1. Legacy and Voice over Packet Switched Networks Presented by: Amir Karo Associate VP Product Management and BD Customers’ Event Crete, May 2007

2. Advanced Voice Solutions CE2007 Slide 2 Agenda How to provide voice solutions in a “data and voice world” Pseudowire – Transparent voice over PSN solution Compressed Voice – Bandwidth optimization solution VoIP – Standard SIP solutions Summary - Comparing Pseudowire, Compressed Voice and VoIP

3. Advanced Voice Solutions CE2007 Slide 3 Providing Voice Services in a mix, TDM and Packet World Continue Providing voice on the existing TDM networks Expensive CapEx and OpEx of TDM networks Separate access networks Some TDM equipment is becoming outdated / obsolete Some Alternatives: Voice on packet networks - TDM Pseudowires Compress TDM Voice traffic - Increase capacity, better utilization VoIP – Standard SIP Solutions

4. Advanced Voice Solutions CE2007 Slide 4 How to Provide Voice Solutions on today’s – Mixed Networks PSN Network Solutions Voice Interface TDM Compression Pseudowire VoIP ISDN Digital Analog

5. Advanced Voice Solutions CE2007 Slide 5 Agenda How to provide voice solutions in a “data and voice world” Pseudowire – Transparent voice over PSN solution Compressed – Bandwidth optimization solution VoIP – Standard SIP solutions Summary - Comparing Pseudowire, Compressed Voice and VoIP

6. Advanced Voice Solutions CE2007 Slide 6 Voice over any packet access Technology Fiber – NG SDH or Metro Ethernet Fixed Wireless – Where fiber/copper infrastructure is not available DSL / Cable – IPDSLAM are transforming DSL from ATM to Packet Fiber GPON – The future of last mile access – Passive Optical Networks GbE Fixed Wireless Ethernet over Fiber n x E1 or C.STM-1 Cable HFC Infrastructure Central GW Ethernet/IP/ MPLS Core Network xDSL PSTN Ethernet over Copper FE / GbE n x E1 Ethernet over PDH Ethernet Remote GW E1 / n x E1 PBX Remote GW n x E1 Ethernet PBX n x E1 Ethernet Remote GW PBX Remote GW n x E1 Ethernet PBX Remote GW n x E1 Ethernet PBX Remote GW n x E1 Ethernet

7. Advanced Voice Solutions CE2007 Slide 7 TDM Backhaul/Trunking over Packets Suitable for : Alternative Carriers, leasing capacity from incumbent Large enterprises looking to save on leased line costs Main Benefits : Small foot print with high capacity: 196xE1/T1 for a 6U chassis Grooming of E1/T1 into lower cost STM-1/OC-3 ports Under $500 per E1/T1 link – best price/performance GbE Gmux-2000 SDH Class 5 Switch E1 STM-1 Ethernet/ MPLS/IP GbE Gmux-2000 E1 STM-1 PABX

8. Advanced Voice Solutions CE2007 Slide 8 Leased Line / Private Line Suitable for : Businesses: Small, medium and enterprises Alternative carriers looking to increase service offering Incumbents in migration or outside their network reach Main Benefits: No need to replace HW Reduced leased line costs by using a single line for voice and data Reduced OpEx by using Ethernet vs. TDM network Building 1 LAN Building 2 Leased Line LAN PBX IPmux Ethernet/ MPLS/IP

9. Advanced Voice Solutions CE2007 Slide 9 Cellular Backhaul over Packet Suitable for : Cellular service providers who own Packet networks Telecoms, incumbent and alternative, selling services to cellular service providers Benefits Provides reliable replacement for cellular backhaul comparable to TDM with jitter and wander conforming to G.823 syn and 16ppb clock accuracy CapEx savings - Eliminates the need for accurate clock source at every base station Node B BTS E1/T1 FE C.STM-1 2G BSC 196 E1/T1 CH STM-1 Clock Ethernet/ MPLS/IP Gmux-2000 IPmux-14/A E1/T1 GbE 3G RNC

