Impact of Photonic Integration on Optical Services Serge Melle VP Technical Marketing, Infinera

Infinera Confidential and Proprietary | 2 Internet Backbone Growth  Industry consensus indicates a sustainable growth rate of 75% to 100% per year in aggregate traffic demand  Traffic increased more than 10,000x from 1990 to 2000  Traffic projected to increase an additional 1,000x from 2000 to 2010 [1]K. G. Coffman and A. M. Odlyzko, ‘Growth of the Internet’, Optical Fiber Telecommunications IV B: Systems and Impairments, I. P. Kaminow and T. Li, eds. Academic Press, 2002, pp

Infinera Confidential and Proprietary | 3 The Future Belongs to Tb/s Links  Carriers deployed Nx10 Gb/s networks several years ago  Now evaluating deployment of (Nx) 40 Gb/s router networks  Current Backbone growth rates, if sustained, will require IP link capacity to scale to > 1 Tb/s by 2010

Infinera Confidential and Proprietary | 4 Scalability Challenges  Service scaling:  Evolution to 40G and 100GbE services  Network scaling:  >1Tb/s per fiber  Nodal scaling  System size for >Tb/s nodes  Operations  Deployment, fibers, spares,

Infinera Confidential and Proprietary | Gb/s Transmit 100 Gb/s Receive Single WDM channel times 32, 40 or 80 wavelengths WDM Systems Today

Infinera Confidential and Proprietary | Gb/s Transmit 100 Gb/s Receive 100Gb/s Transmit 100Gb/s Receive Photonic Integrated Circuit Innovation 5mm  DIRECT BENEFITS:  Reduce size, power, cost and improve reliability over discrete optics  STRATEGIC BENEFITS:  Affordable OEO conversion re-enables digital reconfigurability at every node  Order-of-magnitude in capacity deployment & scalability  Result: Lower CapEx, lower OpEx, more flexible reconfigurable optical network

Infinera Confidential and Proprietary | 7 Impact of PIC Technology Conventional WDM:  Capacity deployed one lambda at a time  OEO only at network edge  Network service tied to the wavelength  Managing bandwidth occurs elsewhere PIC-based WDM:  Capacity deployed 100G at a time  OEO at all service locations  De-couple service layer from the transport layer  Integrate DWDM with digital service switching Transponder TribLineTrib Line

Infinera Confidential and Proprietary | 8 How PIC Capacity Is Managed  100G PIC = 10 x 10G lambdas = 40 x ODU1  Sub-wavelength bandwidth management maximizes service delivery flexibility  Super-wavelength bandwidth management supports 40G and 100G services Scalability Flexibility 4 x ODU1 per 10G 10- x 10G

Infinera Confidential and Proprietary | 9 PIC Capacity Scalability  Increase PIC scalability through:  More channels (ie: from 10 to 20 lambda or more)  Higher bit rates (ie: from 10Gb/s to 20Gb/s to 40Gb/s)  Also increasing WDM line capacity to >1Tb/s per fiber Scalability Flexibility 20- x 20G

Infinera Confidential and Proprietary | Tbit/s DWDM Large-Scale PIC Transmitter …40 channels x 40 Gb/s Announced at OFC 2006…

Infinera Confidential and Proprietary | 11 Service Opportunities New Service Opportunities Bandwidth on Demand Layer 1 Optical VPNs UNI-based inter-network signaling Speed as a Sales Advantage Transition to Ethernet New Transport Services 40G and 100GbE Restorable bandwidth Sub-lambda Switching

Infinera Confidential and Proprietary | 12 Short Term Capacity Lease “Pay for Connectivity Only When You Need It” Optical Transport “Cloud” 10G “Port” Phase 1: Human provisioning Phase 2: GMPLS UNI automated provisioning UNI

Infinera Confidential and Proprietary | 13 Layer 1 VPN “A secure, private optical network without owning physical assets” EMS Customer 1 Customer 2 Complementary to a dynamically allocated service GMPLS

Infinera Confidential and Proprietary | 14 DB 1 and 10GbE Lightpaths “Ethernet cost with SDH Manageability and Quality” Optical Transport “Cloud” DB  10GbE LAN PHY   10GbE: LAN PHY preferred to save router/switch port cost  Full transparency  Optional restoration (differentiate vs. “wavelength” service)

Infinera Confidential and Proprietary | 15 40G Super-Lambda Service 40G IP Backbone Without Re-Architecting the Optical Network  Full 40G link utilization without 40G WDM link engineering or cost  Common transport network supports 40G router-router traffic  40G service using either 1 x 40G or 4 x 10G router blades  Optional GMPLS restoration maximizes service SLAs OC-768/STM-256 capacity router-to-router 4 x 10G across the optical network Optical Transport “Cloud” 40G over 4-port 10G 1-port 40G

Infinera Confidential and Proprietary | 16 GMPLS-based transport system GMPL S = DWDM terminal = ROADM or WSS Static Transport GMPLS-enabled In case of failure, technician must restore service. Outage may last minutes or hours. If spare bandwidth is available, GMPLS reroutes, providing a “quick fix” at no additional cost. Using GMPLS Restoration for Lower MTTR More Robust “Wave” Services

Infinera Confidential and Proprietary | 17 Speed as a Sales Advantage “I Can Deliver This Circuit Faster Than My Competitor”  Not a new service, but an area for differentiation  Many carriers seeing equipment lead times of 8-16 weeks, and quoting 2-5 month lead times on 10G wave services  Capacity deployed 100G at a time significantly shortens service delivery lead times  “When we need new capacity, our IT group orders the circuit from three carriers. Whoever delivers first gets the business.” --Comment from Major Bank  “When we need new capacity, our IT group orders the circuit from three carriers. Whoever delivers first gets the business.” --Comment from Major Bank

Infinera Confidential and Proprietary | Gb/s Transmit 100 Gb/s Receive Integration: Heart of a New Strategy

Thank You