1. Nortel Networks Overview Local Loop Solutions Dan Gârlaşu, Country Manager, Nortel Networks Romania
June 2004

2. Nortel Networks at a Glance…
Over
100
years at the forefront of major technological innovation in telecom
Serving more than 150
countries
Approximately
35,000
employees worldwide
Let me first give you a very brief snapshot of our company, starting with our history.
We have a proud tradition of innovation and leadership in shaping the world of communications. Established more than a century ago, Nortel Networks has participated in major developments in the evolution of communications networks worldwide. 
Leading change has always been Nortel Networks competitive strength. We have transformed and reinvented ourselves countless times. What was once a pioneering telephone manufacturing company, supplying primarily the Canadian market, is now one of the world's largest global providers of high-performance Internet and advanced "carrier grade" data networks that provide the quality, scalability and reliability to serve as a new foundation for global communications.
Nortel Networks is currently delivering networking and communication services and infrastructure to service providers and enterprises in more than 150 countries.
As at December 31, 2003, Nortel Networks is approximately 35,000 employees strong. Our people are our strength, and the knowledge, commitment and talent of our employees drives our success.

3. Our Customers Public network carriers Wireless operators
Multiple System Operators
(cable companies)
Small, medium and large businesses
Financial institutions
Educational institutions
Hospitality industry
Healthcare facilities
Public institutions & government agencies
Other industries
We have two categories of customers: service providers and enterprises.
On the service provider side:
We provide network solutions to the world’s largest and most successful public network carriers (could add local/relevant examples). These organizations provide everything from basic telephone service to Internet access to high-performance data networks.
The service provider category also includes wireless operators (could add local/relevant examples) that provide voice, data and – increasingly – Internet and multimedia services.
We also serve multi-service operators, mainly cable companies branching out into new voice and data services (could add local/relevant examples).
On the enterprise side:
We provide network solutions and services to all types of businesses, from small and-medium sized companies to Fortune 500 multinational corporations. (could add local/relevant examples).
In fact, we’re a supplier to nine out of every ten North American fortune 500 companies, representing more than 50 million users and addressing many different sectors, including financial services, health care, education, retail, and Government
We’re also helping many other organizations and institutions – in government, education, and other fields.

4. Our Organization
Addressing the needs of multiple markets and customers
Leveraging technology portfolio across various market segments
Common technological and networking expertise, operations and customer service
To deliver solutions that meet the unique needs of our varied customer markets, we are organized into four leadership categories: Wireless, Wireline, Optical and Enterprise.
Our core strength is technology. We leverage our technology portfolio across multiple markets to both maximize our “return on R&D”, as well as to enable ubiquitous solutions for end users. Our investments are focused in the areas of the network that optimize network intelligence and economics while enabling rich multimedia services capabilities for our enterprise and service provider customers. We are a world leader in "packetizing" networks which allows for voice over IP, as well as many other data and multimedia services. Tying it all together is our dynamic optical foundation, the backbone of communications networks.
We are also maximizing our common technology and networking “know-how”, global operations and customer service across all our markets and lines of businesses.
Today, we see the largely independent networks of the past -wireless and wireline, voice and data, public and private networks - coming together to form one network. Our vision is to eliminate the boundaries between these multiple networks to allow users to benefit from the ultimate capabilities of one network. This complex process of transforming disparate networks requires the knowledge of multiple products, different types of customers’ networks, and significant networking expertise. By leveraging our expertise in our four leadership categories, we are uniquely positioned to design, integrate and deploy these complex networks.

5. Our Vision
As a global leader and innovator providing network solutions to service providers and enterprises, we are driven by a powerful vision that focuses our efforts on enriching global communications.
Transformed networks are the foundation technology—the infrastructure—of the global, interactive, multimedia network that’ll overcome barriers limiting possibilities for human interaction, international cooperation and doing business in a global networked economy.

