Ethernet Access over PDH/SDH/SONET

1. Ethernet Access over PDH/SDH/SONET Ami Barayev Product Line Manager

2. Agenda • Market trends • Product introduction • Applications • Competition • Roadmap

3. ETHoPDH/SDH/SONETMarket Trends • Customers demand higher bandwidth capacity – high growth expected in Ethernet over bonded copper (Europe) and over T3 (US Market) • Fiber to the business reaches 15% of companies • Service provider networks are in transition: service providers are implementing IP network transformation projects • Goal of removing layers from their networks to arrive at an IP/MPLS/Ethernet services layer over integrated Ethernet-WDM optical transport • Although it will take 15 to 20 years, ATM and SONET/SDH will gradually disappear • Cellular use TDM link and FE links at the same site, (currently mainly in the US market) will be needed soon in the European market • 2 main applications: • IP DSLAMs backhauling • WiMAX BTS backhauling (source: Infonetics 2007)

4. Product Introduction

5. New ETHoPDH Product Portfolio

6. ETHoPDH Aggregator Product protfolio

7. New ETHoSDH/SONET Product Portfolio * Exclude Ethernet OAM Will be in Q3/08

8. Ethernet over NG-PDH/SDH/SONET • Ethernet over NG-PDH based on the same GFP, VCAT and LCAS technology used in Ethernet over NG-SONET/SDH. It is standardized by the ITU-T G.7042, G.7043 and G.8040 • GFP, VCAT and LCAS enables efficient bandwidth utilization and dynamically BW allocation • Ensures robust traffic delivery • Automatic error correction and minimal packet re-transmissions • Fully utilization of contracted bandwidth • Minimizes service disruptions - hitless traffic restoration • High service resiliency, low latency – ideal for real-time applications • Easy interoperability with third-party equipment (standard protocol) • Enhances statistics collection and alarms indications (source: TranSwitch, 2007)

9. Service Multiplexed Ethernet UNI UNI CE CE UNI UNI Carrier Ethernet Network ISP POP Carrier Ethernet Network Internet CE UNI CE UNI UNI Point-to-Point EVC UNI CE CE Multipoint-to-Multipoint EVC EVC MEF (Metro Ethernet Forum)Services Terminology • Ethernet Private Line (EPL) • Replaces a TDM Private line • Dedicated UNIs for Point-to-Point connections • Single Ethernet Virtual Connection (EVC) per UNI • Ethernet Virtual Private Line (EVPL) • Replaces Frame Relay or ATM services • Supports multiple EVCs per UNI • Allows single physical connection (UNI) to customer premise equipment for multiple virtual connections

10. Handling Levels of Service Different EVC per service level NTU B VoIP Premium Data BE Data UNI VoIP EVC1, EVC2, EVC3 NTU A Premium Data UNI EVC4, EVC5, EVC6 BE Data NTU C VoIP Premium Data BE Data UNI Single EVC with multiple service levels NTU B VoIP Premium Data BE Data UNI VoIP EVC1 (EVC1.CoS=1/2/3) NTU A Premium Data UNI EVC2 (EVC2.CoS=1/2/3) BE Data NTU C VoIP Premium Data BE Data UNI • Using VLAN Tag priority bits to mark the relative service priority

11. EtherAccess feature-set • EtherAccess – Enhanced L-2 Ethernet capabilities over any access infrastructure • EPL/EVPL services (MEF certified) • Flow base • Traffic classification and mapping • CE VLAN ID, P-bit, DSCP, IP Precedence • Enhanced QoS • Policing per service • Dual leaky bucket supporting CIR+CBS, EIR+EBS • Scheduling – Queues according to Strict priority or WFQ • Rate limit on the egress port - Conforms egress traffic to specific rate • OAM • IEEE 802.3ah – Single Segment • IEEE 802.1ag – End-to-End • ITU-T Y.1731 – End-to-End

12. Applications

13. Data Data Data Data Internet Internet Internet Internet VoIP VoIP VoIP VoIP Internet Traffic FE/GE Branch D ETX Ethernet Services over PDH/SDH/SONET“on-net” Branch A WWW RICi-8 • Switching is done by the Egate-100 Headquarters 8 x E1/T1 Branch B CH.STM-1/OC-3c (APS) or 3 x DS-3 Egate-100 RICi-16 PSN ETH/IP/MPLS GE 16 x E1/T1 SDH/SONET Branch C RICi-4 4 x E1/T1 • Secured traffic separation using VLANs • Different services can be provided with different QoS • Headquarters and branches connected as if on the same LAN • Reference: Bezeq, Cellcom, VZB, Embarq