10. Advanced Voice Solutions CE2007 Slide 10 TDM and Ethernet Services over Wireless links Suitable for : Enterprises looking to save leased line costs in rural environments Carriers where no Ethernet infrastructure is available Benefits: Provides both Ethernet and TDM service with no need for land line Preserves legacy PBX equipment, features and functionalities Provide QoS by rate limiting LAN application ETH Remote Sites IPmux-14 Central Site T1/E1 ETH PBX T1/E1 PBX Fixed Wireless Server IPmux-11 ETH PBX T1/E1 IPmux-11 InternetPSTN Fixed Wireless

11. Advanced Voice Solutions CE2007 Slide 11 TDMoIP Product Line Success TDMoIP Solution deployed in over 80 countries World leader in TDM Pseudowires: Over 40,000 ports sold Over 100 customers, telecoms and corporates Marquee Customers:

12. Advanced Voice Solutions CE2007 Slide 12

13. Advanced Voice Solutions CE2007 Slide 13 Backhaul TDM Voice over Packet Benefits Cost efficient backhaul over PSN instead of a leased STM-1 link from the incumbent carrier OpEx reduction by eliminating local maintenance team (PABX) at remote site Enables carrier to offer competitive long distance phone service Offer the end user to get a local prefix phone number n x E1 Voice Switch CIRPACK Cable operator Main Technical Center Paris Regional Area 1 GbESTM-1 Residential Cable subscriber Cable Modem Analog Phone Cable Eth Gmux-2000 Local Cable Network Cable operator IP Network STM-1 & n x E1 GbE National PSTN Network Gmux-2000 Regional Area 2 Local PSTN Network

14. Advanced Voice Solutions CE2007 Slide 14 Success Story: PSTN Access over DSL, Ventelo Benefits Offer competitive pricing for PSTN access over Ventelo’s DSL infrastructure Unified solution for all customers using Ventelo’s own network Reduce OpEx by elimination leased line from incumbent SHDSL PSN Core DSLAM Customer Services LA-110 DSLAM CO/POP TDMoIP Gateway IPmux/Gmux GbE TDM Customer Services LA-110 E1 ETH PBX IPmux-11 “We can convert TDM PBX traffic for transport over Ventelo’s own high-quality IP network in order to reduce cost, and obtain full end-to end control of the service, while the customer experiences the same high quality and functionality,” ETH IPmux-11 E1 PBX

15. Advanced Voice Solutions CE2007 Slide 15 4 E1 Success Story: PSTN Access over Optima, Ukraine Benefits: Supports all traditional services and PBX/Voice switches signaling and specialized features Preserves investment in legacy equipment in migration to PSN End to End Solution, Carrier grade equipment at the central, redundancy and STM-1 capabilities Gmux-2000 SDH STM-16 DWDM IPmux-14 Remote Voice Switch GbE STM-1 E1’s PSTN IPmux-14 Remote Voice Switch IPmux-8/16 16 E1 Remote Voice Switch FE Up t 7 Gateway to biggest Cities. 4 E1 ADM

16. Advanced Voice Solutions CE2007 Slide 16 Success Story: Leased Line, Priority Telecom PBX Customer Server Router Priority Telecom Fiber Network Benefits Enterprises are able to migrate their Inter site TDM traffic to a packet switched network Service providers can offer leased line service over PSN Continued use of existing PBX and legacy data services Reduce expenses of leased lines E1/T1, voice or data PBX Customer Server Router Priority Telecom

17. Advanced Voice Solutions CE2007 Slide 17 Agenda How to provide voice solutions in a “data and voice world” Pseudowire – Transparent voice over PSN solution Compressed Voice – Bandwidth optimization solution VoIP – Standard SIP solutions Summary – Comparing Pseudowire, Compressed Voice and VoIP

18. Advanced Voice Solutions CE2007 Slide 18 Voice Trunking – the Need The existing infrastructure has no bandwidth left for expansion: Saturated SDH network Fixed wireless Single access line, such as xDSL Reducing the required bandwidth bring direct savings: Inter-city leased lines International Private Lines Satellite Connectivity

19. Advanced Voice Solutions CE2007 Slide 19 Voice Trunking – Present the Case Understand the requirements Retrieve info regarding cost of bandwidth (IPLC, Satellite, etc.) Punch in the numbers Let’s look at an example: IPLC costs $4,000 a month Compression ratio 10:1 Each month $36,000 are saved Payback  Less than 2 months

