1 | Infinera Confidential & Proprietary Innovation: The Endless Bowl of Nuts Geoff Bennett Director, Solutions and Technology, Infinera

2 | Infinera Confidential & Proprietary “Everything that can be invented has already been invented” Charles Holland Duell US Commissioner of Patents But he did say… “In my opinion, all previous advances in the various lines of invention will appear totally insignificant when compared with those which the present century will witness.” Famous Mis-Quotes from History

3 | Infinera Confidential & Proprietary Each time I choose a Cashew Nut, there’s one less Cashew Nut left in the bowl Innovation is not like a bowl of nuts! Some people thought ideas, and innovation were like a bowl of nuts

4 | Infinera Confidential & Proprietary The more ideas are shared, The more ideas are created The Internet is where ideas are shared today Innovation is not like a bowl of nuts!

5 | Infinera Confidential & Proprietary Traffic Growth Forecasts Source: IEEE Industry Connections Bandwidth Assessment, July 2012 Summary of Growth Estimates Growth by Access Technology Growth in Storage 1GbE to 10GbE Migration

6 | Infinera Confidential & Proprietary  Total fiber capacity is a function of: Data rate per wavelength Number of wavelengths in the fiber  Capacity and Distance are antagonistic If you increase one, you tend to decrease the other  But the general trend of DWDM innovation is to increase the product of Capacity and Distance* DWDM Capacity Scaling Technologies *Emmanuel B. Desurvire. “Capacity Demand and Technology Challenges for Lightwave Systems in the Next Two Decades” JOURNAL OF LIGHTWAVE TECHNOLOGY, VOL. 24, NO. 12, DECEMBER 2006

7 | Infinera Confidential & Proprietary A History of DWDM Capacity x Distance Innovations Emmanuel B. Desurvire. “Capacity Demand and Technology Challenges for Lightwave Systems in the Next Two Decades” JOURNAL OF LIGHTWAVE TECHNOLOGY, VOL. 24, NO. 12, DECEMBER 2006 Laser technology evolves to fiber “sweet spot” EDFA innovation enables WDM – multiple waves in a fiber Chromatic Dispersion Management enables 2.5G to 10G evolution Forward Error Correction directly increases Cap*Dist Addition of L-Band could double fiber capacity* Raman amplification gives excellent distance boost

8 | Infinera Confidential & Proprietary  Large scale photonic integration Makes the following technologies operationally scalable  Polarization muxing Roughly 2x Capacity * Reach increase  Complex modulation 4 bits per symbol 8 bits per symbol PM-16QAM has lower Capacity * Reach than PM-QPSK  Coherent detection Enables long haul transmission at 100Gb/s and beyond Includes electronic CD and PMD compensation >10x increase in Capacity * Reach  Soft Decision Forward Error Correction (SD-FEC) Roughly 2x increase in Capacity * Reach vs HD-FEC Innovations that post-date this paper, but that are in production today

9 | Infinera Confidential & Proprietary  Pulse shaping (using DSP+DAC) Electronic pre-compensation for increased dispersion tolerance Enables flexible grid super-channels Delivers about 25% increase in spectral efficiency Enables PM-16QAM to maximize fiber capacity  Further SD-FEC enhancements  Non-linear compensation  Large Area Fiber (not to be confused with LEAF) Allows greater launch power before non linear penalty This is planned for future submarine cables  Extending beyond the C+L bands Always a challenge in practical terms Further DWDM innovations on the horizon

10 | Infinera Confidential & Proprietary  We’ve had astonishing innovation in the optical transmission industry over the past decades  But have we eaten all the Cashew Nuts? Summary  I think there are plenty more!