40Gb/s Technology Update and Business Drivers John Fee Fellow Network Architecture and Advanced Technology MCI September 30, 2004

MCI Confidential 2 MCI’s Global Network and Services The Next Generation Advanced Optical Network Metro Transport/Access Network Evolution Laboratory Activities and development activities Technology Enablers Summary Agenda

MCI’s Global Network and Services

MCI Confidential 4 MCI Global Network $38B Invested

MCI Confidential 5 MCI Global Network Overview Global Operations span 6 Continents Five Global Network Operation Centers 98,000 network route miles More than 100,000 connected buildings worldwide Global IP backbone 140+ Countries, Cities 3.2 million + dial ports 4,500 Global IP Pops 130+ data centers ATM services in 21 countries Frame Relay services in 72 countries One-stop global provider of data and internet solutions: IP Virtual Private Networks Web Hosting Web Call Centers

MCI Confidential 6 Customer Base 60% Fortune 1000 A large portion of Global IP/Internet Traffic Numerous US Government Contracts 3.5 Million MCI Neighborhood Customers Plus 10’s of millions Residential Long Distance Customers

MCI Confidential 7 Service Levels Best in the Industry and Continue to Improve What Makes MCI Different? MCI Service Levels 1H04 GoalFeb 04 Customer MTTR (Rolling 6 month average) <4.0 Hrs 2.27 U.S. Order Install Days< Troubles/100 Circuits< FCC Reportable Outages March February 2004

MCI Confidential 8 Technology Direction – IP Convergence Consolidate Voice, Data, and IP on Common Access to Reduce Cost Converges Voice, Data, and IP to Common IP Backbone Foundation for the Infrastructure to Provide Enhanced IP Services and Network Infrastructure Lead Industry in IP Convergence and IP Product Offerings

The NG Advanced Optical Network

MCI Confidential 10 MCI Optical Networking Firsts 1980’s1990’s Single Mode Fiber Mb/s Electronics Mb/s Electronics Mb/s Electronics Gb/s Electronics WDM Gb/s Electronics Gb/s (SONET) Optical Amplifiers Bidirectional Line Amplifier OC All-Optical Network Field Trial OC-192/Soliton Field Trial OC-48c vBNS Implementation Intelligent Data Service (SBOC) Gb/s Technology Trials First Service NSFNet Internet Optical Networking Trial First SCP/IN First Commercial Terabit Trial First Public Frame Relay Network GHz ITU-T Standard- 1998

MCI Confidential 11 MCI Optical Networking Firsts 2000’s 128 X 128 OCCS Technology Trial UUNet OC-192c Optically Networked Router Development Tb/s Technology Trial (40Gb/s X 80 ) Multi-Service Switch Deployment Commercial Terabit Deployment IP Communications Services km Ultra Long Reach Without Regeneration IP Optical Layer Integration with 256 X 256 OCCS and GMPLS Control Plane Next Generation 20 Pb/s*km Fiber Gb/s (90 Pb/s) router field trial, San Francisco 2004 Simultaneous 40/10G over 1200 km 2004

MCI Confidential 12 Lower bandwidth cost Maximize Operational Efficiency Enabling new services Lights Out Operation, MTTR < 4 hrs Troubleshooting and Diagnostic Tools allowing end-to-end Fault Detection and Isolation across Layer 0 – 3 Eliminate or Minimize Manual Intervention for System Provisioning Turn-On New Services, System Tuning Proactive Network Health and Customer Services Monitoring Ultra Long Haul Backbone Network

MCI Confidential 13 ULH Backbone Network Attributes: Eliminate O/E/O Distance Reach: 3000 Km, Long Term – extend to 6000Km Medium Dispersion Shifted Fiber: 20 petabits * km (now deployed) Mixed 40G & 10G Transmission OC-192c/OC-768c over Wavelength Wavelength Add / Drop / Express based on multi-degree ROADM design Wavelength Management / Provisioning via OCCS Embedded Network Intelligence (L0/L1) – OSA, OTDR, OPM, SONET/SDH Unified NG Network Management System Ultra Long Haul Backbone Network

