SBC Optical Transport Technologies and Services Agenda

SBC Optical Transport Technologies and Services

Agenda • Fiber Optic Overview • Point-to-Point Topologies – DS 3 – Giga. MAN – Deca. MAN – Fibre. MAN – Multi-service Optical Networks (MON) Pt to Pt • Ring Topologies – SONET – MON • Ethernet Optical Networks – Optical Ethernet Metropolitan Area Network (OPT-E-MAN) 2

Metro Network Trends • Enterprise bandwidth requirements continue to grow exponentially • Growing number of high-rate data interfaces, according to industry studies* [OC 48 equivalent bandwidth] • year 2000 = 8000 OC 48’s • year 2005 = 100, 000+ OC 48’s – Need to support different protocols: – Fast Ethernet, Gigabit Ethernet, ESCON, FICON, Fibre Channel, Video, etc. (Future 10 Gbps Ethernet) • More timely delivery of bandwidth; scalability is critical 3

Metro Services and Bandwidth Higher Service Rates 40 G+ Service HDTV 10 G 1 G 622 M 155 M 100 M 45 M 1. 5 M Technology re u ut F Fiber Channel OC-192 Video OC-48 c Gigabit Ethernet ESCON OC-12 c FICON OC-3 c Fast ISC DS 3 Ethernet DS 3 DS 1 TDM ATM IP IP SONET Mainframe OC-3 OC-12 OC-48 OC-192 Cross Connects OC-3 OC-12 OC-48 ATM Switches Other. . . Growing Range of Services Application Space Growing Optical Interfaces Across Diverse Group of Equipment. How to Network These Connections? 4 OC-3 OC-12 OC-48 ESCON FICON ISC Routers/IP switch OC-3 OC-12 OC-48 G Eth F Eth HQ Video OC-3 D 1 HDTV

Evolution of Fiber LED 100 Mbps Stepped Index Multi-mode Fiber 5

Evolution of Fiber Laser Single Mode Fiber v Thin core with continuous light waveguide v No room for light to bounce in core v Most commonly used mode v Currently 8. 3 - 9. 5 um core size [millionth of a meter (3. 28 ft)] v 1300 nm wavelength [billionth of a meter] 6

Evolution of Optical Electronics Wave Division Multiplexing (WDM) - A technology that allows multiple wavelengths to be multiplexed over a single strand of fiber. Comes in various forms including Dense and Wide depending on the number of wavelengths involved. 7

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Dense Wavelength Division Multiplexing (DWDM) Review • Magnify fiber capacity 30 -fold – Each color wavelength carries independent signal Wavelength Conversion Protocol 1 Wavelength Demultiplexing Conversion Multiplexing Protocol 1 Fiber Protocol 2 Protocol 3 Protocol 4 9 Current metro DWDM systems typically support 32 wavelengths on a fiber Protocol 4

SBC Data Product Continuum 10

Data Transfer Rate • • • Metric Code When used to describe Data Transfer Rate, bits/bytes are calculated as in the metric system: For Example: 1 bit (b) = 0 or 1 = one binary digit 1 kilobit (kb / K) = 10^3 bits = 1, 000 bits 1 Megabit (Mb) = 10^6 bits = 1, 000 bits 1 Gigabit (Gb) = 10^9 bits = 1, 000, 000 bits 1 Terabit (Tb) = 10^12 bits = 1, 000, 000 bits 1 Petabit (Pb) = 10^15 bits = 1, 000, 000 bits 1 Exabit (Eb) = 10^18 bits = 1, 000, 000 bits 1 Zettabit (Zb) = 10^21 bits = 1, 000, 000, 000 bits 1 Yottabit (Yb) = 10^24 bits = 1, 000, 000, 000 bits 1 Google = 10^100 1 Google. Plex = 10^[10^100] Note: Kilobits per second is usually shortened to kbps or Kbps. Although technically speaking, the term 11 kilobit should have a lowercase initial letter, it has become common to capitalize it in abbreviation (e. g. "56 Kbps" or "56 K"). The simple "K" might seem ambiguous but, in the context of data transfer, it can be assumed that the measurement is in bits rather than bytes unless indicated otherwise.

