Improving Your Bottom Line with Cost-effective Access Solutions

Improving Your Bottom Line with Cost-effective Access Solutions Customers’ Event Crete, May 2007 Presented by: Dario Zipris VP Sales RAD Data Communications

Global Telecommunications Connections, 2004 – 2007 Source: Point Topic, 2007 What to look at? Mobile and Ethernet/Broadband markets! Improving Your Bottom Line CE 2007 Slide 2

Competitive Environment in the Mobile Operators 50 • Mobile voice service is a saturated market where price wars are common Operators (MVNOs) are competing for other operators’ customers Q 1 -Q 3 05 45 Q 1 -Q 3 06 40 7% 35 ARPU • New Mobile Virtual Network 6% 30 25 20 16% 9% 10% 15 15% 10 5 0 N. America CALA Average Asia. Pacific Average C/E Europe W. Europe Average MEA Average Source: Strategy Anlytics, Nov. 2006 • All world regions have suffered declining ARPU in the first three quarters of 2006 • Mobile operators are looking for alternatives to compensate for the effect of declining revenues on their bottom line Improving Your Bottom Line CE 2007 Slide 3

More Revenues with Data Services? • Generate new revenues by offering new mobile data services • Data services are taking off in the market BUT: • Revenue per data bit transported is lower than the revenue per voice bit • Is the market ready to pay for the data services? • The amount of traffic to transport in order to compensate for declining voice revenues is going to grow significantly • The data services might saturate your voice network the core of your profit! And for very low income 4 Mobile Data ARPU 3, 5 3 2, 5 2 1, 5 Source: Strategy Anlytics, Nov. 2006 1 0, 5 0 Q 1 05 Q 2 05 Q 3 05 Q 4 05 Q 1 06 Q 2 06 Q 3 06 Improving Your Bottom Line CE 2007 Slide 4

Ethernet in EMEA Already an Interesting Revenue Stream • Early rollouts dominated by Ethernet over fiber and ATM Revenues ($ Million) • Eth-over-MPLS and Eth-over-SDH are the biggest opportunities Improving Your Bottom Line CE 2007 Slide 5

Market Players: Service Providers Your Challenges • Low margins on traditional services • Increased competition Your Winning Strategy • Protect your customer Base • Add new services on existing platforms • New revenue stream with new services Your Possible Solutions • Ethernet services over any network • Expand your metro as a nationwide service • Legacy & Voice traffic over any Platform Improving Your Bottom Line CE 2007 Slide 6

Market Players: Mobile Operators Your Challenges Your Winning Strategy • ARPU Decreasing • Reduce your backhauling • Questionable ROI of data services expenses with traffic aggregation • 3 G deployment: new revenue stream • Smooth migration to PSN Your Possible Solutions • Deploy today a future proof Backhaul platform • Voice Compression and Traffic optimization • Effective HSDPA Traffic handling Improving Your Bottom Line CE 2007 Slide 7

Market Players: Utilities and Transportation Your Challenges Your Winning Strategy • Old communications platforms • Modernization of data infrastructure for today’s needs • Pressure to provide data and entertainment services • New services: Internet, information boards, ticketing etc. • Internal corporate service Your Possible Solutions • Leverage your existing infrastructures • Multi-service Platforms: low and high bandwidth service integration Improving Your Bottom Line CE 2007 Slide 8

Coping with your Challenges Better utilization of your existing infrastructure Offering more attractive services Improving your and your customer’s bottom line! Improving Your Bottom Line CE 2007 Slide 9

Market Players: Utilities and Transportation Your Challenges Your Winning Strategy • Old communications platforms • Modernization of data infrastructure for today’s needs • Pressure to provide data and entertainment services • New services: Internet, information boards, ticketing etc. • Internal corporate service • Utelco Your Possible Solutions • Leverage your existing infrastructures • Multi-service Platforms: low and high bandwidth service integration Improving Your Bottom Line CE 2007 Slide 10

Power Substations Connectivity over Legacy • Multi service applications connectivity over SDH SCADA Control Center 120 X E&M E 1 n x E 1 SCADA n x E 1 ADM n x E 1 STM-1 n x E 1 F. O ADM OP-XLE 1 ADM Copper STM-4 ADM SCADA n x E 1 ADM Improving Your Bottom Line CE 2007 Slide 11

