1. Network Architectures: What’s On the Drawing Board? Broadband Venture Seminar Doug Jones Chief Architect YAS Broadband Ventures, LLC September 7, 2001 Doug Jones Chief Architect YAS Broadband Ventures, LLC September 7, 2001 Doug Jones Chief Architect YAS Broadband Ventures, LLC September 7, 2001 Doug Jones Chief Architect YAS Broadband Ventures, LLC September 7, 2001 Rouzbeh Yassini Founder & CEO YAS Broadband Ventures, LLC September 7, 2001 Presented for

2. Broadband Ahead Broadband Venture Seminar Sep 7, 2001 Page 2

3. Telecommunication Market YearPlatformNetwork Model 60Main frame100:1 Batch-driven, Processing (high-latency, high cost) 70Minicomputer10:1 80PC era1:1 90Enterprise1:10 00Broadband1:100 Real-time, Adoptive, Interactive (no latency, low cost) 100 MbPS / 1 GbPS switch architecture to each home Broadband Venture Seminar Sep 7, 2001 Page 3

4. Broadband Venture Seminar Broadband World s Home User u E-Mail, Chat u Web Surfing u Music Delivery u Game Playing u Telephony s Educational Support u Learn @ Home u School Administration u Distance Learning s Medical u Patient Monitoring u Medical Images u Remote Diagnostics u Telemedicine s Work @ Home u Video Conferencing u Intranet Access u Network Management u Shared Whiteboarding u Research s Global Commerce u Home-Based Shopping u Real Estate, Insurance u DMV, Local Town u B2B, B2C s Publishing Business u Book On-Demand u Printing Shop u Media Center Sep 7, 2001 Page 4

5. Classifying Next-Gen Network Developments Local AccessCore Network Broadband Venture Seminar Sep 7, 2001 Page 5

6. Drivers for Next Generation Networks Local Access Networks More Raw and Symmetric Bandwidth –Up to 10 times the interactive bandwidth per user. Fiber-deeper architectures, reducing node size down to 50 homes or less –Improved Network Availability- (smaller failure groups) Fewer active elements in the field –Improved quality and lower maintenance costs Broadband Venture Seminar Sep 7, 2001 Page 6

7. Drivers for Next Generation Networks Local Access Networks Network cost savings –Combining equipment in headend and in the home to deliver multiple services Continued decline in costs of deep fiber solutions –A recent study (Finisar) showed the cost of optical transmitters dropped 80% in the 5 years Broadband Venture Seminar Sep 7, 2001 Page 7

8. Powerful multimedia networks that are capable of handling high-volume interactive services Alleviate potential network bottlenecks and improve network performance while delivering new advanced services Unconstrained managed bandwidth everywhere will accelerate the creation and integration of next-generation IP services The End Result Broadband Venture Seminar Sep 7, 2001 Page 8

9. Next Generation Local Access Networks Traditional Cable “tree and branch” network Hybrid Fiber/Coax Cable network Switched GigE over Cable Fiber - to - the – Curb - (FTTC) Passive Optical Network Broadband Venture Seminar Sep 7, 2001 Page 9

10. Source: CIBC World Markets Corp. Estimates 1998199920002001200220032004 Year 0 20 40 60 80 HHs (millions) 0 10 20 30 40 50 % penetration Total HHs % of Internet HHs % of all HHs Households with High Speed Internet Access Broadband Venture Seminar Sep 7, 2001 Page 10

11. Traditional Cable Architecture Tree and Branch Headend Trunks Distribution Tap LEs Broadband Venture Seminar Sep 7, 2001 Page 11

12. Fiber node area Fiber optic cable Coax HFC Architecture Broadband Venture Seminar Sep 7, 2001 Page 12

13. çCorporate America used Broadband for factory automation (GM, Ford,etc) çU.S. government used Broadband for facility-wide network (Rock Island Arsenal in IL) çUniversities used Broadband for campus-wide networks (Emory University, University of Michigan) çCable operators empowered the consumers (all over the U.S., 400 sites were tried) çMillions are using Broadband technology worldwide çEstimated 100 Million will use Broadband technology worldwide 1984 - 2010 1984 1988 1991 1995 2001 2010 Broadband Deployment Broadband Venture Seminar Sep 7, 2001 Page 13

14. HFC and FTTB Coexist Today Key Questions:  Merge these two over Cable HFC networks HE NODE OLT HFC GbE FTTx Broadband Venture Seminar Sep 7, 2001 Page 14

15. Exciting New Methods for Data over Cable Use spectrum above 860 MHz for 100 Mbps / 1 Gbps Coexists with existing services below 860 MHz Brings huge amount of bandwidth to bear for home and business use Switched Ethernet, ubiquitous and low cost Broadband Venture Seminar Sep 7, 2001 Page 15

16. Deep Fiber Principles Fiber has unlimited bandwidth capacity Some service providers are focused on migrating fiber deeper into the network and providing bundled services Smaller fiber nodes are the enabler for high- speed, symmetric information delivery Broadband Venture Seminar Sep 7, 2001 Page 16

17. + Coax and/or Cat5 wiring to homes Optical node Headend Fiber-to-the-Curb (FTTC) Dedicated capacity to the home of business Broadband Venture Seminar Sep 7, 2001 Page 17

18. HFC NODE switch FTTC PON & HFC FTTB PON OLT switch Headend NODE Dedicated GbE wavelengths enable high-bandwidth FTTB Broadband Venture Seminar Sep 7, 2001 Page 18 Network Migration: HFC to FTTx

19. Deep Fiber Principles high-volume, cost-effective deployment of fiber optic media... to within a few hundred meters of each end user Fiber-to-the-home functionality Available now Broadband Venture Seminar Sep 7, 2001 Page 19

20. Optical Line Termination (OLT) Optical Network Termination (ONT) Optical splitter Passive Optical Network (PON) Broadband Venture Seminar Sep 7, 2001 Page 20

21. Summary The broadband access network must serve both residential and business customers HFC is becoming more flexible and reliable –Scaleable bandwidth via DWDM –More passive via DWDM, GbE return and RF innovations FTTx / GbE will co-exist with HFC to serve higher bandwidth needs –WDM technology provides scalability, reliability and compatibility with HFC –Networks leveraging both switched and passive deep fiber architectures Broadband Venture Seminar Sep 7, 2001 Page 21

22. Summary Local AccessCore Network Broadband Venture Seminar Sep 7, 2001 Page 22