Reducing the Cost of Optical Networks Rob Adams, VP Product Marketing/Product Line Management

Who is Ekinops  Private company, founded in 2003  Headquarters in Lannion, France  Pre-Sales & Post-Sales: Europe, US, APAC  Innovative vendor of Layer 1 optical aggregation & transport equipment for University, Enterprise, and Service Provider Networks  Dynamic Optical Transport Solutions  Patents Held In Optical Aggregation and Transport Page 2

Who is Ekinops? Page 3

For Service Providers/MSOs, Enterprises, Government, And Universities Where does Ekinops sit in the Network?  One of the few Dynamic Multi- Reach platform that spans all transport domains  Ekinops has 40 and 80 channel options today  Up to 2000Km reach with 300Km in a single hop!  160 Channels coming in November  320 Channels available next year. Dynamic Multi-Reach Optical Transport Platform for Metro, Regional & Long-Haul networks 2,5G / 10G / 40G λs Ethernet : FE/GE/10GE/40GE SDH : STM1/4/16/64 HD/SD-SDI FC/GFC Ethernet FE/GE/10GE/40GE Ethernet FE/GE/10GE/40GE 2,5G / 10G / 40G λs Conversion Transport Aggregation Conversion Aggregation Conversion Aggregation Page 4

Tried and True Deployed Globally Page 5

Market Dynamics Why is the market ripe for reducing your transport costs?  Cost of optical components has come down dramatically  Improvements in capabilities of optical components  Cost of programmable technology has come down dramatically  Improvements in power consumption of optical and electrical components  Scalability options introduced for certain components  Capabilities that used to be spread across multiple pieces of equipment are now offered by a single piece of equipment  System designs focused on scaling costs incrementally Page 6

Reducing Network Cost Where should you look to optimize transport network costs?  Reduce your cost of infrastructure  Reduce your Capital Costs  Reduce ongoing costs Page 7

Scale back, Then Scale Up Page 8

 Carry up to 32 bi-directional waves over 1 fiber today! DWDM network Over a pair of fiber Advantages of EKINOPS solution Optimization of the number of fibers Reduction of 50% of the fiber OPEX 32 Bi-Directional 10G Services today 64 Bi-Directional 10G Services today with 40G Muxponder 128 Bi-Directional 10G services comming next year. DWDM network Over a single fiber EKINOPS Chassis with an Optical Combiner module Chassis with an Optical Combiner module Reducing the cost of Infrastructure Single fiber capabilities Page 9

Reducing the Cost of Infrastructure Longer Distance, Fewer Amplifiers  Combination of better FEC and amplifier technologies help transport systems go further cheaper  FEC transitioning from 6-8dB to 10dB or more today Advanced FEC combined with newer Amplifier technologies Longer distances without Inline Amplifiers Fewer Amplifiers when amplifiers are needed Longer Distances over poor fiber 500km - 600km with Full Channel Counts Also reduces ongoing costs Up to 300Km with Full Channel Counts Page 10

 Cost Effective Multiplexing of any mix of service types over a single wavelength or standard service Reducing the Cost of Infrastructure Using Fewer Wavelengths The Old Way Ethernet SONET/SDH HD-Video Newer Technologies Each Port Programmed to different protocols, different rates Another Alternative Page 11

Reducing the Cost of Infrastructure Using Fewer Wavelengths  Typical Point to Point Transport Solution Inconvenients of the solution  Ethernet Layer 1 ADM Solution Less Equipment, Better Utilization of your infrastructure Less Equipment = Lower Ongoing Costs (Power) Can be implemented over a wavelength or leased service Page 12

Reducing the Cost of Infrastructure Using Fewer Wavelengths  Typical Point to Point Transport Solution  Multi-Protocol ADM Less Equipment, Better Utilization of your infrastructure Less Equipment = Lower Ongoing Costs (Power) Can be implemented over a wavelength or leased service Page 13

 Multi-Protocol ADM allows for Daisy Chaining of Sites to Provide an ADM Capability and Reduce Waves  Combine that with 1 Fiber Capability to Reduce Fibers in fiber constrained or leased environments  Eliminate Amplifier and Regeneration Sites Typical Point to Point Ethernet Transport Page 14 Pulling it all Together Reducing the Cost of Infrastructure

Serving Multiple Applications more Efficiently  More efficiently aggregate traffic from multiple applications using the multi-rate, multi-protocol ADM  And don't forget that you can do this on 1 fiber with fewer amplifiers ATM/IP DSLAM 2G, 3G, 4G Wireless (TDM/ATM/Ethernet) G.PON, FTTC Router TDM Core MPLS Core Private Line (TDM, Ethernet) Page 15