MCI Confidential 14 Optical Networking Applications Network Topology Discovery and Resource Management End-to-End Provisioning (Physical or Logical) Optical Virtual Private Line / Wavelength Services Wavelength Protection Switching and Restoration Logical Network Topology Reconfiguration Ultra Long Haul Backbone Network

MCI Confidential 15 Integrated Optical Data Network Control Plane OCCS Optical Ring Layer 1 Logical IP Mesh Layer 3 IP Router UNI/NNI Signaling and Control Plane GMPLS/ASON External Systems Goal: Interoperability Across Dissimilar Networks

Metro Transport/Access Network Evolution

MCI Confidential 17 Optical Access – ROADM Wavelengths to Buildings and Large Customers ROADM Multi-node optical rings NG alternative to SONET Initial deployment must be cost-effective 3x-5x space/power reduction Multi-Degree scalability, In-Service upgrade Faster turn-up of additional optical capacity Embedded protection to support 5 9s service availability and operation maintenance activities Support GigE and OC-N from same platform Rate adaptive customer interface from OC3-OC48, software provisioning of OC-N to GigE capacity Wavelength tuning cross C+L band Enables Metro Wavelength Services Will support 40G

MCI Confidential 18 NG Metro Transport Network 2-Tier hierarchy for efficient scaling, cost minimizing Different tools optimized for each customer type ROADMs for large customers OADM for small-medium customers NG SONET ADM for smaller lower growth customers Ethernet transport for Packet Services 40G METRO capable  Ethernet Transport for Packet Services Metro Hub 1 Metro Hub 2 Core Hub IP Mega Hub Hosting Hub 8-16 Wavelength ROADM NG SONET Wavelength ROADM 32 – 40 Wavelength OADM today, Growth to 80 Wavelength ROADM Tunable, Rate Adaptive Transponder

Laboratory and Development Activities

MCI Confidential 20 Laboratory and Development Activities Each year MCI sponsors an internal Technology Demonstration Each year MCI presents papers at OFC, NFOEC, and OAA We have written Optical RFI’s for: Optical Cross-Connect System (OCCS) Reconfigurable OADM (ROADM) Low cost Optical Performance Monitoring (OPM) Next Generation Fiber (NGF) Advanced Modulation Techniques (2004) 10G/40G transport Next Generation Optical Amplification Low Cost Very Short Reach (VSR) Interface

MCI Confidential 21 Optical Laboratory Activities (cont) 40 channels 4000 km DWDM ULH transmission field trial without Raman amplification and regeneration, OFC 2002 Comparison of RZ/Raman and NRZ/EDFA optical transmission line performance at 40Gb/s and beyond for future deployment, OFC2001 In we tested Siemens, Alcatel,NORTEL 40 Gb/s systems. In we demonstrated 128X128 OCCS systems at both line and tributary side providing photonic provisioning, protection and restoration In 2001 we demonstrated an Optical Performance Monitor measuring OSNR, dBQ, power, and wavelengths.

MCI Confidential 22 MCI NG Fiber Development Objectives Next Generation fiber is designed for ULH (at 3000~6000 km), DWDM, 10G/40G network deployment Fiber parameters enable 20 Pb/s*km for both short fat ( Gb/s wavelengths at 1000 km) and long thin ( Gb/s wavelengths at 3000 km) architectures or equivalent wavelengths at 40G Eliminate transport O/E/O Introduce pass-through and multi-degree ROADM Increase dispersion and PMD tolerance Easier slope compensation and lower loss Enhance new hybrid amplifier development THIS NG FIBER WILL SUPPORT 40G

