1. Open Access ECI’s Wholesale FTTx Model Yoav Gazelle General Manager & President of ECI Europe June 2011

2. Agenda About ECI Drivers for Fixed Access Segment 1Net Fiber Access Solution Summary

3. About ECI Fixed Access Drivers1Net Fiber Access SolutionSummary About ECI Partner with customers to deliver 1Net – to address the major pain points in the transition to next-gen Converged Access (Copper, Fiber, Voice, Microwave) Metro Networking (Optics, CESR, MSPP) Element, Network, and Service Management Global Services Headquartered in Israel with R&D centers in Israel, U.S., India, and China and over 35 regional sales and service offices Established access player, with tier-1 customers Pioneer in the PON market, with 9% GPON market share in EMEA Chunghwa

4. About ECI Fixed Access Drivers 1Net Fiber Access SolutionSummary An Era of Transition From copper to fiber solutions, from FTTC to FTTH From basic broadband to advanced services and applications demanding increasing bandwidth, security and QoS From one-way (download, broadcast) traffic to highly interactive, symmetric (unicast) traffic From dedicated infrastructure to converged infrastructure More isn’t just more, more is different

5. Fixed Access Drivers 1Net Fiber Access SolutionSummary Fiber Access Challenges Technical ChallengesBusiness Challenges Diverse technologies for diverse requirements (GPON, P2P) Aggregation of access growing traffic QoS, diagnostics, fault isolation Synchronization Security Management Align investment with traffic and service ramp-up Minimize overall risks for existing & new services Control OPEX of a diverse infrastructure Sharing cost of infrastructure – unbundling and open access New business models – OTT About ECI

6. Fixed Access Drivers Co-LocatedCurbCustomer Premise FTTC FTTB FTTH The Way to NG-Access – Which Path to Go? 1Net Fiber Access SolutionSummary About ECI A Custom-Tailored Transition, under Unified Management System Total Cost of Ownership (TCO) Network P2PxDSL P2P (xDSL/FE within building) GPON (xDSL/FE within building) GPON Aggregation P2P

7. Fixed Access Drivers Subscribers demand more bandwidth… 1Net Fiber Access SolutionSummary About ECI Broadband at Home Real Teleworking 3D TV Enhanced Video Communication Online Video Editing Online Gaming Uploads (e.g. YouTube) Broadband at Business “Knowledge” Economy Intelligent Power Grid Cloud Computing Next-Gen Online Entertainment Efficient Healthcare Virtual Companies On Demand Enterprises Telepresence High bandwidth killer-apps: BroadcastUnicast & Personalization

8. Fixed Access Drivers 1Net Fiber Access SolutionSummary About ECI PON deployments – consistent growth Source: 2010-Infonetics-Q2010-PON-FTTH-Eqpmt-Subs-Analysis CAGR 45.7% (2010-2014)

9. 1Net Fiber Access Solution Summary Fixed Access Drivers About ECI Introducing the I-OLT © Copyright ECI Telecom 20099 Any FTTx – to address changing access needs Optimized platform for fiber deployments Part of the Hi-FOCuS family supporting new & existing copper islands GPON Point-to-point Active Ethernet Traffic Aggregation One single platform Introducing new Integrated OLT (I-OLT) for residential customers for business customers (high bandwidth, dedicated links) for collecting traffic from copper islands

10. Field-proven solution ECI Confidential10 1Net Fiber Access Solution Summary Fixed Access Drivers About ECI “ECI’s offerings are in line with Openreach’s vision of a straightforward, more integrated and competitive network, simplifying management and supporting the optimization of our next-generation access network in an environmentally-friendly and responsible way.”

11. SP InfrastructureNetwork OperatorEnd Customers 1Net Fiber Access Solution Summary Fixed Access Drivers About ECI The I-OLT ECI Confidential11 SP #ASP #B SP #C SP #D SPLT VDSL Modem ONT IP DSLAM Street Cabinet OLT/ Aggregator Exchange / CO VDSL2 GPON N x 1 GBE SP #ASP #B SP #C N x 1 or 10 GbE Wholesale Carrier of Carriers model for Network Operators Wholesale physical/logical FTTC & FTTH ports (active equipment) Provisioned with service level guarantees GPON SPLT

12. 1Net Fiber Access Solution Summary Fixed Access Drivers About ECI Keep It Simple – All Access Support The right service mix at each location  universal slot architecture One management system  copper and fiber 12 I-OLT FTTB FTTHFTTP Residential Residential Buildings Residential Triple Play Wireless Backhaul ResidentialBusiness Services Wireless Backhaul FTTC ODN GPON GbE Central Office Multi Service IP Management Station WWW GbE GPON

13. 1Net Fiber Access Solution Summary Fixed Access Drivers About ECI 1Net Fiber Access Solution– Addressing Customers’ Pain Points Complexity in architectural & technological choices Residential & business applications – GPON & P2P Ethernet from a single platform, versatility for any service mix FTTC architecture support Additional functionalities, flexibility & TCO Integrated aggregation to eliminate additional external switches Comprehensive range of ONTs Green technology, with reduced number of network elements Safeguarding today’s investment for tomorrow Breadth of management features, with full backward compatibility with copper infrastructure Future-proof platform designed for NG-PON & higher speed WAN Compliance with regulation and changes Wholesale (Open Access) model

14. Summary 1Net Fiber Access Solution Fixed Access Drivers About ECI 1Net Fiber Access Solution Optimal Transition Solution for NG Access Field-proven versatility to evolve the access network Integrated OLT (I-OLT) – any customer profile, any fiber technology, any architecture Open Access-ready Complementing Hi-FOCuS copper solutions & extending the life of existing infrastructure

15. Thank You