1. Optical Investment Directions Internet 2 Fall Member Meeting Rod Wilson Director, Advanced Technology Investments rgwilson@nortelnetworks.com

2. Presentation Name NORTEL NETWORKS CONFIDENTIAL PG 2 Nortel Networks Ottawa Labs

3. Title KRG 3 Nortel Networks Confidential Optical Network Platform Evolution Traditional: Transport + DCS –Digital Hierarchy, DCS for interconnect –OC-n Hierarchy, linear and rings –High number of NEs & fiber (2.5G) PMO: Optical Transport –OC-n/WDM hierarchy (CWDM, DWDM) –Linear, rings and mesh interconnect –Integrated circuit switching –Reduce number of NEs & fiber (WDM) FMO: Optical and Packet Transport –Optical Network Intelligence –New Circuit Prov’n & Test Models –Integrated Packet Switching –Improved bandwidth utilization Target: Integrated L2 Transport –Converged transport for all services –Grid Computing N/Ws, 100GE, TE –Reduced # of NE’s and interconnect 0:1Ring Mesh OC-48 OC-12 OC-192 MSPP OCS OC-48 FMO (Future Method of Operations) Target PMO (Present Method of Operations) MSPP

4. Title KRG 4 Nortel Networks Confidential Investing in Switching Innovation Scalable OXC Mesh Protection/Restoration Advanced Optics Integration ADM consolidation with Integrated OXC capabilities Reliable and Fast Switch times Robust and Scalable Interworking with Installed Base Introduction of SFP Per Lambda Dispersion Compensation Compensate when necessary Reduce Unnecessary OEO and expensive Bulk Dispersion compensation Fast end to end provisioning Intelligent restoration Seamless Integration within Existing Network Sonet/SDH look and feel x Nortel Terminals NGM 10G 2.5G HDX / OME 10G 2.5G Advanced L2 Services Services Layer 2 Integration Integrated TDM and Packet Fabric Scalable / Modular Full Network Transparency Sonet/SDH  OTN GFP / VCAT / LCAS G.Modem / TPE / VCAT Bandwidth Efficiency Service / Fault Correlation SDH/SONET DWDM/OTN GFP 2.5/10G RPR GE/10Ge OC12/48/192 RPR Core Packet Switch

5. Title KRG 5 Nortel Networks Confidential Investing in Photonics Innovation Remotely Configurable OADM All Optical Dynamic lambda access Reduction in optical patch cords Next Generation E/O Engine Per Lambda Dispersion Compensation Compensate when necessary Reduce Unnecessary OEO and expensive Bulk Dispersion compensation Layer 0 ASTN Fast end to end provisioning Intelligent restoration x Nortel Terminals NGM 10G 2.5G Nortel Terminals 10G 2.5G Higher bit-rate Services 4 times Spectral Efficiency improvement Fiber quality agnostic No reach impairments for higher bit rates Higher Order Modulation Agile Coherent Rx Removal of last colored components Higher capacity, better impairments avoidance Simpler OADM nodes Encryption for customer separation Local Oscillator Optical mixer

6. Title KRG 6 Nortel Networks Confidential Optical Multiservice Edge Shelf Overview 10G Service20G Service 160G X-conn M I C PWR Access Panel 10G Service 20G Service 160G X-conn 20G Service 10G Service SP PWR 17 12345678910111213141516 Fiber Routing 17” 14” Description 4 per bay solution 19” wide shelf, 8U high, single depth 1.0” pitch cards – 14 service slots Any Slot = Any Service Dual SPs integrated shelf comms Single width Fabric 80G / 160G / 320G X-Conn slot usable for optical card when switching fabric not required Capabilities 10G slots (8) … 10GE LAN per Slot 20G single width HS slots (4) 40G double width HS slots (2) 100baseT communication links S/W and OAM Evolution of current S/W platforms Site Manager and Optical Manager (smooth operations fit) OCP Grooming configurations MSPOTR/Packet Packet & Transponder configurations Flexible, Scaleable, Cost-Efficient Configurations 11”

7. Title KRG 7 Nortel Networks Confidential Core Network Network EdgeNetwork AccessNetwork Servers Storage Servers Data Layer Core Router UNI Authenticated auto-discovery of client peers Policy-based bandwidth management Usage Monitoring & performance verification Cross-layer network coordination Enabling multiple service classes Expand service offerings with bandwidth on demand Increase traffic by enabling new applications Infrastructure optimization simplification Automating manual operations Key Features OPTera Metro OME 6500 OPTera Connect HDX Harnessing customizable bandwidth from the edge for any application Meaning… OME 6500 OME Target Application: Scaleable Dynamic Optical Connectivity

8. Next Gen Optical Line PG 8 Next Gen DWDM line platform Common Philosophy, common design approach DT DX/HDX/HDXc OM5200 OM3500 OME6500 Vendor ‘x’ 1.Dramatic simplification of the Line DWDM system: lowest initial first cost, removal of operational complexities and expensive optical components 2.Enhanced capacity and reach through technology enhancements on the Service NEs 3.One Line DWDM platform with building blocks to support cost- optimized metro, regional, long haul applications 4.Reduced Operating costs w/ common spares, training, operations, documentation... nn 1 Meaning… Regional Optical Networks can play on the same fibre but remain independent of each other

9. Presentation Name NORTEL NETWORKS CONFIDENTIAL PG 9 9 Thank you