VIPerMedia/DMM The Effects of 9/11/01 on the Telecommunications Network Infrastructure Resiliency - Problems Encountered by the Financial Community, Lessons Learned and New Network Infrastructure Necessity John P. Compitello Dennis M. Maloney President EVP - Chief Technology Officer Compitello Associates VIPer Media, Inc.

VIPerMedia/DMM Network Infrastructure Problems Encountered by Financial firms 200,000 Access Lines Out (Verizon-West Street) 100,000 PBX/Centrex Lines Out (Verizon-West Street) 4.4 Million Data circuits Out (Verizon-West Street) 10 Cell Sites Destroyed (Verizon) Other Carriers lost Cell Sites and Major Operations in WTC Building Complex Many Firms Lost Large Parts of Their Private Networks Some Firms Lost Parts of Their Data Center Operations Many Firms Did Not Have Adequate Back-up Infrastructure Back-up Network Services Failed Along With Primary

VIPerMedia/DMM Network Resiliency Lessons Learned There’s No Such Thing as Too Much Back-up! Test and Re-Test Network Back-up Capabilities Ensure Truly Redundant Network Connectivity Distribute Network Much More Than in the Past By-pass Serving Central Office Bottle-necks Personnel Deployment Revisited - More Distributed Approach

VIPerMedia/DMM Financial Firms Personnel Deployment Goldman Sachs -Building Large Complex in Jersey City Marsh & McLellan - Moving to Hoboken, NJ Morgan Stanley DW - Moving to Harrison, NY American Express - Deploying at two sites in New Jersey Deutsche Bank - Building Back-up operation in Jersey City Instinet - Building Back-up Trading Center in Jersey City Lehman Brothers - Growing space in Jersey City and opened new operations in Mid-town

VIPerMedia/DMM Post 9/11/01 Network and Personnel Deployment is much more diversified than in the Past Requiring a New Diversified and Much More Secure De-Centralized Network Infrastructure Approach

VIPerMedia/DMM Network Infrastructure Current Network Infrastructure Design –Switched Voice –Data and Private Lines Business Continuity Approaches and Drawbacks Financial Industry Concerns and Drivers Potential New Architecture Transition Mechanisms and Issues

VIPerMedia/DMM Current Infrastructure – Switched Voice SONET ADM PBX SONET ADM Class 5 Central Office Tandem Office Customer Premises PrimaryBack-up The World Customer B Customer C Customer D Key Design Principle – The Central Office Multiple Customers served by CO in “Star” Access Network Local Loop Access Facility evolving from copper to Async. Fiber to SONET CO’s linked by Tandem Offices to provide inter- connectivity and access to world Features and capabilities controlled by the Carrier

VIPerMedia/DMM Switched Voice – Continuity Multiple Disaster Scenarios complicate Continuity Planning –Loop –Central Office –Premises Potential drawbacks: –Loop fiber routing –Code Throw vs. Call Forwarding –Inadequate trunks –Jurisdiction and Carrier Coordination Centralized Carrier Control Remote Users? Tandem Office Class 5 SONET ADM Class 5 SONET ADM PBX Customer Primary Site Customer Back-up Site

VIPerMedia/DMM Current Infrastructure – Data and PL’s Same Loop Access Infrastructure used to provide switched voice access Nested DCS Devices providing “Grooming” and Cross-connecting of Lower speed services within high speed pipes Frame Relay and ATM switches to provide public switched data services End-offices linked by high speed interoffice facilities on SONET Rings Voice PL’s a key application in the Financial Industry Customer Premises SONET ADM Frame/ ATM Switch SONET ADM To Interoffice Network Carrier Central Office

VIPerMedia/DMM Private Line Continuity Approaches Same Loop Survivability Issues as Switched Voice Full recovery capabilities requires duplication of private lines from primary location Additional duplication at back-up site Costly and complicated to maintain on an ongoing basis Dependent on Carrier Reconfiguration Services SONET ADM Primary Location SONET ADM Back-up Site

VIPerMedia/DMM Industry Drivers Toward a New Design Distributed instead of Centralized –People –Network Assets and Data Convergence – Voice, Data and Multimedia on a single network –Reduce Capital and Operating Expense –Create New Capabilities Virtual Companies and Workgroups Remote Access and Mobility Points toward the “Rise of the Stupid Network” –David Isenberg (1997) –The “Stupid Network” is characterized by: Smart Applications at the Edge of the Network A Resilient Network Designed to just move bits

VIPerMedia/DMM Potential New Architecture Converge all services on a secure IP network provided by multiple backbone carriers Take advantage of inherent survivability of IP networks Enabled by emergence and development of SIP, MPLS- VPN and QoS management protocols Supports distributed applications and user community Location is irrelevant to services available Applications developed and maintained separate from network infrastructure Multiple Carrier IP Backbone Network PSTN Internet Gateway ApplicationServers Diverse and Redundant Loop Access Primary Location Remote or Small Office User DSL Cable Modem Redundant Hosted Applications and Gateways

VIPerMedia/DMM Transition Issues and Mechanisms Loop Access facility diversity remains a primary design concern – will require close attention to cable routing of participant carriers Two transitions will be required – first to a survivable optical loop access infrastructure Conversion to IP required to attain full functionality Timing of transition will be driven by existing agreements between customers and carriers A critical mass of services identified by a consortium of users can drive the process A flash cut will not be possible – mechanism for communicating between domains will be required