1. Increase Profitability with Carrier-grade Ethernet Access Presented by: Yacov Cazes Director Product Management & BD Customers’ Event Crete, May 2007

2. Ethernet Access CE 2007 Slide 2

3. Ethernet Access CE 2007 Slide 3 Expected Revenue Performance in 2006 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

4. Ethernet Access CE 2007 Slide 4 A Variety of Ethernet Access Solutions

5. Ethernet Access CE 2007 Slide 5 Ethernet over a Variety of Access Technologies In order to be profitable Ethernet access technology should adjust to: Available access to the customer site Enterprise sizes and bandwidth requirements A variety of Ethernet access solutions allow service providers to extend their reach to as many customers as possible Source: Heavy Reading Global Carrier Ethernet Service Provider Survey, 2H 2006. 161 operators.

6. Ethernet Access CE 2007 Slide 6 “Ethernet over Anything, Anything over Ethernet” Ethernet as a service: Ethernet over fiber (Ethernet) – ETX Ethernet over PDH access – RICi+Egate Ethernet over SDH access – RIC-155/622, FCD-155/622 Ethernet over ATM access – ACE Ethernet over Wireless - Airmux Ethernet over DSL – LA Ethernet as a transport: TDM over Ethernet – IPmux/ACE ATM over Ethernet – ACE See new Ethernet web site http://www.ethernetaccess.com/http://www.ethernetaccess.com/

7. Ethernet Access CE 2007 Slide 7 Fiber Ethernet Access – Packet Switched Network Allow for fiber Ethernet in the local loop Various connectivity scenarios depending on providers network, access and interfaces to the customer Various services can be connected at the customer end e.g.: Internet, Storage, TLS, as well as residential triple play Packet Switched Network Eth/IP/MPLS PE 100Fx Ethernet Aggregator Customer Premises CPE ETX GbE PE GbE Provider’s Node Ethernet Aggregator Provider’s Node 10/100BT 100Fx Transceiver Rack Customer Premises CPE ETX 10/100BT Customer Premises CPE ETX 10/100/1000BT

8. Ethernet Access CE 2007 Slide 8 Fiber Ethernet Access – NG SDH/Sonet Network Ethernet access link to SDH/Sonet Network using the Ethernet tributaries of the NG ADM NG ADM FE GE NG ADM GEFE NG ADM SDH/SONET Network Customer Premises CPE ETX Customer Premises CPE ETX Customer Premises CPE ETX Customer Premises CPE ETX

9. Ethernet Access CE 2007 Slide 9 IP DSLAM SHDSL 4 x SHSDL bonding IP DSLAM LA LAN LA LAN Ethernet SHDSL Site A Site B DSL – LAN Services Using SHDSL Access BRAS Symmetric SHDSL aimed mainly for business customers LAN over PSN (Packet Switched Network) when using DSLAM with IP uplink Access rates: from 2.3 Mbps (1 pair) to 9.2 Mbps (4 pairs bonded) 10/100BaseT service port Common services: Transparent LAN Services (TLS) and Internet Point-to-point and point-to-multipoint connectivity Ethernet WWW Ethernet Packet Switched Network Eth/IP/MPLS LA LAN Ethernet Site C

10. Ethernet Access CE 2007 Slide 10 PDH Access – Ethernet Service over Leased Lines Providing Ethernet services based on another provider’s leased lines – out-of-region or out-of-franchise (US) Rate versatility – from E1/T1 to to STM-4/OC-12 Bonding solution – 4/8/16 x E1/T1 to bridge the bandwidth gap between E1/T1 and E3/T3 POP PSN Eth/IP/MPLS Customer Premises RIC ETH Egate SDH/ SONET n x E1/T1 bonding Ch STM-1/OC-3 Co-location Access Provider Network Service Provider Network Service Provider Transport Provider GE RIC E1/T1 ETH

11. Ethernet Access CE 2007 Slide 11 n x E1/T1 Wimax Ethernet POP 2 TDM Access – Service Backhauling over Sonet/SDH Backhauling of DSL and Wimax based services over Sonet/SDH network where there is no reachability to the Packet Switched Network Different services (LAN connectivity, Internet) can be provided with different QoS Specific traffic flows from a specific remote DSLAM are isolated from other DSLAM using VLAN Bridging and Split Horizon IP DSLAM POP Gateway STM-1/ OC-3 GbE POP 1 Ethernet n x E1/T1 Subscribers xDSL IP DSLAM Subscribers xDSL Internet Ethernet PSN SDH/ SONET

12. Ethernet Access CE 2007 Slide 12 MiRIC – Future Proof Ethernet over TDM Future proof: Enables seamless migration from TDM based access to fiber Ethernet OpEX savings: No need for new certification and integration, same stock, no need to train for new equipment Central solution flexibility: Per SFP port modularity Same Ethernet capabilities (e.g. uplink redundancy for E1/T1 over LAG) GbE POP SDH/SONET E1/T1 E3/T3 Remote Locations Up to 24 E1/T1 and/or E3/T3 ETX with MiRIC Gmux-2000 TDMoIP Gateway 4xFE ETX-550 or 3 rd party With MiRIC 4xGE IPmux-24 With MiRIC 4/FE/GE PBX 4 x E1/T1 PSN Eth/IP/MPLS Switch with MiRIC E1/T1 E3/T3 E1/T1 E3/T3

