What Does an MSAN Give You Tuesday, April 13, 2010

Definition of an MSAN A 'Multi-Service access node' or (MSAN) also known as MSAG or 'Multi-Service Access Gateway' is a device typically installed in a telephone exchange (although sometimes in a roadside serving area interface cabinet) which connects customers' telephone lines to the core network, to provide telephone, ISDN, and broadband such as DSL all from a single platform. Typical outdoor MSAN cabinet consists of NarrowBand (POTS), BroadBand (xDSL) services, batteries with rectifiers, optical transmission unit and copper distribution frame. Referenced: http://en.wikipedia.org/wiki/MSAN

The Access Network Many Pieces of the Access Network Puzzle Next Gen Network Network Migration To Retrofit or not Copper and fiber Multi-play service delivery No single solution for all networks FTTP FTTN Transport – star, chain, ring Network Solutions to Build on Service delivery is key Minimize Friction

Next Generation Networks Fiber to the Node (FTTN) Ethernet-based Access Network Fiber to the Premises (FTTP) Triple Play Services 20-100 Mbps per subscriber Fiber to the Home (FTTH)

Drivers for FTTx Growth Demand for bandwidth Predominately driven by video applications, peer-to-peer (P2P) file sharing and online gaming Allows service providers to differentiate on wider content Government subsidies Ongoing national initiatives to support deep fiber access Japan, Korea, China, Singapore, Malaysia, Australia and France US Broadband Stimulus is North America’s first push Reduced operational costs of maintaining legacy copper based services Eliminates distance sensitivity and largely eliminates asymmetrical nature of services (bigger upstream for P2P and Online Gaming) Less active equipment in the network to serve a large base of customers

What’s Causing the Need for Speed?

GPON and Active Ethernet Global products available in 2nd half driving increased market share moving forward

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

Total Access Solution

Total Access 5000 Complete MSAP 10

Integrated Business and Residential Services OSS 1/10GE Common platform for Residential and Business Services Scalable architecture for future services Access agnostic architecture for “Ethernet Everywhere” ADTRAN Total Access Element Management System Residential VDSL2 ADSL2+ EoTDM EoCu GPON EoF _____________________________________________________________________________ Business Single Common Platform and Management for All Services

IPDSLAM IPDSLAM Optional bonding of pairs for enhanced rate/reach OSS IPDSLAM Optional bonding of pairs for enhanced rate/reach Integrated fiber or copper transport options Smaller, lower density units to minimize the deployment cost (OPEX) GigE Management Gateway TA5000 GigE GigE GigE TA1448A 12 Pair DMT TA1248A TA1148A TA1148A DMT ADSL2+ ADSL2+ ADSL2+ ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+

FTTN FTTN Better scalability for lower density deployments OSS GigE Management Gateway TA5000 GigE GigE GigE GigE GigE FTTN Better scalability for lower density deployments Unique sealed architecture helps minimize first port deployment costs TA1448A 12 Pair DMT TA1248A TA1248V TA1148A TA1148A DMT TA1148V ADSL2+ ADSL2+ ADSL2+ ADSL2+ VDSL2 VDSL2 VDSL2 Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded VDSL2 Bonded VDSL2 Bonded VDSL2

FTTH OSS GigE TA3xx Active Ethernet / GPON Management Gateway TA5000 GigE FTTH Differentiated ONT portfolio with purpose built residential, business and mobile backhaul solutions Ability to support IP DSLAM, FTTN and FTTH from same platform GigE GigE GigE GigE TA1448A 12 Pair DMT TA1248A TA1248V TA1148A TA1148A DMT TA1148V ADSL2+ ADSL2+ ADSL2+ ADSL2+ VDSL2 VDSL2 VDSL2 Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded VDSL2 Bonded VDSL2 Bonded VDSL2

Extending the range of GPON 40 km Reach 20 km Reach 30 km Reach 2 20 km Reach Standard reach today In customer trials Class C optics

Migration of Legacy Services to Ethernet Business Customers OSS Business Service Migration Migration of TDM based (DS1/E1) legacy data services (PPP, Frame Relay, ATM) No new customer premises based equipment Migrate existing data traffic from existing inter-office transport and DACS to IP/MPLS Core GigE Management Gateway TA5000 Ch DS3 DS1 E1 TDM ACCESS DS1 Data Circuit DS1 Data Circuit E1 Data Circuit

Migration of Legacy Services to Ethernet Residential Customers OSS GigE DS3/OC3 ATM Management Gateway TA5000 DS3/OC3 ATM T1/E1 IMA ATM Existing ATM DSLAMs Ch DS3 DS1 E1 Residential Service Migration Extend the life of existing ATM DSLAMs for customers still buying lower rate services (< 7M-10M) Intelligent learning to build ATM circuit to Ethernet VLANs Migrate existing data traffic from existing inter-office transport and DACS to IP/MPLS Core TDM ACCESS Existing ATM DSLAMs DS1 Data Circuit DS1 Data Circuit E1 Data Circuit

