1. Profitable Ethernet Services over SDH Infrastructure Customers’ Event Crete, May 2007

2. Ethernet Service over SDH CE2007 Slide 2 Agenda The challenges in utilizing the SDH network for new Ethernet services Ethernet services applications for carriers Ethernet services applications for Utilities & Transportation Summary

3. Ethernet Service over SDH CE2007 Slide 3 Growing demand for Ethernet L2 services Source: Heavy Reading Global Carrier Ethernet Service Provider Survey, 2H 2006, 163 operators worldwide. Ethernet Access Devices Will Play A Key Role In Driving Growth Expected Revenue Performance in 2006

4. Ethernet Service over SDH CE2007 Slide 4 Profitable Ethernet Services The Challenge: Ethernet Services are relatively lower cost services Metro Ethernet does not reach all locations SDH/PDH networks are widely available. How can it be used to deliver carrier class Ethernet services? Providing profitable Ethernet service!!! The Solution: Carriers providing low cost Ethernet services, over the available access networks, while maintaining profitability and generating new profits Enterprises and Utilities can utilizing the available SDH for new Ethernet based applications Leasing low cost transmission from 3 rd party in order to reach more customers – extend the reach of existing services

5. Ethernet Service over SDH CE2007 Slide 5 Expanding the Metro Reach over SDH Greater Service Reach Granular Ethernet services from FE1, n x E1 to STM-4 Aggregates over 100 remote LANs The most complete solution on the market Copper lines (E1’s) are everywhere Well known technology Customers are within service reach now! E1 SDH/SONET STM-1 Gigabit Ethernet Egate CO Ethernet Customer A Ethernet Customer B n x E1 PSN RICi RICi

6. Ethernet Service over SDH CE2007 Slide 6 Who can Benefit? Carriers and City Carrier implementing: L2 VPN services IP DSLAM’s backhauling Wimax BTS backhauling NG Cellular NodeB and BTS’s backhaul

7. Ethernet Service over SDH CE2007 Slide 7 SDH Ethernet Switch/Router XDM STM-1 GBE ETH Granular L2 VPN Ethernet services over SDH Low cost SDH CPE for ETH services (VCAT) and E1 Voice and Leased Line services over SDH ETH on Point to Multipoint topology HQ up-to 8 remote Sites Voice and ETH over the same Fiber XDM Branch #1 ETH 10/100BT FCD-155E Branch #2 ETH 10/100BT FCD-155E E1 PRI STM-1 FCD-155E Up to 8/21E1’s 2 x STM-1 Customer HQ Branch #8 ETH 10/100BT FCD-155 PABX STM-1 Street Cabinet FCD-155 BTS E1’s 2 x STM-1 1 E1 8 E1 STM-1 BSC E1’s FCD-155 STM-1 Leased Line for Cellular PABX E1 PRI PABX E1 PRI

8. Ethernet Service over SDH CE2007 Slide 8 Fast Ethernet Remote Branch Fast Ethernet Remote Branch Expansion of L2-VPN over Copper Access Headquarters and remote branches enjoy L2 VPN connection – as on the same LAN Egate is located at enterprise headquarters managed in-band or out-of band All Remote units are End-to-End managed in-band via the Egate Forwards according to VLAN priority Transparent to number of MAC addresses Enterprise/ ISP Headquarters STM-1 GbE Egate-100 SDH RICi-4/8E1 Fast Ethernet Remote Branch Ethernet Enterprise PSN CO/POP NMS n x E1 ASMi-52/ETH E12w/4w ASMi-52 RICi-E1 E1

9. Ethernet Service over SDH CE2007 Slide 9 Aggregations of Low Speed Services Fully Channelized Ethernet over up to 248 channels (8 x 31 Time Slots) Supports low rate data services, dispersed topology Mainly in developing countries Alternative is router or DACS and switch FE1 POP/CO 8 x E1 10/100BaseT FCD-E1LC Remote Sites Egate-20 PSN SDH DACS POP Router FE1 CO/POP NMS Class 5 Switch n x E1 PSTN n x E1 IP Ethernet FE1 PABX FCD-IP Ethernet FE1/ FXS PABX FCD-IP Ethernet

