1. Axerra Networks Solutions for Mobile Backhaul

2. About Axerra Networks Founded in 1999
Global provider of SERVICE CONVERGENCE solutions over packet transport
A leading vendor of multiservice pseudowire solutions
Active standard bodies participants and influencer
Field proven with live deployments
Award winning products
Offices around the world
Israel (HQ), EMEA, Russia (incl. CIS), USA, APAC (Hong Kong, Singapore)
Financed by strong investors
Carmel Ventures
TLcom
HarbourVest

3. Mobile Backhaul - Key Market Trends
Enhanced user experience demands higher-speed data rates
HSPA – the “killer application” for mobile backhaul – Flat rate
Installed Worldwide cell site connections will grow from 3M in 2008 to 4.2M in 2011
The vast majority of today installed cell sites are T1/E1 based
Many of the cell sites can’t be upgraded to Ethernet
Ethernet to the cell site will be required in order to support future NodeB / eNB (LTE)
4G (LTE, WiMax) technology standardization is in final stage of the approval process
Will take 3-4 years until mass deployment
Many operators will use PW as IP solution until LTE availability in order to skip one hardware upgrade phase
Access is definitely the bandwidth bottleneck
PDH/TDM is not a scalable solution
Backhaul networks migrating to Ethernet
The mobile RAN is migrating from TDM and ATM to IP/ETH
“All IP” RAN evolution will happen gradually and not in one step
2G/3G Base Stations will co-exist for a long time with 3G taking over gradually
Base Stations with TDM/ATM I/Fs will stay for at last 3~5 years
Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, October 2008

4. TDM Backhaul Hits the Breaking Point Ethernet Solutions for Cell Backhaul
Source: T-Mobile Europe
Capacity requirements grow
E1/T1 costs grow linearly
Need to decouple cost and capacity
Ethernet is more efficient over any media
HSPA Base Stations come with Ethernet ports
Ethernet enables scalable, flexible, lower cost per bit bandwidth to the cell site:
Optimized for data
Convergence
WiMAX and 4G in general
Migration to Ethernet

5. Migrating to Ethernet Transport - MEF Use Cases
Hybrid RAN/HSPA Offload -
Enables phased migration to
Ethernet while: Utilizing low cost and available
broadband technology for
transporting HSPA traffic
Packet offload over Carrier Ethernet (HSPA offload)
Overlay Carrier Ethernet does bandwidth offloading onto Ethernet services
Legacy network continues to transport voice and deliver timing/signaling
Voice services are migrated onto Ethernet in a later phase
“Big Bang”
Emulation over Carrier Ethernet (legacy services over Ethernet)
RAN nodes with legacy interfaces transport all traffic over Ethernet services using emulation technologies – from Day 1

6. Pseudo-Wire => the Packet-based RAN Migration Enabler
For the next few years the vast majority of cell site connections will be based on T1/E1 interfaces
About 1/3 of overall cell sites are collocated 2G/3G sites
Growing demand for Ethernet connectivity to high capacity cell sites
The amount of bandwidth per cell site is estimated to grow by 3x to 4x over time
New 3G and 4G NodeB will use Ethernet interfaces
Most additions of 3G cell sites will take place in existing 2G cell sites
Operators use existing foot print of 2G cell sites
All traffic originating from the cell site will be carried over Ethernet using PWE3 gear
Use PWE3 gear with advanced functionality (Ethernet Link/Services OA&M and PM)
Use PWE3 gear to serve
collocated 2G/3G sites
PWE3 CPE will become an
Ethernet Demarcation Device

7. Widespread Agreement on the Need for Pseudo-Wires (PW)
Major operators are deploying PW solutions at the cell site and it plays an important role in the evolution of mobile backhaul networks to IP/Ethernet
Some of the operators that announced PW deployment in 2007: T-Mobile, Telecom Italia, Swisscom, Taiwan Mobile, and eMobile (Japan)
Standardisation is almost accomplished, including Precision Time Protocol
For most carriers it’s not a question of “if” but a question of “where” and “when”
BTS
BSC
Carrier Ethernet
RAN
Emulated TDM/ ATM/HDLC PW Service
ETH
TDM E1 IP
R5/LTE/WiMax
PWE3 Cell
Site Device
PWE3
Gateway
G.823/824/8261
Compliant Clock
ATM
RNC
aGW
ATM/IMA
NodeB

