Rob Adams, VP Product Marketing/Product Line Management From Infrastructure to Equipment to Ongoing Operations Reducing the Cost of Optical Networking

Page 2 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  Solutions that can be molded to provide value to any application (Enabled via T-Chip)  Specialize in cost optimization and low first cost  40, 80, and 160 channel plans available today.  Metro, Regional, and Long Haul in 1 Platform  Very diverse set of protocols supported  Technical expertise  Patented technology in Optical Aggregation and Transport  Ekinops engineers were pioneers in FEC, 10 Gig and OC-192 protocols  We are taking the commodity out of transport through innovation!

Page 3 Enabling Technology T-Chip (Transport on a Chip) Client Card Client Ports, 1 Client Port Per Service (GigE, etc.) Composite Services Over Fiber T-Chip (Transport on a Chip) Technology Client Card Electronics Benefits: Fully Programmable – Allows for creation of new services quickly (Deliver Services Faster) Fully Programmable – Can be programmed in the field to adapt to new service types (Deliver Services Flexibly) Ease of Manufacturing – Fewer chips on the board (Deliver Services Faster) Lower Power Consumption – Fewer chips to draw power (Deliver Services more cost effectively) Less Space – Cheaper to house equipment (Deliver Services more cost effectively) In general, fewer chips = lower cost

Page 4 Tried and True Deployed Globally Ekinops confidential information

Page 5 Reducing Network Cost Where should you look to optimize transport network costs?  Reduce your cost of infrastructure  Choose lower cost fiber  User fewer fibers  Minimize Required Wavelengths  Eliminate amplifier sites or the need for amplifiers at all  Preserve existing hardware and infrastructure investment  Reduce your Capital Costs  Make sure equipment is not overkill for your application  Look for platforms designed to lower initial costs with the ability to scale  If you need amplifiers, scalable amplifier technologies  If you need ROADMs, scalable ROADM technologies  Lower cost technologies for 40G  Reducing ongoing costs  Elimination of unnecessary amplifier sites  Look for lower power consuming systems  Operational conveniences like automated power management Ekinops proprietary information

Page 6 Reducing the cost of Infrastructure Single fiber capabilities  No need to ever use 2 fibers again! DWDM network Over a pair of fiber Innovations on the Market In the Past, Support for 8 or 16 wavelengths if at all 32 wavelength support available today 72 wavelength available in September Technology comming soon for 144 wavelengths… over a single fiber! DWDM network Over a single fiber Chassis with an Optical Combiner module Chassis with an Optical Combiner module

Page 7 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 8 Reducing the Cost of Infrastructure Longer Distance, Fewer Amplifiers Ekinops proprietary information  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 Evaluate delta terminal costs vs cost of inline amp sites Longer Distances over poor fiber Evaluate delta fiber costs vs. Additional cost of route 450km - 500km Also reduces ongoing costs Up to 300Km with Full Channel Counts

Page 9 Reducing the Cost of Infrastructure Preserve Existing Hardware Infrastructure Investment  Legacy System Interoperability, Upgrade  Interoperate with existing systems in the ground Interoperability can be via Foreign Wave or via Native Ethernet/SONET/SDH The Power of a Standard, programmable line side protocol

Page 10  Multi-Protocol ADM allows for Daisy Chaining of Sites to Provide an Ethernet 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 10 Pulling it all Together Reducing the Cost of Infrastructure

Page 11 Reducing Capital Costs Lan Phy to Wan Phy Conversion  If an STM-64 is all that is available, no need to buy an expensive Wan Phy Interface for that Router Ekinops proprietary information PM 1001PC

Page 12 Reducing Capital Costs Scalable ROADM Solution 8 Deg WSS 8 Degree Node Inside a Typical 8 Degree Node 8 Deg WSS Page 12

Page 13 Reducing Capital Costs Scalable ROADM Solution East Channels South Channels North Channels West Channels 2 Deg WSS Coupler Local Add/Drop 2 Deg WSS Local Add/Drop Coupler 2 Deg WSS Coupler Local Add/Drop 8 Deg WSS Page 13

Page 14 Reducing Capital Costs Scalable ROADM Solution Using 2 Degree ROADM Components Using 4 Degree ROADM Components Using 8 Degree ROADM Components Page 14

Page 15 Lowering Capital Costs 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 16 Summary of Values 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 Fully tunable for simplicity of sparing and for adaptability to 3 rd party filter plans Compatible with 3 rd party line systems as a foreign wavelength 4 X 10G Muxponder providing for the highest density system in C-Band, 3.2 Terabits or 320 Channels of 10G Finally, a Market Ready 40G Solution 40 Gig Technology Page 16Ekinops Proprietary information

Page 17 Summary  Lower cost of infrastructure +  Lower cost of equipment +  Lower Ongoing Costs = Lower Cost of ownership Ekinops proprietary information

Page 18 Ekinops proprietary information