1. 1 ® Adtran, Inc. 2010 All rights reserved Proprietary and Confidential 1 ® Adtran, Inc. 2007 All rights reserved Cost-effectively Positioning Your Network for 4G/LTE July 25 th, 2012 Kurt Raaflaub Ethernet and Optical Solutions Carrier Networks Division ADTRAN http://www.adtran.com/mobilebackhaul

2. 2 ® Adtran, Inc. 2012 All rights reserved Delivering Scalable Reliability Meeting Rigid QoS Requirements in the Presence of Service Expansion

3. 3 ® Adtran, Inc. 2012 All rights reserved A good backhaul solution…  Maintains a reliable, low cost connection between cell sites and mobile exchange  Assures compliance to service level agreements (SLAs) via the use of performance monitoring customer web-portal  Provides a scalable architecture reliably supporting future growth in service, customer, and network size  Supports both legacy and next generation service (including synchronization) delivery and transport  Minimizes the operational costs associated with end to end service activation, assurance and diagnostics.

4. 4 ® Adtran, Inc. 2012 All rights reserved Reliable, Low Cost High QoE, High Availability, Simple  Always-on –Service Availability via Network Resiliency  Quality of Experience (QoE) –Low latency <5ms one-way delay –Predicates fiber; home-run point to point –Limited switch points and router hops  Prioritizes Real-time applications –H-QoS mechanisms –Policing, Queuing, Scheduling, Shaping –MEF compliant traffic management  Low-cost, simplified network –Ethernet access/aggregation –Minimal re-architecting SLA Attribute SLA Requirement Max 1-way frame delay < 5ms Max frame delay variation +/- 1ms Bit Error Rate (BER) < 1E10-9 Frame Error Rate (FER) or Frame Loss Ratio (FLR) < 1E10-6 Typical Mobile Backhaul SLA

5. 5 ® Adtran, Inc. 2012 All rights reserved Building a Strong Reputation Supporting SLA Monitoring and Reporting  Understanding SLAs –Well defined in any RFI  Meeting stringent demands of MNO –Building a robust network  Performance measurement and monitoring –Standard-based PM tool set supporting ITU-T Y.1731, Y.1564  Proving compliance in near real-time –Customer Viewable PM Dashboard/ Web Portal –Sub 1ms measurement accuracy Circuit-based Because All Packet Networks are not Created Equal Packet-based Traffic Management Performance Monitoring

6. 6 ® Adtran, Inc. 2012 All rights reserved Customer Viewable Web Portal Proving SLA Compliance in Real-time Creates a Precarious Situation Collect/ Store Stats Measure Accurately to <1ms Compare against SLA Present Compliance (Infractions)

7. 7 ® Adtran, Inc. 2012 All rights reserved Low Cost, Low Latency … Low Scale? Layer 1 & 2 Layer 2 & 2.5 Layer 3 (IP-connection) Aggregation Backhaul Network Backhaul Optimization Backhaul Optimization Mobile Network Mobile Network Mobile App Client Mobile App Server Metro Access Mobile Core 4G IP/Ethernet 2G DS0/1/T1 3G ML-PPP/T1 or ATM IMA/T1 Internet EPC IMS MMESGW RouterDCS EPC MMESGW IMS Router MNO 1 MNO 2 CSUM13 or ADM CSR GigE SLA Assurance & Sync Delivery 10 GigE

8. 8 ® Adtran, Inc. 2012 All rights reserved Mobile Video and Tablets Mobile video traffic exceeded 50 percent for the first time in 2011. Mobile network connection speeds will increase 9-fold to 2.9Mbps by 2016. Source: Cisco VNI 1012

9. 9 ® Adtran, Inc. 2012 All rights reserved Proprietary and Confidential Multiple Drivers for Edge Transformation All Segments Services are Scaling

10. 10 ® Adtran, Inc. 2012 All rights reserved Reliability in the Presence of Growth Delivering Scalable Reliability  Scalable architecture –300Mbps up to 1Gbps per site, per MNO –10Gbps interface to MTSO  Accelerating service delivery –More Applications –More Services  Lowering network complexity –More Customers –More Sites  Preserving QoE through the explosion –Multiple MNO customer per site –Mobile Video Now what? More Fiber? 100G?

11. 11 ® Adtran, Inc. 2012 All rights reserved Scalability Through Packet Optical Being Ready for Ethernet Services Growth Layer 1 & 2 Layer 2 & 2.5 Layer 3 (IP-connection) Aggregation Backhaul Network Backhaul Optimization Backhaul Optimization Mobile Network Mobile Network Mobile App Client Mobile App Server Metro Access Mobile Core 4G IP/Ethernet 2G DS0/1/T1 Internet EPC IMS MMESGW RouterDCS EPC MMESGW IMS Router MNO 1 MNO 2 CSUM13 or ADM CSR Backhaul Network 10G EoF GigE 3G ML-PPP/T1 or ATM IMA/T1 SLA Assurance & Sync Delivery EoF Dual Homing

12. 12 ® Adtran, Inc. 2012 All rights reserved Optical Networking Transformation Voice-centric solutions limit packet services Voice CentricVideo Centric