13. Ethernet Access CE 2007 Slide 13 Variety of Ethernet Access Solution – Implementation Scenario Extending the reach of the provider’s network over a variety of access technologies Consistent Ethernet service across different access technologies Headquarters ETX 1000Sx GbE ETX 100Fx/ GbE Metro Ethernet 10BT Branch Service Provider Packet Switched Network RIC SDH RIC GbE STM-1/OC-3 10BT 100BT EoPDH n x EoPDH Bonding Branch EoPDH Egate 10/100BT n x EoCU Bonding GbE LA 10BT Branch DSLAM EoCU LA DSLAM Branch GbE RIC-622 Branch RIC 10BT RIC-622 10BTEoSDH GbE RIC 100BT Branch EoPDH Leased E3/T3 Leased Ethernet ETX 100BT Branch 100Fx GbE

14. Ethernet Access CE 2007 Slide 14 RAD Among the Leaders in Ethernet Access Carrier Ethernet World Congress, Madrid, September 2006 - Demonstrating Ethernet service over various access technologies including Ethernet OAM and Uplink redundancy

15. Ethernet Access CE 2007 Slide 15

16. Ethernet Access CE 2007 Slide 16 Smart Demarcation Concept – Generation of Profit from a Low-Price Service Minimizing Opex - Low price points of Ethernet service require very stringent control of the Opex Truck roll is not affordable at SME service prices End-to-end fault monitoring and diagnostics reduce operational costs Generating new revenues by providing end-to-end SLA based services Smart Ethernet demarcation allows End-to-end service control and SLA verification Source: Light Reading Webinar Survey, September 2006

17. Ethernet Access CE 2007 Slide 17 Intelligent Ethernet Demarcation Concept Carrier owned, customer located equipment Clear demarcation between provider’s and Customer’s networks – quickly determine responsibility of service affecting problems End-to-end OAM – allow for end-to-end fault management and performance monitoring Traffic management starting at customer premises – essential for guaranteeing end-to-end SLA Extensive fault monitoring and diagnostics tools – Opex minimization Available for all previously mentioned access technologies Provider’s Network Edge Device Customer Premises POP End-to-end traffic management and service control 10/100BT GbE Ethernet UNI Customer Equipment Demarcation Device Provider’s NetworkCustomer’s Network

18. Ethernet Access CE 2007 Slide 18 Fault Monitoring and SLA Verification End-to-end service monitoring Trap is sent upon failure at service level End-to-end SLA measurements: Frame Delay, Frame Delay Variation, Frame Loss and Availability Collecting SLA statistics Trap is sent once SLA is below defined SLA objective Can be done when customers are connected over different access technologies at each end Ethernet OAM are essential for end-to-end service control and SLA monitoring Customer Premises Smart NTUCPE Operator AOperator B End-to-end OAM (802.1ag/ Y.1731) Link OAM (802.3ah) Customer Premises Smart NTUCPE

19. Ethernet Access CE 2007 Slide 19 Traffic Management from Customer Premises Starting traffic management at start of service point allows for end-to-end rather than edge-to-edge QoS Traffic classification and prioritization - to ensure that in case of congestion highest priority service will always be served first Traffic is classified and mapped to the appropriate priority queues Bandwidth Control - Guarantees the user does not exceed contractual rate Traffic management starting at the demarcation point is important to guarantee end-to-end SLA Customer Premises Smart NTUCPE PSN ETH/IP/MPLS End-to-end QoS Edge-to-Edge QoS Customer Premises Smart NTUCPE Edge Device Edge Device

20. Ethernet Access CE 2007 Slide 20 Fault Monitoring and Diagnostics Intrusive and non-intrusive Loopbacks Dying gasp - Send a trap to management system upon power failure at customer premises Fault propagation Extensive statistics and indications at Ethernet and service levels Traps and Alarms Distance to copper link fault Ping and Trace-route Proactive fault monitoring and diagnostics allow for saving truck rolls and disputes over the source of the problem, resulting in Opex minimization

21. Ethernet Access CE 2007 Slide 21 Smart NTU Helps Increase Service Profitability Revenue enhancing features Multi service support: TLS, Internet, VoIP, TDM, and more Guarantee service priority OAM based End-to-end traffic measurement and SLA visibility – Allow for providing new SLA based services Redundancy support for high availability customer requirements Opex saving features Plug and play installation and automatic configuration from central site Proactive service monitoring – save truck roll and disputes Extensive statistics and diagnostics – quick service provisioning and troubleshooting

22. Ethernet Access CE 2007 Slide 22 Summary RAD’s variety of Ethernet access solutions increase service providers revenues by extending their Ethernet service reach to more potential customers RAD’s NTUs allow service providers to generate new revenues from SLA based Ethernet services, using NTUs end-to-end traffic management and SLA monitoring RAD’s NTUs provide service control which is essential for minimizing Opex

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