6. Our Strategy
Stemming from our vision, we have a unique strategy that’s focused on increasing the value and convenience of global communications by eliminating the boundaries between networks (voice and data, wireline and wireless, and public and private), businesses, individuals and countries.
Our strategy will enable our customers to offer new products and services, enhanced functionality and more responsive customer service.
Our customers will experience improved profitability and competitive advantage as individuals are able to simply access personalized multimedia communications that are secure, robust, adaptable and available anytime from anywhere.
Over its long history, Nortel Networks has been an industry leader and innovator in transforming global communications. Our company is again leveraging its expertise, experience, and technology investments to further enhance the ways people communicate and exchange information.

7. Where We’re Focused
Nortel Networks is implementing its strategy through a sharp focus on:
Nortel Networks has one of the industry’s strongest portfolios, and the technologies required to lead the network transformation, with our sharp focus on :
End-to-end Broadband Solutions - enables end-to-end broadband with the reliability and robustness to deliver the productivity and revenue opportunities of personalized multimedia communications and information. Nortel Networks is focused on Optical Ethernet, Ultrabroadband Access, Storage Networking, and Multi-service Optical and Packet solutions – the foundation of wireless, wireline and enterprise networks.
Wireless Broadband - combines the convenience of mobility with secure broadband access to multimedia content and services. The transition from today's 2G Wireless Networks for voice-only, to 3G Wireless Networks for voice and multimedia fits extremely well into Nortel Networks’ technology strengths of radio access, the packet core, and services platforms.
Voice-over-Packet – packetization of voice will permit more cost effective network operations, and will enable the creation of new services through the convergence of voice and multimedia applications as customers move from separate, single-service networks to cost-efficient multiservice networks. With our leading Voice over IP solutions, we can offer the voice quality and services that people expect, while gaining the cost benefits of operating one converged network.
Multimedia Services and Applications – greatly increase productivity through a new era of enriched communications, with mobility, collaboration, and personalized applications from multimedia services. Nortel Networks is focused on a number of services solutions that will enable the transition to personalized and integrated services, being VPN’s, Personalized IP services, Contact Centers and Voice Portals.
These solutions cover all major technologies and allow us to take a leadership position in the network transformation through our unique skills combination. We continually leverage our research and development investment in order to bring the best solutions to our customers.

8. Transforming the Network
Packet Transport
• IP Standards Driven
• Traffic independent
Common Control
• Service/Access Aware
• Multi-service/Application
• Customer Nomadicity
• Simplified User Experience
Now that we know what people value, we need to transform the network to deliver those values.
Nortel Networks is driving the transformation from multiple networks of today with simple devices and disparate services to converged fully transformed networks with common control, service access core, multi service applications, integrated functionality and ubiquitous broadband.
Many companies today, are still operating under a the distinct networks model, essentially a different network for each service set. For example, a public switched telephone network, which is voice services on TDM today, is a single service set. On a different network you have cellular voice services, which has some additional capability for presence and locating your subscribers and a different service set. Then you have any number of different enterprise networks with restricted reach.
The networks themselves are pretty simple but there is a lot of complexity placed on the user; different networks, different services, different applications, different usage. How many phone numbers do you have? How many voic s do you have? How often are you on your desktop and you’ve got a voic message waiting for you yet you’re not checking it. The service providers can provide a solution to this problem. One single voic for your office phone and your home office phone and your cellular. But to do that, the carrier has to incur the operations cost (OA&M :operations, administration, and maintenance). What we need is for the network to be self-service so the network provides that capability and the end user can execute on it.
On the right hand side, we have the transformed network. Transport is collapsed all into one, which helps reduce the cost of running your network. But if the service engines are separate, the user environment (on the left hand side) still exists. It’s not until you get an integrated functionality, until you virtualize the network, that you can get the simplicity we see with the transformed network. When you get the simplicity then the network becomes a lot more valuable. You can use it for a lot more things and build it into your life a lot more. This is what the network evolution has to be and it has to be a transformation.
In order to drive the transformation it is critical that customers are able to move seamlessly from “real world” to “new world”. This requires a transitional approach that maintains integrity of existing services while transforming to the new.
Simplification drives lower costs,
facilitates solutions, enables network value

