Press Briefing Barcelona

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Press BriefingBarcelona February 11, 2008
Kevin Vachon COO, MEF Michael Howard,
Infonetics Research Olle Gustafsson, Ericsson /
MEF Mobile Backhaul Group Carsten Rossenhoevel,
EANTC / MEF Mobile Backhaul Group Peter Croy,
Harris-Stratex / MEF Mobile Backhaul Group
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Press Briefing Agenda

• MEF Program Update
• Carrier Ethernet for Mobile Backhaul
• Market Overview
• Carrier Ethernet Value Proposition
• Circuit Emulation and Certification
• MEF Platform for Backhaul Success
• QA

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MEF Program Update

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MEF Mission Key Areas of Work

• Accelerate the worldwide adoption of Carrier
  Ethernet networks and services

Specifications and Liaison
Marketing Carrier Ethernet
Certification Program
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Carrier Ethernet Defined
Carrier Ethernet is
A ubiquitous, standardized, carrier-class Network
and Service
Defined by five attributes that distinguish it
from familiar LAN based Ethernet  
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MEF Membership January 2008
Service Provider and Cable MSO Members

• AboveNet
• Alpheus Communications
• ATT
• Bell Canada
• Bright House Networks
• British Telecom
• Cable Wireless
• Charter Communications
• China Telecom
• Cincinnati Bell
• Colt
• Comcast
• Cox Business
• Demand Broadband
• Embarq
• FiberTower
• KDDI RD Laboratories
• Level 3 Communications
• ntl Telewest

• PCCW
• PT Prime
• Qwest Communications
• RCN Business Solutions
• Reliance Communications
• Shanghai Information Network
• Singapore Telecom
• Sprint
• Suddenlink
• Swisscom
• Symphony Communication
• Telecom Italia
• Teliasonera AB
• Telus
• Time Warner Cable
• Time Warner Telecom
• T-Systems
• Uecomm
• Verizon Business

Now 142 Members
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Certification Programs
MEF Certified Services and Devices
MEF Certified Equipment Manufacturers and Service
Providers
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MEF Marketing Focus
Marketing Carrier Ethernet
Phase 1 Drive Service Provider Adoption of CE
Phase 2 Enable SP Services Growth,
Certification, SP Collaboration
Phase 3 Increase Enterprise Demand
Eastern Europe, South America, selected APAC
countries, China, India
Western Europe, North America, Japan, Korea,
Australia, Singapore
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MEF Marketing at Work in 08

• Global
• MEF TV/Case Studies
• Analyst Programs Portals
• Toolkits for Service Providers
• Global Services Directory, April launch
• Regional
• Regional groups NA, APAC EMEA
• Events 16 in Q1 alone
• Speakers Bureau
• Press Events
• Accelerating Certification Uptake Membership
  Growth

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Carrier Ethernet Scope
Bringing extended scalability for business,
residential mobile users
HD TV TVoD, VoD
Gaming, Business Backup, ERP
Voice gateway
Voice/Video Telephony
Video Source
Video Source
Carrier Ethernet
Network
COPPER, FIBER, COAX and WIRELESS
Business Broadband
Broadband mobile data/video
E-Line and E-LAN service
Residential Triple-Play
Small/Medium Business
FTTx and DSLAM , Cable Modem
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Carrier Ethernet for Mobile Backhaul
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Ethernet Mature for Carrier Class Deployment

• Service providers
• 2007 study of 27 service providers around the
  globe with 15B avg. revenue
• Much progress compared to 2 years ago
• 93 are using Ethernet collector rings
• Nearly ¾ have Ethernet overlay networks
• Over half see savings of 11-40 using Ethernet
• Still want more management, OAMP

Source Infonetics Research, Service Provider
Plans for Metro Optical and Ethernet NA, EMEA,
APAC 2007
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Robust Ethernet Service Revenue Worldwide

• Healthy growth displaces frame relay, ATM,
  private line services
• Transparent LAN grows faster

Source Infonetics Research, Ethernet and
IP/MPLS VPN Services, 2007
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More Services Revenue over Ethernet

• 2007 study
• Services are being adopted in 2007 as predicted
  in 2006
• Expanding adoption continues in 2008
• Eth private line
• Voice, video
• Storage
• Security
• Ethernet is part of next gen metro

Source Infonetics Research, Service Provider
Plans for Metro Optical and Ethernet NA, EMEA,
APAC 2007
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Infonetics Observations

• Billions of Ethernet services revenue worldwide,
  and growing
• Many services offered, more planned over Ethernet
• Voice, video, data, storage, security, EPL
• Service providers moving to all packet networks
  adding more Ethernet, Ethernet, Ethernet
• Carriers are updating their networks to increase
  capabilities to deliver more services over
  Ethernet
• Business services
• Broadband backhaul service delivery
• Mobile backhaul

