Nortel Networks Overview Local Loop Solutions Dan Gârlaşu

Nortel Networks Overview Local Loop Solutions Dan Gârlaşu, Country Manager, Nortel Networks Romania June 2004 presentation name NORTEL NETWORKS CONFIDENTIAL PG 1

Nortel Networks at a Glance… Over Approximately 100 150 35, 000 years at the forefront of major technological innovation in telecom presentation name Serving more than countries employees worldwide NORTEL NETWORKS CONFIDENTIAL PG 2

Our Customers Small, medium and large businesses Public network carriers Financial institutions Educational institutions Hospitality industry Wireless operators Healthcare facilities Multiple System Operators (cable companies) presentation name Public institutions & government agencies Other industries NORTEL NETWORKS CONFIDENTIAL PG 3

Our Organization Addressing the needs of multiple markets and customers Leveraging technology portfolio across various market segments Common technological and networking expertise, operations and customer service presentation name NORTEL NETWORKS CONFIDENTIAL PG 4

Our Vision presentation name NORTEL NETWORKS CONFIDENTIAL PG 5

Our Strategy presentation name NORTEL NETWORKS CONFIDENTIAL PG 6

Where We’re Focused Nortel Networks is implementing its strategy through a sharp focus on: presentation name NORTEL NETWORKS CONFIDENTIAL PG 7

Transformed Network Architecture presentation name NORTEL NETWORKS CONFIDENTIAL PG 10

Nortel Networks European South East Region • More than 70 M pops. • 200 Employees • Countries: – Israel – Poland, Slovakia, – Romania , Slovenia, Croatia, Serbia, Bulgaria, – Macedonia, Albania, Bi. H, Moldova • Main sites: – Tel Aviv- Israel – Bucharest- Romania – Warsaw- Poland presentation name NORTEL NETWORKS CONFIDENTIAL PG 11

Nortel Networks in Romania • Nortel Presence in Romania – Nortel has been present in Romania for more than 16 years and established own office directly after the Mobi. Fon win. – Nortel has R&D entity in Romania that is employing more than 200 software & Hardware engineers in ITC Networks. – We are exploring these days future expansion in both R&D and Services. – Nortel has big footprint in the Enterprise market where as a lot of the Business community has installed Meridian PABX (400 ) and voice related applications, such as IVR, Call Center, Unified Messaging, etc. presentation name NORTEL NETWORKS CONFIDENTIAL PG 12

One Network Solution Components Clients Digital 802. 11 Wireless i 2002 i 2004 PC Soft Clients SIP Enabled Applications Call. Pilot Symposium Contact Center Periphonics Self-Service Unified Messaging Multi-Media Collaboration Communication Servers Norstar BCM Meridian 1 CSE 1000 SL-100 CS 2000 CSE MX Network Passport Op. Tera Contivity Alteon Bay. Stack Award Winning Products presentation name NORTEL NETWORKS CONFIDENTIAL PG 13

Our Local Loop Solutions – ADSL I/O • • The new ADSL I/O Card provides a new low-end access option for the Branch Office VPN solution Can operate stand-alone, or with other interfaces to provide primary and back-up options: – – • ADSL, with ISDN or PSTN E 1 or Serial or Ethernet, with ADSL Extends the reach of the Enterprise network with cost-effective, and efficient bandwidth now available to every location Contivity 251 ADSL Contivity 221 SOHO presentation name NORTEL NETWORKS CONFIDENTIAL PG 14

Portfolio View with Contivity 200 High End ~ $>20, 000 List Price Contivity 5000 Contivity 221 $ 449. 00 MSRP Contivity 251 (ADSL) $ 599. 00 MSRP Mid. Range Contivity 2700 Large Enterprise Contivity 1700 $8, 000 Contivity 600 $1, 500 $500 Medium Large Enterprise Small Medium Enterprise Contivity 251 ADSL Contivity 221 Contivity 251 ADSL 5 tunnels Contivity 221 Small Enterprise 5000 tunnels 2000 tunnels Contivity 1 xxx $1, 000 Small Office Nortel Enterprise 500 tunnels 30 -50 tunnels Small Office SOHO Home Office 2. 5 5 10 20 40 60 80 100 120 140 160 180 >200 Encrypted 3 DES Performance (Mbps) presentation name NORTEL NETWORKS CONFIDENTIAL PG 15

Local Loop Solutions: Wireless Mesh Networks • Key characteristics – – • Advantages – – presentation name NORTEL NETWORKS CONFIDENTIAL Auto-discovery of nodes and routes Auto-configuration of network components Mesh topology Wireless interconnection Rapid network deployment Reduced infrastructure costs Reduced engineering and operational costs Increased network reliability PG 16

An innovative public WLAN access solution Internet at large AAA, DHCP, RADIUS Optivity NMS NOSS Enterprise / ISP Backbone Network Wireless Gateway 7250 Layer 3 Switch • Border Gateway (NAT, Firewall, etc. ) – – – Wireless Gateway 7250 • Enterprise / ISP / Metro Distribution Network Reduces installation and commissioning costs by more than 75% Layer 3 Switch Reduces operating expenses by more than 70% – – Wireless AP 7220 presentation name • Community Area Network Self-configuring, self-healing No RF engineering required Outdoor packaging and low power consumption permits installation almost anywhere Eliminates requirements for wired backhaul connection to every AP Basic router connection to backbone network, Packet Gateway manages mobility, roaming, and security Provides differentiated WLAN access in large areas – – Mobility within the CAN Broadband access and transit remove network bottlenecks NORTEL NETWORKS CONFIDENTIAL PG 17

Wireless Mesh Networks Extending the reach of Wireless LAN… • Avoids service outages, provides efficient routing using auto-discovery and self-healing • Uses the 802. 11 b (and 802. 11 g in the future) interface, exploiting the immense – and growing – consumer base of WLAN compatible devices • Allows mobility within the network to provide a larger coverage area than traditional WLAN hotspots • Brings “hotspots” together into a Community Area Network (CAN), providing larger homogenous coverage and mobility within the CAN • Network elements required: – – Wireless Gateway 7250 Wireless Access Point 7220 Optivity Network Management System Depending on network architecture, Layer 3 routers for connection of mesh to wired distribution network presentation name NORTEL NETWORKS CONFIDENTIAL PG 18

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