9. Network Transformation Enabled Services
VoIP and Multimedia Communication Services
Integrated Voice, Video, and Data services
Desktop Video Conferencing
Collaboration, White Boarding
Personalized Services
Personalized Content Delivery
Security
Agents
VPN Services
Voice and Data
Enterprise Connectivity
Mobility and Presence Services
Voice over Wireless Local Area Network
Find Me/Follow Me
Broadband Optical Services
Storage
Broadband Connectivity
Optical Ethernet
Also key is how Nortel Networks applies its leadership technologies and how they are aggregated to create solutions value. The importance of value-rich revenue generating services is twofold. Clearly the availability of compelling new services for business and consumers will enable new revenue opportunities. But equally importantly, service providers will see strengthening of their brand equity as they step to the forefront of service offerings and take the lead in bundling services together in compelling packages.
We have a broad and deep portfolio of services that fully leverage the packet-based networks that are being deployed today. Service categories include
VoIP and Multimedia Communication services – These services enable the integrated of voice, video and data services, creating such value-added services as desktop video conferencing and white boarding.
Personalized services – Allows the end user to adapt services and content to their specific needs through personalized content delivery, multi-level security, and personal agents.
VPN services - extend the corporate network to remote users through enterprise connectivity services.
Mobility and Presence services – enhance the freedom of mobility by enabling voice services to be carried over Wireless Local Area Networks and for phone calls, s etc to be delivered directly to you, on whatever device you choose, through find me/follow me services.
Broadband Optical services – enable increased network efficiency, higher bandwidth and lower costs through services such as Storage Area Networks, Broadband Connectivity, Ethernet and Multiservice.

10. Transformed Network Architecture
So with that kind of a service capability in mind, what’s the network, the transformed network, going to look like?
It’s going to be packet. It’s going to be packet because only a packet structure will handle all services. If you don’t have packet, you’re going to have separate networks for separate services. Now it’s a matter of when and how fast and what’s the business case?
It’s going to have, on one packet structure, different services that require different capabilities of that structure. In the world where you had one service on one infrastructure, the capabilities were defined and they weren’t variable. In the world of the transformed network, you’re going to have to be able to call up different latencies for different services, different bandwidths for different services, different quality of service.. And you’re going to have to be prepared to pay for it because it’s going to cost different amounts of money, and that gives you a very powerful infrastructure. So essentially you have different services running on one infrastructure.
And a key part of this transformed network is what we call the Services Edge. Networks don’t have an explicit edge when it’s one service on one network, it connects to the access and it’s one configuration.
With multiple services on one network, you need security at the edge. At the edge, you also need mobility functionality, which is in fact an edge function - GGSN in a wireless world for those of you that know the different blocks…quality of service or quality of experience, IP-VPNs were put here because it’s really a security issue…and subscriber control.
This capability of “what’s at the packet edge and how does it operates”, is transforming networks.
So the network is packet, it’s got secure multimedia services running on it, supported with the services edge and it’s broadband throughout. You have broadband capability throughout so you can get the multimedia broadband experience, and it’s an optical layer at the foundation of all networks.
So on one hand, this is the network transformation, these are what the networks are going to look like going forward, and whether it’s a wireless carrier network or a wireline carrier network, this is the network. They are not really different, they’re the same core, different access. Take core in the most expanded sense.
Whether it’s a carrier network or an enterprise network, in a significant enterprise network this is what the network looks like. So at one level, this is a statement of what the network functional architecture is in the industry, at another level, this is Nortel Networks investment plan. We’re really investing on these building blocks and going to market with our different entities. And on this network, it needs to be very capable, it needs to export its capability so it’s easy for third party software providers or applications providers to get the resources they need from the network and the attributes they need from the network to deliver the applications. And for that the network needs to command value.