The Ethernet Evolution-Need for Speed • LANs are the most important part of data networking. • Common vehicle for data to pass over LANs has been the Ethernet Protocol. • 10 Mbps was sufficient in the 90’s • Progression to Fast Ethernet (100 Mbps) • Replaced by Gigabit Ethernet (1000 Mbps) Fast Ethernet 12 Gigabit Ethernet

Giga. MAN® is… • • • 13 Giga. MAN Service is used to connect two customer locations at the rate of 1 Gigabit per second. ( OR 1 billion bits per second) 22 X the speed of DS 3! 647 X the speed of DS 1!

Deca. MANSM is…… • • • 14 SBC Optical transport service used to connect two customer locations at the rate of 10 Gigabits per second! Private line optical service means low latency and jitter 10 X the speed of Gigabit Ethernet! (Giga. MAN®) 223 X the speed of a DS 3! 6477 X the speed of a DS 1!

Deca. MANSM – Giga. MAN® Comparison Deca. MAN is similar to Giga. MAN Deca. MAN is different from Giga. MAN • Deployed over SBC expansive Wave Division Multiplex (WDM) Network & Nortel OM 5000 • At 10 Gbps, Deca. MAN is 10 times the capacity of Giga. MAN • LAN PHY service will be priced in range similar to 3 X Giga. MAN (not exactly, may vary) • Deca. MAN supports two types of service, LAN PHY and WAN PHY • Most circuits will be deployed without Network Terminal Equipment (NTE) on customer premises – – WDM allows for multiple circuits over single fiber when needed Carrier grade network, equipment and personnel: Not All Ethernet Services Are the Same! • Supports Ethernet standard interfaces (as specified) • Fully managed by SBC 24 x 7 • Similar rate structure (channel terminations & mileage); options for diversity and protection 15

What is Fibre. MAN? • Fibre. MAN (Fibre Channel Metropolitan Area Network) is based on the Fibre Channel protocol. The Fibre. MAN product offering is a fiber based point-to-point transport service. This service is used to connect customer provided Fibre Channel switches or routers from one customer location to another at a 1 Gbps or 2 Gbps line rate. The Fibre Channel protocol is an effective transport medium for storage area networks (SANs). Applications • Corporate information is a key competitive factor, and Fibre. MAN enhances IT and storage departments' ability to access and protect it more efficiently. Fibre. MAN will provide organizations a reliable and scalable way to extend the connectivity between customer sites to enable storage connectivity between servers. • Fibre. MAN and Giga. MAN® make a great bundle! An ideal candidate are those customers that have existing Giga. MAN service to see if they need a Fibre Channel circuit between those same two locations. • Fibre. MAN is ideal for these applications: • Fibre Channel is the #1 application for storage: • Network based storage • Storage backup systems and recovery – for improved disaster tolerance solutions • Connectivity within server clusters • Connectivity within storage arrays • Connectivity for access to large databases and data warehouses • Connectivity from internet data centers and/or web hosting data centers to corporate data centers or other corporate offices • Storage transport for imaging applications 16

Multi-Service Optical Network (MON) Value Proposition • For customers who have requirements for protocol transparent bandwidth for typically more than 3 Gbps between two or more customer sites and/or Central Offices, MON is a fully managed network solution that is flexible and scalable utilizing DWDM technology that delivers high bandwidth services in their native format. • Unlike private fiber/dark fiber solutions, our service is fully managed by highly trained technicians via a highquality network and is available in all SBC regions. 17

MON Ring Protocols Protocol ESCON ETR FICON ISC Fibre Channel Fast Ethernet Gb Ethernet D 1 -Video SONET OC-3/c SONET OC-12/c SONET OC-48/c Speed 200 Mbps 8 Mbps 1. 0625 Gbps or 2. 125 Gbps 100 Mbps 1 Gbps 270 Mbps 155. 52 Mbps 622. 08 Mbps 2488. 32 Mbps SONET OC-192/c 9. 953 Gbps 10 Gig. E WAN PHY 9. 953 Gbps 10 Gig. E LAN PHY 10. 0 Gbps *Approximations: 100 km = ~60 miles 18 Distance Limitation* 43 km 40 km 100 km - - Target 2 Q 04