Reducing Capital Costs Programmable Technology Composite Services Over Fiber Reduced Complexity, Cost, Footprint, and Power Client Card Electronics Fast Time to Market (Manufacturing) Flexible Programmable Technology Cost Effective Low Power, Small Footprint, Fewer Electronics Before Ideal Any Protocol Per Port Page 16 Benefits

Ekinops T-Chip Page 17

Introducing the Chameleon Taking the T-Chip to the next Level  A Single Hardware Platform that adapts to all applications regardless of the protocol or rate  Software and Hardware are cost optimized for specific applications  Use of a single hardware platform provides quick time to market for new features and ease of manufacturing  Field Upgradeability Page 18

The Flexibility of the T-Chip Bringing Cost Effective Solutions to you Quickly  What Client Protocols Does the Application Require?  You want Flexible Muxing, FEC, and a Gateway Capability?… OK  10GigE on the Line Side…. We have that covered!  A Real Example Created in 4 Months!... Ekinops’ HD-SDI Video Solution!  The Value is in the FIRMware!.... Your Application Optimized for Cost, Delivered Quickly Client Protocols: Ethernet SONET/SDH Fiber Channel ESCON Video (HD-SDI, SD-SDI, ASI) Future T-Chip Capabilities: Flexible Multiplexing Generic Gateway Forward Error Correction Add-Drop Future Line Protocols: SONET/SDH OTN Ethernet Proprietary 2.5Gig 10 Gig 40 Gig Future Client Protocols: Ethernet Video (HD-SDI, SD-SDI, ASI) T-Chip Capabilities: Flexible Multiplexing Generic Gateway Forward Error Correction Line Protocols: Ethernet 10 Gig Cost Optimize the Hardware Package Size! Page 19

 Scalability of transport systems isn't only about adding transonders Reducing Capital Costs Scalable Amplifier Solutions Page 20 AmplifierManagementUpgrade TransponderUpgrade Transponder In Service Upgrade Of Amplifier As You Grow

Reducing Capital Costs Scalable ROADM Solution 8 Deg WSS 8 Degree Node Inside a Typical 8 Degree Node 8 Deg WSS Page 21

Reducing Capital Costs Scalable ROADM Solution East Channels South Channels North Channels West Channels 2 Deg WSS Local Add/Drop 2 Deg WSS Local Add/Drop 2 Deg WSS Local Add/Drop 8 Deg WSS Page 22

Reducing Capital Costs Scalable ROADM Solution Using 2 Degree ROADM Components Using 4 Degree ROADM Components Using 8 Degree ROADM Components Page 23

Reducing Capital Costs Lower Cost 40G Options DWDM Network 10G 10G/40G Then of course there is cost…. Expensive transponders and collateral equipment Alternative 40G solutions with 10G Performance 10G 40G The issue with past 40G solutions This is what you really want Page 24

An Alternative to the Popular Techniques Lower Cost 40G Options Lower rate carriers bonded into the spectrum of One Native 40G wave Solutions for both 50GHz and 100GHzSpacing At 100GHz this solution for instance achieves 2200Km with 40 Wavelengths of 40G PMD Tolerance and Dispersion Tolerance the same as 10G! (1600ps/nm, PMD: 12ps, 48ps DGD, 14dB OSNR) Cost out of the shoot is less than 4x 10G! And other Variants Page 25

Less than 4 times the cost of 10G Same PMD and Dispersion Performance as 10G Same Approximate Distance Performance as 10G Low cost 10G drop solution (Dropping 1 10G out of 40G) No Interference of Adjacent 10G Waves, no guard band Page 26 Advantages of Bonding of Lower Rate Carriers over Native 40G Modulation Schemes Reducing Capital Costs Lower Cost 40G Options

Ekinops 40G 100GHz Muxponder Architecture Flexible Multiplexing and Add Drop of Lower Rates Services  The 40G 100GHz Muxponder utilizes 10G Chameleon Cards to Multiplex virtually any mix of protocols into the 40G line  Each Chameleon could be a native 10G with no lower rate services or one of the Chameleon cards with the desired multiplexing capability  Chameleon cards can be added one at a time to provide a true "pay as you grow" architecture  Each Chameleon can be a single slot or double slot depending on the mix of traffic being multiplexed. Single and Double can be mixed.  Does not require separate Multiplexing cards for rates under 10G like other 40G muxponders  Reduces hardware costs by more than 50% for complex multiplexing applications Bonds the Wavelengths Page 27

Ekinops 40G 100GHz Muxponder Architecture Reuse your 10G Investment Deploy Ekinops 10G transponders and muxponders stand-alone today Reuse those same modules to build a 40G muxponder! Page 28

Summary  Lower cost of infrastructure +  Lower capital costs (equipment) +  True Scale as you grow Technologies = Lower Cost of ownership Page 29

Page 30 Thank you Page 30