Building Ethernet/IP Service Awareness into NG Optical Transport Networks

1. Building Ethernet/IP Service Awareness into NG Optical Transport Networks • Enrique Hernandez-Valencia • Lucent Technologies • Broadnets, October 2006 Lucent Technologies Proprietary Use pursuant to company instruction

2. Market Trends:Growth of Voice & Data Metro Traffic Sources: Pyramid Research, March 2006, Pyramid Research, June 2006 + Bell Labs Analysis Sources: IDC, September 2005, Ovum RHK, December 2005 + Bell Labs Analysis • Increased demand for wireless voice services tempered by decline in voice bandwidth driven by shift to compressed audio (mobility & VoiP) • Continue growth in broadband business services and Internet traffic driven by P2P applications such as multi-media, audio/music, games and video Lucent Technologies Proprietary Use pursuant to company instruction

3. U.S. Business Ethernet Service Forecast • The U.S. market for Ethernet services is growing at a healthy pace • IDC predicts that the U.S. market for Ethernet services will grow to $2.7 billion in 2010, a compound annual growth rate (CAGR) of 33.8%. Ethernet is replacing other Layer 2 services and private lines • Service Providers are investing in Ethernet connectivity services, upgrading infrastructure to carrier grade, with improved Quality of Service and associated SLAs. Source Report :IDC, April 2006 Lucent Technologies Proprietary Use pursuant to company instruction

4. Market/Technology Trendsand Network Implications New Revenue Producing Differentiated Services Blended Lifestyle Apps Fixed Mobile Convergence • Increased IP awareness in mobile network elements • Flexible IMS based Service Architecture Simplified Network Architecture Enabling Converged Services Near-Term • Leverage low cost Ethernet transport & switching • Leverage flexible WSS • “Flatten” Network L3 capabilities toward the edge Increased Bandwidth Needs for Multi-Media Services More efficient, low cost data networking architectures Mid-Term • Consolidate transport functions and minimize Interface types • Integrate Optical/Packet Traffic Engineering • Secure & controlled access to intelligent net elements • Reduce Network Complexity while supporting • Security & QoS • Scalable Capacity • Performance & Reliability Long-Term Lucent Technologies Proprietary Use pursuant to company instruction

5. Factors Impacting Long Term Network Architecture Evolution • Network Operators drive for simpler transport network infrastructure • Ethernet as convergence layer for packet access & transport services • Synergistic with introduction of Business Ethernet services • End-user Services shift from Internet Access & VPN to VoIP, Multimedia, and Peer-to-Peer apps • Driving convergence of wireless & wireline transport infrastructure • IP traffic will have an increasingly localized component • Blended/Bundled Business & Lifestyle services emerge as key features to SP differentiation • Increased L3 awareness in transport elements (IP awareness) • Important to have consistency across transport layers for per-session gate, QoS, and bandwidth control • Compound growth from rising broadband subscriber base, service take, and bandwidth per session • Drives need for more transport capacity • Drives need for more efficient transport and processing network elements Drive towards consolidation of service functions at the edge, localized switching, and high capacity switched IP/Ethernet transport Lucent Technologies Proprietary Use pursuant to company instruction

6. Video Voice Voice MSE Metro/Reg Office Local Office MPLS/IP IP / MPLS DWDM OXC DWDM Metro Backbone / Regional Metro Metro Aggregation Wavelength Services EoF Ethernet SDH / SONET Switched Ethernet Services Optical and Data Transport Networks Current Architecture & Services Using multiple networks for different services is costly and inefficient • Results in higher costs for delivering Regional / Metro Ring Services to enterprises • Complex service provisioning via various network layers • Stranded bandwidth across multiple layers of interconnect • Expensive network maintenance and spare stocks DSL DSLAM Copper Access SDH Wireless Backbone SONET / EoS TDM & Ethernet PL Services One network per service type approach is blocking further OPEX & CAPEX reductions Lucent Technologies Proprietary Use pursuant to company instruction

7. IPTV and Video on Demand (VoD) will redefine the Access and Aggregation network space VoD/IPTV grow by orders of magnitude over the next 5 years 2005: 90% best-effort data traffic 2010: 40% high-priority VoD traffic 50% best-effort data traffic Carrier-class links with capacities of 40G and100G required in MAN Video Will Redefine NG Transport Networks Source: Bell Labs IPTV/VoD study, May 2006 Service providers need to deploy scaleable, efficient and secure transport networks that enable innovative multimedia services while providing carrier-class performance and manageability Lucent Technologies Proprietary Use pursuant to company instruction

8. Implications of Broadband & Triple Play Services on Access/Aggregation Network • New Broadband & Multimedia services (IPTV, VoD, VoIP & games) place additional requirements on the SP network infrastructure: • Bandwidth scalability: support for real-time broadband applications (i.e., VoD, Gaming) • High availability: short restoration, no general outages • Service differentiation: latency, jitter, packet loss in SLAs • Resource management: granular bwd, traffic engineering, resource management & reservation in support of SLAs • Carriers have made a strategic decision that their next-gen feeder/aggregation infrastructure will be Ethernet-based: • Yet, “Best Effort” forwarding model will not meet carrier requirements for scalability, quality, and OPEX/CAPEX • Transport network must support a superior IP-aware Quality of Experience to attract and retain customers Lucent Technologies Proprietary Use pursuant to company instruction

