1. Axerra Networks Solutions for Business Services Delivery

2. 2 - © 2009 Axerra Networks®. All rights reserved. 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. 3 - © 2009 Axerra Networks®. All rights reserved. Business Services Delivery over Packet Access (1)  The Problem –Today Carrier Ethernet provider can sell only IP and Ethernet services for Business customers –For TDM or legacy services they need additional overlay networks for each service type –Current profits are based on wealth of existing legacy services (Leased Line, FR, ATM...) for business customers and Mobile Backhaul for Mobile Operators Traditional services are still the dominant element in the revenue stream –IP and Ethernet services are not enough to grow revenue and maintain good margins  Full portfolio of services is required in order to compete and be profitable –Lower-cost packet-based networks (Ethernet) needed for legacy services with TDM, FR, and ATM protocols over T1/E1

4. 4 - © 2009 Axerra Networks®. All rights reserved. Business Services Delivery over Packet Access (2)  The Solution –Use Pseudo-Wire to provide any legacy service over any type of Packet Access network as cost-effective alternative with full service to TDM access  Ethernet services with PWE3 capabilities enable service providers to migrate from TDM networks to a new and richer service portfolio using converged network technology –Proven compatibility with TDM, FR, ATM, and IP protocols for support of any type of Business Services or Mobile Backhaul Services –Use Carrier Ethernet, xDSL, WiMax, xPON, and HFC in the access network  Value Proposition –Big improvement in revenue stream and profitability –Dramatic reduction in OpEx as a result of using a single Access Network with short ROI on equipment –The same infrastructure can be used to deliver Mobile Backhaul Services to mobile operators with strong synergy

5. 5 - © 2009 Axerra Networks®. All rights reserved. Introduction to Pseudo-Wires Voice Data ETH PW Access Device PW Gateway ETH CES Pseudo-Wire ATM Pseudo-Wire Frame Relay Pseudo-Wire Packet Network Tunnel Ethernet Carrier Mobile 2G, 3G, 3G+ PBX  Pseudo-wire (PW/PWE3) is a standardized mechanism that emulates the essential attributes of a native service while transporting over a Packet Switched Network (IP, Ethernet, and MPLS) –PWs are virtual circuits that use MPLS/IP tunnels & control plane to emulate all Layer 2 transport services across an MPLS/IP network  PWs are bidirectional (unlike MPLS LSPs) –PW architecture is an extension of VPN architecture

6. 6 - © 2009 Axerra Networks®. All rights reserved. Pseudo-Wire Benefits Metro Ethernet POP / CO IAD FRAD PBX Router POP / CO DSLAM Telco Access E1/T1-based services DSL GigE FE GigE FE E3/T3/STM1 FR/ATM PSTN IP/MPLS  Provide traditional T1/E1 and legacy services + emerging services over single, converged, packet access network instead of multiple overlay networks  Leverage current investments in new packet infrastructure, furnishing dramatically lower costs –Reduce operating expenses dramatically  Are compatible with TDM, FR, ATM & IP protocols for support of any type of business service –Maintain current profits based on revenues from traditional services PWE3 Gateway PWE3 CPE

7. 7 - © 2009 Axerra Networks®. All rights reserved. Service Delivery over Carrier Ethernet Using Pseudo-Wire Access Devices Emulated Services (PWs) AXN PWE3 Gateway AXN CPE Ethernet Access Network Legacy FR/X.25 Network ATM Network PSTN T1/E1 V.35 ETH FR ATM TDM  Small, low-cost PW access device provides any traditional T1/E1 service –Use of PW Emulation for TDM and Layer-2 services across Carrier Ethernet access network  Compatible with TDM, FR, ATM & IP protocols for support of all types of mobile backhaul & business services  Transforms packet access network into a full-service alternative to TDM access  Preserves revenue from high-margin TDM and Layer-2 services while leveraging strategic growth in Ethernet infrastructure

8. 8 - © 2009 Axerra Networks®. All rights reserved. PBX Backhaul Over Carrier Ethernet AXN PW Gateway ETH Groomed Voice Data Ethernet Access Network PSTN IP/MPLS Branch Office 2 CE PBX 4xT1/E1 802.1Q AXN10-4 Branch Office 1 CE PBX 1-2 T1/E1 802.1Q AXN1 PoP/CO Branch Office 3 CE PBX 1xT1/E1 AXN1 802.1Q ETH AXNVision NMS SNMP CESoPSN  Backhaul of PBX and LAN/Internet traffic  Point-to-point or Point-to-Multipoint topology

9. 9 - © 2009 Axerra Networks®. All rights reserved. IP Edge Aggregation Aggregation PoP CE Router IP-VPN Customers 802.1Q Gigabit Ethernet IP/MPLS Backbone IP-VPN (2547) PE TDM Access Network VR VPN 1 VR VPN 2 VR VPN 3 AXN Gateway  Low-cost replacement for expensive channelized line cards on PE routers IP FR IP HDLC IP ATM

10. 10 - © 2009 Axerra Networks®. All rights reserved. TDM /V.35 Network Multiservice Edge Aggregation Emulated Services TDM  Enables Complete Edge Aggregation Solution for: –FR and ATM customers –Leased Line customers –IP customers  Eliminates the need to install FR and/or ATM switches as well as DACS for greenfield installations  Ideal for FR & ATM “port exhaust” and “end of life” platforms IP/MPLS Backbone ATM Network ATM ATM Network X.25/ FR Network FR ATM X.25/ FR Network FR AXN PWE3 Gateway ETH PE ETH AXN PWE3 Gateway PE TDM /V.35 Network Core/Access PoP

11. 11 - © 2009 Axerra Networks®. All rights reserved. Axerra’s Complete Product Family AXN Product Portfolio of Access Devices and Gateways  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  Point-and-Click provisioning  Performance Monitoring  Comprehensive Fault Management  Standards-based Location Capacity AXN800 AXN1 AXN1600 N CPE/Cell SiteMTU PoP/CO AXN10 1000 E1/T1 1 E1/T1 AXNVision

12. 12 - © 2009 Axerra Networks®. All rights reserved. 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

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