10. Ethernet Service over SDH CE2007 Slide 10 Carrier Class Aggregation Solution SDH GE T3/E3 RIC-155GE RIC-622GE E1 RICi-nE1/T1 4/8/16 x E1 FE RICi-E3/T3 RICi-E1/T1 Ethernet Switch w/MiRIC E1, T3/E3 FE/GE STM-1 or STM-4 Service Provider Transport Provider FE OC-3/STM-1 or OC-12/STM-4 RIC-155GE RIC-622GE GE Egate-100 GE OC-3/STM-1 or 3 x Ch.DS3 4/12/24 x T3/E3 Egate-20 8 x T1/E1 ETX/MiRIC GE FE Service Provider Network

11. Ethernet Service over SDH CE2007 Slide 11 n x GE Ch/ OC-12/STM-4 Ch. OC-3/STM-1 n x T3 n x OC-3 OC-12/STM-4 Carrier Class Aggregation Solution One device can service all “ETH over” services Increased port count (over one STM-4/OC-12) Variety of interfaces Serve all RAD CLE One provider for all network One management system Flexibility – Different interfaces on the same platform to support different rates and services termination on the same chassis Scalability – “grows as you goes” GE T3/E3 RIC-155GE RIC-622GE E1 RICi-nE1/T1 4/8/16 x E1 FE RICi-E3/T3 RICi-E1/T1 Ethernet Switch w/MiRIC E1, T3/E3 FE/GE STM-1 or STM-4 Service Provider Transport Provider FE SDH Service Provider Network

12. Ethernet Service over SDH CE2007 Slide 12 Increase Broadband Service Coverage to Rural Areas Extend service reach over the exiting TDM lines! Internet Access services to residential and business Layer 2/3 VPN services end-to-end with PSN Metro IP DSLAM Wimax Ethernet POP 2 POP 1 Ethernet Subscribers xDSL IP DSLAM Subscribers xDSL n x E1/T1 E3/T3 RICi POP RICi Egate STM-1/OC-3 GbE n x E1/T1 E3/T3 SDH/SONET Internet PSN

13. Ethernet Service over SDH CE2007 Slide 13 IP DSLAM Backhauling over Leased Infrastructure Extending broadband coverage beyond operators infrastructure reach over leased lines Enables same application functionality as “On-Net” Operator CO SDH/SONET ADM GE Co-location Site STM-1/4 OC-3c/12c NMS RIC PSN RIC IP-DSLAM GE E3/T3 STM-1/4 OC-3c/12c E3/T3

14. Ethernet Service over SDH CE2007 Slide 14 Extend Ethernet to SDH over Wireless Single Device Solution for Wireless Extension of Ethernet with End-to-End OAM Supports a broad range of transmission rates – 2 Mbps, 8 Mbps and 18 Mbps Supports all RICi family features License Free frequencies 2.4GHz, 5.4GHz and more… Egate Ch. STMGbE Ethernet SDH/ Wireless RICi 4/8 x E1 LAN PoE 8 Mbps 4/8 x E1 E1/T1 Wireless RICi LAN PoE 2 Mbps E1 LAN Wireless RICi LAN PoE 18 Mbps

15. Ethernet Service over SDH CE2007 Slide 15 Higher Capacity Ethernet Services over T3/16 x E1/T1 Lines Scalable up to 16 x E1 or T3 Bandwidth Optimized for Ethernet service provisioning User control of ‘bandwidth versus delay’ parameters Interoperable with third party devices utilizing GFP and VCAT Central Office SDH/SONET ADM Ch T3 NMS Egate-100 PSN ADM n x E1 RICi-16 10/100BaseT Customer Premises ADM T3 Ch OC-3 RICi-16 10/100BaseT Customer Premises

