Ethernet Over Any InfrastructureYesterday, Today and Tomorrow

Tower Cloud, Inc. – Ronald Mudry, Chief Executive Officer Intellifiber Networks ‐ Gabe Venturi , Vice President of Sales Operations Positron Access Solutions – Hossam Salib , Vice President of Product Management and MarketingMRV Communications – Zeev Draer, Vice President of Marketing Fujitsu Network Communications, Inc. – Ralph Santitoro, Director of Carrier Ethernet Market Development

Smartphones and 4G are Game Changers Driving Evolution to Mobile Internet

• New wireless technologies enable true broadband speeds1

1

enable true broadband speeds

• 4G projected to deliver 12 meg down and 5 meg up

1

down and 5 meg up

39%

30%

37%

SMARTPHONE  PENETRATION (Postpaid)

VerizonAT&T

Smartphone Mix2

23%

30%

RIM 48%

All Other 52%

VerizonRIM 20%

All Other26%

AT&T

AT&T        Verizon           Sprint       T‐Mobile

Source: Morgan Stanley – April 2010

iPhone54%

2Source: Pyramid Research ‐ April 20101 Page 2

Confidential

Tower Cloud Markets Overview

 

Targeting Southeast Region Markets

  Orlando  Launched April 2007Miami Launched May 2008

Existing Markets

 

 

 

 

 

 

  

 

 

  Miami Launched May 2008  Atlanta Launched Jan   2010

Markets under Construction 

 

  

 

 

 

 

 

 

 

 

  Augusta, GA  Montgomery, AL  Daytona Beach, FL

 

 

 

 

 

Area of Focus in 2010

 

• Tower Cloud provides backhaul services to support 2G 3G and new 4G wireless networks in Southeast

Page 3Confidential

2G, 3G and new 4G wireless networks in Southeast

Typical Backhaul Network Example ‐ Atlanta

• Fiber and microwave network to maximize market coverage

Tier 1 markets average 80% ‐90% Fiber sites, 10%‐20% Microwave 

Smaller markets and rural will require more use of microwave

• Developed unique 591 mile fiber network by combining dark fiber from 5 different providers

• Serving threeRevenue Growth Engine

• Serving three wireless carriers 

Typical colocation 1 5 t 2 5

Page 4Confidential

1.5 to 2.5 customers/site

Backhaul Demand is Exploding

Texting and EmailVoice Mobile Internet

B kh l C ikh lB kh l C it Backhaul Capacity3 ‐ 8 T‐1’s 

(5 ‐ 10 Meg)

Backhaul CapacityTwo T‐1’s (3 Meg) 

Backhaul Capacity25 ‐ 50 Meg 

300 meg in 5 yrs 

Backhaul Capacity25 – 50 Meg

300 Meg in 5 yrs

Backhaul Capacity3 – 8  T‐1’s

(5 – 10 Meg)k

Backhaul CapacityTwo T‐1’s(3 Meg)

l h hd

• End‐to‐end service• Network growth plan to quickly provision

Cell SitePOP

Example Ethernet Equipment ArchitectureKey Customer Needs

to quickly provision future capacity needs300 Mb/site<5 day provisioning

1G Access Ring 10 Gig Switch Ring

POP

y p g• Low latency (<5ms) and Jitter (+ 1ms)

• High quality (5‐9’s)• B d

MSCEthernet

• Broad coverageFiber preference TDM Traffic

Page 5Confidential

Owns and operates a high‐capacity fiber network spanning p g p y p g17,000 route miles. Its scalable, reliable connectivity 

solutions for service provider, enterprise, and government customers include custom built private networks lowcustomers include custom built private networks, low latency routing, SONET, wavelength, Ethernet and data 

services.  

Intellifiber Networks Confidential & Proprietary

Why Ethernet?