20. Advanced Voice Solutions CE2007 Slide 20 Inter MSC Compression Suitable for: Cellular Operators Benefits: Significant bandwidth reduction (up to 16:1) translates to significant cost savings Transparent to any type of signaling Seamless migration from TDM to IP networks Compact, scalable and simple to deploy E1 8 x E1 Vmux-2100 E1 TDM Up to 14xE1’s Compressed 112 x E1s MSC Gmux-2000 MSC 8 x E1 Vmux-2100 MSC

21. Advanced Voice Solutions CE2007 Slide 21 Offshore Call Centers Suitable for: Corporate Offshore call center providers Benefits: Significant bandwidth reduction (up to 16:1) translates to significant cost savings Simultaneous transmission over TDM and IP networks Transparent to all telephony features Compact, scalable and simple to deploy Remote Call Center Site A Vmux-2100 Remote Call Center Vmux-2100 E1/ T1s E1/T1 10/100BaseT Vmux-210 Ethernet LAN 10/100BaseT Analog Voice Up to 30 FXS FXS Data IP Network PBX or Telephony Switch PSTN E1/T1 10/100BaseT Media G/W or PBX

22. Advanced Voice Solutions CE2007 Slide 22 PBX and LAN Extension over Limited BW Links Suitable for: Oil/Gas Maritime Construction/Mining Broadcasting Government/Military Military Financial Benefits: Significant bandwidth reduction (up to 16:1) translates to significant cost savings Transparent to all telephony features Compact, scalable and simple to deploy Headquarters T1/E1 PBX Vmux-110 Branch #1 T1/E1 PBX Vmux-110 Branch #2 ETH IP Network Vmux-210 Branch #3 Fixed Wireless xDSL, Cable, PLC Router Vmux-2100 PSTN PBX T1/E1 Analog Voice FXS

23. Advanced Voice Solutions CE2007 Slide 23 Advantages TDMoIP multiplexing provides higher bandwidth savings (16:1) than any standard VoIP solution Full signaling transparency ensuring seamless integration with no retraining costs or lost functionality Provides bandwidth reduction even without migrating to IP networks Backup between IP and TDM uplinks with the same bandwidth savings Single compression cycle end-to-end (Super-Tandem) Better bandwidth utilization using modem relay technology Supports bandwidth control mechanisms to better cope with situations of bandwidth overflow

24. Advanced Voice Solutions CE2007 Slide 24 Selected Customers

25. Advanced Voice Solutions CE2007 Slide 25

26. Advanced Voice Solutions CE2007 Slide 26 12 x E1 Celtel Nigeria – Application MSC/BSCMSC 12 x E1 Vmux-2100 SDH/PDH Micro Wave E1 Gmux-2000 5 x E1 Benefits: Significantly reduce the number of the required leased line between MSC to MSC Up to 12:1 voice compression ration (for Cellular networks) for higher BW utilization and Opex saving. Fully redundant carrier class solution (Gmux) Support direct STM-1 connection to the MSC reduce MSC CAPEX. 5 x E1 Gmux-2000 STM-1 (with 60 x E1’s) STM-1 (with 60 x E1’s) E1 Hundreds of Links have been deployed SDH/PDH Micro Wave 36xGmux has Installed Already E1

27. Advanced Voice Solutions CE2007 Slide 27 96 FXO Vmux-2100 4 E1 Eth MP-2100 E1 Call Center – Central Site 2 PBX Router Atento Spain – International Call Center Benefits: Protocol transparency for PABX Low Cost, Small size Possibility to choose Ethernet or TDM backbone transmission International IP Network 48 FXO Vmux-2100 2 E1 Eth MP-2100 2 Mbps E1 Call Center – Central Site 2 AVAYA 30 FXS Vmux-210 Call Center 2 - Remote Site 2 Mbps PBX Router Eth 30 FXS 18 FXS Vmux-210 Call Center 1 - Remote Site Eth Router Vmux-110 E1

28. Advanced Voice Solutions CE2007 Slide 28 Agenda How to provide voice solutions in a “data and voice world” Pseudowire – Transparent voice over PSN solution Compressed – Bandwidth optimization solution VoIP – Standard SIP solutions Summary – Comparing Pseudowire, Compressed Voice and VoIP

29. Advanced Voice Solutions CE2007 Slide 29 VoIP Main drivers of VoIP Saving costs Cheaper Infrastructure Single infrastructure Single IT department Enhanced features Mobility Presence Unified Messaging Customer details Everyone’s doing it….