16. Ethernet Service over SDH CE2007 Slide 16 Customer Uniform Ethernet Services Across TDM and Packet Networks Ethernet OAM standards: IEEE 802.1ag and ITU-T SG 13 Y.17ethoam, enabling: Diagnostics Alarms Performance monitoring STM-1/OC-3 E3/T3 GbE Egate CO SDH/SONET n x E1/T1, E3/T3 RIC Ethernet Customer ETX Ethernet PSN SDH/SONET or PSN Transport End-to-end Ethernet Service control, monitoring and diagnostics Ethernet Service layer Transport layer

17. Ethernet Service over SDH CE2007 Slide 17 Integrated Test Network Carrier Ethernet – World congress 2006 Multi-Vendor carrier Ethernet Interoperability event Madrid, September 2006

18. Ethernet Service over SDH CE2007 Slide 18 Who can Benefit? Utilities and Transportation: Video Surveillance over SDH Out of band management

19. Ethernet Service over SDH CE2007 Slide 19 Video Surveillance over Railways Haifa SDH STM-1 NMS Port FE GbE RV-EMS/Lite STM-1 E1 2/4W 127 Remote Sites60 Sites GbE Egate-100 NMS Port FE ETH ASMi-52 2/4W ETH ASMi-52 2/4W ETH ASMi-52 2/4W ETH ASMi-52 2/4W ASMi-52 E1 Egate-100

20. Ethernet Service over SDH CE2007 Slide 20 RAD ETH Mullti Vendor Out of band Management over SDH Egate-20 RICi-E1 Business Objectives: NMS connectivity by providing Ethernet Out of band management via SDH E1 lines Winning Combination: Cost Effective Canalized central solution RICi-E1 ETH Micro wave RICi-E1 ETH SCADA RICi-E1 ETH PLC E1 RICi-E1 RAD ETH E1 ETH NMS-Cisco NMS-NEC NMS-Alcatel NMS-RAD ETH RICi-E1

21. Ethernet Service over SDH CE2007 Slide 21 Benefits ETH to multi E1 converter Extend Ethernet services reach over SDH, provides operational cost saving and additional revenues Fast deployment of Ethernet services Beijing Power – IP VPN over SDH Transport Solution SDH ADM 4 x E1 or 2 x E1 E1 RICI-4E1 SPD VPN SPI VPN SPT VPN Cisco MPLS/VPN Switch 100BaseT ADM 4 x E1 or 2 x E1 RICI-4E1 Cisco MPLS/VPN Switch 100BaseT SPD VPN SPI VPN SPT VPN

22. Ethernet Service over SDH CE2007 Slide 22 E.ON – Extend Ethernet Bandwidth for Existing PDH Mux OC-3/STM-1 Gigabit Ethernet Egate-100 CO SDH/SONET HQ LAN Sub-Station PDH Mux RICi-8E1 Fast Ethernet Customer n x E1/T1 Benefits Huge installed base of old PDH Mux with limited Ethernet Bandwith Instead replacement, extend bandwith via RICi-4/8E1 Advantages Easy solution Much cheaper as Routers Analog RTU Sub-Station PDH Mux RICi-8E1 Customer n x E1/T1 Analog RTU Fast Ethernet

23. Ethernet Service over SDH CE2007 Slide 23 Multi Service Platform for TDM and PSN Aggregation and Conversion Protected E1 Ring for voice and data services STM-1 SDH Ring for granular higher bandwidth LAN and TDM services using GFP ISDN U STM-1 GbE E1/T1 n x E1/T1 SHDSL E1 Ring MP-2104/2100 FCD-IP MP-4100 FCD-155 STM-1 SDH SDH/SONET PSN PBX MP-2104/2100 ASMi-52 ASMi-31 FCD-E1LC RICi-4/8E1 FCD-IP

24. Ethernet Service over SDH CE2007 Slide 24 Summary – Cost Effective Ethernet Solutions over Existing Networks Providing low cost Ethernet Services over existing networks New customer segments Extending Ethernet VPN services over copper Broadband services and contended layer 2/3 VPN services in rural areas Reduced operation and capital costs with channelized Ethernet platforms New granular Ethernet services over exiting SDH Serves carriers as well as utilities over their existing SDH infrastructure

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