1. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Ralph Santitoro Carrier Ethernet Market Development Ralph.Santitoro@us.fujitsu.com Connection-Oriented Ethernet for Mobile Backhaul Networks © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

2. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Contents Mobile Operator Business Challenges Mobile Backhaul Provider Challenges What is Connection-Oriented Ethernet (COE) ? COE Attributes Mobile Backhaul Technology Migration Summary 2 © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

3. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Mobile Backhaul Business Drivers Challenges facing Mobile Operators 2 year subscriber service contracts Locks subscribers into a given technology Subscriber cancellation penalties ROI on subsidized smartphone Data rate grows with 3G and beyond but revenue doesnt follow Flat rate data plans Network Operations How do you ensure backhaul network provides uninterrupted service to millions of subscribers served by 50,000+ cell towers ? Number of years to upgrade all cell towers with new technology Tremendous pressure to make the right choice while achieving ROI/margin objectives Many business issues affect technology selection 3 © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

4. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Challenges facing Mobile Backhaul Providers Retraining of network operations personnel A SONET transport engineer cannot become a data engineer overnight Which technology do I pick given the eventual migration to Ethernet ? Should I use Ethernet with Circuit Emulation? Should I use an integrated SONET/Ethernet (P-ONP) approach ? < 3 year service contracts with mobile operators How can I make an acceptable ROI to meet margins objectives ? How can I meet Mobile Operators stringent SLA requirements ? Delay, Jitter, Loss, Availability Introducing Connection-oriented Ethernet for Mobile Backhaul.... 4 © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

5. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC What is Connection-Oriented Ethernet (COE)? Provides explicit EVC paths across the network Disables Ethernet MAC address learning and flooding Explicit paths provide deterministic QoS Reserves bandwidth for each EVC per CoS Traffic management provided per EVC per CoS 55 Ethernet over SONET No Aggregation / No Statistical Multiplexing Deterministic QoS Bandwidth Reserved in each STS Short (sub-50ms) protection/restoration times Connectionless Ethernet Bridges Good Aggregation / Statistical multiplexing Non-deterministic QoS No Bandwidth Reservation Long (>200ms) protection/restoration times MSPP Connection-Oriented Ethernet Good Aggregation / Statistical Multiplexing Deterministic QoS Bandwidth reserved per EVC Short Sub 50ms protection/restoration times Packet ONP COE combines the best attributes of Ethernet Bridges and EoS © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

6. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Availability G.8031 50ms Linear Path Protection 802.3ad Link Aggregation (LAG) Service Management 802.3ah Link Fault Mgmt. 802.1ag/Y.1731 EVC Fault Mgmt. Security Bridging disabled - no L2CP vulnerabilities L2CP threats mitigated No MAC table overflows Standardized Services EPL, EVPL, EP-Tree, EVP-Tree MEF 6, MEF 10 Scalability Millions of EVCs Aggregation and stat-muxing Oversubscription Deterministic QoS 802.1ag / Y.1731 / MEF 10 PMs Delay, Delay Variation, Loss, Availability Resource Reservation through CAC Attributes of Connection-oriented Ethernet COEAttributes COE is a high performance implementation of MEF Carrier Ethernet 6 © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

7. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Mobile Backhaul Technology Migration … on the road to Ethernet Compelling case to keep 2G traffic on TDM 2G traffic growth very small so T1 MRC is essentially flat What do you do with high growth 3G traffic? Some Base Stations can be upgraded to Ethernet COE over SONET or COE over Fiber choices If you are a Wireline LEC or MSO with a SONET infrastructure COE over SONET: Simple and most bandwidth efficient for data services COE provides aggregation and statistical multiplexing of data traffic Legacy, low growth 2G services remain on TDM For Ethernet over Fiber infrastructures must consider MEF 22 GIWF: Generic Interworking Function: Non-Ethernet Ethernet (via Circuit Emulation) Clock Synchronization Time Bandwidth Voice + 2G Data 3G/4G Data 3G BS 4G BS Ethernet Ethernet ATM over T1s MLPPP over T1s T1s GIWF Ethernet 2G BS T1s (TDM) SONET COE over SONET COE over Fiber Hub site or MobileSwitchingCenter 3G backhaul more challenging because it is transitional © Copyright 2009 Fujitsu Network Communications. All Rights Reserved. 7

8. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC Summary Different Business Drivers and Challenges for Mobile Operators & Mobile Backhaul Providers impact their migration to Ethernet Connection-Oriented Ethernet (COE) combines the best attributes of Connectionless Ethernet and Ethernet over SONET COE is a high performance implementation of MEF-defined Carrier Ethernet COE facilitates the migration of Mobile Backhaul Networks from SONET to Ethernet 8 © Copyright 2009 Fujitsu Network Communications. All Rights Reserved.

9. Heavy Reading Packet-Optical Transport Evolution – May 19, 2009 - NYC 9 Confidential - AFS and Fujitsu use Only 9 THE POSSIBILITIES ARE INFINITE