Lighting up the metro backbone to enable advanced services SURPASS hiT 7300 Metro Optical Solution Copyright © Siemens AG 2006. All rights reserved.

Siemens Communications schramm.susan@siemens.com Alan Gibbemeyer Susan Schramm VP Marketing Networks Division Siemens Communications schramm.susan@siemens.com Alan Gibbemeyer Director, Next Generation Business Unit alan.gibbemeyer@siemens.com We are building on our success in DWDM, providing an easy to use, flexible, cost effective optical solution that scales from metro all the way to LH for a wider range of buyers. Only Siemens delivers one platform that can be used so flexibly.

SURPASS hiT 7300 Product announcement Siemens Debuts SURPASS hiT 7300 metro / regional DWDM Optical Solutions New, Highly Automated, Low-Cost Optical Transport Platform for Metro, Regional and Long-Haul Applications Highly-automated Highly-scalable for both large and smaller deployments Highly configurable (metro–regional–LH–ULH) Siemens is announcing a new member of our DWDM family. With improvements in automation, scalability and configurability. this powerful technology is now more affordable for a wider number of deployment scenarios and buyers Siemens is bringing DWDM solutions to new market segments

Challenges in deploying new advanced services High-bandwidth, real-time applications will stretch current legacy metro infrastructure past the breaking point ? Metro DWDM is the technology of choice, but current offerings are often cumbersome, less economical, and less robust than needed Our customers have been finding the “pressure point” for bandwidth moving closer to the user: a) As new bandwidth-hungry services such as IPTV, Video on Demand, and network-based gaming become more mainstream, providers are finding it difficult, slow, and costly to provision new capacity and routes within the current ATM and SONET networks. And as the system scales, managing it becomes more complex. b) While “metro DWDM” has been considered “the technology of choice” our customers have told us they ran into much higher costs than expected for the initial build, and even higher operational cost once deployed. Metro DWDM offerings that were available tended to have low or non-existent degree of automation, and lack the robustness of a long haul optical backbone. This isn’t just an issue of service providers. We are finding it is also the challenge of enterprises who want to solve the bandwidth problem for a campus or wide area network. Today’s legacy metro backbone is an ROI drain for advanced services

Siemens A leader in Long Haul ROADM optical Source: Infonetics Research SURPASS hiT 7300 builds upon hiT 7500 LH DWDM success #1 market share for Long-Haul DWDM ROADM in 2005 and 2006 YTD Currently more than 2000 network elements up and running globally Siemens sought a way to leverage our proven Long Haul, Ultra Long Haul DWDM offering to address the metro challenge of our customers. In next generation long haul DWDM, Siemens is a leader. According to Infonetics Research ranked Siemens number one 2Q06 globally. Siemens has more market share YTD than the next five competitors combined. Cost-effective and easy-to-use multi-haul platform leveraging Siemens’ excellent DWDM know-how

Siemens optical design philosophy EASY TO USE Speed of deployment Highly automated Planning tools 2. FLEXIBLE “Extreme configurability” 3. COST EFFECTIVE Low cost for initial build Easily scalable From the start, Siemens’ design philosophy for Optical DWDM was intended to put our customers back in control. We designed our optical products prioritizing ease of use, flexibility, and the ability to deploy cost effectively. ) Easy to Use Planning tools that make it easy and fast to plan, install, upgrade High degree of automation --Transparent transport (you don’t have to do an electrical conversion at every node) --Carrier class management – all the performance monitoring, alarm supervision, fault isolation - - everything you need to manage the network has to be there - allows insight where the signal is and where the problems are Prioritized the speed of deployment of a metro system - with the power of a long haul system 2) FLEXIBILITY - “Extreme configurability” means that users are able to configure the same platform to fit different applications perfectly - metro, regional, and long haul applications . At the high end, Siemens is the only vendor actually deploying 40Gig networks today. At the low end, there are a lot of vendors in the metro environment. Though they try to stretch their performance to 1000 kilometers and 32 channels, they tend to run out of gas as they scale. Siemens is design philosophy was to provide customers with a platform that can be used from short range CWDM all the way to 40G high end range. 3) COST EFFECTIVE The system allows for a low entry cost point for the initial build. The system can scale without disruption and remains cost effective as it does. Leveraging Siemens’ proven LH/ULH know-how to create a multi-haul platform for metro deployments