11. Nortel Networks European South East Region
More than 70M pops.
200 Employees
Countries:
Israel
Poland, Slovakia,
Romania , Slovenia, Croatia, Serbia, Bulgaria,
Macedonia, Albania, BiH,Moldova
Main sites:
Tel Aviv- Israel
Bucharest- Romania
Warsaw- Poland

12. Nortel Networks in Romania
Nortel Presence in Romania
Nortel has been present in Romania for more than 16 years and established own office directly after the MobiFon win.
Nortel has R&D entity in Romania that is employing more than 200 software & Hardware engineers in ITC Networks.
We are exploring these days future expansion in both R&D and Services.
Nortel has big footprint in the Enterprise market where as a lot of the Business community has installed Meridian PABX (400 ) and voice related applications, such as IVR, Call Center, Unified Messaging, etc.

13. One Network Solution Components
Wireless
PC Soft Clients
SIP Enabled
i2004
Digital
Clients
i2002
Multi-Media
Collaboration
CallPilot
Unified Messaging
Symposium
Contact Center
Periphonics Self-Service
Applications
Communication Servers
CSE MX
BCM
Meridian 1
SL-100
CSE 1000
Norstar
CS 2000
We take our tenets and going forward implement them into our solution portfolio across our enterprise product set.
Our goal is to bring valued solutions to our enterprise customers that build on the power that a Nortel solution can bring.
Passport
OpTera
Contivity
Alteon
BayStack
Network
Award Winning Products

14. Our Local Loop Solutions – ADSL I/O
The new ADSL I/O Card provides a new low-end access option for the Branch Office VPN solution
Can operate stand-alone, or with other interfaces to provide primary and back-up options:
ADSL, with ISDN or PSTN
E1 or Serial or Ethernet, with ADSL
Extends the reach of the Enterprise network with cost-effective, and efficient bandwidth now available to every location
Contivity 251 ADSL
Contivity 221
SOHO

15. Portfolio View with Contivity 200 Nortel Enterprise
High
End ~
Contivity 221 $ MSRP
Contivity 251 (ADSL) $ MSRP
Contivity 5000
Contivity 2700
$>20,000
Large
Enterprise
Mid-
Range
Contivity 1700
$8,000
Medium Large
Enterprise
List Price
5000 tunnels
Contivity
600
Small Medium
Enterprise
$1,500
2000 tunnels
$1,000
Contivity 1xxx
500 tunnels
Small
Office
Small Enterprise
Contivity 221
Small Office
Home Office
Contivity 251 ADSL
SOHO
30-50 tunnels
$500
5 tunnels
>200
Encrypted 3DES Performance (Mbps)

16. Local Loop Solutions: Wireless Mesh Networks
Key characteristics
Auto-discovery of nodes and routes
Auto-configuration of network components
Mesh topology
Wireless interconnection
Advantages
Rapid network deployment
Reduced infrastructure costs
Reduced engineering and operational costs
Increased network reliability
Wireless Mesh Networks are well-suited for providing broadband wireless access in areas that traditional Wireless LAN systems are unable to cover and where the seamless voice and mobility capabilities of cellular systems aren’t required.
Key characteristics:
Auto-discovery: the ability to automatic detect the presence of a new node in the network and incorporate it into the routing tables allows the operator to extend the coverage and capacity of the system with a minimum of effort. A well-designed ad hoc network is virtually “plug and play”
Auto-configuration: similarly, allowing the nodes to configure themselves and negotiate directly with their neighbors reduces the additional cost and effort associated with more traditional, centralized operational support systems (OSSs)
Mesh topology: the mesh-like pattern of links formed among the nodes in the network is inherently more robust than classic hierarchical or star network configurations, since (more often than not) the network has multiple routes available between any two nodes. The network automatically routes around any congestion or failure in the network
Wireless interconnection: the use of wireless links between nodes in the network allows nodes to be installed wherever they are needed, without being concerned about the availability or ongoing costs associated with wired backhaul links
Advantages:
Rapid network deployment: this is a result of the auto-discovery, auto-configuration and wireless aspects of the system. A new network can be created merely by powering up 2 nodes. As new nodes are added, the network automatically adjusts to make optimal use of them
Reduced infrastructure costs: the reduction or elimination of OSS components to manage the network, and the elimination of wired backhaul dramatically reduce the amount of equipment required to serve a given area, compared to current WLAN and cellular solutions
Reduced engineering and operational costs: virtually no planning nor ongoing maintenance efforts are required, other than placing the nodes within range of one another and replacing faulty units. The primary engineering activity relates more to ensuring that the capacity of the network (and especially the transit links) is sufficient to meet the demands
Increased network reliability: the availability of multiple routes through the system ensure that user traffic can be routed around faults or impairments in the network. In addition, traffic can be distributed across different routes to better balance traffic flow through the network

