1. Ralph Santitoro March 25, 2010 Delivering Next-Generation Services How Packet Optical Networking and Connection-Oriented Ethernet Are Changing Metro Networks Market Watch

2. Contents Evolution of Metro Networking Connection-Oriented Ethernet Packet Optical Networking for Mobile Backhaul Application 2 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

3. Packet ONP architecture addresses different entry points Where are you on the TDM to Packet transition ? Access and Core Packet ONPs Switch fabric-based Core Packet ONP for aggregation at the core Access-optimized µPacket ONPs at the edge Packet ONP as an EoX Gateway Enables unified definition of high performance Ethernet services over any access network technology Packet Optical Networking Platform (Packet ONP): Connection-Oriented Ethernet + Layer 1 Transport Packet ONPs are the optimal aggregation, transport and service delivery platform to address metro network evolution 3 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010 Network InfrastructureTDMPacket

4. SONET MSPPs have dominated landscape MSPP = SONET ADM/DCS + Ethernet I/Fs MSPPs provide no Ethernet aggregation EoS is a port-based service But.. Additional NEs needed to complete the solution Ethernet Switches Aggregate EoS traffic to single router port EoPDH Gateways Ethernet over bonded T1s/T3s WDM / ROADMs Scaling optical transport Unique Management Systems for each NE Evolution of Metro Networking Platforms - PMO SONET ADM / DCS Ethernet Interface MSPP Eth MSPP Eth MSPP Eth MSPP Eth MSPP SONET Access Ethernet over Fiber Access PDH Access MSPP EoPDH IP Network SONET/DWDM Transport Network Inter-Metro MPLS Network 4 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

5. Services / Transport Networks End Users Access and Backhaul Networks Packet Optical Networking (Packet ONP) for Converged Packet Access to Unify Services FMO with Packet ONP as an EoX Gateway PMO One Packet Optical Networking Platform to scale and unify all packet services MSPP Ethernet over SONET Access Ethernet over Fiber Access Ethernet over PDH Access MSPP EoPDH Hub Site Enterprise Mobile operator Residential Broadband Enterprise IP Network SONET/DWDM Transport Network Inter-Metro MPLS Network Hub Site EoX Gateway IP Network OTN/DWDM Transport Network Inter-Metro MPLS Network Ethernet over SONET Access Ethernet over Fiber Access Ethernet over PDH Access Enterprise Mobile operator Residential Broadband Enterprise 5 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

6. EoX Gateway Reduces Hub Site Cost and Complexity Ethernet Switches MSPPs EoPDH Gateways Hub Site Systems PMO vs. FMO using EoX Gateway 5 3 2 1 PMO EoX Gateway FMO 0 8163264128256 Number of Ethernet UNIs Normalized Cost 1 2 3 4 5 6 7 8 PMO Normalized Cost Comparison PMO vs. FMO using EoX Gateway 0 1 2 3 4 5 6 7 8 EoX Gateway EoX Gateway can reduce hub site NEs by factor of 10 Saves valuable space Lowers total cost of ownership Single Management System Operational Savings Single point for OSS integration EoX Gateway can reduce hub site equipment cost by > 50% MSPPs require a 1:1 UNI port relationship for EoS services MSPPs require an Ethernet switch to aggregate services 6 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

7. Packet Optical Networking Platforms Why do we need them ? Metro Networks originally unified with SONET/SDH Metro networks dis-integrated as IP services dominated Aggregation: Mix of SONET/SDH, Switch/Router, PDH Gtw NEs Transport: ROADM / DWDM This “dis-integration” resulted in large CapEx and OpEx Cost to evaluate, deploy, operate and interconnect multiple NEs Cost of multiple vendors to manage OAM costs (provisioning, troubleshooting) Reliability (SLAs) impacted due to more points of failure More NEs, more cables, etc. Different network operations for aggregation and transport Different OSSs, skill sets, management methodologies Packet Optical Networking Platforms “re-integrate” aggregation and transport networks 7 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

8. Connection-Oriented Ethernet

9. Connectionless Ethernet (CLE) When most think of Ethernet, they think of Ethernet LANs Technically referred to as Connectionless Ethernet CLE is also used in Carrier Networks Subscriber sites (many users) connect to an Ethernet UNI Instead of a single user connecting to an Ethernet port in a LAN MP2MP EVC in Carrier Network UNI LAN 9 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

