1. Beyond 10 Gbps J. Livas Chief Technologist Core Transport Business Group

2. ©2004 Ciena Communications, Inc. Confidential and proprietary. 2 What is a High Bandwidth Application? Residential Triple Play Voice Standard Definition Video Distribution High Definition Video Distribution Games Business Data VPN Storage Multi-core Processors Supercomputer GRID Interconnectivity Remote Visualization Specialized Applications Mainstream Applications LOW MEDIUMHIGH 3-40 Mbps 64 Kbps 20-1500 Mbps few Mbps few – many Mbps many Mbps Gbps Research Data Collection Tbps

3. ©2004 Ciena Communications, Inc. Confidential and proprietary. 3 Common Arguments for 100 Gbps ProCon 1 Spectral Efficiency: 100 Gbps/400 GHz = 0.4 b/s/Hz 10 Gbps/25 GHz = 0.4 b/s/Hz (SAME) 2 No physics driver (not a “magic” rate)Not a SONET/SDH rate 3 Op-simplicity: fewer channels to manage Have more tribs – no ops savings unless tribs outside scope 4 Everyone else is doing itIf everyone else were jumping off a cliff, would you jump too? 5 Economics: Relative Rate Electronics (Gbps) cost 2.5 1.0 10 2.5 40 6.2 100 16 Must include propagation costs Relative Rate Propagation Total System (Gbps) Cost Cost 2.5 0 1.0 10 1 3.5 40 10? 16? 100 20? 36?

4. ©2004 Ciena Communications, Inc. Confidential and proprietary. 4 Total System Costs Family of curves for each application space: Lowest Cost Propagation Costs Electronics Costs

5. ©2004 Ciena Communications, Inc. Confidential and proprietary. 5 Goal is Lowest Cost Transport Lowest Cost Data Rate depends on Distance and Capacity System Range: Cost Driver: 10,000 km 20G 10G 5G 2.5G 1.25G 100 m100 km500 km1500 km Data Rate for Lowest Cost for ~ 1 TBPS Capacity 40G “Log” Distance Parallel OpticsElectronicsPropagation Intra-office MetroLong Haul ULH Now 100G Under development Match the Answer to the Application

6. ©2004 Ciena Communications, Inc. Confidential and proprietary. 6 Increase Bit Rate or Tighter Spacing? 10GB @ 12.5GHz=>Faster cost-effective deployment 40GB @ 50 GHz=>Deployment in 0-1 years

7. ©2004 Ciena Communications, Inc. Confidential and proprietary. 7 CoreStream: Flexible Transport Platform for the Future  One Platform for all applications » FEC, Raman, and EDFAs allow CoreStream to handle span designs from 1600 - 3200km » CoreStream is approved for NDSF, NZDSF, and DSF » Transceivers for 2.5G and 10G GA today, 40G available for lab demos now. » 50GHz (for ~3000km) & 25GHz (up to ~2000km) channel spacings  Cost is reduced by installing special technologies only where needed  25GHz systems can used to provide high capacities as 40G technologies become more cost effective 8 Channels 10 Gbps 25 GHz spacing 28 Channels 40 Gbps 100 GHz spacing Channel Counts are C-Band only. >3000 km, 80x10Gb/s NRZ @ 50 GHz 2000 km, 160x10Gb/s NRZ @ 25 GHz Up to 1600 km, 40x40Gb/s CS-RZ @ 100 GHz or 160x10Gb/s NRZ @ 25 GHz Numbers assume NDSF and 8 dB FEC OADM Nodes Data rates/channel spacing mixed at the sub-band level Mixed rate deployment likely Optimize Capacity x Distance for each sub-band separately Data rates/channel spacing mixed at the sub-band level Mixed rate deployment likely Optimize Capacity x Distance for each sub-band separately

