Optical Access for Business Services Choosing the Right Technology

2 ® Adtran, Inc All rights reserved Market Trends in Business Services Carriers have developed a “think fiber first” mindset –Service quality/reliability –Growth potential/scalability Investment is accelerating in fiber access –Fiber penetration has more than doubled in last 5 years –Solutions must be fiber-ready VSG 2010 Fiber penetration has doubled in last 5 years to U.S. Commercial Buildings with 20+ employees Business Fiber Trend % of Commercial Buildings with 20+ Employees

3 ® Adtran, Inc All rights reserved Drivers for Optical Access  Smart Phones, Video, new apps are stressing backhaul infrastructure  Fiber access offers improved scalability and reliability  Fiber plant constraints addressed with WDM or PON  Pseudowire emerging as legitimate TDM transition option

4 ® Adtran, Inc All rights reserved Key Attributes for Optical Access  Low Cost, Highly Scalable Bandwidth –Ethernet, TDM  Time to Market for Service Ubiquity –Ethernet, TDM, Copper  Service Convergence –Path to all-packet architecture  SLA Management –CoS support e.g. Real-time vs. Best-Effort  Resiliency –99.99+% service availability  Hardened solutions for outside plant deployment –Robust operating range, metallic interface protection

5 ® Adtran, Inc All rights reserved SONET / SDH Ring Point-to-Point Notes: Dedicated bandwidth per service interface Deterministic transport performance ‘Single’ Class of Service - guaranteed Very mature OA&M capabilities Ideally suited for TDM transport DS1/E1  VT1.5/ VC-2 DS3/E3  STS-1/ VC-3/4 Adapted for packet based transport 10/100 Mbps  GFP  VT/VC GE/ 10GE  GFP  STS/VT/VC Modular, ‘carrier grade’ architecture

6 ® Adtran, Inc All rights reserved Ethernet over Fiber Ring Point-to-Point Notes: Possibility for shared bandwidth per service interface or trunk Engineered transport performance Multiple Classes of Service Emerging OA&M capabilities Ideally suited for packet based transport Adapted for TDM based transport DS1/E1  PWE3/CES DS3/E3  PWE3/CES Modular architecture Emerging ‘carrier grade’ architecture

7 ® Adtran, Inc All rights reserved GPON Point-to-Multipoint Notes: Shared bandwidth per service interface Engineered transport performance Multiple Classes of Service Emerging OA&M capabilities Ideally suited for low bandwidth, best effort packet based transport Adapted for TDM based transport DS1/E1  PWE3/ CES DS3/E3  PWE3/ CES Typically fixed access architecture Emerging ‘carrier grade’ architecture

8 ® Adtran, Inc All rights reserved Technology Comparison TechnologySONET/ SDHEthernet over Fiber GPON Availability Ability for network to survive failures HighestHighMedium Reliability Ability to detect and react to local faults HighestHighMedium Packet Efficiency How efficiently Ethernet is carried MediumHighest TDM Efficiency How efficiently DS1/E1, DS3/E3 is carried HighestMedium* Performance Tools to monitor error rates Capabilities in testing/ reporting HighMedium** Cost per bit Overall cost to transport service HighMediumLow * Pseudowire solutions available for DS1/E1 ** Ethernet OAM standards are maturing

9 ® Adtran, Inc All rights reserved Technology Tradeoffs for Today’s Solutions Cost per bit Performance LowerHigher Lower Higher SONET/ SDH Ethernet over Fiber GPON