Delivers lower cost of ownership and faster time to market SURPASS hiT 7300 Designed to deliver a truly transparent optical network Features Benefits Resulting in Reduced O-E-O conversion – reduces OpEX and CapEx Minimize CapEx for initial build due to future-proof and scalable network design Interconnection nodes / PXC R-OADMs Enables a true optical (transparent) mesh network, minimize number of electrical regeneration Flexibly add/drop traffic at interim stations Flexible multi-haul platform SONET-like SLA G.709 OTH support l– routing capable planning tool Addresses different distance/bandwidth requirements Support all types of applications and protocols End-to-end management and performance monitoring for all services Hands-off service provisioning by remote wavelength switching + upgrade, manual intervention only at service end-points Maximize new revenue opportunities Minimize human effort for service provisioning and operation- reduced -OpEX We designed the SURPASS hiT7300 consistent with our vision for a “transparent optical network”. Regardless of the topology, our methodology enables you to only configure end points. The interim nodes become transparent and remotely configurable, and don’t need additional equipment in the middle. The result is that you have less RESOURCES involved in managing the network, and a faster time to market. Managing a lot of segments drives cost; the Siemens SURPASS hiT 7300 platform reduces that cost. All these features are enablers for a true optical (transparent) network. Delivers lower cost of ownership and faster time to market

SURPASS hiT 7300 Product description and key features Characteristics 40 channel Metro/Regional/Long Haul DWDM system 40x2.5G, 10G and 40G, 1800km reach w/o electrical regeneration Full C Band tunable lasers From P2P with intermediate add/drop to meshed topologies Single shelf design for transponders, optics, dispersion compensation Services SDH/SONET, Ethernet, and OTH for 2.5G, 10G and 40G services GE, 10GE LAN PHY and WAN PHY, Fiber Channel Muxponders for 2.5G, 10G and GE services Full G.709 compliance Optical protection Usability Comprehensive automation features from planning to maintenance Full TNMS integration, SNMP v3 The platform is designed to support a wide variety of services, and provide the customer with a comprehensive toolkit for planning and managing the network. SURPASS hiT 7300 is available today

SURPASS hiT 7300 enables faster time to market, faster ROI SURPASS hiT 7300 Provisioning a new wavelength by noon Today’s process With hiT7300 Customer request Days <2h Hardware Days <2h Let’s look at how an easy to use, highly flexible, cost effective DWDM platform can impact a customers’ operation for a region they manage. While some vendors claim that “provisioning” can happen in a day, often they are referring only to one step or domain. There are several steps required to being able to provision a new service, and what happens today is that each step requires its own provisioning effort. To simplify, Siemens has reduced the effort: Customer Request – First question to be answered: Can the traffic request be fulfilled? Most planning tools can only handle only one domain. Siemens’ simplified the effort with the hiT 7300 planning tool that can look across the entire network, across multiple domains. Hardware Today’s process often is a logistics challenge to get the right hardware. Siemens simplified with: Tunable lasers so that one transponder can handle the whole range. Pluggable optics minimize spare pool Plug in network components Automation Automatic self test Automatic commissioning Fully automated link control: balance channel power in remote (R)OADMs by VOAs Automation Days <5min Implement service in network management Switch on service & clear for customer Days <5min SURPASS hiT 7300 enables faster time to market, faster ROI

SURPASS hiT 7300 Our target buyers Rapid data backbone provisioning Enterprise Data centers Cable Operators Fixed line Operators ISPs Emerging telcos IPTV / VOD deployment Mobile operators SURPASS hiT7300 enables Siemens to address a broad spectrum of buyers who need to solve the bandwidth crunch closer to the end user – and who previously may not have considered OPTICAL DWDM as part of their toolkit Cable Operators - hiT 7300 enables them to meet their growing video distribution network bandwidth requirements, driven by increasing HD and On-Demand contents, as well to offer Ethernet for broadband services both for consumers and enterprises Fixed line Operators - hiT 7300 enables them to quickly and cost effectively deploy high-quality IPTV service to complete their triple/quad play bundling strategy, and to ensure carrier-grade QoS for Ethernet services to enterprises Mobile operators - hiT 7300 enables them to offload backhaul wireless traffic at a fraction of the current cost, as well as future-proof backbone network for 3G/4G traffic. ISPs and new “emerging telcos” - hiT 7300 enables them to scale up their data backbone and competitively jump into the fray of communications offering Large Enterprises connecting Data Centers who are trying to address the bandwidth crunch. The easy of use, flexibility, and cost effectiveness of the SURPASS hiT7300 means that companies who may have assumed the only way to deploy optical transport was through a managed service now can consider doing it themselves. Wireless backhaul offload SURPASS hiT 7300 addresses a spectrum of markets /scenarios

Siemens SURPASS hiT 7300 Summary Siemens is leveraging our know how in DWDM to help solve the challenge of the metro backbone We are bringing to market an optical platform that can serve metro / regional and LH/ULH requirements The platform is highly automated, scalable and configurable to meet the specific application/scenario Supporting a wider set of buyer and applications Delivering improved ROI and time to market Siemens is building upon our success in DWDM, providing an easy to use, flexible, cost effective optical solution that scales from metro all the way to LH for a wider range of buyers. Only Siemens delivers one platform that can be used so flexibly and cost effectively -- and puts the customer back in control. Siemens is building upon our market leadership in DWDM to deliver more options for our customers

Lighting up the metro backbone to enable advanced services SURPASS hiT 7300 Metro Optical Solution Copyright © Siemens AG 2006. All rights reserved.