8. ©2004 Ciena Communications, Inc. Confidential and proprietary. 8 Demonstrated System Capability with Raman Fiber TypeBest mixed 40/10G Capacity DistanceTotal Capacity NDSF40ch x 40G1600km1.60Tb/s DSF 19ch x 40G + 24ch x 10G 1000km1.00Tb/s TW 32ch x 40G + 16ch x 10G 1600km1.44Tb/s TW-RS40ch x 40G1600km1.60Tb/s E-LEAF 32ch x 40G + 16ch x 10G 1600km1.44Tb/s Capacity is for C-band propagation only Pure 10G capacity is 1.92 Tbps Distances are ~ 1200 km without Raman Capacity is for C-band propagation only Pure 10G capacity is 1.92 Tbps Distances are ~ 1200 km without Raman

9. ©2004 Ciena Communications, Inc. Confidential and proprietary. 9 40G + 10G Dispersion Compensation One example of a technical challenge 10G TX Optional Trim Router DCF Optional Trim Router DCF Optional Trim Router DCF Optional Trim Router DCF RX Router DCF Optional RX Router DCF Optional RX Router DCF TX Amp Pre-comp. TX Amp Pre-comp. Line Amp Slope Compensation Line Amp Slope Compensation RX Amp Post-comp. RX Amp Post-comp. Shelf Amplifier Shelf Amplifier Shelf Amplifier Shelf Amplifier Per channel Tunable DC Per channel Tunable DC 40G TX Common to both 10G and 40G channels 40G and 10G must share dispersion maps – In-line dispersion is common to both rates – Pre/post compensation may be different Practical experience suggests main difference is tolerance – 40G requires smaller residual – easily handled at transmitter and/or receiver 40G and 10G must share dispersion maps – In-line dispersion is common to both rates – Pre/post compensation may be different Practical experience suggests main difference is tolerance – 40G requires smaller residual – easily handled at transmitter and/or receiver TX Terminal TX Terminal RX Terminal RX Terminal 10G RX 40G RX GA CoreStream Line System

10. ©2004 Ciena Communications, Inc. Confidential and proprietary. 10 Transparent Service Multiplexing Access vs Transport Rate Access Rate need not match Transport Rate Separately optimize for cost, convenience Grooming is critical: integrated L0 + L1 + L? What the Carrier sees: “Economical transport of a variety of services with a single platform” 100G Channe l DWDMDWDM Logical Link Logical Link Physical Link Physical Link100GbEServices 10G Channel100GbEServices SONET/ SDH 10G 10 GbE SONET/ SDH 10G 10 GbE......SONET/ SDH 10G 10 GbE SONET/ SDH 10G 10 GbE............

11. ©2004 Ciena Communications, Inc. Confidential and proprietary. 11 10GE for High Bandwidth Applications Standards work needed? 10GE LAN PHY 10.3125 Gbps 9.995 Gbps OTN OPU-2 ODU-2 O/H OTU-2 O/H 10.709 Gbps 10.000 Gbps with 64B/66B Encoding 10.037 Gbps 10GE LAN PHY expected to offer significant cost benefit compared to SONET OC-192c (e.g. PoS) Expected to become Intra-office interface of choice –Server connections –Router interface Transparency of Ethernet MAC can be important Solution for Transparent WAN connectivity not standardized –Data rate not compatible with standard framing for OC-192 or ODU-2 –Supported using Agile Wavelengths today using OTU-2+ variation of G.709 (11+ Gbps) 10GE LAN PHY Transparency Issue

12. ©2004 Ciena Communications, Inc. Confidential and proprietary. 12 Hybrid Switching is Lowest Cost Traffic Dependency ES Today ES with Integrated WDM WS Solutions Relative $ per STS1/VC3 $ per 100% 80% 60% 40% 20% 0% SDH Grooming Switch External DWDM Transmission SDH Grooming Switch Integrated DWDM Transmission Hybrid Solution IWSS and selective SDH Grooming Relative Cost per STS-1/VC3 100% 80% % 60% 40% 20% 0% Hybrid Solution ROADM and selective SDH Grooming All-Optical Switch IWSS

13. Thank You!