9. Metro / Regional Office Metro / Regional Office MPLS/IP DWDM OXC Metro Backbone Or Regional Metro Converged Optical & Data Network Evolving Transport Architecture in Support of Broadband Services CMTP converges Wavelength, TDM and Packet services onto a common platform • Improved price competitiveness in delivering Regional / Metro Ring Services to enterprises • Inter-works with existing network elements • Enabled Network evolution with tight integration to ITU NGN models • Drastically reduces equipment needs in Metro & Regional Hub offices • Minimizing spare stock & network maintenance efforts MSPP SONET / EoS MSPP MSPP Optical PL & EPL Services LER EoF Ethernet LER LER E-LAN, TLS & PW Switched Services Converged Multi-service Transport Platform MSTPs ConvergedMulti-service Transport Platform xWDM MSTPs Virtual Fiber Services Single transport infrastructure for packet and circuit services Lucent Technologies Proprietary Use pursuant to company instruction

10. Packet Control Plane Packet Plane Packet I/O Packet I/O Packet Fabric TDM Control Plane TDM Plane System Control TDM I/O TDM I/O TDM Fabric Optical Control Plane WDM Plane cWDM I/O DWDM I/O ROADM Converged Multi-Service Transport PlatformsArchitectural Requirements Converging WDM, TDM and Packet into a single platform Separated Planes for TDM & Packet & WDM • Optimized architecture for each network plane • Optimized switches & I/O packs for each plane • Flexible/cost optimized hybrid configurations • Unrestricted usage of each plane as needed • Full system bandwidth utilization & scalability • Dedicated interconnection units using regular I/O slots following strict “plug and pay what you need” paradigm • Complexity Reduction, Reliability Increase • Cross plane system control providing single or segregated node view • Independent subsystems with well defined interfaces • Easy operational concept following clean layering model Lucent Technologies Proprietary Use pursuant to company instruction

11. ATM ATM FR FR Ethernet Ethernet IP IP Other Other MPLS MPLS ATM ATM POS POS Ethernet MAC Ethernet Ethernet PHY RPR RPR SDH SDH DWDM DWDM FIBRE FIBRE Converged Multi-Service Transport PlatformsPacket Attributes • Packet optimized adaptation for all types of L2 traffic (Ethernet, HDLC, PPP, FR, …) with idle suppression capabilities MPLS Pseudo Wires (IETF PWE3) • Data-aware transport with ring/mesh-wide efficient statistical multiplexing for all data services via MPLS forwarding and aggregation • IP/MPLS control plane as a common mechanism for A-Z path management that can seamlessly interwork with existing IP/MPLS long-haul networks • VCAT, GFP & LCAS to interwork with existing underlying SONET/SDH & OTN networks • xDSL/PON, PB/PBB & RPRsupport to interwork with existing underlying Ethernet access networks Ethernet/MPLS IP/Ethernet MPLS SONET (EoS) WDM / OTN ATM/FR IP-PBX Converged Multi-Service Transport Platform VoIP/SS SONET/SDH ADM Lucent Technologies Proprietary Use pursuant to company instruction

12. ROADM Components Add/Drop & Thru Any l to any port Role of ROADM in NG Transport OA • Network operators are finally adopting Reconfigurable Optical Add/Drop Multiplexers (ROADMs) technology • Multiply fiber capacity through wavelength division multiplexing (WDM), • Enhance network flexibility with remotely reconfigurable optical add/drop • Reduce transport network capital and operation expenses by using optical bypass when optimally deployed • First generation ROADMs were degree-2 network elements (NEs) and supported linear chain and ring architectures. • Next ROADM generations has 4 or higher degrees allowing a flexible ring/meshed network topology • Hybrid Network Elements (NE’s) integrating SONET-ADM or Packet-ADM functionalities into ROADM DWDM Line System 1st Gen: Fixed 2-Degree ROADM 2nd Gen: 4+ Degree ROADM Lucent Technologies Proprietary Use pursuant to company instruction

13. ATM ATM FR FR Ethernet Ethernet IP IP Other Other MPLS MPLS ATM ATM POS POS Ethernet MAC Ethernet Ethernet PHY RPR RPR SDH SDH DWDM DWDM FIBRE FIBRE Converged Multi-Service Transport PlatformsTDM/WDM Attributes • Multi-degree ROADM (WSS) with • 2.5G up to 40G wavelength support • Over 40 channels per system • Full-band tunable lasers • Full integration with OTN and SONET/SDH • STS/VT and VC muxing and switching (SONET/SDH/G.707) • ODU muxing and switching (OTH/G.709) • ASON/GMPLS control plane for automated provisioning & network inventory MSPP CMTP Packet OXC TDM Capability DWDM OADM MSTP cWDM WDM Kilometers 0 300 100 600 1200 4000 Metro IOF Regional Ultra Long Haul Customer Prem. Metro Access Long Haul Lucent Technologies Proprietary Use pursuant to company instruction

