1. Optical Networks Division 1 Role of Dynamic Optical Networks in Transitioning to IP Centric Architectures Emanuel Nachum Vice President, Marketing ECI Telecom Inc. CANTO 22 nd Annual Conference, June 19, 2006 Next Generation Network Strategies

2. Optical Networks Division 2 Outline Network Transition Next Gen Optics Dynamic Optics  Converged Architecture  WSS ROADM  All Range Functionality

3. Optical Networks Division 3 Network Transition Overview and its impact on optical networks

4. Optical Networks Division 4 Current Network Status Majority of services based on centralized intelligence IP based services growing rapidly Majority of IP services delivered over SONET/SDH Optical / WDM for fiber exhaust applications Optical SONET (Transport) Traditional Services (Voice, TDM, ATM, FR) IP Services

5. Optical Networks Division 5 Voice & HSD Centralized Service Network GbE Metro Network Access Network Regional / National Network Residential Network Aggregation and Transport MDU SME Residential Enterprise FTTP WWW Services Internet SSW GbE / SONET / Async DSLAM/BPL IP/MPLS Backbone Relatively static network capacity and traffic routes Centralized content and control

6. Optical Networks Division 6 IP Migration Strengthens Majority of services become IP based Large share are at GbE & 10 GbE rates Optical transport delivers majority of IP based services WDM – a service delivery and transport vehicle Optical SONET (Transport) Legacy Services IP Services

7. Optical Networks Division 7 Service Personalization Service personalization grows IP infrastructure allows service decentralization High bandwidth requirements and mass deployment Optical networks become dynamic Dynamic Optical SONET Decentralized Services (IP  Service Agents) Centralized Services

8. Optical Networks Division 8 Access Network Regional / National Network Residential Network Multi-service Optical Transport MDU SME Residential Enterprise FTTP Video Head-end WWW Services Internet SSW RT/DSLAM IP/MPLS Backbone Metro Network Service Control Content Caches GbE E/GPON Distributed Multi-Media Service Network 3Play + Content Director y Multi-Media Metro Router Personalized Content Providers Dynamic BW available per subscriber Dynamic WDM overtakes SONET for high bandwidth service delivery Content and control move to the edge

9. Optical Networks Division 9 Next Gen Optics

10. Optical Networks Division 10 Source: OVUM RHK June 2005 WDM market forecast 2002–2010 $2,324 $2,609 $2,980$3,324$3,580$3,802$4,078 Regional/LH/ULH at ~ $1B, and expected to grow to ~ $1.3B (2010) Metro/Regional at ~$1.2, and expected to grow to ~$2.6B (2010) More flexibility in NG WDM WDM used for service delivery in the access

11. Optical Networks Division 11 WDM Evolution 19952000 2005 10G Single technology Multiple technologies PtP, 2.5G OADM ring Multiservice ??

12. Optical Networks Division 12 The Need for NG Optical Transport Higher bandwidth driven by 3-play, WL data and Business applications Next Generation Optical (NGO or NG WDM) The time is right for NG optical transport New high speed interfaces (10GbE, 40G) introduced by Data equipment Limited flexibility, costly maintenance Complicated operation with manual intervention Emerging optical technologies OTN & ASTN Standards

13. Optical Networks Division 13 WDM evolution 199520002005 2010 10G Managed ROADM Single technology Multiple technologies PtP, 2.5G OADM ring Switched OTN Multiservice 40G

14. Optical Networks Division 14 Key Foundations Service adaption for legacy transport  GFP/VCAT/LCAS Modular technology convergence – WDM + TDM + Packet network elements Dynamic optical networks (ROADM) Flexible payload over WDM – standard optical transport (GFP + G.709 OTN) Distributed control plane (GMPLS/ASTN)

15. Optical Networks Division 15 Dynamic Optics

16. Optical Networks Division 16 Expectations of ROADM “SONET like” transport Wavelength assignment & reassignment  Simplifies the planning process  Removes need to predict future traffic flows Minimize operations - OPEX savings  Remote provisioning and reconfiguration  Software-tunable components  Automatic power balancing / Equalization Enable complex optical topologies  Subtending ring closure  Multi-ring closure  Mesh topologies

17. Optical Networks Division 17 WSS ROADM Remotely provision ROADM to pass thorough all wavelengths Multi-port Wavelength Switch Combiner 18234576 18234576 EastWest

18. Optical Networks Division 18 WSS ROADM Remotely provision ROADM to drop & add:  1 at port 2, 3 at port 5, 6 at port 4, and 10 at port 2 Multi-port Wavelength Switch Combiner 18234576 18234576 EastWest

19. Optical Networks Division 19 WSS ROADM Remotely provision ROADM to:  Change add & drop wavelength at port 2 from 1 to 12 Multi-port Wavelength Switch Combiner 18234576 18234576 EastWest

20. Optical Networks Division 20 Multi Degree WSS ROADM Remotely provision ROADM to:  Also add & drop 1 at port 2  Add & drop 2, 4, 5, & 11 at port 7 Multi-port Wavelength Switch Combiner 18234576 18234576 EastWest Enables Multi-degree applications

21. Optical Networks Division 21 Multi Degree WSS ROADM Multi-degree capabilities:  Ability to create subtending networks directly from WSS Multi-port Wavelength Switch Combiner 18234576 18234576 EastWest East West Subnetwork 1 East West Subnetwork 2

22. Optical Networks Division 22 Access C/DWDM rings Client Multi Degree Applications Metro / Regional DWDM ring Client ROADM Node No O-E-O Non-blocking inter ring cross-connect “Colorless” I/Fs Local Add/Drops

23. Optical Networks Division 23 Dynamic Optics Node – NG WDM Built on multi-degree ROADM platform All-range optics (power, dispersion, and OSNR) Ability to add Ethernet Layer 2 or SONET Migration to OTN-based payload and O&M Higher level functionality shifts as networking needs shift Multi-degree ROADM (Metro, Regional, C/DWDM) SONET / SDH Ethernet Layer 2 

24. Optical Networks Division 24 Optical Networking Flexibility Optical networking reaches near SONET flexibility  Easy adds & deletion of wavelengths  Quick re-routing of optical connections Support for residential and enterprise applications  3play, IPTV, personalized services  IP, Ethernet, SAN Low-cost CWDM Access MSTP Storage, Video, Multiservice IP, SONET Low-cost CWDM Access MSTP Storage, Video, Multiservice IP, SONET Multi-degree ROADM MSTP Optional Ethernet, SONET layers Multi-degree ROADM MSTP Optional Ethernet, SONET layers WDM or SONET C/DWDM or SONET L2 Ethernet DWDM

25. Optical Networks Division 25 CWDM links ≤ 80km XDM-100 All Range Next Gen WDM Repeaterless Festoon DWDM links ≤ 300km XDM-2000 Regional non-regen DWDM links ≤ 2000km XDM-2000 XDM-40 XDM-2000 Metro ROADM DWDM Networks NG DWDM Technologies WSS ROADM Dual stage EDFA RAMAN Integrated MSPP 120G matrix E1 to OC192/STM64 Layer 2 switching

26. Optical Networks Division 26 Summary Dynamic optical infrastructure  Supports On-Demand Services  Provides flexibility to support TDM or IP services  Allows smooth transition to IP personalized services  Enables access growth from DS1 to 10GbE  Provides E-2-E optical networking Multi ring, mesh topologies Reduces OEO

27. Optical Networks Division 27 Emanuel Nachum Vice President, Marketing ECI Telecom, Inc. emanuel.nachum@ecitele.com www.ecitele.com