MEF Keynote Ethernet Services MSOs Success

MEF Keynote Ethernet Services + MSOs = Success! Nan Chen President MEF President Qosera 1

MEF@SCTE Expo 08 • MEF Update & Review – – – The MEF, its mission & key areas of work Membership Growth: Cable Operators/MSOs embrace Carrier Ethernet What is Carrier Ethernet? New Standards & certification just announced Business drivers and growth for the whole Carrier Ethernet market • Ethernet Services + MSOs – Business expansion driven by footprint and mid-market opportunities – Carrier Ethernet for cable operators • Other new Initiatives for MSOs – Global Service Directory – Mobile Backhaul 2

The MEF • Representative group of 146 service providers (Carriers & MSOs), equipment providers, software & test companies with uniformity of purpose - to accelerate the global adoption of Carrier Ethernet networks & services • Highly successful in establishing 20+ globally adopted Carrierclass Ethernet specifications • Over 200+ industry thought leaders at each quarterly meeting developing technical and marketing programs on a global and regional basis 3

MEF Membership Includes increasing MSOs and related Suppliers May 2008 • Membership doubled over 2 years • Diverse mix of SP, vendor and test groups • Commitment and active involvement in Forum workgroups Service Provider, Cable/MSO Members • • • • • • • Above. Net Alpheus Communications AT&T Bell Canada Bright House Networks British Telecom Cable & Wireless Charter Communications China Telecom Cincinnati Bell Colt Comcast Cox Business Demand Broadband Embarq IPC KDDI R&D Laboratories KPN Telecom Level 3 Communications ntl: Telewest NTT Optimum Lightpath Orange Business Services PCCW PT Inovação • • • • • • PT Prime Qwest Communications RCN Business Solutions Reliance Communications Shanghai Information Network Singapore Telecom Sprint Suddenlink Swisscom Symphony Communication TATA Communications Telecom Italia Telekom Malaysia Teliasonera AB Telstra Telus Time Warner Cable Time Warner Telecom T-Systems Uecomm Verizon Business XO Communications 4 Now 146 Members Equipment Vendors, Test Companies, Lab Members • • • • • • Accedian Networks Actelis Networks Adtran Adva Optical Networking Aethera Networks Agilent Technologies Aktino Alcatel- Lucent AMCC ANDA Networks ARRIS International Atrica Aurora Networks Axerra Networks Bay Microsystems Broadcom BTI Photonics Cable. Labs Calix Canoga Perkins Ceterus Networks Ceragon Networks Ciena Corporation Cisco • • • • Corrigent Systems D-Link Do Networks Dowslake Microsystems Dragon. Wave EANTC ECI Telecom Ericsson Ethos Networks EXFO Extreme Networks Fibro. LAN Fiber. Home Technologies Fluke Networks Foundry Networks • Fujitsu Network • • Communications Gridpoint Systems Hammerhead Systems Harris Stratex Hatteras Networks Hitachi Cable Huawei Technologies IMC Networks Infovista • • • • • • • Iometrix • IP Infusion • Ixia • JDSU • Juniper Networks • Lightstorm Networks • Maipu Communications • Matisse Networks • Maxim • Motorola • MRV Communications • Nakina Systems • NEC • Nokia Siemens Networks • Nortel Networks Corp. • Occam Networks • Omnitron Systems • Overture Networks • Qosera • PCT International • RAD Data Communications • Raisecom • Resolute Networks • Rivulet Communications • Safenet • Salira SMC Networks Soapstone Networks Spirent Communications Sunrise Telecom T | Pack Tejas Networks Telco Systems Telcordia Technologies Tellabs Telrad Networks Transition Networks Transmode Optical Transwitch Corporation Turin Networks UNH-IOL UTStarcom Vitesse Wipro Wintegra Wuhan Fiberhome Networks Zarlink Semiconductor Zhone ZTE Corporation Zyxel Communications 4

Carrier Ethernet Defined Carrier Ethernet is: A ubiquitous, standardized, carrier-class Service and Network Defined by five attributes that distinguish it from familiar LAN based Ethernet 5

Carrier Ethernet Scope and Reach Internet information & Software apps HD TV, TVo. D, Content Providers Host applications, Consolidated Servers Gaming, DR, ERP Voice/Video Telephony Video Source Carrier Ethernet wire-line and mobile backhaul with copper, fiber , cable, wireless access network delivery Enterprise Clients Small/Medium Business So. Ho & Residential Triple-Play Mobile data/video 6

Carrier Ethernet for Mission Critical Applications Carrier Ethernet brings significant business benefits to mission critical applications • Top Market Sectors • Healthcare, finance, education, government, media • Principal Applications • Site-to-site access, server consolidation, business continuity / disaster recovery, software as a service (Saa. S), service orientated architecture (SOA), Internet access, distributed imagining, converged networking • Benefits • Scalability, control, reliability, performance, data center & server consolidation, expedites and enables new applications • Cost reduction, revenue acceleration 7

Worldwide Business Ethernet Services Worldwide revenue for Business Ethernet Services mounts steadily to nearly $31 billion by 2012. • Robust enterprise customer demand is projected for the next five years, with double-digit annual growth across all geographic regional markets: Asia/Pacific, EMEA, U. S. , and ROW. • Service providers throughout the world are committed to Ethernet as the future ubiquitous standard for network service connectivity. • Ethernet equipment vendors are actively enabling this important transition. • Customer accessibility to fiber facilities is the top challenge to worldwide growth of Ethernet services. • Detailed market statistics are available through Vertical Systems Group’s ENS Research Programs (www. verticalsystems. com). Business applications for Ethernet Services include Dedicated Internet Access (DIA), Ethernet Private Lines, Ethernet LAN / VPLS, and Ethernet access to other network services (e. g. , IP/MPLS VPNs, Frame Relay, etc. ). 8

