1. Connecting Ethernet devices over TDM – using the Egate and the RIC families

2. Ethernet over Legacy Slide 2 Agenda Introduction: the demand for Ethernet services Ethernet over copper – greater service reach Egate and RIC method of operations Applications Technical overview

3. Ethernet over Legacy Slide 3 Enterprises Are Enthusiastically Embracing Ethernet… Source: Heavy Reading 2004 Enterprise User Survey On Ethernet Services, July 2004. Surveyed 300 managers at 200 enterprises worldwide. Top 5 Services In Enterprise Budgets In 2005 1.Internet (Ethernet-based or Other) 2.Multipoint Ethernet 3.VOIP 4.IPsec VPNs 5.Point-to-Point Ethernet

4. Ethernet over Legacy Slide 4 Enterprise Deterrents for Joining Ethernet Services… Source: Heavy Reading 2004 Enterprise User Survey On Ethernet Services, July 2004. More than 200 respondents.

5. Ethernet over Legacy Slide 5 US Access & Technology Options Source Light Reading Webinar Medium 100–999 employees Small 1-99 employees Large 1000+ employees 9,000 95,000 7,700,000 Access Enterprises In USTechnology Fiber Dominant Ethernet Over Fiber Ethernet Over SONET/SDH Fiber / Copper Ethernet Over Fiber Ethernet Over SONET/SDH Ethernet Over PDH/ADSL2+/SHDSL Copper Dominant Ethernet Over PDH/ADSL2+, SHDSL

6. Ethernet over Legacy Slide 6 Ethernet Services Over Copper – Greater Reach Most customers within service reach (and out of fiber reach) Well known technology Port base granularity: E1/T1, n*E1/T1, E3/T3 Higher bandwidth utilizing bonding technologies (MLPPP/VCAT) Inherent link redundancy Infrastructure for Ethernet Private Line (EPL) and Ethernet Private LAN (EPLAN) OC-3/STM-1 Gigabit Ethernet Egate-100 CO SDH/SONET PSN RICi-8E1 F.Ethernet Customer n x E1/T1 E1/T1 RICiE1 F.Ethernet Customer

7. Ethernet over Legacy Slide 7 Ethernet Service Attributes Across TDM And Packet Network EPLAN RICi-8E1 F.Ethernet Customer TDM Ethernet Egate CO SDH/SONET RICi-E1 F.Ethernet Customer F.Ethernet Customer EPL PSN Service AttributePrivate Line ServiceShared Service SecurityEnhancedModerate Guaranteed bandwidthEnhancedLow AvailabilityEnhancedLow PerformanceEnhancedModerate BandwidthLow ratesHigh rates P-to-P/ P-to-MPYes Ethernet Private Line/LANs services - over TDM circuits Shared services (virtual private Line/LAN) – over Shared infrastructure

8. Ethernet over Legacy Slide 8 Deterrents % Will Prevent / Big Deterrent EoCopper Availability To Access The Service 62High Reliability58High Security52High Performance51High Price43Midrange Source: Heavy Reading 2004 Enterprise User Survey On Ethernet Services, July 2004. More than 200 respondents. Ethernet over Copper - High QoS Enables High Enterprise Penetration

9. Ethernet over Legacy Slide 9 Uniform Ethernet Service Provisioning E-Gate is a Gateway connecting TDM and Packet networks Enables to create or extend Ethernet services over a PDH/SDH Access network VLAN based traffic engineering VLAN Customer (TLS) and Management domains Gigabit Ethernet EGATE CO SDH/SONET F.Ethernet Customer F.Ethernet Customer VLAN 10, 100 VLAN 20, 100 VLAN 10, 100 VLAN 20, 100 Control Site VLAN 100 F.Ethernet Customer PSN FCD-IP F.Ethernet Customer RICi-8E1 F.Ethernet Customer RICi-E1

10. Ethernet over Legacy Slide 10 Other Carriers Network Egate and RIC Service Delivery Concept OC-3/STM-1 Ethernet Egate Carrier CO SDH/ SONET RICi-E1/T1 F.Ethernet Customer Ethernet service is defined by mapping a VLAN and one or more TDM interfaces VLAN tagging/stacking at customer edge or provider edge Ensures transparency to customer VLAN settings Seamless VLAN handoff to the Packet network Secured separation of customer and management traffic Traffic NMS PSN Management

