1. 1 State of the Industry – Optical Networking Mark E. Allen Infinera Corporation

2. Page 2 Research and Education Requirements Scalable High Bandwidth Flexible Standards Based Low Acquisition Cost Low Ongoing Expenses (Op Ex)

3. Page 3 A short history … Legacy optical transport WashingtonDoverPhiladelphiaTrentonNewarkNew YorkHartfordProvidenceBoston OEO Digital repeaters enabled PM’s & add/drop anywhere

4. Page 4 A short history … Legacy optical transport WashingtonDoverPhiladelphiaTrentonNewarkNew YorkHartfordProvidenceBoston …… …… …… …… … OEO Capacity growth created unsustainable economics

5. Page 5 A short history … Legacy optical transport WashingtonDoverPhiladelphiaTrentonNewarkNew YorkHartfordProvidenceBoston …… …… …… …… OEO WDM reduces line costs, but needs OEO for add/drop OEO …

6. Page 6 A short history … Legacy optical transport …… …… …… …… … OEO WashingtonDoverPhiladelphiaTrentonNewarkNew YorkHartfordProvidenceBoston Attenuators Gain Flattening Filters O-ADM Filters Noise Rejection Filters Optical Monitors PMD Compensation Raman Pumps Isolators All-optical eliminates OEO, but increases complexity Chromatic Dispersion Dispersion Slope PMD 2nd order PMD Self-Phase Modulation SBS X-Phase Modulation Four-Wave Mixing Multi-Path Interference Gain Ripple Gain Tilt ASE Accumulation Modulation Instability Wavelength banding Channel Flatness OSNR Measurement Return power Gain transient control Channel equalization Raman self-pumping Many optical impairments… …requires complex compensation

7. Page 7 The Catch… Network now managing waves not bits – The core optical network has evolved from Digital to Analog Forces compromise between… – lower network cost (minimize OEOs)… – or number of markets served (OEO access) Complexity remains for network managers: – Complexity of planning & deployment – Complex engineering, compensation and adjustment – No sub- access to digital data – Limited add/drop, multiplexing or grooming – No digital performance monitoring or diagnostics

8. Page 8 Infinera’s Photonic Integrated Circuit (PIC) Innovation 100 Gb/s Transmit 100 Gb/s Receive 100Gb/s Transmit 100Gb/s Receive

9. Page 9 Infinera Differentiators Photonic Integrated Circuit-Eased Benefits – Higher Reliability – Faster Scalability – Faster Install and Turn-up – Savings in Spares, Space, and Power Digital Optical Networks-Enabled Benefits – Digital, Solid-State Add/Drop – Faster Time-to-Service – Forecast Tolerance – Consolidated Architectures

10. Page 10 Digital Networking Advantages: Infinera: Simple, Fast, Digital Add/Drop Add/drop 10G, 2.5G, or GigE using hot-pluggable TAM cards All-Digital – Implemented in solid state, e.g. silicon – No MEMS, tunable filters, or other optical devices involved Completely independent from optical line – Hitless – No need to consider in span designs – One TAM can drop traffic bound for different destinations 0 Gb/s20 Gb/s60 Gb/s400 Gb/s 0%100% Percent Add/Drop

11. Page 11 Digital Networking Advantages: Forecast Tolerance The forecasting challenge: – Predict the right amount of bandwidth… – The right service interfaces… – To the right locations… – At the right time Infinera supports – 100Gb/s line side blocks of bandwidth – Interchangeable Tributary Adapter Modules – Add/Drop any service to any location on any port Ultimate flexibility and forecast margin

12. Page 12 Summary: Photonic Integration Enables Digital Optical Networking Fundamentally lower cost and steeper cost curve Increased revenue potential with Add/Drop Anywhere Simpler Network Architectures Simpler Operations and Engineering Digital Optical Networking