Ethernet Access Solutions OSS Ethernet over Copper Bonded copper pairs for Ethernet access up to 40Mbps+ symmetric Optimized Mobile backhaul form factors for cell site deployment Enhanced lightning protection Hardened outdoor enclosures GigE Management Gateway Bonded E.SHDSL NV838 NV838 OSP Bonded E.SHDSL TA5000

Extending Carrier Ethernet Footprint Ethernet over TDM Bonded TDM circuits from existing infrastructure offering up to 135Mbps symmetric Extends Ethernet service reach OSS GigE Management Gateway NV838 Bonded E.SHDSL NV838 OSP Bonded E.SHDSL TA5000 DS3 DS1/E1 Ch DS3 TDM ACCESS Bonded DS3 Bonded DS1/E1 Bonded DS1 NV873 NV818 NV818

Ethernet over Copper from the RT Extending EoCu Reach OSS Ethernet over Copper from the RT Size and density optimized for deployment at existing cabinet sites Enables bonded copper pairs for Ethernet access offering up to 40 Mbps symmetric Consistent feature set and OSS integration with existing Carrier Ethernet deployment Offers targeted migration from Ethernet over TDM solution GigE Management Gateway NV838 Bonded E.SHDSL NV838 OSP Bonded E.SHDSL NV838 TA1448S-CE NV838EP Bonded E.SHDSL TA5000 GigE Bonded E.SHDSL

Enabling Fiber-based Ethernet Access OSS GigE or 10G Management Gateway NV838 Bonded E.SHDSL NV838 OSP Bonded E.SHDSL TA5000 EoCu GigE DS3 DS1/E1 GigE Hybrid NTU Ch DS3 Ethernet over Fiber Ethernet Access Module for aggregation of fiber Ethernet services Dark fiber Ethernet access for service offerings up to 1G Hybrid copper/fiber Ethernet NCTE allows rapid deployment of Ethernet over Copper with upgrade path to Ethernet over Fiber (40M to 1G) without changing NCTE High bandwidth (10G) uplink options to support blending of Ethernet over X solutions TDM ACCESS Fiber NTU Bonded DS3 Bonded DS1/E1 Bonded DS1 NV873 NV818 NV818

Breadth of Services All Ethernet Core Product Carrier-class platform Broadband Access Services Migration VDSL2 Combo DS1 MS All Ethernet Core Product Highly scalable Ethernet switch fabric All services converted to Ethernet for maximum scalability Carrier-class platform Performance Redundancy Hardened Supports legacy and advanced packet services Services are moving to IP and Ethernet is the most efficient transport medium VDSL2 ADSL2+ Combo ADSL2+ DS3 1 port Voice Gateway CH DS3 MS RPOTS DS1 PWE DS3 4 port GPON OC3 1 port Active E Quad OLT RPR GigE OC3 4 port T-1 HDSL GigE 8 port ESHDSL CH DS3 DS1 DS3 Carrier Ethernet 22

End-to-end network using standard 802.1Q VLANs Ethernet End-to-End End-to-end network using standard 802.1Q VLANs Converged Service Delivery Data NxGE or 10GE LACP Serving CO or RT GE or 10GE Transport COT Core VoIP BNG/ BRAS VoIP Video VLAN Video Video Per Node Gold Set-top Box HSI Silver HSI VLAN Bronze TA5000 TA5000 Voice IGMP Snooping at and within each Total Access 5000 Node Channels only present when viewed Support for multiple middleware vendors

Enabling Advanced Service Delivery Ethernet creates a scalable architecture True multi-play architecture Transport and uplink to 10 Gbps for ultra high-speed service delivery Ubiquitous service delivery over copper and fiber

Total Access 5000 System Overview 25

Total Access 5000 Multi-Service Access and Aggregation Platform Broadband Access Broadband Loop Carrier IP/Ethernet DSLAM Fiber to the Premises Services Migration ATM Aggregation and Interworking Business Service Migration Switch Collapse Carrier Ethernet Ethernet over Copper Ethernet over TDM Ethernet over Fiber Helping carriers deliver new revenue generating services and reduce operational expenses Op-Ex – one platform, multiple services 26

Unprecedented Success Total Access 5000 Integrated into all three Tier 1s ATM to Ethernet Interworking IP DSLAM BBDLC – FTTN / FTTP Ethernet over Copper and TDM Tier II Approved, Deployed or FOA in four of five MSAP Tier III & CLEC Approved, Deployed in over 100 companies Over 5,200 Total Access 5000s deployed Early in product lifecycle Tremendous upside Flagship product

