1. What’s New In Service Provider Networks?
Intro to Carrier Networks

2. Broadband You Can Build On
It’s a great shot when you pull it off,
It’s a smart shot when you don’t have the guts to try it.
- Phil Mickelson
Benjamin Franklin 2

3. What keeps me awake at night?
Service Providers
What keeps me awake at night?

5. Who is ADTRAN?
Leading provider of networking and communications equipment
Smart, Reliable Solutions for Today’s Communication Networks
Widely deployed throughout North America and a growing number of Global Service Providers
One stop shopping for business networking equipment needs - routing, switching, telephony
Innovative Product Approaches
All-in-one solutions save space, integrate functionality, reduce cost
Multi-service platforms leverage existing network infrastructure, enable networks for new service deployments at lower cost
Dependable solutions for business and residential connectivity
Strategic product position
Entrepreneurial engineering capabilities
Demonstrated financial competence 5 5

6. Strategies for Growth Our Growth Businesses 2009 Results:
Primary Growth Products
52% of Revenue
Up 13.5% year over year
Broadband Access = $111.5M
Up 9% year over year
TA5000 platform had record sales!
Optical Access = $60.6M
Up 12.5% year over year
Internetworking = $80M
Revenue Record!
Up 21.5% year over year
R&D Investment $83M
Up $1.5M year over year
BROADBAND
ACCESS
INTERNETWORKING
OPTICAL 6

7. Carrier Networks Division Enterprise Networks Division
The Access Network
Carrier Networks Division
Enterprise Networks Division
Communication Networks are broken into two parts – the core network and access network. The access network is that portion of the network where the majority off ADTRAN products are installed..

8. High Performance Services for Business & Residential Customers
Central Office
HIGHER- SPEED INTERNET ACCESS
MANAGED
NETWORK
SERVICES
METRO
ETHERNET
VoIP
IPTV
BROADBAND
ACCESS
Improve Access Infrastructure for
Service Providers
IP TELEPHONY
MOBILE
BACKHAUL
VOICE & DATA
NETWORKING
Enable Services for
Business & Residential Customers

9. Total Access Solution

10. Ethernet Goal for the Network
Migrate to a single, unified network infrastructure that delivers all next generation services, residential or business. Maximize existing assets without encumbering future capabilities.
Ethernet

11. AOS: Foundation for Success
Same OS used on TA 900 Series
Interoperable with leading softswitches
Proven SIP and MGCP implementation
Wide array of statistics and debug tools
ADTRAN OPERATING SYSTEM 11

12. Driving Next-Generation Architectures
Carriers are moving toward converged networks over IP/Ethernet
Scalability for enhanced broadband
Lower operational cost
Migration to IP-based applications and services
Copper, fiber and mobile infrastructure
Evolution to higher-speed business services 12

13. Providing Smart Connectivity for Delivery of Services
Network Transport/Aggregation
Optical
Ethernet
Mobile Backhaul
Broadband Access
Higher Speed Internet
IPTV
POTS / Specials
Unified Communications
Hosted and Premise-Based VoIP
Metro Ethernet
Fiber and Copper
Managed Network Services
Security, LAN 13

14. Impact on Mobile Backhaul

15. Evolution of Technology
Infonetics, Deloitte
Computing Costs
Processing cost is dropping
faster than bandwidth cost…
…driving distributed architectures
like the IP for LTE

16. Provide Essential Technologies to Deliver Enhanced Services
Technologies increase access network bandwidth for business and residential customers
Ethernet-based Broadband Access
GPON
Active Ethernet
VDSL2
ADSL/ADSL2+
SHDSL EFM
Optical Access
SONET/SDH
Ethernet
Internetworking
Routing/Switching
Unified Communications

17. Smart Solutions for Wireline Service Providers
Multi Service Access Platform (MSAP)
BBDLC
IP DSLAM
Fiber to the Node (FTTN)
Fiber to the Premises (FTTP)
Fiber to the Curb (FTTC)
Network Aggregation: TDM, ATM and IP
Business Carrier Class Ethernet
Business Services Migration
Optical Access
Network Communications Terminating Equipment (NCTE)
Multiplexers 17

18. Innovative Time To Market
Equipment Cost
Materials and Labor Cost
Cabinet Deployment
Cost of deployment – in $5000 increments
OSP Deployment
40 days
1-2 days
Time to Market – in 5 day increments

19. Complete Broadband Solutions
Broadband Product Suite for Copper and Fiber Delivery
Central Office
Remote Terminal
Remote Node
Customer Premises

20. Emerging Opportunities
Next-generation architectures are now a necessity
Counter the competitive threat from cable
Increase revenues through the delivery of higher bandwidth services
Optimize network to drive out operational cost
How can carriers enable the new without stranding the existing?
Legacy and next-generation services
Phased evolution from discrete to converged networks

21. Building Tomorrow’s Network
More fiber – less copper
Maintain existing subscribers and services
Deliver higher bandwidths – install fiber, shorten copper loops near term, FTTP long term
More packet – less TDM
Migration to IP-based networks inevitable
Unified network drives simplicity, savings, scalability
Rise of Multigigabit Ethernet networks – decline of traditional TDM/SONET networks due to inefficiency, complexity

22. Carrier Ethernet Services Better Services to More Customers – Sooner
Faster Time to Market
Universal Service Coverage
Value-Added Service Delivery
Simplified Deployment Model
Ethernet to Every Business - EoX
Leveraging Existing TDM/SONET Assets
Addressing Multi-branch/SMB profitably
Ubiquitous Service Rollout,
On/Off-Net, Uncontrolled environments
Value-Added Service Delivery
Retained ATM QoS, TDM Dependability, SONET Resiliency
Carrier Ethernet Innovation
SLA Delivery & SLA Management
Faster Time to Market, Launch
Simplified Ethernet Installation & Upgrade
Centralized Service Delivery Platform
Immediate Ethernet Delivery Platforms
EoTDM, Outside Plant (OSP)

23. Key Applications for Carrier Ethernet Enabling bandwidth growth and new services
Business Services
Metro Ethernet service delivery
Business-class direct internet access
Point to Point and Multipoint LAN services
Service availability is key
Mobile Backhaul
Support evolution from TDM to Ethernet
Legacy support, including synchronization, are critical attributes 23

24. Mobile Backhaul

25. Next Generation Ethernet Applications 10Mbps to 1Gbps Ethernet Service Delivery

26. Service Provider

27. ADTRAN’s Unique Position
ADTRAN’s proven ability to enable sustainable delivery of business class and high speed data services
ADTRAN’s significant embedded base of deployed solutions
ADTRAN’s extensive real world experience in deployment
ADTRAN’s full suite of standards based Ethernet delivery solutions
ADTRAN’s commitment to delivery of mass deployable (replicable, scalable, easily maintained) Ethernet services
ADTRAN’s commitment to continued innovation