13. 13 ® Adtran, Inc. 2012 All rights reserved  Dedicated facilities per MNO or Service –1 or 10Gig increments –Wavelength separation –Resilient ring protection  Dedicated switch fabric per MNO or Service –Hierarchical QoS –Physically isolated traffic paths  Service Flexibility/Applicability –Ethernet or OTN (SONET/SDH) services Scalable Service Separation Speed of Light Low latency Optical switching (Transponding) Logical Path P2P with limited Ethernet switching IP/MPLS Core 44, 88 or more 10Gig Dedicated pairs of Ethernet, OTN or Optical switching fabric separated per MNO or per service Ethernet Aggregation Platform MNO C MNO B MNO A

14. 14 ® Adtran, Inc. 2012 All rights reserved IP/MPLS Core Typical Capacity Requirement (>10G) 10G services drive need for Packet Optical Service Type Bandwidth per Type Service Quantity Bandwidth Sub-Total Client allocated Network allocated Mobile Backhaul (4G) 300Mbps3 MNO per cell site x 5 sites 4.5Gbps (1.5 G per MNO)      (1 Gig per MNO)      (10 Gig per MNO) Mobile Backhaul (2/3G) 30Mbps3 MNO per cell site x 5 sites 0.5Gbpsn/a  (1 Gig ODU0) FTTH (GPON)2.5 Gbps1 Deployment2.5 Gbpsn/a  Metro Ethernet1 Gbps2 Enterprises2 Gbpsn/a  2.5 GigE GigE 3 x GigE MNO C MNO BMNO A FTTH Deployment Metro Ethernet Services GigE Total >10 Gbps Quantity 5 Ethernet, xOADM and OTN Dual Homing MNO – Mobile Network Operator Common Service Management

15. 15 ® Adtran, Inc. 2012 All rights reserved Broad Ethernet Market Applicability Cost-effective; Time-to-Market Sensitive OR LTE Backhaul Applicable Any Ethernet Service Applicable – NOW or FUTURE

16. 16 ® Adtran, Inc. 2012 All rights reserved Reliable, Low Cost: Today & Tomorrow Delivering Scalable Reliability  Delivering a Reliable, Low cost connection –Always-on –Quality of Experience –Prioritizes Real-time applications –Low CapEx and OpEx  Building a Strong Reputation –Understanding SLAs –Meeting stringent demands of MNO –Proving compliance in near real-time –Continuous compliance  Maintaining Reliability through Growth –Scalable architecture –Lowering Network Complexity –Accelerating Service Delivery –Preserving QoE through the explosion Meeting Rigid QoS Requirements in the Presence of Service Expansion

17. 17 ® Adtran, Inc. 2007 All rights reserved 4G/LTE alone can not meet Demand

18. 18 ® Adtran, Inc. 2007 All rights reserved Methods to Increase Mobile Broadband Capacity –Growth in small cells: decrease cell radius  increase bandwidth per subscriber –Centralized baseband processing  increase in fiber connectivity to remote radio heads –Spectral efficiency improvements in LTE –Increases in spectrum availability –Use of non-license spectrum (i.e. Wi-Fi) for data offload FCC Spectrum Cisco VNI: “39% of mobile data will be offloaded by 2015” Increasing Mobile BB Capacity

19. 19 ® Adtran, Inc. 2007 All rights reserved 12 ® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential This is a lot more expensive than this This was designed for voice and this was designed for data So, carriers are devising ways to keep voice on the current cellular infrastructure and move all data sessions to available Wi-Fi infrastructure Mobile Data Offload

20. 20 ® Adtran, Inc. 2007 All rights reserved Mobile Backhaul Network (SLA-Based) Wi-Fi Offload Architecture Exchange Bonded Copper Bonded xDSL or GPON/GE Uplink GE Cabinet Outdoor AP or Metro Cell TTG/ PDG Internet Mobile Core AAA Secure Mobile Core Tunnel for Seamless Mobility AP Mgmt & SLA Monitoring (Control Plane) 802.11n 5Hz Directional Challenges with Wi-Fi Offload  Managing scalability of thousands of APs  Ensuring seamless connectivity and mobility between 3G/4G and Wi-Fi networks  Taming unpredictable nature of traditional Wi-Fi networks Scalable, cloud-based virtual control from existing data centers 3G/4G Voice Wi-Fi Offload Addresses Bottlenecks in Radio Network and MBH network Solution: vWLAN enables scalable provisioning and policy enforcement for highly distributed Carrier Wi-Fi access networks, while enforcing predictable and repeatable behavior of unlicensed Wi-Fi spectrum

21. 21 ® Adtran, Inc. 2007 All rights reserved Roaming Hubs Wi-Fi Advancements: Hotspot 2.0 Provider SSIDs RADIUS Proxy HLRs (Subscriber Info) Service Provider Network 802.11u HS 2.0 AP Hotspot 2.0 Overview –Hotspot 2.0 allows for seamless and secure roaming between 3G/4G and Wi-Fi networks: simple and secure as roaming between cell towers –Phase 1: Discovery (covered by 802.11u) and Security (Covered by WPA2 Enterprise (includes EAP-SIM) –Phase 2: Registration (account creation) and Provisioning (subscriber credentials and policy assignment)