Fundamentally Different Ethernet based MSAP Highly scalable Ethernet switch fabric All services converted to Ethernet on access modules SM natively switches Ethernet No resources modules to add services Carrier-class platform Chassis-based system Performance Redundancy Serviceability Hardened Supports legacy and advanced packet services Designed for an all IP future Unlike traditional MSAPs, the Total Access 5000 is built around a next-generation Ethernet core. The past year has clearly shown that carriers are swiftly moving towards Ethernet, recognizing that the advanced high bandwidth services they want to deploy aren’t scalable across an ATM or TDM infrastructure. As such, the ATM capabilities of existing MSAPs are being overtaxed, causing carriers to move towards Ethernet based platforms. The architecture of the Total Access 5000 is ideally suited to meet these applications. With 10 Gbps per slot of total bandwidth available, even the most aggressive applications are easily supported. The distributed architecture of the Total Access 5000 also provides a scalable way to design and build a multi-service platform, but only pay for services as you need those line cards. Several of our existing accounts also have the Total Access EMS deployed. The fact that the Total Access 5000 is integrated into their already deployed EMS/OSS eases integration and provides a competitive advantage against other products that aren’t already deployed in that customer’s network.

System Architecture Fully redundant dual star bus backplane Physical Native IP/Ethernet architecture Up to 20 Gbps per slot bi-directional Three (3) common control slots with carrier class redundancy Twenty-One (21) configurable access slots Physical 23” rack mount 15.75” height (9RU) Environmentally hardened for Central Office or OSP deployment Capacity to meet future bandwidth demands Common Control Access Modules

Flexible Transport Options Many Transport Options All Ethernet based BBDLC, IP DSLAM, and Ethernet Services are supported Ethernet Ring 2.5Gb RPR 10Gb ERPS Gigabit Ethernet Star Scale with Quad GE Line Module Gigabit Ethernet Linear Chain Fiber starved environments Sub-ring support From RT nodes All Fully Redundant Intra-nodal 2.5G connections Quad GE SM Chain 1 to 10 GigE GR303 TR008 MGCP SIP 2.5/10G Ring COT GigE GigE GigE

ERPS Access Ring Ethernet Ring Protection Switching 10G Link Aggregation Ethernet Ring Protection Switching ITU-T G.8032 standards based Fully redundant 10 Gbps line rate with 10 Gbps throughput on the ring 10 Gbps add/drop from each span Interface via XFP cages on faceplate of SM All Ethernet solution Integrated transport Transport and uplink on SMs Redundant hardware and path Same UI, point-to-point buses East and West Advanced capabilities Topology Aware Easy adds and deletes No single point of failure Misconfiguration Detection Wait to Restore (WTR) East and West 10G ERPS

Leveraging SONET Utilize SONET network for transport COT or RT connectivity Up to 4 bonded DS3 uplink 1 to 10 GigE 2.5/10G Ring GR303 TR008 DS3 COT GigE DS3 EFM Bonded DS3s TDM / SONET Network EFM Bonded DS3s Perfect for CLECing or SONET fed cabinets Scales as an aggregated uplink, not separate STSs Ethernet model with TDM transport EFM 802.3ah

Additional benefits 33

The Access Network Many Pieces of the Access Network Puzzle Next Gen Network Network Migration To Retrofit or not Copper and fiber Multi-play service delivery No single solution for all networks FTTP FTTN Transport – star, chain, ring Network Solutions to Build on Service delivery is key Minimize Friction

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

Providing Smart Connectivity for Delivery of Services Broadband Access Higher Speed Internet IPTV / VoD POTS / Specials VoIP/IP Telephony Leading Softswitch Interop Network Migration Switch Collapse Metro Ethernet Fiber and Copper Managed Network Services Provisioning Fault Management Performance Management Network Transport/Aggregation Optical Ethernet Mobile Backhaul 36

Beyond the Products Active Standards Participation IEEE FSAN MEF DSL Forum ITU Staff Scientists drive standards Ensure Product adherence Push for latest technologies Combine research with realism Understand OSP deployment realities Copper and Fiber based Innovate rather than provide “off the shelf” solutions

Foundation for Success Reliable access for today’s communications networks Comprehensive product portfolio Founded in 1985 2009 revenue $484M 124M in 4Q09 18M profit 1,700 employees worldwide Traded on NASDAQ: ADTN Product Development Locations Huntsville, AL (Corporate HQ) Phoenix, AZ Mountain View, CA Stability in tough times > 270M in cash Debt free Managing expenses Vision Our vision is to enable a fully connected world where the power to communicate is available to everyone, everywhere.

More Than Just Products Benefits ADTRAN brings No Maintenance Fees No Software Upgrade Fees No Tech Support Fees 10 year warranty Total Access EMS manages complete suite of ADTRAN products Large but agile Quick turns on new product development Engineering teams are involved with customer requirements Focused SP team RBOCs & CLECs have dedicated teams

Summary Fully Featured MSAP for Advanced Service Delivery All Ethernet architecture 1G to 10G transport and uplinks Backplane exceeds bandwidth needs Standards-based Carrier-class chassis design Copper and Fiber Solutions Solutions for GPON and Active Eth Breadth of ONTs Addition of Active Ethernet Single platform support Dedicated to Customer’s Success 10 Year Warranty No TAC or Software Fees Will be here for the long haul

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