30. Advanced Voice Solutions CE2007 Slide 30 Understanding SIP: Network Architecture SIP (Session Initiation Protocol): Handles the signaling RTP (Real Time Protocol): Handles the voice Softswitch = IP-PBX = Call Agent = Gatekeeper IP Network Media Gateway Softswitch SIP Phone Soft Phone SIP Server Legacy PBX PSTN Phones

31. Advanced Voice Solutions CE2007 Slide 31 RAD VoIP System (RVS) Philosophy It’s all about Operator’s OPEX Fully integrated components controlled by a single (web based) management system No need for Telephony + Network + VoIP experts Easy Telephone-number based access & control [patent] Invest-As-You-Charge economics Lowest Initial risk / investment Smart end-units distribute value (= cost) between center and end-points Rapid deployment is essential for ROI ‘Zero’ system integration time Single plug & play end-unit Architecture supports Channels / Resellers deployment Robust Availability-Of-Service & Quality-Of-Service Full redundancy architecture P2P bypass on center fault [Patent] Business-class voice quality assurance by end-unit RAD VoIP System optimizes TCO It’s an open SIP VoIP system for other SIP clients Time to Service = 1 Week

32. Advanced Voice Solutions CE2007 Slide 32 IPVgate CPE PBX Customer Premises Back-office Provider’s Site LAN Tel Lines (POTS, ISDN, E1) Solution Architecture & Layout RADview-SC/IPV Management & Monitoring database Smart CPE IPVgate Gateway IPVswitch Class5 SoftSwitch ADSL IP Phone or SIP client PSTN or Cellular IP Network IPVsuite

33. Advanced Voice Solutions CE2007 Slide 33 RAD VoIP System’s Components IPVgate - CPE Business class CPE (SIP compliant) Unique multi-layered QoS Analog-POTS (2 or 4 FXS)/ ISDN BRI (2 or 4 BRIs)+backup/ E1- PRI+backup – Compliant with any PBX Robust Fax over IP (T.38) ADSL, VPN and Firewall Long term investment in unit due to remote features update IPVswitch – Class 5 SoftSwitch Up to 1,500,000 BHCA (350,000 lines)– Carrier class Call routing plans Fallback management Device & Call authentication CDR Extraction to billing systems SIP compliant Based on Oracle™ database Cluster redundancy & backup RV-SC/IPV – Provisioning & Management Central provisioning & management server (CPE configuration stored in Orcale™ database) User friendly, Web based (provision from anywhere) Real time Monitoring of CPEs, SoftPhones & any SIP devices QoS, activity & troubleshooting analysis “Massive” firmware upgrade (thousand of units in one “click”) API to customer management systems IPVsuite

34. Advanced Voice Solutions CE2007 Slide 34 Agenda How to provide voice solutions in a “data and voice world” Pseudowire – Transparent voice over PSN solution Compressed Voice – Bandwidth optimization solution VoIP – Standard SIP solutions Summary - Comparing Pseudowire, Compressed Voice and VoIP

35. Advanced Voice Solutions CE2007 Slide 35 Comparing Pseudowire, Compressed Voice and VoIP VOIP (IPV) PW (IPmux) CVS (Vmux) Advanced multimedia features  Any-to-any voice/video switching & hunt groups  Protects investment in legacy PBX during migration to IP without compromising ANY existing telephony features  Transparent to standard and proprietary signaling protocols  Emulates T1/E1 & T3/E3 leased line circuits over PSN  Accurate clock synchronization over IP/Ethernet/MPLS  Supports all async/sync protocols over PSN (including ATM, Frame Relay, H.320 video, GSM, CDMA, encryption, etc.)  Circuit optimization including voice compression, fax and modem relay, HDLC flag and SS7 FISU/LISU suppression  Minimum bandwidth required per voice channel 10.4 kbps74 kbps3.8 kbps Minimum end-to-end latency (assuming G.711)45ms1ms45ms

36. Advanced Voice Solutions CE2007 Slide 36 Summary RAD has complete voice solution High capacity, high performance TDM Pseudowire solutions Best price performance in Compressed Voice Applications over TDM or Packet Complete voice offering with standard VoIP solutions

37. www.rad.com Thank you for your attention Amir Karo amir_k@rad.com