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Mobile Backhaul Trends

• Over 2.5 billion mobile phone users in 2006,
  growing to 3.6 billion in 2010
• Growing dependence on mobile connection
• Data mobility for all
• Data, video applications growing
• Traffic grows exponentially, ARPU/revenue does
  not
• The 1 driver for new backhaul technologies
• Carrier Ethernet for backhaul
• Ethernet microwave
• Wireline Ethernet copper/fiber, DSL, PON

Source Infonetics Research, 2008
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Worldwide Cell Site Connections Growing

• Installed WW connections
• 2006 2.9 million
• 2010 4.8 million
• Ethernet fastest growing through 2010
• Mobile operators pay incremental charges for 2x
  to 10x bandwidth
• New options solve major problem for operators

Source Infonetics Research Mobile Backhaul
Equipment, Installed Base Services, 2007
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Mobile Backhaul Equipment Market Opportunity

• Ethernet fastest growing
• wireline
• microwave

Microwave
Source Infonetics Research Mobile Backhaul
Equipment, Installed Base Services, 2007
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Mobile Backhaul Has Dynamic Growth

• New mobile applications and bandwidth
  growth(gt100 in 2008 with much more to come)

9/06
7/07
Legacy TDM
Movies, music, news, more music, text, web, more
content ..
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But Big Issues

• Mobile applications and bandwidth growth is
  great, but
• Fierce competition squeeze on margins
• Exploding bandwidth requirements currently
  constrained by prohibitive costs of legacy
  networks
• Most mobile traffic is broadband/IP centric (TDM
  is not)
• Current TDM services cant scale to handle
  growth.
• Time/urgency
• Cost effective development of Mobile Backhaul is
  stalled.
• Services providers have report no clear path
  forward

Carrier Ethernet removes these barrier to progress
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Ethernet Options Solve Backhaul Cost Problem

• PDH (T1/E1 etc.) costs climb directly with
  bandwidth
• Ethernet wireline costs grow gently with large
  bandwidth increases (Eth, DSL, PON, cable)
• New IP/Ethernet wireline options to satisfy the
  the 1 investment driver operational cost savings

Stay on PDH
Ethernet
Source Infonetics Research Mobile Backhaul
Equipment, Installed Base, and Services, 2007
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Key Reasons for Carrier Ethernet (1)

• Carrier Ethernet
• Economically meets exploding bandwidth
  requirements currently constrained by the
  prohibitive costs of legacy networks
• Leverages rapid move to Carrier Ethernet for
  wireline traffic enabling a single integrated
  wireline and mobile backhaul network
• Much easier for service providers to manage and
  maintain
• Most mobile traffic is broadband/IP centric
• Carrier Ethernet is optimized for packet data
  traffic
• Overcomes TDM (T1/E1) services scalability
• This alone makes Carrier Ethernet the compelling
  choice
• Time/urgency
• Carrier Ethernet removes the barrier to timely
  progress

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Key Reasons for Carrier Ethernet (2)

• Unlimited scalability and ubiquity
• Reliability with full SLA support and full OAM
  capabilities
• Smooth transition from legacy networks
• Protects investment and seamlessly bridges from
  TDM to Ethernet over time

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Migration Circuit Emulation Services (CES)

• CES is a major step in industrys progression
  toward entirely converged networks
• Transports TDM services over Carrier Ethernet
  services
• Converged networks for data, video and voice have
  been a dream of the industry
• Technical challenges to combine TDM and data are
  not trivial
• MEF 8 was designed to meet these challenges, MEF
  18 to certify conformance

8,18

• Transition Path
• Legacy voice traffic is transported via TDM and
  CES over Carrier Ethernet
• Data growth is handled by Carrier Ethernet
• Traffic is merged over time

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MEF 18 Certification

• MEF 18 provides standard testing of Circuit
  Emulation Services over Ethernet
• 334 ground breaking tests and certification in
  the suite
• Industry first impairment testing brings first
  test of emulation of clock recovery
• MEF certification speeds implementation and
  enables full inter-operability
• MEF 18 has many applications but is keyto Mobile
  Backhaul migration strategies

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MEF Mobile Backhaul Positioning Platform

• Robust, proven, carrier- class technologies and
  services
• Mobile Backhaul Operators Survey (30 SPs)
  early guidance to MEF
• Mobile Backhaul Implementation Agreement for 2008
• Circuit Emulation (MEF 8) and Certification (MEF
  18)
• Demonstrated Mobile Backhaul Interoperability
• Education White papers, presentations, case
  studies

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Mobile Backhaul Interoperability Showcase

• Live mobile application demonstration
• End-to-end services
• Resiliency
• End-to-end CE Service OAM
• Quality of Service support
• Performance monitoring
• Bandwidth profiles
• Circuit Emulation Services
• And more..
• Learn more from the Public Multi-Vendor Mobile
  Backhaul Interoperability Test White Paper

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QA
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Thank You