What is SBC’s Ethernet over SONET? • A layer 1 solution encapsulating Ethernet into a SONET payload • Ethernet ports on all Dedicated SONET Rings - OC-3 to OC-192 – 100 Base. T – (Standard CAT 5, RJ 45) – 1000 Base – SX (multi mode) – 1000 Base – LX (single mode) • Ethernet with a SONET service level agreement • Point ~to~ Point Service over Dedicated SONET Rings • Dedicated Ethernet Bandwidth (not a shared service) • FCC and State Tariffs (Depending on Region) • Ultra - reliable and ring survivable! 50 ms protection switching • Ring or Star Topology 19

What is OPT-E-MAN? • A public switched Metro Ethernet product that will provide businesses with flexible bandwidth options from 5 Mbps to 1 Gbps, for Dedicated Internet Access transport, access to NBVPN or Transparent LAN services. • OPT-E-MAN supports the following configurations: Point to Point, Point to Multi-Point, or Multi-point to Multi-Point - using physical and virtual connections to meet specific business needs. • SBC/Cisco Alliance offering: OPT-E-MAN leverages the strengths of SBC’s network and Cisco’s equipment offerings. 20

OPT-E-MAN Product overview • Provides Metro area connectivity for customers with multiple locations in a LATA – Intra. LATA offering only • Product is offered by SBC regional Telcos – Providing service out of Telco rather than ASI has proven to be more cost-effective for the customer and SBC • Offers bandwidth from 5 Mbps to 1 Gbps in 8 choices: – 5, 10, 20, 50, 100, 250, 500, 1000 Mbps increments – Full 1 Gig customers will see less than 1000 Mbps due to very small network management traffic overheads – Phase 2 Tariffs note “company reserves the right to use up to 10% for traffic management” • OEM Basic looks very much like ATM and Frame Relay • OEM Basic Plus offers a multipoint broadcast domain. • Provides Point to Point, Point to Multipoint, or Multipoint configurations • Cisco Powered Network 21

OPT-E-MAN Product overview (continued) • Native Ethernet frame structure preserved • End-to-end Ethernet perfectly achievable • Uses Ethernet over MPLS (Eo. MPLS) core network – Ethernet is used between customer premise and core network • 1 Gbps access/transport – Fiber-based service only – Not using underlying technology such as SONET or DWDM • Handoffs to customer are 10/100 Base T or optical 1 Gbps interfaces (1 Gbps LX/LH, SX, and ZX) – Demarcation point is RJ 45 patch panel or fiber patch panel • 24 x 7 management and monitoring center – Enhanced Network Operations Center (ENOC) located in Sacramento, California – Provides Single Point of Contact for service • Tier 1 and Tier 2 support provided by ENOC • Tier 3 support provided by Cisco 22 – CCNA certified technicians on staff at ENOC

Applications • • LAN interconnection Dedicated Internet Access Network based VPN Mainframe peering Private networks Disaster avoidance Data imaging and mirroring Vo. IP 23

OPT-E-MAN Advantages • Rapid Deployment and Service Provisioning • Scalable, on-demand bandwidth • Reduced complexity for customers (No complex skill set required) • Carrier class features (low latency, rate limiting, recovery and resiliency) • 24 x 7 management center - ENOC • SLAs represent a major differentiator 24

2005 Enhancements • Basic Plus Connection Option – Provides Multi. Point to Multi-Point Connectivity - Available • Enhanced Edge to Edge Latency and Jitter SLAs Available • Introduction of 5 Mb CIR Option – Available • CNM – 4 Q 2005 • 50% Tariff Rate Reduction - June 2005 • California Teleconnect Fund - Sept. 2005 (DAS) 25

Primary Application 1: Transparent LAN Service • • • 26 Creates a Layer 2 Virtual Private Network over a shared Eo. MPLS core Glues several LANs together to appear as a single LAN within MAN if using Layer 2 device for connectivity Provides for intranet and enterprise site to site communications Can be used for extranet communications or connections to partner networks Supports multiple Grades of Service