Highways and Railways over NGN • Legacy traffic control system and voice over MPLS rings Israel Railways Fast Ethernet Resilient Ring Over MPLS GBE GBE Regional Control Center ETH ETH MP Data Voice ETH MP ETH ETH MP MP Data Voice Modems UK Highway Rumanian Railways Korean Subways Improving Your Bottom Line CE 2007 Slide 12

Corporate Networks Successes Shanghai Subway Rome Station CPTM-Brazil Israel Railways Ofotbanen Norway Russia EDF France Shell Nigeria GASProm Russia China Light & Power Surgutneftegas Russia Improving Your Bottom Line CE 2007 Slide 13

Service Providers Your Challenges • Low margins on traditional services • Increased competition Your Winning Strategy • Protect your customer Base • Offer new services on existing platforms • New services: new revenue stream Your Possible Solutions • Ethernet services over any network • Expand your metro as a nationwide service • Voice over any Platform Improving Your Bottom Line CE 2007 Slide 14

Metro Ethernet Access Customer Premises CPE UTP GE/FE ETX FO GE/FE Edge Device Customer Premises FO GE/FE Packet Switched Network Eth/IP/MPLS CPE ETX GE/FE Customer Premises Ethernet IPmux-11/14 FE LAN PBX E 1 GE Gmux-2000 Short List 21 Century STM-1 E 1/E 3 PSTN No 1 in deployed TDMo. IP lines • Smart CPE enlarges your service portfolio, additional revenues • Pseudowire technologies for legacy service emulation • Corporate voice savings Improving Your Bottom Line CE 2007 Slide 15

Ethernet over Existing SDH Infrastructure Customer Premises CPE FE ETX Packet Switched Network Eth/IP/MPLS Fiber Customer Premises IP-DSLAM 10/100 Base. T RIC MP-4100 GE/FE Egate n x E 1 STM-1/E 1 Customer Premises RIC 10/100 Base. T ADM E 1/T 1 n x E 1/T 1 ADM SDH/SONET Network Customer Premises CPE FE ETX GE ETX CPE GE/FE NG ADM Improving Your Bottom Line CE 2007 Slide 16

Metro Expansion over SDH Evolutionary Multi-service Solution CPE ETX GE/FE Edge Device Edge FO Device GE/FE Your Benefits Packet Switched Network Eth/IP/MPLS • From City to Nationwide coverage • Wide Service portfolio GE/FE FE IPmux Ethernet LAN E 1 Edge Device GE/FE • Better utilization of existing resources GE Egate RIC Gmux-2000 STM-1/E 1 STM-1 E 1/E 3 10/100 Base. T TDMo. IP Voice to the PSTN Network ADM Advantages of RAD’s Solution CPE ETX PBX • Intelligent CPE: Revenue increased by SLA differentiation n x E 1/T 1 SDH/Sonet Network • Money saving SDH concentrator • Single supplier of Voice and Ethernet Services FO GE/FE ADM RIC E 3/T 3 IP-DSLAM 10/100 Base. T ADM FCD-155 LAN n x E 1/T 1 STM-1 ADM Improving Your Bottom Line CE 2007 Slide 17

Adding Ethernet Access Solution Branch 10 BT RIC Metro Ethernet Branch 100 Fx/ Gb. E ETX 10 BT RIC Eo. PDH Branch 100 BT RIC Gb. E Branch Eo. PDH n x Eo. PDH Bonding DSLAM n x Eo. CU SDH Bonding Gb. E 1000 Sx Egate ETX 10/100 BT Gb. E STM-1/OC-3 Headquarters LA Service Provider Packet Switched Network Gb. E DSLAM LA Eo. CU Branch 10 BT Gb. E • Extending the reach of the provider’s network over a variety of access technologies • Consistent Ethernet service across different access technologies Improving Your Bottom Line CE 2007 Slide 18

Ethernet over SDH Successes Incumbent Carriers: Nepal Telecom Alternative/City Carriers: Improving Your Bottom Line CE 2007 Slide 19

End-to-End Vo. IP Solutions in one week!! Customer Premises PBX Tel Lines (POTS, ISDN, E 1) Back-office Provider’s Site IPVgate CPE IPVsuite RADview-SC/IPV Management & Monitoring database LAN ADSL Smart CPE IP Network IPVswitch Class 5 Soft. Switch IP Phone or SIP client PSTN or Cellular IPVgate. P Gateway • Integrated Vo. IP Access System • Time to Service = 1 Week ! • Low initial investment • Unique Quality of Service Improving Your Bottom Line CE 2007 Slide 20

Service Provider’s Business Model – Simple and Clear Invest-As-You-Charge Economics Improving Your Bottom Line CE 2007 Slide 21