11. Ethernet over Legacy Slide 11 Customer Located Equipment Operating with Egate: FCD-x (FCD-IP, FCD-E1,etc.): Fast Ethernet over fractional E1 or T1 and sub channel RICi-E1/ RICi-T1: Fast Ethernet over FE1/E1 or FT1/T1 RICi-8E1/RICi-8T1: Fast Ethernet over four or Eight E1/T1- Beta Now Additional CLEs: RIC-155GE:Gigabit Ethernet over STM-1/OC-3c RIC-155: Fast Ethernet over STM-1/OC-3c RICi-E3 or RICi-T3: Fast Ethernet over E3 or Framed T3 RIC-622GE: Gigabit Ethernet over STM-4/OC-12c or 4* STM-1/OC-3c Beta Q4/2005 Central Office Other carrier SDH/SONET 10/100BaseT Customer TDM circuit NMS RIC PSN RI C TDM circuit

12. Ethernet over Legacy Slide 12 CSU/DSU Switch RIC Classification Monitoring Loops Monitoring Demarcation Switch Cross Connect Classification Switching Monitoring Aggregation Monitoring Egate Aggregation and Switching Reduced CapEx and OpEx Utilizing Ethernet/ TDM Hybrid Devices

13. Ethernet over Legacy Slide 13 Feedback #1 1.Incumbent Carrier 2.Alternative Carriers 3.Mobile Operators 4.Enterprises 5.Utilities Who do you see as the MAIN customer for this concept?

14. Ethernet over Legacy Slide 14 Feedback #2 1.Incumbent Carrier 2.Alternative Carriers 3.Mobile Operators 4.Enterprises 5.Utilities Who do you see as the SECOND customer for this concept?

15. Ethernet over Legacy Slide 15 RIC Product Line Features and Benefits Highlights FeaturesBenefits Utilizes full circuit payloadEfficient use of infrastructure VLAN filtering, tagging and stacking as per 802.1Q User traffic forwarded transparently keeping all user VLAN setting intact Secures providers management system Enables management of all devices using one defined management VLAN Four QoS levels as per 802.1p Supports providers different levels of services at different pricing levels TDM loops, Ping&Trace routeQuick fault isolation on TDM and Ethernet ports Fault propagation of WAN error conditions to Eth’ ports Enables users to automatically reroute traffic to alternative route SNMP network management monitoring Enables management of hundreds or thousands of network nodes Optimized for Ethernet services

16. Ethernet over Legacy Slide 16 Applications

17. Ethernet over Legacy Slide 17 Delivery over TDM leased facilities Same service attributes across both networks End-to-end control across facilities of another carrier Ethernet SDH/ SONET Customer Ethernet MDU SDH/ SONET Co-location Other Carriers Network Fiber Carrier Network F.Ethernet Customer Carrier PSN Switch NG ADM Extension Of Ethernet VPN Over Leased Facilities RICi Egate

18. Ethernet over Legacy Slide 18 Quiz #1 1.64 kbps 2.N x E1/T1 3.E3/T3 4.STM-1/OC-3 What’s the minimum SDH/SONET rate for Ethernet over NG ADMs?

19. Ethernet over Legacy Slide 19 Egate-100 Competing Solutions Egate-100Converter rack*Router ** List Price$13,000$75,000$65,000 Redundancy Power supplies, APS, GbE ports (Phase 3) Power supplies. APS, GbE - Not available Optional on large platforms– additional high cost Scalability N*64 (126 bundles) Per physical port N*64 Foot print1U high11U1U OperationsSimple to operate A three box solution Complex system to operate * Includes dual converter cards fully populated in three racks, STM-1 multiplexer, switch ** Router operating in bridge mode

20. Ethernet over Legacy Slide 20 Killer Application: GbE IP DSLAM Backhauling The RIC-155GE offers a migration path, connecting a future ready IP DSLAM with 1GbE uplink into the existing SDH/SONET Large deployments at Telefonica and Jazztel RIC-622GE for GbE over STM-4/OC-12c: Beta Q4/2005 Central Office SDH/SONET ADM GE POP STM-1/ OC-3 STM-1/ OC-3 NMS RIC-155GE PSN RIC-155GE IP-DSLAM GE

21. Ethernet over Legacy Slide 21 IP DSLAM & IP BTS Backhaul OC-3/STM-1 Gigabit Ethernet Egate CO/HQ SDH/SONET n x E1/T1 RICi-8E1/T1 10/100BaseT IP BTS RICi-8E1/T1 10/100BaseT IP DSLAM Remote Location Aggregates multiple IP DSLAM/IP BTS traffic over several E1s or T1s (up to 8) Simple and cost effective alternative to channelized router Layer 2 simplicity at Edge reduces operation costs No need to manage IP subnets and addresses Simple to add new sites BSC PSN Router