17. An innovative public WLAN access solution
Reduces installation and commissioning costs by more than 75%
Self-configuring, self-healing
No RF engineering required
Outdoor packaging and low power consumption permits installation almost anywhere
Reduces operating expenses by more than 70%
Eliminates requirements for wired backhaul connection to every AP
Basic router connection to backbone network, Packet Gateway manages mobility, roaming, and security
Provides differentiated WLAN access in large areas
Mobility within the CAN
Broadband access and transit remove network bottlenecks
Internet
at large
AAA, DHCP,
RADIUS
Optivity NMS
Border Gateway
(NAT, Firewall, etc.)
NOSS
Enterprise / ISP Backbone Network
Wireless
Gateway
7250
Wireless
Gateway
7250
Enterprise / ISP / Metro Distribution Network
Layer 3
Switch
Layer 3
Switch
For specific examples on installation & commissioning cost and operating expense savings see the following charts showing examples. Actual numbers are included for the Toronto example..
Wireless AP
7220
Community
Area Network

18. Wireless Mesh Networks
Extending the reach of Wireless LAN…
Avoids service outages, provides efficient routing using auto-discovery and self-healing
Uses the b (and g in the future) interface, exploiting the immense – and growing – consumer base of WLAN compatible devices
Allows mobility within the network to provide a larger coverage area than traditional WLAN hotspots
Brings “hotspots” together into a Community Area Network (CAN), providing larger homogenous coverage and mobility within the CAN
Network elements required:
Wireless Gateway 7250
Wireless Access Point 7220
Optivity Network Management System
Depending on network architecture, Layer 3 routers for connection of mesh to wired distribution network
The Wireless APs incorporate neighbor auto-discovery techniques, enabling them to identify neighboring Wireless APs and possible routing paths automatically, without the intervention of a technician or management system. When combined with the included adaptive routing algorithms, this provides a “self-healing” network – a network that is able to recover from the loss of a Wireless AP by connecting with neighboring Wireless APs and using alternative routes.
802.11b is used for end user access. The raw bandwidth of b is 11 Mbps. In the future, g will also be supported which has a raw bandwidth of 54 Mbps.
With a standard off-the-shelf device that can be purchased in a number of stores, the network will manage the mobility of a user within the Community Area Network.
The coverage provided by many hotspots now appears as a single, homogenous coverage area, allowing the end user greater freedom of movement with the coverage area while maintaining continuous service.
For the more technically minded…
Mobility is enabled based on a network enabled version of the Mobile IP model. In this case the Wireless AP includes a Foreign Agent which acts as a proxy for the terminal, allowing it to move around within the community area network (CAN). The Virtual Home Agent is located in the Packet Gateway.
For transit between Wireless APs, a is used, which has a raw bandwidth of 54 Mbps. This means that at any given time, the bandwidth limit into the broadband network is 54 Mbps (raw). In other words, a set of Wireless APs that are connected through a single Wireless AP to the NAP has a total of 54 Mbps bandwidth to be shared among end users and overhead traffic.