14. Evolving Beyond Legacy Transport ModelsFrom Quality of Service to Quality of Experience • Support Converged Services on a Massive Scale • Efficient routing, flexible service delivery across multiple access technologies • Service Aware QoS – VoIP, BB, Video • Video applications driving additional growth in network usage • Provide automated management, integration and maintenance services • Dynamic, continuous session-state, end-to-end QoS • Service aware to efficiently manage costs • Network QoE: Scale, QoS, Reliability, Resiliency • Multi-network, multi-vendor management • Legacy Migration, wireless/wireline convergence Converged Services Drive QoE Requirements IP Video Services Wavelength Services Carrier Ethernet Services Feature Driven Storage Area Networking IP Video TDM Services Managed Internet Service Long Distance Broadband Data Local Voice Ethernet Services Private Line Services Premium Video VPN Services Lucent Technologies Proprietary Use pursuant to company instruction

15. Converged Transport Networks and ITU-T Next-Generation Networks NGN Other NGNs • ITU-T Y.2001/Y.2011provides a framework for NG IP-Aware transport networks • RACF is a functional component of the NGN architecture that enables real-time, session based resource control for a variety of services and a variety of networking technologies • Keeps services technology-independent • Keeps the network service-independent IMS Service Control Functions Non-IMS Service Control Functions (e.g. VoD) RACF Wimax Metro Optical/ Ethernet DSL Access IP/MPLS Core Radio Access Network Lucent Technologies Proprietary Use pursuant to company instruction

16. intra- domain inter- domain Other NGNs The ITU-T RACF (Y.2111) Architecture Service Control Functions (part of IMS or other) Service Stratum Rs Transport Stratum Rp Rd Policy Decision Function Transport Resource Control Function Network Attachment Control Functions Ru Ri Rt RACF Rc Rn Rw Transport Enforcement Function Policy Enforcement Function Transport Functions • RACF • Augments native transport QoS support • Timely preempting traffic during congestion • Is applicable to IMS and non-IMS applications (e.g., VoIP and IPTV) • Can be deployed edge-to-edge or end-to-end • Policy Decision Function • Service-facing, transport-independent • Transport Resource Control Function • Service-independent, transport-dependent, network-segment-specific • Policy Enforcement Function • typically part of border transport elements Lucent Technologies Proprietary Use pursuant to company instruction

17. Key Roles of RACF and Related Entities • Policy Decision Function • Makes the overall admission decision based on policy and resource availability (including path and enforcement point selection) • Applies resource controls to the transport for bandwidth allocation, packet marking, gating, NAPT, etc. • Transport Resource Control Function • Tracks transport resource use and network topology • Performs resource-based admission control • Policy Enforcement Function • Enforces controls applied by PDF • Policing • Filtering • Charging/Metering • NAT and NAT Traversal • Overall, RACF supports • Relative and absolute QoS, including differential priority • Endpoints of varied QoS control capabilities • Push and pull models for policy installation • Multiple transaction models for resource requests • Various resource management methods based on accounting, measurement and reservation • Existing and emerging transport QoS mechanisms Lucent Technologies Proprietary Use pursuant to company instruction

18. BGW Management System CMTP Mobility Routers Bearer GatewayFunctions Ethernet/MPLS Routing DSL PON Copper Fiber Application Aware QoS CDMA UMTS GSM Next-Gen Transport Networks Intelligent Ethernet/IP-optimized Network Strategy Service Integration Non-IMS IMS RACF Service-aware QoS IP/MPLS Core Ethernet / OpticalMetro Optical/Ethernet Routers Ethernet /MPLS Routers Intelligent Access Ethernet Edge Access Nodes • Converged MS Transport Architecture • Integrated Ethernet/Optical Metro - reduced network complexity and costs • Service Intelligent Access - efficient routing, flexible service delivery across multiple access technologies • Policy Based Service Aware QoS - based on individual applications, user needs • Delivers: • Simplified, flexible architecture – scalable, reliable designed for QoE • Ultimate user experience - seamless and secure management across multiple devices & networks • Innovative blended services with IMS • Flexible network integration for investment protection Lucent Technologies Proprietary Use pursuant to company instruction

19. Conclusion • An intelligent optical/packet optimized network enables: • Fewer network elements and layers via an integrated Carrier Ethernet/Optical Metro Core • Service intelligent access for efficient routing and service activation across multiple access technologies • Policy-based bandwidth/QoS control spanning entire network, based on individual applications and user needs/SLAs • Support of a superior Quality of Experience to attract and retain customers A simplified, flexible converged network infrastructure enabling providers to deliver profitable Next Gen blended services Lucent Technologies Proprietary Use pursuant to company instruction