22. Ethernet over Legacy Slide 22 Enterprises Ethernet Private LAN Enterprise/ ISP Headquarters 8*E1 10/100BaseT Headquarters and remote branches enjoy L2 VPN connection – as if on the same LAN Egate located at enterprise headquarters managed in-band or out- of-band All Remote units are managed in-band via the Egate Egate-20 Leased SDH Lines RICi-E1/T1 F.Ethernet Remote Branch RICi-E1/T1 F.Ethernet Remote Branch Ethernet CO/POP NMS Carrier PSN Internet

23. Ethernet over Legacy Slide 23 Egate-20 Fully Channelized Application FE1 POP/CO 8*E1 10/100BaseT Fully Channelized Ethernet over 248 (8*31) Time Slots Supports low rate data services Remote branches are managed in-band Beta August 2005 FCD-E1LC Remote sites Egate-20 PSN SDH DACS POP Router FE1 IP CO/POP NMS N*E1 FE1 Ethernet FCD--IP FE1/FXS Ethernet Class 5 switch N*E1 PSTN RICi-E1/T1

24. Ethernet over Legacy Slide 24 Ethernet Customer Location B RICi-E1/T1 GPRS Monitoring and Backup GPRS monitoring overcomes SDH/SONET management challenge Backup over alternative network Available in Q4/2005 Provider Control Room SDH/SONET ADM Ethernet Customer Location A RICi-E1/T1 E1/T1 ADM E1/T1 GPRS

25. Ethernet over Legacy Slide 25 Feedback #3 Yes No Is GPRS as a solution for management interesting in your country?

26. Ethernet over Legacy Slide 26 RIC-622GE Gigabit Ethernet over STM-4/OC-12 Gigabit Ethernet point-2-point over STM-4/OC-12c Aggregates four Gigabit Ethernet over STM-1/OC-3c (RIC-155GE) Beta Q4/2005 Gigabit Ethernet RIC-622GE CO SDH/SONET G.Ethernet Customer STM-4/OC-12or 4*STM-1 STM-1/OC-3 PSN RIC-155GE G.Ethernet Customer RIC-155GE G.Ethernet Customer RIC-622GE STM-1/OC-3 STM-4/OC-12 or 4*STM-1/OC-3 Up to four locations

27. Ethernet over Legacy Slide 27 Technical Overview

28. Ethernet over Legacy Slide 28 Egate-100 Product Highlights Phase 1, Interfaces SDH/SONET: Single or Dual Channelized STM1/OC-3, optical or electrical (SFP). Packet Network: Single 1GbE 1000BaseLX/SX interface Supports up to 126 channels (63 E1 and 126 FE remote users) Bridge Bridge learning of up to 64,000 MAC addresses Full VLAN aware or unaware bridge Support 802.1Q, DSCP. IP Precedence Telnet, Web browser and SNMP support Hot swap power supply redundancy option 19” 1U height Beta Now

29. Ethernet over Legacy Slide 29 Egate-100 Road map Phase 2, August 2005 MLPPP support: aggregation of bridged MLPPP sessions Support E1/T1 or n*E1/T1 applications Phase 3, December 2005 STM-1 APS 3* Channelized DS-3 ports Phase 4, Q1 2006 GFP and GFP bonding (G.8040, G.7041, G.7043) Gigabit Ethernet port redundancy as per 802.3ad

30. Ethernet over Legacy Slide 30 Egate-20 Product Highlights Phase I Interfaces: TDM:Eight E1 or T1 (Framed/Unframed) ports Ethernet: Three 10/100BaseT user ports Management: 10/100BaseT Bridge Bridge learning of up to 2048 MAC addresses Full VLAN aware or unaware bridge Support 802.1Q Three levels of QoS, based on VLAN priority (802.1p) Terminal, Telnet, Web browser and SNMP (RV-Lite) Release for general availability: July 2005

31. Ethernet over Legacy Slide 31 Egate-20 Product Road map Phase 2, Beta August 2005 Fully Channelized (8*31 time slots) supporting up to 246 remote users Quality of service: Four queues as per 802.1p, DSCP and IP Precedence Phase 3, Beta Q1 2006 GFP (G.8040) encapsulation

32. Ethernet over Legacy Slide 32 Egate Unique Value Proposition Complete Central and CLE solution optimized for providing Ethernet services over SDH/SONET Cuts equipment costs by up to 70% versus current solutions Reduces provider operating expenditures and adds carrier class resiliency Future: Same platform aggregating L 3 services Investment protection through migration to new Ethernet over PDH standards

33. Ethernet over Legacy Slide 33 for your attention www.rad.com Thank You