Technology Enablers

MCI Confidential 24 40G Technology Enablers ( ) Terabits Ultra Long Reach Terrestrial System up to 3000Km Alternative Modulation Format - Large Dispersion Tolerance - PMD Tolerance - Spectral Efficiency NG Hybrid Amplifier - Hut-Skipping, 140 Km – 160 Km 40 Gbs Transponder (Plug and Play) Broadband PMDC Tunable DCM (Optical Broadband, or Electrical Narrowband)

MCI Confidential 25 40G Technology Enablers ( ) ROADM, Wavelength Selective Switch Multiple Direction Migration Any Wavelength Any Port to Any Wavelength Any Port Protection Switch to support Optical Ring Application Intelligent Optical Cross-Connect System (1000x1000) Central Office Traffic Management End-to-End Provisioning Tunable optical transmitter/Receiver (C & L) Low Cost Optical Performance Monitor OSNR, Power, Wavelength Plug in OSA and OTDR

MCI Confidential 26 40G Technology Enablers ( ) VSCEL Technology /Semiconductor Optical Amplifier System on the chip (Optical, Electrical & Switch Fabric) Tunable filter with tuning capabilities in Channel Plan Information Bandwidth Range Operating Wavelength Range Low cost Optical Performance Monitor Optical Protection and Restoration Optical Burst Switching and Routing, Optical Buffering & Wavelength Switching Optical Tuneability, agility, and O/E synchronization

MCI Confidential G Demonstrations

MCI Confidential 28 World’s First 40G IP Transmission: Power by Cisco CRS-1 over MCI Infrastructure MCI PoP – San Francisco Cisco CRS-1 Single-Shelf System MCI PoP – San Jose Cisco CRS-1 Single-Shelf System StrataLight OTS-4000 Cisco ONS MCI Fiber Plant (104 KM) Computer History Museum Cisco CRS-1 Multi-Shelf System OC-768 OC-48 OC-768 Cisco Cisco CRS-1 Single-Shelf System Cisco MDS 9216 TesterTester OC768 Tester OC-768 Agilent

MCI Confidential Gb/s Field Overlay 40 Gb/s Error Free over km in the field over existing commercially-available line- amplified systems Extra gain margin at 1200 km Simulations matched field performance Simultaneous 40G and 10G transmission on the same fiber

MCI Confidential 30 General 40G Economic Information & Throughput Performance vs. 10 Gb/s

MCI Confidential 31 Factors Affecting the Cost/DS3_Mile Bit Rate 40G systems have generally lower Cost/DS3_Mile than 10G: ♦ 40G systems carry 4 times as much traffic as 10G systems, for only three times increase in the transponders and regenerators cost. ♦ The other components of the system (e.g. amplifiers and WDMs) are independent of the bit rate. Regenerator Reach Longer reach results in a lower Cost/DS3_Mile. However the limitation is the allowed bit rate and number of WLs. Number of Wavelengths and Bands Increasing the number of WLs in the same band lowers the Cost/DS3_Mile, but if a new band is added, the increase in the amplifier cost may cancel out the advantage of the additional WLs. (Internal Study)

MCI Confidential 32 Maximum Link Utilization for P(Hurst) = 10-3 Queueing Delay 40G extrapolation results: Max imum link utilization with TCP traffic giving a max 1 mS queuing delay at node: OC-192:94% - 97% depending on traffic characteristics (H value) OC-768:98%

Summary

MCI Confidential 34 Summary Business drivers today are savings and revenue vs. rapid growth Capital will be business case driven Any New technology must have very low cost of entry to be adopted Open systems and multi-vendor interoperability is critical Emerging optical services are still in development Most new revenue will derive from the services converged on the packet layer Careful integration between optical & packet layer will be required We will live in a hybrid world for the foreseeable future 40G will emerge when customers demand it

MCI Confidential 35 Thank You! John Fee Fellow Network Architecture & Advanced Technology 2400 North Glenville Drive Richardson, TX Fax