8. Subscriber Interface OAM Subscriber Interface OAM
PWE3 CPE Will Become an Ethernet Demarcation Device
Monitoring SLA Over 3rd Party Transport Networks
Ethernet Link OA&M: Discovery, Link Monitoring, Remote Failure Indication, and Loopback
Subscriber Interface OAM
Network Interface OAM
Network Interface OAM
PWE3GW
Subscriber Interface OAM
PWE3Access Device CE
PSN Tunnel PE PE CE AC AC
UNI
UNI
Eth Link OAM
Eth Link OAM
Ethernet Service OAM
PW OAM
Ethernet demarcation features enable:
End to End Service Level Assurance
Ethernet QoS
Investment protection
PWE3 CPE of today will evolve to Ethernet Demarcation Device
Lower total cost of ownership
Fewer devices in the Cell Tower

9. Highlights of Key Trends in Mobile Backhaul
Migration to IP/MPLS backhaul networks is inevitable
Drivers are RAN capacity growth, IP base stations and service evolution
Immediate OpEx savings and short ROI
Carriers will deploy Ethernet for 3G and 4G backhaul to realize significant cost advantages and close the gap between mobile revenue and expense
Investment protection
Shifting to Ethernet Assurance and added value features…
RAN Evolution versus Revolution
2G/3G Base Stations are collocated and will co-exist for a long time with 3G taking over gradually
Migration to All IP RAN will happen gradually and not in one step
PW Mobile Backhaul solutions are picking up, becoming mainstream
Pseudo-Wire is the Packet-based RAN Migration Enabler
Field-proven with large deployments
PW Mobile Backhaul Solutions Available Today..for 2G, 3G, and Beyond
PW Mobile Backhaul over ANY packet transport network

10. Typical 2G/3G RAN Backhaul Architecture
Radio Access Network
BTS
BSC
Abis
E1/ T1/
ChSTM-1
DXC
Abis
TDM Leased Lines A
E1/ T1/
ChSTM-1
E1/T1
Iub
RNC
ATM/IMA, n x E1/T1
E1/T1
ChSTM-1
ATM
Switch
Iub
NodeB
STM-1
ATM Iu
Both 2G TDM and 3G ATM traffic are backhauled over TDM leased lines
Leased lines for backhaul today account for 20%-40%
of Mobile Operators’ Operational Expenses (OpEx)

11. Key Requirements of Ethernet-based Backhaul
Meeting clocking/synchronization requirements
Compliant with G.823/824/8261
Low end-to-end delay must be maintained
Ethernet Service and Link OAM & PM
High Availability
Ensuring QoS of different traffic types
Voice, data, video, signaling, management, etc.
Traffic Optimization (TDM grooming, ATM aggregation, encapsulation overhead reduction)

12. GSM/UMTS Backhaul over PSN
BTS
ETH
Carrier Ethernet/ MPLS
AXN10 PWE3
CPE
E1/T1
Abis
Iub
STM-1 ATM
AXN PWE3
Gateway
E1/T1/STM-1
Iub - ATM Pseudo-Wire
Abis - CES Pseudo-Wire
PSN Tunnel
BSC
NodeB
nxE1/T1 IMA
WiMaxWiFi
RNC
Supports all generations (GSM, EDGE, UMTS and HSPA) of mobile voice and data, also WiMax and WiFi and even Enterprise Services
Preserves native features and signaling across packet networks
Meets strict clock synchronization requirements through Axerra’s High-Precision Clock Recovery (HPCR®)
As specified in ETSI TS or 3GPP TS25.104
Ensures QoS of different traffic types such as voice, data, signaling, management, etc.
Eliminates the need for expensive ATM switch

13. HPCR® –High Precision Clock Recovery ±15 PPB
BTS/NodeB
AXN
Gateway
BSC/RNC
AXN10 PWE3
CPE
Carrier Ethernet/ MPLS
E1/T1/STM-1
E1/T1s
G.823/824/8261 Compliant Clock
HPCR
Synchronization Information
High accuracy Primary Reference Source (PRS) clock
Complies with ITU-T G.823, G.824, G.8261
Designed to meet the clock synchronization requirements as specified in ETSI EN and TS “Synchronization in UTRAN stage 2."
Tested and approved by major mobile equipment vendors

