Tunable Laser Multi-Source Agreement based on OIF Implementation Agreement

Agenda Optical Network Evolution to Tunability Applications of Tunable Lasers in the Network Benefits of Tunability in the Optical Networks Service providers deployment business case OIF MSA Founders iolon, Intel, Santur and Bookham Gaining momentum … MSA scope and objectives

Revolutions in Fiber Optics – 1980s Single, point-point links Single-mode Fiber InP Lasers NetworksEnabling Technologies Enabled lower transmission cost

Revolutions in Fiber Optics – 1990s NetworksEnabling Technologies WDM point-to-point links EDFA DFB Lasers Optical Pump Lasers Increased capacity to reduce total network cost

Revolutions in Fiber Optics – Today NetworksEnabling Technologies Re-configurable Networks Tunable Lasers Tunable Filters Photonic Switching Reduce both Capital and Operational expenses and increase network flexibility

Why Tunable Devices? Current DWDM networks are static since unique laser required for each wavelength Provisioning is a local, manual process Expensive, takes weeks Tunable devices enable dynamic DWDM networks Flexible, remote service provisioning under software control Cost savings to carriers by reducing inventory, provisioning and the wavelength contention costs New revenue generating services to carriers for rapidly provisioned services Tunable lasers have become the Holy Grail for next generation DWDM networks

Tunable Lasers Have Arrived! Tunable lasers, under development for over a decade, have only recently met the basic optical performance requirements New developments have allowed tunable lasers to approach performance levels of fixed lasers Maturation of new technologies Integration of multiple technologies Tunable lasers use a variety of structures and tuning methods Thermally tuned DFBs – single element - narrow thermal tuning Integrated DFB Array –integrated combiner- temperature tuned Switched DFB Array- MEMS switched - temperature tuned DBRs – Distributed Bragg Reflector chips – current tuned SGDBRs – Sampled Grating DBRs – current tuned VCSELs – Vertical Cavity Surface Emitting Lasers – MEMS tuning ECLs – External Cavity Lasers – mechanically tuned

Tunable Interface Networking Requirements Better or same optical performance as the fixed wavelength DFBs Output Power, Linewidth, RIN, SMSR Reliability Meet requirements to support network reliability 100% Locking Hitless Tuning Density Small form/factor Low power consumption Revenue Generating services Remote Provisioning and Bandwidth on demand Efficient network utilization Price Same price as fixed wavelength DFBs

Network Applications Sparing /Inventory Mgmt Back-up laser that can replace any faulty laser in system Universal Line Card / Transponder Save inventory and production costs by designing universal line card These applications reduce cost of operation of networks for Service Providers while enabling new revenue opportunities Dynamic Wavelength Management Fast Provisioning Wavelength Conversion Flexible OADM/OS Protection/Restoration Bandwidth on Demand

Benefits: Rapid service turn-up with ability to rapidly handle churn –Maximum flexibility with limited pre-deployment of capital Highest network availability with additional photonic layer restoration capability Simplified network operations and significant OPEX savings Lowest deployed capital cost Enables photonic flexibility, thereby reducing EXC core size requirements Example of Agile Transparent Networks 4. Photonic Layer Control Plane Auto-Discovery of network topology and photonic properties Automated wavelength routing, engineering & activation Wavelength assignment on demand 1.Transparent Photonic Switch All optical by-pass eliminates OEO costs on express traffic 3. Tunable Edge Full Spectrum Tunable Transponders & Filters Enables instantaneous any-to-any connectivity 2. Dynamic Line System Per- control to enable dynamic wavelength assignment Source:

Capex and Opex Savings If demand set is known exactly, static transparency can produce lower network cost. In reality, to handle traffic variations, network price is more than doubled with static technology. > 40% Savings> 35% Savings Source: Operational savings realized in part by hands-off capabilities. There is also a notable reduction in personnel required to commission network.

Carrier Sparing Carrier Sparing Cost OEM Inventory OEM Inventory Conventional DWDM Systems with Fixed Wavelength Lasers DWDM Systems with Widely Tunable Lasers Tunability Pre- Provisioning Pre- Provisioning Carrier Sparing Carrier Sparing OEM Inventory OEM Inventory Pre- Provisioning Pre- Provisioning Lowering the cost of network operation $25.6 M $0.55 M Network Applications Sparing and Inventory Savings Network Life Cycle Costs

Revenue DWDM Systems with Widely Tunable Lasers Tunability Conventional DWDM Systems with Fixed Wavelength Lasers Bandwidth on Demand Wavelength Leasing Short Bandwidth Events Flexible Optical VPN Increased revenue through the timely delivery of advanced service offering $$$ $25 M Fast provisioning Network Applications Tunability enables revenue growth

OIF Tunable Laser MSA OIF Tunable Laser Implementation Agreement (IA) was endorsed by over 20 companies in Nov 2002 MSA Based on OIF Tunable Laser IA Championed by iolon, Intel, Santur and Bookham Benefits Assured supply of new technology from multiple vendors Ensures systems architectures requiring tunablity are supported at the component level Available today – Interoperability Demo in the OIF Booth at OFC!

30 MAX 13 MAX 76.2 MAX 66 MIN Module Side View Module Bottom View ( For 50.8mm width)) 1 M2.5 x 0.45 – 6H, 4 DP BOTH SIDES 4 PLACES SEE DETAIL A 50.8 MAX 6.5 +/- 3 12mm DIA MAX /- 6 (for 50.8mm width) Primary heat sink surface is top of module MSA Highlights Module Form Factor OIF-IA allows for 3 steps for size reduction Standard module size(s)

MSA Highlights Optical Specifications Room for key vendors to play: DBRs, DFBs, VCSELs, ECLs Application Vectors Optical Fidelity Ultra Long Haul, Long Haul, Metro Tuning Speed 10s, 1s, 10ms Provide optical specifications for different application requirements

Conclusion- The Practical MSA Significant industry traction and agreement MSA based on the OIF-IA for tunable lasers, adds features that are required for practical industry implementation Roadmap to tunable integrated assembly and tunable transponders

Thank you Questions?