Guillaume Crenn, Product Line Manager Optimization of WDM system architecture using 100G technology Guillaume Crenn, Product Line Manager

Presentation Agenda 100G Market & Technology overview 100G benefit in WDM networks Potential  issue and Workaround Next step to increase system capacity Page 2

100G Market status

Explosive Growth in Ethernet/IP Services/Traffic Ethernet Services Revenue Roadmap Charts Typically Roadmaps represent a 18 month timeframe, with more white space separating each consecutive quarter Use all color and typographic styles presented in the sample above Years, 18pt Trebuchet, Bold Months, 10pt Trebuchet, Bold Notes in Yellow patches, 10pt Trebuchet Bold and Regular Source: Ovum CAGR: 2009-2016: 13.2% Page 4

Explosive Growth in Ethernet/IP Services/Traffic IP Traffic Growing at a much faster rate than Ethernet Services Revenue Roadmap Charts Typically Roadmaps represent a 18 month timeframe, with more white space separating each consecutive quarter Use all color and typographic styles presented in the sample above Years, 18pt Trebuchet, Bold Months, 10pt Trebuchet, Bold Notes in Yellow patches, 10pt Trebuchet Bold and Regular Source: Cisco CAGR: 2010-2015: 32% Page 5

Explosive Growth in Ethernet/IP Services/Traffic Services at rates greater than 1G growing at an alarming rate Market is driving demand for higher rate services at a lower cost Roadmap Charts Typically Roadmaps represent a 18 month timeframe, with more white space separating each consecutive quarter Use all color and typographic styles presented in the sample above Years, 18pt Trebuchet, Bold Months, 10pt Trebuchet, Bold Notes in Yellow patches, 10pt Trebuchet Bold and Regular Source: Ovum CAGR: 2008-2016: 35.8% - 10G services Grew > 60% CAGR Page 6

How are Service Providers Reacting? (1/2) Roadmap Charts Typically Roadmaps represent a 18 month timeframe, with more white space separating each consecutive quarter Use all color and typographic styles presented in the sample above Years, 18pt Trebuchet, Bold Months, 10pt Trebuchet, Bold Notes in Yellow patches, 10pt Trebuchet Bold and Regular Ethernet Services and IP Traffic Growth Result in Huge Growth in Global Bandwidth Demand Page 7

How are Service Providers Reacting? (2/2) Source: Ovum Roadmap Charts Typically Roadmaps represent a 18 month timeframe, with more white space separating each consecutive quarter Use all color and typographic styles presented in the sample above Years, 18pt Trebuchet, Bold Months, 10pt Trebuchet, Bold Notes in Yellow patches, 10pt Trebuchet Bold and Regular Service Providers are putting in bigger Pipes Today to better utilize expensive fiber infrastructure Page 8

100G technology overview

100G transmission technology 10G transmission mainly uses NRZ modulation and Direct detection OOK-NRZ (On Off Keying – None Return to Zero) modulation format 40G transmission: different type of modulation used by different vendors No real 40G standardization Direct or coherent detection technology available 100G: Standardization of the line interface This standardization has caused the technology to mature faster than 40G and therefore will result in a higher adoption rate Same technology used by all players on the terrestrial 100G market today DP or PM-QPSK modulation Format and Coherent receiver Optical design similar for all competitors Performance differentiation at DSP level Page 10

100G transmission technology Routers are rapidly moving toward 100G interconnect to accommodate the increase in IP traffic Native 100G client interfaces standardized and available Numerous component vendors have introduced 100G technology to the market in the last 3-6 months causing the economics to improve quickly Physical Layer 100 Gigabit Ethernet 7m over Copper Cable 100GBase-CR10 100m over OM3 MMF 100GBASE-SR10 125m over OM4 MMF 10km over SMF 100GBASE-LR4 100GBASE-LR10 40km over SMF 100GBASE-ER4 Page 11