OPT-E-MAN Network Reference Model 27

OPT-E-MAN Grades of Service • • OPT-E-MAN currently provides 2 Grades of Service (Go. S) – Bronze: suggested for traffic with more latency toleration such as general data traffic, internet access, etc. – Silver: suggested for more critical applications with low-latency requirements such as Vo. IP Offering Go. S represents a key differentiator in the market place Classification based on VLAN and on NTE port Rate limit set on customer-facing port on the NTE – Allows SBC to provide Committed Information Rate (CIR) – Customer should use CPE to shape whenever possible to maintain application performance – OPT-E-MAN will support frames up to 1546 bytes Classification SBC Edge 28 SP EDGE Policing Policer Drops

OPT-E-MAN Service Level Agreements (SLAs) • • 29 All SLAs are tariffed in the both state and federal tariffs with associated credits – Improved SLA’s are offered through ICB – Takes sample measurements of traffic using SAA probes established by the ENOC Network provides an Availability Service Level Agreement (SLA) of 99. 95%, per month – Service Outage Credit is offered per location in instance that customer’s service is disrupted – PDR, Latency and Jitter SLA’s are offered on an end-to-end basis, including local loop! Two Grades of Service are available: Bronze and Silver – Bronze SLA: • Packet Delivery Rate - 99. 5% • Latency - 35 ms one way – Silver for applications requiring minimal loss and low jitter such as Voice over IP • Packet Delivery Rate - 99. 9% • Latency - 25 ms one way • Jitter – 15 ms OPT-E-MAN Basic offers the following Service Level Objectives (SLOs) – MTTR: 4 hrs. end-to-end, including the local loop, per month – Installation: mutually agreed upon due date established on location by location basis based on fiber availability and equipment availability

Service Level Objectives (SLO’s) • Service Level Agreement (SLA) on network connection only • Service Level Objectives (SLO’s): – Network Availability – 99. 9% – Packet Delivery Rate – 99. 9% – Service Outage Credit – a service outage credit will be provided in the event that the service goes down • Service Outage credits apply • 10/8640 of MRC for each 5 minutes of outage; maximum of 100% of MRC 30

Facility Requirements - Fiber • Environmental – Secure, dust-free room (MPOE/MDF) • Pathway – 4” EMT conduit with inner duct and pull rope from property line to MDF/MPOE • Power/Electrical – 1 Dedicated 15 A 110 Outlet • Wall Mount Option available 31

SBC Premier. SERVSM Optical Networking Solutions Ethernet Service Protocols Applications Performance Giga. MAN® Gig. E PTP connections only Server farm/data center connectivity LAN extensions – HQ to branch Vo. IP / DIA / VPN SAN and remote data backup Low latency / jitter Excellent price per MB Options for unprotected and protected service Fully Protected service offers 99. 999 SLA DS 1, DS 3 OC-3 to 192 Gig. E, Fast Ethernet 10/100 Base. T Ring connecting multiple sites or PTP connections Ethernet, LAN connectivity Traditional TDM applications (voice, data & video) Mission critical data networking, Disaster Recovery and Business Continuity Planning High Performance Standard for reliability and SLAs Support for real-time applications OC-3 to OC-192 Gig. E, Fast Ethernet ESCONSM, FICONSM ** Fibre Channel D 1 Video 10 Gbps Ethernet PTP or multiple sites connected in ring Large data center connections Main frame computer connectivity Disaster recovery Mission critical data networking Very high volumes of data Multiple protocols over single platform Moderate to high (depending upon level of protection selected) Connections to multiple sites in MAN with any to any connectivity Connect to Dedicated Internet Access (DIA) Simplify network with more scalable connections Local access for IP VPN and other value-add services Bronze & Silver Qo. S Strong SLAs for packet delivery Speed 5 M to 1 G [1 Gbps] Deca. MANSM 10 Gigabit Ethernet [10 Gbps] SONET [up to 10 Gbps] MON [up to 160 Gbps] ** Service marks of IBM corp. OPT-E-MAN® / CSME [5 Mbps to 1 Gbps] 32 Gig. E, 10/100 Base. T Diverse and expansive choice of native protocols Fully utilized = low cost per MB

Questions? 33