Mobile Operators Your Challenges • ARPU Decreasing • Questionable ROI of data services Your Winning Strategy • Reduce your backhauling expenses with traffic aggregation • 3 G deployment: new revenue stream • Smooth migration to PSN Your Possible Solutions • A single backhauling platform: Legacy and PSN • Voice Compression and Traffic optimization • Effective HSDPA Traffic Handling Improving Your Bottom Line CE 2007 Slide 22

Traditional Backhaul Networks Over 3 years with RAD 2. 5/3 G DSL Backhauling services offered by FT Global based on RAD Radio Sites LA-110 DSL n x DSL ATM DSLAM BSC/RNC Site STM-1 ATM E 1 s TDM Ch. STM-1 ACE Multiservice Aggregation 2 G BTS 3 G Node-B TDM/ATM 2 G BTS 3 G Node-B DSL Bonding E 1 IMA SHDSL LA-110 Voice E 1 UNI 3 G Node-B LA-110 n x E 1 IMA STM-1 SDH / ATM Access Network ADSL n x E 1 (IMA) STM-1 HSDPA ACE Multiservice Aggregation n x E 1 TDM 2 G -BTS n x E 1 ATM IMA 3 G Node-B Improving Your Bottom Line CE 2007 Slide 23

NGN Backhaul Networks Radio Sites LA-110 DSL Backhauling services offered by FT Global based on RAD n X DSL IP DSLAM BSC/RNC Site STM-1 ATM Ch. STM-1 2 G BTS 3 G Node-B DSL Bonding LA-110 Voice E 1 UNI 3 G Node-B LA-110 ACE Multiservice Aggregation TDM/ATM E 1 IMA SHDSL FE/Gb. E E 1 s TDM 2 G BTS 3 G Node-B PSN ADSL Access Network FE/Gb. E HSDPA ACE n x E 1 TDM Multiservice Aggregation Emulated TDM or ATM Service 2 G -BTS n x E 1 ATM IMA 3 G Node-B • Allows additional Opex cost reduction (10: 1 ratio) • Complete portfolio – including DSL-based PW devices • Smooth migration to PSN Improving Your Bottom Line CE 2007 Slide 24

Effective Handling of HSDPA Traffic RAD is Awarded HSDPA Hybrid Global Tender HSDPA n x E 1 ATM 3000 Node. B’s for HSDPA Over ADSL ACE-3200 ADSL 2+ FE 3 G Node. B IP DSLAM HSDPA STM-1 ACE-3402/3600 ACE-3100 ADSL 2+ FE PSN 3 G RNC 3 G Node. B GE STM-1/ ATM LA-130 Up to 4 x E 1 ATM HSDPA Traffic ADSL 2+ ATM Transport Network RFQ Stage: Improving Your Bottom Line CE 2007 Slide 25

Slashing Your Opex MSC Site 16 -to-1 E 1 Compression MSC Site MSC Voice Trunking STM-1 E 1 s Voice Trunking STM-1 MSC Gmux-2000 E 1 s TDM Network Remote MSC Site Gmux-2000 MSC/BSC Voice Trunking E 1 s Vmux-2100 GSM A-bis Optimization GSM Base Stations E 1 s Vmux TDM/IP Transport Network A-bis Optimization BSC E 1 s ROI: 2 to 8 Months Vmux Improving Your Bottom Line CE 2007 Slide 26

Ideas to Improve Your Bottom Line – Day 1 Migration to All-IP Networks Mobile & Service Providers Your Possible Solutions Utilities & Transportation Your Possible Solutions • Ethernet services over any network • Leverage your existing infrastructures • Multi-service Platforms: low and high bandwidth service integration • A single backhauling platform: Legacy and PSN • Voice Compression and Traffic optimization • Effective HSDPA traffic handling Personal Meetings & Product Showcase Improving Your Bottom Line CE 2007 Slide 28

Ideas to Improve Your Bottom Line – Day 2 Service Providers Your Possible Solutions • Leverage your SDH platform to provide new services • Expand your Metro/Ethernet as a nationwide service • Legacy & Voice over any Platform Summary Improving Your Bottom Line CE 2007 Slide 29

Improving your Competitiveness • Better utilization of your existing infrastructure • Offering more attractive services • Evolutionary NG implementation Improving your bottom line! Improving Your Bottom Line CE 2007 Slide 30

thank you Enjoy the conference! Dario Zipris VP Sales www. rad. com