14. Ethernet Service over Leased Lines “off-net” Access Provider Network Service Provider Network Customer Premises POP • Alternative carriers increasing service reach with leased lines • Reduced leased line costs by using a single line for different services • Rate versatility – from E1/T1 to to STM-4/OC-12 • Bonding solution – 16 x E1/T1 to bridge the bandwidth gap between E1/T1 and E3/T3 • Reference: Yipes – Tier 3 operator in USA lease line from Verizon Co-location n x E1/T1 bonding RICi Egate ETH CH.STM-1/OC-3c (APS) or 3 x DS-3 PSN Eth/IP/MPLS SDH/ SONET GE RICi E1/T1 ETH Transport Provider Service Provider

15. Fast roll-out Reduce Opex and Capex by leveraging existing transport infrastructure Generate new revenues by expanding new services Use of less complex Layer 2 technology (converters and channelized switch) for reduced maintenance costs Support for wide range of access data rates Reference: Telefonica , Jaztel in Spain and SFR France IP DSLAM and WiMAX Backhauling over SDH/SONET POP IP DSLAM xDSL FE n x E1/T1 RICi-16/8/4 POP Wimax Egate-100 STM-1/ OC-3 POP GbE or 3 x DS-3 BTS SDH/ SONET E1/T1 FE PSN RICi-155GE RICi-622GE RICi-E1/T1 2xSTM-1/ OC-3 GbE 2xSTM-4/ OC-12c POP IP DSLAM xDSL FE/GbE STM-1/OC-3 STM-4/OC-12c RICi-155GE RICi-622GE

16. Remote Management Remote Site RICi-E1/T1 CPE • Using widely deployed SDH/SONET infrastructure to provide management services • Reduced OPEX by managing remote devices when in-band management is not available • Low cost, small footprint • Reference: TELUS and IberDROLA in Spain E1/T1 FE Headquarters Remote Site Egate-100 CH.STM-1/OC-3c (APS) RICi-E1/T1 CPE Service Network SDH/ SONET GbE E1/T1 FE or 3 x DS-3 PSN Remote Site Management Station RICi-E1/T1 CPE E1/T1 FE

17. Ethernet Cellular Backhaul over TDM Backbone n x T1 • Flexible bandwidth allocation with circuit bonding • Reduces Opex by using one central management system, flexible service provisioning (64 kbps to n x E1/T1) • Capex reduction through leverage of the existing SDH/SONET/PDH links T3 BTS FE RICi-16 Node B ADM Central Office n x E1/T1 CH.STM-1/OC-3c GbE FE SDH/ SONET RICi-16 RNC Node B 63/84 x E1/T1 CH. STM-1/OC-3 Optimux-1551 ADM ADM BSC 2 x T3 FE RICi-16 Node B

18. A complete solution for Ethernet over fiber and TDM increases revenues by extending the service to new customers and fitting the service to their needs Aggregation of Ethernet over multiple n x E1/T1 lines from multiple users (multiple Ethernet over n x E1/T1 connections) Traffic from each customer can be transported over a dedicated fiber link and n x E1/T1 bundle Supports channelized STM-1 or n x E1/T1 Ethernet Services over Fiber and Multiple n x E1/T1 Lines Customer A n x E1/T1 Fiber RICi-16/8/4 ETX-201 n x E1/T1 or Ch. STM-1/OC-3 Customer B Packet Switched Network SDH/ SONET ETH Fiber Egate-100 ETX-201 Customer C n x E1/T1 RICi-16/8/4 Fiber ETX-201

19. Competition • There are 2 kinds of competitors in the market • Simple Eth to PDH/SDH/SONET converters • Loop Telecom • Fibridge • Raisecom • Basic converters with limited feature-set • Only PTP application, no aggregations • Other mid/high-end products with similar capabilities like RICi/Egate family • ANDA • Adtran • Charles Industries/MRV • Competing is challenging how ever • RAD’s extensive product offering with its premium EtherAccess capabilities including OAM will give us the unique added value • Proving E-2-E service • Extended product portfolio

20. Roadmap

21. Roadmap

22. Roadmap

23. Roadmap

24. Roadmap

25. Roadmap

26. thank you for your attention www.rad.com