100G Competition Status Field trial over Long haul routes achieved on operators live networks since 2 to 3 years Few 100G channels added on live 10G and 40G networks First network deployment announced beginning of last year (2011 H1) Few Metro Networks already running at 100G 1rst commercial route for 100G traffic: Paris-Frankfurt Massive 100G network deployment since 2011 H2 and 2012 H1 Transponders (native 100G client ports) and Muxponder (aggregation of 10G client ports in a 100G line available in all 100G players portfolio Page 12

100G benefits in WDM networks

100G Network design rules Utilizes the same hardware as 10G and 40G (filters, amps, etc.) Compatible with all MUX/DMUXs, ROADMs, OADMs, already installed in your network Works with both 50GHz and 100GHz channel plans Utilizes standard ITU Grid Required OSNR around 14 dB Compatible with the large majority of 10G and 40G installed systems Transmission over 3000 to 4000 kilometers ±50 000 ps/nm of Chromatic dispersion tolerance Much more tolerant than the 10G or 40G optical interfaces 10G tolerance around 2000 ps/nm max PMD tolerance > 30ps (100ps of DGD) Much more tolerant than the 10G or 40G interfaces 10G tolerance around 10 to 12 ps Page 14

100G deployment: green field Green field deployment: new WDM network based on 100G only High capacity backbone network Capacity per fiber pair increases by a factor 10 compared to 10G design Granularity to lower bit rate client ports using Muxponder Client ports can be 100G, using transponders Client can also be 40G, 10G or lower by using Muxponder Infrastructure Cost reduction on network infrastructure due to dispersion compensation removal Page 15

Real Life Customer Scenario ODC ODC ODC ODC ODC 3200 Km Network – 38 spans ranging from 66km to 150km 100G does not require dispersion compensation like 10G. Eliminating Dispersion Compensation Saves 37% (On commons: chassis, amps, dispersion, management cards) This can be used to pay for sellable customer services Deploying with 100G instead of 10G paid for the first 100G Channel! Page 16

100G deployment: Upgrade and optimization of existing systems 100G TRP or MXP 100G TRP or MXP 100Gb/s Additional wavelength 100Gb/s Additional wavelength 10G/20Gb/s Additional wavelength Ekinops PM C1002/C2002 Upgrading Existing Systems with Additional 100G capacity 100G FEC allows good performance over existing line systems Same OSNR and power per channel range for existing 10G/40G channels and new additional 100G channels Page 17

100G Option for Expanding Capacity 100G performance: = to or better than most 10G systems 100G Alien waves can use existing 10G design rules with potential bypassing of regens 32 Channel System, 30 Channels Lit POP-1 POP-7 12.7 km 3.2 dB 109.4 km 23.1 dB 105.1 km 21.4 dB 102km 21.1 dB 48km 10.1 dB 58.6 km 12.3 dB 105.5km 21.5 dB 100.2km 20.4 dB 109.6km 23.9 dB 120.6km 20.6 dB 107.1km 21.5 dB 107.5km 21.3 dB 105.3km 20.6dB 104.5km 20.3dB 100.2km 19.5dB 100.4km 19.8dB 105.4km 20.5dB 94.5km 18.9dB 64.6km 12.8dB 102.8km 20.3dB 98.4km 19.3dB 90.2km 17.7dB 85.3km 17.1dB Hut-1 Hut-2 Hut-3 Hut-5 Hut-6 Hut-7 Hut-8 Hut-9 Hut-10 Hut-11 Hut-12 Hut-13 Hut-15 Hut-16 Hut-17 Hut-18 Hut-14 (10G ReGen) POP-2 POP-3 POP-4 ReGen, Add/Drop POP-5 POP-6 100G Express Field Trial 9-Spans, 751 km Extending to Full Route 14-Spans, 1,387 km Page 18