10. Connectionless Ethernet limiting factors in Carrier Ethernet networks Non-Deterministic QoS and Traffic Patterns Traffic path highly variable due to spanning tree topology changes Creates variable QoS performance (Delay, Delay Variation, Loss) Difficult to troubleshoot variable traffic paths Inconsistent Bandwidth for Subscribers Ethernet MAC Address learning performed dynamically through broadcasting of unknown address to all ports (called flooding) Flooding takes away from revenue-generating bandwidth Difficult to Guarantee Bandwidth (Traffic Engineering) Multiple source and sink points in the network Difficult to provide High Network Availability Spanning Tree variants cannot meet demanding service requirements CLE requires technology augmentation to make it “Carrier Grade” 10 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

11. Connection-Oriented Ethernet (COE) The best of both worlds Ethernet over SONET Deterministic and precision QoS Bandwidth reserved per STS 99.999% Availability Highest Security (L1 service) Ethernet over SONET Deterministic and precision QoS Bandwidth reserved per STS 99.999% Availability Highest Security (L1 service) Connectionless Ethernet Layer 2 Aggregation Statistical Multiplexing Flexible Bandwidth Granularity Cost Effectiveness Connectionless Ethernet Layer 2 Aggregation Statistical Multiplexing Flexible Bandwidth Granularity Cost Effectiveness Connection-Oriented Ethernet COE makes Ethernet more like a Layer 1 service but with all the benefits of Layer 2 Ethernet 11 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

12. Connection-Oriented Ethernet Defined Carrier Ethernet with Traffic Engineering EVC 1 EVC 2 EVC 3 Deterministic performance Connection- Oriented Ethernet Per-flow TE EVC 1 EVC 2 EVC 3 Statistical performance ? Connectionless Ethernet Aggregation Explicit data path Connection- Oriented Ethernet Implicit data path Connectionless Ethernet ? EVC 1.Ethernet frames take predetermined path  Provisioned by management system 2.Each Flow is Traffic Engineered  Bandwidth Reserved per Flow 12 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

13. Why COE ? Makes Ethernet more like SONET which dominates metro networks today Network operations procedures similar to SONET Smoother transition for SONET-trained operations personnel Highly scalable packet-centric technology Meets large scale metro connectivity and aggregation requirements COE delivered over: SONET/SDH, PDH, OTN, WDM, Fiber (native Ethernet) Ideally suited for: Metro Ethernet Aggregation for handoff to IP service edge networks Mobile Backhaul Networks High Performance Ethernet Private Lines (EPL), Ethernet Internet Access and Layer 2 VPNs (EVPL) commercial business services COE evolving Metro Network to be more packet-centric while leveraging existing TDM infrastructure and operations 13 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

14. Evolution of Mobile Backhaul using Packet Optical Networking

15. Packet Optical Networking Platforms evolve Mobile Backhaul Networks from SONET to Ethernet FMO Step 1: Add P-ONP using COE over SONET to increase bandwidth efficiency FMO Step 1: Add P-ONP 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 PMO: SONET T1sEthernet EoS MSPP at MSC TDM 2G/3G SONET Cell tower  MSC Packet-Optical Networking Platforms with COE facilitate MBH network migration of multi-generation 2G/3G/LTE services µPacket ONP Ethernet COE TDM EoF 2G/3G 3G/LTE T1s SONET Packet ONP (P-ONP) at MSC P-ONP at Cell Site SONET Ethernet COE TDM 2G/3G 3G/LTE T1s Packet ONP (P-ONP) at MSC P-ONP at Cell Site 15 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010

16. Summary Packet Optical Networking is evolving metro networks Cost effectively addressing the vast range of applications and services “Re-integrating” metro aggregation and transport networks COE facilitates the evolution from SONET to Carrier Ethernet COE evolving the Metro Network to be more packet-centric While leveraging existing TDM infrastructure and operations For more information on Connection-Oriented Ethernet and Fujitsu’s FLASHWAVE Packet Optical Networking Solutions, visit us.Fujitsu.com/Telecom 16 © 2010 Fujitsu Network Communications, Inc. All rights reserved. OFCNFOEC 2010 – March 25, 2010