Ethernet Services + MSOs = Success! Carrier Ethernet enabled applications, Simple technology, Certified, ubiquitous services are key and ideal for mid market expansion for MSO and Cable Operators 9

Carrier Ethernet Architecture for Cable Operators Headend Analog TV Feeds Hub D 2 A Video Server UNI Home Run Fiber Node Eo. Coax Eo. HFC EQAM Ad Insertion A 2 D E-LAN Business Services over Fiber (Gig. E) CE E-Line Internet Access CE CMTS UNI Switched Fiber Digital TV, VOD, Interactive TV, Gaming Optical Metro Ring Network Managed Business Applications E-NNI Hub Another MSO or carrier Network Voice/Video Telephony Voice gateway UNI Business Park Business Services Eo. DOCSIS (future) Eo. SONET/SDH, Eo. PDH Wireless Plant Extension PON E-Line E-LAN CE WDM Leased T 1/DS 3 Eo. T 1/DS 3 UNI CE Greenfield Residential & Business Services 10

MSOs + Carrier Ethernet: Business grows locally Internet information & Software apps HD TV, TVo. D, Content Providers Host applications, Consolidated Servers Gaming, DR, ERP Voice/Video Telephony Video Source Simple low cost Carrier Ethernet services grows Mid market business, but still has limited penetration Mid-Market Home Office Via Carriers: Qo. S, bandwidth & varies by region. Multi-regional cable operators extend footprint but are limited to selected markets Carrier Ethernet Network Home Office Branch Office or Retail 11

MSOs + Carrier Ethernet: Business growth improves nationally and globally Internet information & Software apps Host applications, Consolidated Servers, Vo. IP, etc Video Source Standardized Qo. S, bandwidth Business footprint unlimited, spanning other cable operators and service providers Cable Operator A Mid-Market Home Office Branch Offices Carrier/PTT Carrier Ethernet Network Cable Operator B Cable Operator A Home Office Branch Office or Retail 12

MSOs + Carrier Ethernet: New Wholesaling Opportunities Internet information & Software apps Host applications, Consolidated Servers, Vo. IP, etc Carrier/PTT Branch Offices Video Source Large Enterprise Cable Operator B Remote Carrier buys wholesale service to access branch office with Carrier Ethernet connections Branch Office Cable Operator A Mid-Market Home Office Carrier Ethernet Network Cable Operator A Home Office Branch Office or Retail 13

Drivers for Carrier Ethernet in the Cable Industry • Business Benefits – Expansion of business footprint beyond local and regional footprint – Cooperation and wholesale revenue from traditional carriers – Pooling of resources, simplicity of implementation enables business cooperation creates new opportunities • Standardization – Definition of Carrier Ethernet & implementation of products to MEF specifications creates standardized networking within and between MSOs • Certification now available for products, services – Certification of both products and services creates confidence and scalability – 70 Services, 400 systems, 75 suppliers and service providers now approved TM • Rapid expansion, recognition of Carrier Ethernet 14

Other Related New Initiatives 15

MEF 18 Certification (1 st announced companies June 18 th) • MEF 18 provides standard testing of Circuit Emulation Services over Ethernet – Speeds implementation and enables full inter-operability – 334 ground breaking tests and certification in the suite – MEF 18 has many applications but is key to Mobile Backhaul migration strategies • Lead by strong service provider demand • Industry first impairment testing brings first test of emulation of clock recovery • Raise the level of confidence that clock recovery will meet the stringent requirements. • Comparison with ITU 8261 – ITU 8261 does not define a profile that allows a deterministic and repeatable test – MEF 18 Certification: the first test bed to produce repeatable results 16

Why a Certification Program? • Assures service providers that Carrier Ethernet Equipment complies with MEF Specifications • Assures enterprises that Certified Carrier Ethernet services will perform to defined service level specifications – minimizes risk • Facilitates migration to Carrier Ethernet – Assurance that SP Carrier Ethernet offering is reliable and supports converged applications “Are you MEF compliant? ” frequently seen in RFP’s June 18, 2008 MEF 9, MEF 14, MEF 18 for Equipment Manufacturers MEF 9, MEF 14, for Service Providers Approaching 500 systems and services certified 19 service providers, 59 equipment manufacturers 17

New Global Services Directory • Business Users – Find Carrier Ethernet services anywhere in the world. • Service Providers (Carriers/MSOs) – Find a partner to build a global Carrier Ethernet service. 18

Carrier Ethernet for Mobile Backhaul • Carrier Ethernet – Economically meets exploding bandwidth requirements currently constrained by the prohibitive costs of legacy networks – Leverages rapid move to Carrier Ethernet for wire-line traffic enabling a single integrated wire-line and mobile backhaul network – Much easier for service providers to manage and maintain • Most mobile traffic is broadband/IP centric – Carrier Ethernet is optimized for packet data traffic • Overcomes TDM (T 1/E 1) services scalability – This alone makes Carrier Ethernet the compelling choice • Time/urgency – Carrier Ethernet removes the barrier to timely progress 19

Thank You Q&A Visit www. metroethernetforum. org 20