14. Backhaul from Cell Site - HSPA Offload
2G BTS
BSC
SDH/Leased Lines
E1s/Ch STM-1
ATM Switch
1-2xT1/E1 for R99
Voice/Signalling
NodeB
E1s/Ch STM-1
STM-1 ATM
T1/E1
RNC
DSL + Ethernet or IP or ATM
ETH
AXN10
PWE3
ETH/ATM
HSDPA
ADSL
AXN PWE3
Gateway
Emulated ATM Circuits
The Hybrid approach:
R99 voice/data and signaling remain on traditional TDM leased lines
HSPA data traffic runs on Ethernet network – possibly ADSL
Enables phased migration to Ethernet while:
Utilizing low-cost and available broadband technology for transporting HSDPA traffic
Lower quality Ethernet network needed
HPCR not needed: sync via SDH – same as today
Lower cost savings, but possibly easier deployment

15. Backhaul From Aggregation/Hubbing PoP
BTS/
NodeB
Central Site (CO) LL
BSC
Hubbing Site
nxCh.
STM-1
Carrier Ethernet/ IP/ MPLS
Transport
nxE1/T1s PDH MW
BTS/
NodeB
ETH
ETH
RNC
nxSTM-1
ATM
PmP
AXN
Gateway
BTS/
NodeB
STM-1 ATM
Emulated TDM/ATM Circuits
The majority of cells will use TDM access for many years
About 75% of cells in 2009 will still be connected over Microwave and PDH/SDH
Today Tier 2 backhaul is done mainly with SONET/SDH but Ethernet/MPLS will follow to the Aggregation PoPs
Carrier Ethernet and MPLS will be available in Aggregation PoPs much earlier than in the cells
Wireline and Wireless network unification plays a major factor
Provides major OpEx saving
Extends grooming to hub sites - 3/1/0 and VPI/VCI

16. Multiple Services – One Solution
MSC
BSC
Pseudo-Wire Tunnel
Cell Site
T1/E1
BTS
Ethernet
Service
TDM
ATM
FR/HDLC
ATM/FR/HDLC 3G
GigE
Ethernet
AXN
RNC
EVDO
AXN
Ethernet
Multiprotocol
Pseudo-Wires
WiMAX
RNC
Axerra Service
Supported Service
Cell Site Interface
MSC Interface
Benefit
CES Pseudo-Wire
AMPS, GSM, CDMA
TDM: T1/E1, DS3/E3, OC3/STM-1
TDM: T1/E1, DS3/E3, OC3/STM-1,
B/W gains from DS0 grooming
ATM Pseudo-Wire
UMTS, HSDPA
ATM & ATM IMA: T1/E1, DS3/E3, OC3/STM-1
ATM: T1/E1, DS3/E3, OC3/STM-1
Stat-mux gains
No ATM switch needed in CO
HDLC Pseudo-Wire
1xRTT, EVDO
HDLC: T1/E1, DS3/E3
HDLC: T1/E1, DS3/E3, OC3/STM-1
HDLC data interface
FR Pseudo-Wire
iDEN
FR: T1/E1, DS3/E3
FR: T1/E1, DS3/E3, OC3/STM-1
FR data interface
Ethernet switching
EVDO, WiMAX, 4G
Ethernet: FE
Ethernet: GigE
No need for TDM interface on router

17. Axerra’s Complete Product Family AXN Product Portfolio of Access Devices and Gateways
Capacity
Scalable family of platforms
1 to 1000 E1/T1 capacity
Carrier Class Reliability
Multiservice Pseudo-Wire
CES + Layer 2 Pseudo-Wire
Pseudo-Wire flexibility
Axerra-owned code
Software-based architecture
5 patents + 1 pending
AXN1600N
1000
E1/T1
AXN800
AXN10
AXN1
1 E1/T1
CPE/Cell Site
MTU
PoP/CO
Location
AXNVision
Point-and-Click provisioning
Performance Monitoring
Comprehensive Fault Management
Standards-based

18. Axerra’s Unique Value Proposition
Single and robust platform supporting both Mobile Backhaul and Business Service Delivery
Best-of-Breed Pseudo-Wire industry leader and solution provider
Enable leased line replacement such as PBX backhaul and converging legacy services over PSN covering private line, FR, ATM, and HDLC services
Multiple Services – One Solution
Beyond Circuit Emulation – variety of Layer-2 Pseudo-Wire services
Scalable solution with modular and flexible platform
Supports all generations of mobile & business services
Robust and accurate adaptive clock recovery mechanism
Strong momentum with world class OEM and SI partners
Field proven

19. Thank you for your attention Visit our website at www.axerra.com