1. Ralph Santitoro Carrier Ethernet Market Development Understanding the Role of Connection- Oriented Ethernet in Packet Optical Transport

2. Heavy Reading Packet-Optical Transport Evolution – May 19, 2010 - NYC Different approaches to COE What problem are you trying to solve ? MPLS-centric COE Static PW T-MPLS Eth MPLS LSP PW Ethernet MPLS Pseudowire (PW) MPLS Label Switched Path (LSP) Ethernet Eth VLAN Tag Switching PBT Ethernet-centric COE BMAC/BVID or C/SVID PBB-TE MPLS-TP Optimized for multi-service transport Three OAM Layers More complex for Ethernet service delivery and transport Standards Under Development Optimized for Ethernet Service Delivery & Transport One Ethernet OAM Layer Standardized Now Reuses many Carrier Ethernet standards, e.g., Service OAM Deployed today in metro access and aggregation networks 2 © Copyright 2010 Fujitsu Network Communications All Rights Reserved. Ethernet-centric COE optimized for Ethernet Services/Transport MPLS-centric COE optimized for multi-service transport Ethernet Tag Switching

3. Heavy Reading Packet-Optical Transport Evolution – May 19, 2010 - NYC xDSL CPE Packet ONP EoPDH NID EoPDH NID EoPDH NID EoF NID EoX Access Packet ONP Cable Modem EoX Aggregation EoX Gateway Service Edges Internet Access Voice VoD & IPTV MPLS / OTN Inter-Metro Transport Mobile Switching Office Retail Service Provider Partner E-LAN / VPLS Services COE on a Packet Optical Networking Platform acting as an EoX Gateway ENNI / VUNI UNI / RUNI Customer Premises COE Access to E-LAN Service types 3 © Copyright 2010 Fujitsu Network Communications All Rights Reserved. SONET GbE/10GbE GbE PDH Access Network EoSEoS EoCuEoCu EoPDHEoPDH EoFEoF Copper Access Network Access Network IP DSLAM GbE Cable Access Network CMTS EoDOCSISEoDOCSIS Packet ONP NxDS-3 NxDS-1 OC-n Ethernet Internet Access Service Ethernet Access Private Line (E-APL) and Ethernet Access Virtual Private Line (E-AVPL) being defined by MEF COE unifies Ethernet Services over Any Access Network Wholesale E-APL and E-AVPL OVC-based Services Retail EPL and EVPL EVC-based Services

4. Heavy Reading Packet-Optical Transport Evolution – May 19, 2010 - NYC Mobile Backhaul Evolution From SONET to Ethernet using COE FMO Step 1: Add PONP using COE over SONET to increase bandwidth efficiency FMO Step 1: Add PONP using COE over SONET to increase bandwidth efficiency FMO Step 2: Begin Migration to Ethernet over Fiber (EoF) network. Existing services unaffected FMO Step 2: Begin Migration to Ethernet over Fiber (EoF) network. Existing services unaffected Cell tower  MSC 4 © Copyright 2010 Fujitsu Network Communications All Rights Reserved. Packet-Optical Networking Platforms (PONP) with COE facilitate MBH network migration of multi-generation 2G/3G/LTE services 2G/3G 3G/LTE PMO: SONET T1s MSPP at MSC TDM SONET MSPP at Cell Site Ethernet EoS SONET Ethernet COE TDM 2G/3G 3G/LTE T1s Packet ONP at MSC PONP at Cell Site Each Ethernet service requires a separate SONET VCG EoF Ethernet COE TDM 2G/3G 3G/LTE T1s SONET Packet ONP at MSC PONP at Cell Site COE muxes Ethernet services onto same SONET VCG

5. Heavy Reading Packet-Optical Transport Evolution – May 19, 2010 - NYC DSL Backhaul Evolution From ATM/SONET to Ethernet using COE FMO Step 1: Add PONP using COE over SONET to increase bandwidth efficiency FMO Step 1: Add PONP using COE over SONET to increase bandwidth efficiency FMO Step 2: Begin Migration to Ethernet over Fiber (EoF) network. Existing services unaffected FMO Step 2: Begin Migration to Ethernet over Fiber (EoF) network. Existing services unaffected OSP Cabinet  CO 5 © Copyright 2010 Fujitsu Network Communications All Rights Reserved. Packet-Optical Networking Platforms (PONP) with COE facilitate DSL-Backhaul migration from Legacy ATM to IP DSLAMs PMO: SONET DS3/OC3 MSPP at CO TDM SONET MSPP at OSP Ethernet EoS SONET Ethernet COE TDM DS3/OC3 Packet ONP at CO PONP at OSP Each Ethernet service requires a separate SONET VCG EoF Ethernet COE TDM DS3/OC3 SONET Packet ONP at CO PONP at OSP COE muxes Ethernet services onto same SONET VCG ATM DSLAM IP DSLAM ATM DSLAM IP DSPLAM ATM DSLAM IP DSPLAM

7. Question 1: I am a service provider with a SONET network deploying Ethernet over SONET. Should I replace my Ethernet over SONET with COE over SONET ? If so, why ?

8. Heavy Reading Packet-Optical Transport Evolution – May 19, 2010 - NYC I have Ethernet over SONET (EoS). Should I replace my EoS with COE over SONET ? Ethernet over SONET (EoS) MSPP Challenges 1.EoS doesn’t support aggregation EoS is a port-based service Ethernet switch added for aggregation 2.EoS service bandwidth dictated by SONET EoS bandwidth in 50Mbps STS increments Other bandwidth rates waste SONET bandwidth COE over SONET with VCG Sharing on Packet ONP (PONP) COE supports service aggregation Aggregates EVCs or OVCs COE aggregates EVCs on same SONET VCG Can achieve 100% bandwidth utilization SONET MSPP Eth MSPP Eth MSPP Eth MSPP PERouter COE over SONET PERouter PONP Eth PONP Eth PONP Eth PONP 50Mbps 20Mbps EVC 50Mbps SONET VCG 30Mbps wasted 20Mbps EVC 8 © Copyright 2010 Fujitsu Network Communications All Rights Reserved. More bandwidth efficiency = More Service Revenue and Higher Margins 20Mbps EVC 10Mbps EVC