10 ® Adtran, Inc All rights reserved OPTI 6100 Family of Systems MX chassis 4 Line Card Slots Wall or rack mount 28 DS1, 6 DS3, Ethernet OC-3, OC-12, OC Line Card Slots Wall or Rack mount 84 DS1, 12 DS3, Ethernet OC-3, OC-12, OC Line Card Slots Rack mount 336 DS1, 48 DS3, OC-3, OC-12 Ethernet OC-48 SMX chassis LMX chassis  Network interfaces (OMM) –OC-3 –TM, UPSR, 1310 nm IR and LR, w, w/o XC, ADM, 1550 LR –OC-12 –TM, UPSR, 1310 nm IR and LR, w, w/o XC, ADM, 1550 LR –OC-48 –Linear, UPSR – SFP based  Low-speed (tributary) interfaces –DS1 (28 ports, M13, or VT1.5 mapped) –DS3 (3 port) –OC-3 (1 port, 2 fiber, SFP) –OC-12 (1 port, SFP) –Ethernet (10/100) (3 ports)(8 ports w, w/o tagging) –Transmux (1 port and 3 port) –GigE (copper, SM, MM, SFP) Tilt-down Wall Enclosures for MX and SMX application

11 ® Adtran, Inc All rights reserved Advanced Ethernet Modules Applications EVPL service with VLAN separation of customer traffic ELAN service with VLAN separation of customer traffic Applications EVPL service with VLAN separation of customer traffic ELAN service with VLAN separation of customer traffic OPTI-6100 GigE OPTI-6100 OC-12/48 SONET Ring Router VLAN1 VLAN2 VLAN3 GigE or 10/100 HO/LO VCAT Customers VLAN trunk OPTI-6100 VLAN1 Customers Shared VCG Individual VCAT Groups Individual VLANs in shared VCAT Group vs.

12 ® Adtran, Inc All rights reserved Ethernet over Fiber Components TA port Gigabit Ethernet Access Module –8 GigE SFP cages –Link Aggregation –Link OAM NetVanta 8044M –4 -10/100/1000BaseT WAN or LAN –4 - GigE SFP WAN or LAN –2 - Expansion Slots –1 and 2.5G ERPS Ring support with optical bypass option. –Clock Sync over Packet Ready e.g. G.8261/62 SyncE –Dual fed DC options (+/-24V, -48V DC) Carrier Ethernet –MEF 9, 14, 18 –Eth OAM CFM and PM –TACASC+ and RADIUS Authentication, Authorization 8-port GigE Access Module NetVanta 8044M Modular NTE

13 ® Adtran, Inc All rights reserved Carrier Ethernet Network Leverage Fiber Assets with CWDM Central Office/ Exchange GigE 10/100/1000 8xDS1 & Clock Sync 10/100/1000 8xDS1 & Clock Sync Cell Site Cell Site 8 port EoFiber AM CWDM Modular NTE NV8044M Modular NTE NetVanta 8044M 8 port PW Service Module DS1 2xGE or 2x10GE TA5000 MSAP

14 ® Adtran, Inc All rights reserved Total Access GPON Solution  Total Access 5000 OLT –GPON 2-Port Optical Line Terminal –21 OLTs/42 PONs per Total Access 5000  1,344 SUBs –2.488 Gbps downstream,1.244 Gbps upstream –Completely GEM based  Voice support via SIP  GPON Optical Network Terminals –SFU—Support for triple-play delivery  2 POTS, 1 Ethernet port  2 POTS, 2 Ethernet ports  Voice, HS data, IPTV Total Access 5000 GPON OLT TA35X

15 ® Adtran, Inc All rights reserved Total Access 372 SBU Total Access 372 –SBU ONT –8 POTS, 2 Ethernet, 4 DS1  Loop and Ground start  10/100/1000Bt Ethernet –TLS Support –MEF Compliant (future)  DS1 PWE –GR950 Compliant Enclosure –GPON and Active Versions  SC APC GPON  372E - SFP Active Ethernet

16 ® Adtran, Inc All rights reserved Conclusions  Fiber the preferred access media for business services  Choices available, each with its own set of strengths and weaknesses –SONET/ SDH  The most mature  Ideally suited to TDM services  Comparatively expensive –Ethernet over Fiber  Suitable for packet based services over a wide range of speeds  Moderate cost  Excellent scalability –GPON  Ideally suited to services up to 100Mbps  Can be engineered for business services  Lowest cost  Choice of technology is dependant upon service needs and cost objectives