growth of the Internet’, Optical Fiber Telecommunications IV B: Systems and Impairments, I. P. Kaminow and T. Li, eds. Academic Press, 2002, pp. 17 -56. Infinera Confidential and Proprietary | 2

The Future Belongs to Tb/s Links § Carriers deployed Nx 10 Gb/s networks several The Future Belongs to Tb/s Links § Carriers deployed Nx 10 Gb/s networks several years ago § Now evaluating deployment of (Nx) 40 Gb/s router networks § Current Backbone growth rates, if sustained, will require IP link capacity to scale to > 1 Tb/s by 2010 Infinera Confidential and Proprietary | 3

Scalability Challenges § Service scaling: § Evolution to 40 G and 100 Gb. E Scalability Challenges § Service scaling: § Evolution to 40 G and 100 Gb. E services § Network scaling: § >1 Tb/s per fiber § Nodal scaling § System size for >Tb/s nodes § Operations § Deployment, fibers, spares, Infinera Confidential and Proprietary | 4

WDM Systems Today 100 Gb/s Transmit 100 Gb/s Receive Single WDM channel -------- times WDM Systems Today 100 Gb/s Transmit 100 Gb/s Receive Single WDM channel -------- times 32, 40 or 80 wavelengths Infinera Confidential and Proprietary | 5

Photonic Integrated Circuit Innovation 100 Gb/s Transmit 100 Gb/s Receive 5 mm § DIRECT Photonic Integrated Circuit Innovation 100 Gb/s Transmit 100 Gb/s Receive 5 mm § DIRECT BENEFITS: 100 Gb/s Receive § Reduce size, power, cost and improve reliability over discrete optics § STRATEGIC BENEFITS: § Affordable OEO conversion re-enables digital reconfigurability at every node Order-of-magnitude in capacity deployment & scalability § § Result: Lower Cap. Ex, lower Op. Ex, more flexible reconfigurable optical network Infinera Confidential and Proprietary | 6

Impact of PIC Technology Conventional WDM: PIC-based WDM: § Capacity deployed one lambda at Impact of PIC Technology Conventional WDM: PIC-based WDM: § Capacity deployed one lambda at § Capacity deployed 100 G at a § § § a time OEO only at network edge Network service tied to the wavelength Managing bandwidth occurs elsewhere § time OEO at all service locations De-couple service layer from the transport layer Integrate DWDM with digital service switching Line Transponder Trib Line Trib Infinera Confidential and Proprietary | 7

How PIC Capacity Is Managed 10 -l x 10 G Flexibility Scalability 4 x How PIC Capacity Is Managed 10 -l x 10 G Flexibility Scalability 4 x ODU 1 per 10 G § 100 G PIC = 10 x 10 G lambdas = 40 x ODU 1 § Sub-wavelength bandwidth management maximizes § service delivery flexibility Super-wavelength bandwidth management supports 40 G and 100 G services Infinera Confidential and Proprietary | 8

PIC Capacity Scalability 20 -l x 20 G Flexibility Scalability § § Increase PIC PIC Capacity Scalability 20 -l x 20 G Flexibility Scalability § § Increase PIC scalability through: More channels (ie: from 10 to 20 lambda or more) Higher bit rates (ie: from 10 Gb/s to 20 Gb/s to 40 Gb/s) Also increasing WDM line capacity to >1 Tb/s per fiber Infinera Confidential and Proprietary | 9

1. 6 Tbit/s DWDM Large-Scale PIC Transmitter Announced at OFC 2006… … 40 channels 1. 6 Tbit/s DWDM Large-Scale PIC Transmitter Announced at OFC 2006… … 40 channels x 40 Gb/s Infinera Confidential and Proprietary | 10

Service Opportunities Transition to Ethernet Bandwidth on Demand • Layer 1 Optical VPNs • Service Opportunities Transition to Ethernet Bandwidth on Demand • Layer 1 Optical VPNs • UNI-based inter-network signaling New Service Opportunities New Transport Services Speed as a Sales Advantage • 40 G and 100 Gb. E • Restorable bandwidth • Sub-lambda Switching Infinera Confidential and Proprietary | 11

Short Term Capacity Lease “Pay for Connectivity Only When You Need It” UNI Optical Short Term Capacity Lease “Pay for Connectivity Only When You Need It” UNI Optical Transport “Cloud” UNI 10 G “Port” UNI UNI Phase 1: Human provisioning UNI Phase 2: GMPLS UNI automated provisioning Infinera Confidential and Proprietary | 12

Layer 1 VPN “A secure, private optical network without owning physical assets” Customer 1 Layer 1 VPN “A secure, private optical network without owning physical assets” Customer 1 Customer 2 EMS 1 1 GMPLS 2 2 Complementary to a dynamically allocated service 1 Infinera Confidential and Proprietary | 13

1 and 10 Gb. E Lightpaths “Ethernet cost with SDH Manageability and Quality” DB 1 and 10 Gb. E Lightpaths “Ethernet cost with SDH Manageability and Quality” DB Optical Transport “Cloud” DB DB DB HY AN P EL b G 10 DB DB § 10 Gb. E: LAN PHY preferred to save router/switch port cost § Full transparency § Optional restoration (differentiate vs. “wavelength” service) Infinera Confidential and Proprietary | 14

40 G Super-Lambda Service 40 G IP Backbone Without Re-Architecting the Optical Network OC-768/STM-256 40 G Super-Lambda Service 40 G IP Backbone Without Re-Architecting the Optical Network OC-768/STM-256 capacity router-to-router 4 x 10 G across the optical network Optical Transport “Cloud” 1 -port 40 G over 4 -port 10 G § Full 40 G link utilization without 40 G WDM link engineering or cost § Common transport network supports 40 G router-router traffic § 40 G service using either 1 x 40 G or 4 x 10 G router blades § Optional GMPLS restoration maximizes service SLAs Infinera Confidential and Proprietary | 15

Using GMPLS Restoration for Lower MTTR More Robust “Wave” Services Static Transport GMPLS-enabled GMPL Using GMPLS Restoration for Lower MTTR More Robust “Wave” Services Static Transport GMPLS-enabled GMPL S In case of failure, technician must restore service. Outage may last minutes or hours. = DWDM terminal = ROADM or WSS If spare bandwidth is available, GMPLS reroutes, providing a “quick fix” at no additional cost. GMPLS-based transport system Infinera Confidential and Proprietary | 16

Integration: Heart of a New Strategy 100 Gb/s Transmit 100 Gb/s Receive Infinera Confidential Integration: Heart of a New Strategy 100 Gb/s Transmit 100 Gb/s Receive Infinera Confidential and Proprietary | 18

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