100G Option for Expanding Capacity (Continued) 12.7 km 3.2 dB 109.4 km 23.1 dB 105.1 km 21.4 dB 102km 21.1 dB 48km 10.1 dB 105.5km 21.5 dB 100.2km 20.4 dB 109.6km 23.9 dB POP-1 POP-4 ReGen, Add/Drop POP-2 POP-3 Hut-1 Hut-2 Hut-3 Hut-5 Hut-6 Hut-7 58.6 km 12.3 dB Hut-14 (10G ReGen) Hut-8 Hut-9 POP-5 POP-6 Hut-11 Hut-10 Hut-12 Hut-13 Hut-18 Hut-17 Hut-16 Hut-15 120.6km 20.6 dB 107.1km 107.5km 21.3 dB 105.3km 20.6dB 104.5km 20.3dB 105.4km 20.5dB 100.4km 19.8dB 19.5dB 94.5km 18.9dB 64.6km 12.8dB 102.8km 98.4km 19.3dB 90.2km 17.7dB 85.3km 17.1dB POP-7 100G Express 32 Channel System, 30 Channels Lit 9-Spans, 751 km 14-Spans, 1,387 km Eliminate the need for equipment upgrades to existing 10G systems Avoid: Cost of new filters, amps, DCM, etc. Cost of field tech’s deployment, planning, etc. Downtime, customer satisfaction / SLA issues And with a smaller form factor… Eliminate space & power issues 1 RU: Rack chassis even in very tight spaces 230W (4.8A): Run power cables to existing fuse panels No new power cables to BDP Page 19

9 free ports available for additional deployment 100G deployment: Upgrade and optimization of existing systems No need to deploy a new WDM system if you are missing capacity Even If 10G is your primary service rate, you can get 10x 10G into the same spectrum as 1X 10G previously 10 X 10G channels 1 X 100G channel 10G 100G Muxponder 10G 9 free ports available for additional deployment 10G 10G 10G 10G 10G 10G 10G 10 X 10G channels 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G 10G Page 20 10G 10G 10G 10G

100G Issues and workaround

Ekinops Proprietary information 100G potential issue Issue with Most 100G solutions Only available in large form factors not suitable for applications with limited space Footprint can also be an issue in co-location environments But: Some low footprint solution are available for limited space Cost: 100G Muxponder designed for Long haul today remain more expensive the 10 X 10G TRP But: a)The cost savings on Infrastructure deployment can reduce the Price Gap for green field deployment b) 100G standardization with all component suppliers working on the same technology, will lead to efficient price reduction on 100G market Page 22 Ekinops Proprietary information

Next steps for WDM systems

Optical Evolution Flex Coherent Flex Coherent (100G) Modulation format evolution for distance versus capacity optimization DP BPSK, DP QPSK, DP 8QAM, DP 16QAM Trade-off of Spectral efficiency versus OSNR Modulation Distance (km) Total capacity Application DP BPSK 6000 4 Tb/s Very Long Haul & Submarine DP QPSK 3000 8 Tb/s Long Haul DP 8QAM 1500 12 Tb/s High capacity route DP 16QAM 750 16 Tb/s Page 24

100G Optical Evolution Wave Bounding /SuperChannel 400Gb/s -1Tb/s 100G use 50Gb/s DSP and 25GHz Optical receiver (available today) 1000G (1T) will require 500Gb/s DSP and 250GHz optical receiver Such type of DSP will not be available before the next decade Wavebonding: the information is distributed over several subcarriers spaced as closely to form a SuperChannel (example 10 x 100Gb/s @50GHz :500GHz) 10 x 100G = 1Tb/s @ 500GHz Page 25

100G Optical Evolution Flex Grid Spectrum efficiency optimization No need to keep 50GHz between sub carriers 37,5GHz is enough for DP-DPSK 10 x 100G = 1Tb/s @ 500GHz 10 x 100G = 1Tb/s @ 375GHz Page 26

100G Optical Evolution Flex Grid Each Sub-Carrier transporting a lower Bit Rate, compatible with current 100G components Flex-Spectrum DWDM filtering is adopted enabling Multi-carrier add and drop. Current ROADMs are already compatible with flexgrid Capacity to Add & drop full or sub-part of each super channel 10 x 100G = 1Tb/s @ 375GHz SuperChannel #1 SuperChannel #2 SuperChannel #3 Page 27

100G Optical Evolution Optical amplifier schemes Optimized Hybrid Amplifier (Erbium/Raman) For 100G /400G/1T transport. Optimization of the Bandwidth, Optimization of the noise flatness Optimization of the noise figure at nominal point Page 28

Thank You