Everyone “knows” Ethernet

Universal appealUniversal appealLaptop, desktop, etc

Less alternatives

Multiple mediumsFiber copper wirelessFiber, copper, wireless

Intellifiber Networks Confidential & Proprietary

Intellifiber Ethernet Portfolio

Ethernet speeds from 3 Mbps to 10 Gbps

Eth t C bilit tiEthernet over Copper capability across entire network via 300 Central Offices

Access to 100 000 business locationsAccess to 100,000 business locations 

Ethernet NNI provides single interconnect, one price platform across entire networkplatform across entire network

Global reach via CENX Ethernet Exchange in NYC

Intellifiber Networks Confidential & Proprietary

Affordable 50 to 100 Mbps Ethernet

© 2010 Positron Access SolutionsPositron Confidential

© 2010 Positron Access Solutions

EoCu Opportunity

• Fiber is • The ultimate solution, but …

requires CapEx and timerequires CapEx and time for build-out

• EoCu can• Be deployed everywhere

• 5M, 10M or even 50M services• Turn-up services in days (not months)• Up sell customers

• Bundle value-add services• Upgrade bandwidth testing

Migrate c stomers to Fiber• Migrate customers to Fiber• Deferring CapEx $$$s

© 2010 Positron Access SolutionsPositron Confidential

11

Typical EoCu Applications

CampusU N I V E R S I T YU N I V E R S I T Y

Government Business HQIP DSLAM Backhaul

Business Ethernet

WiMAX Backhaul

5 to 50Mbps Symmetric

Cell Site Backhaul

ATM DSLAM / BDLC Backhaul

Multifunction units

45 Mbps DS3 Clear Channel Data

Business HQ

DS3 Access Link

Single function units

© 2010 Positron Access SolutionsPositron Confidential

Single function units

12

MIMO on DMT Technology Delivers 50 to 100 Mbps Bandwidth Up to 4x Legacy Technologies

100.0

90

100

Aktino Rate vs. Reach Performance

59.460

70

80

Mbp

s]

44.5

40

50

60

Ban

dwid

th [M MIMO on DMT

+4X> Legacy

19.329.8

13.4

25.0

9.511.0 10.0

10

20

30

5.103 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Loop Length [Kft, 24awg]

8 Pair MIMO-DMT Down 8 pair E.SHDSL 8 pair MIMO-DMT Symmetric 8 Pair MIMO-DMT upstream

© 2010 Positron Access SolutionsPositron Confidential

8 Pair MIMO DMT Down 8 pair E.SHDSL 8 pair MIMO DMT Symmetric 8 Pair MIMO DMT upstream

13

Aktino Product for 50 & 100 Mbps Business Ethernet Services

AK5000 – Point-to-Multipoint Ethernet Aggregation

AK500

AK500

AK500

AK355 – Point-to-Point DS3 and/or Ethernet – up to 16 pairsAK500 – Point-to-Point Ethernet

AK500 AK355

Jason Mills, founder and CEO of Utility Telephone. “N th b di l ti l

“Embracing Positron’s Aktino MIMO on DMT technology allows us to deploy significantly higher“No other copper-bonding solution even came close

to Aktino’s rate and reach performance. The unique ability to deliver cost-effective, high-bandwidth services quickly to large segments of our customer base on copper represents a tremendous opportunity ”

technology, allows us to deploy significantly higher bandwidths above and beyond the limits of traditional ADSL, T1 or other bonded solutions,” said Joe Pilcher, President of Datavo. “In addition, using Aktino gives us the unique flexibility to deliver both high bandwidth symmetric and asymmetric Ethernet

© 2010 Positron Access SolutionsPositron Confidential

14

opportunity. y ybusiness services.”

ETHERNET OVER ANY INFRASTRUCTURE -YESTERDAY, TODAY AND TOMORROW

Zeev Draer

15

VP MarketingMRV Communicationszdraer@mrv.com

Ethernet is Everywhere…

Carrier Ethernet

LANMAN WAN

Ethernet Services

Ethernet

Applications are ChangingApplications are Changing…Networks are changing…

16

Key Applications

• Mobile Backhaul

• High-performance Data center EPL/E-Line Services

St• Storage • Video

• Wholesale interexchange

• Triple Play Backhaul

17

Case Study – CATV / MSO – US

• Managed optical transport and demarcation servicesManaged optical transport and demarcation services• 10GE & GigE UNI LAN-to-WAN for high-bandwidth applications

• Low latency service for financial sector • Video transport• Video transport• Business Ethernet service (active and dark fiber)

• Multiplexed services over single wavelength

18

Business

Case Study – Wholesale Carrier – US

Business Ethernet Services

Mobile Backhaul Ethernet Services

Long Range

Cell Tower Mobile

Switching Center

Wholesale Mobile Backhaul Service over Fiberlight Fiber Optics Carrier Ethernet Network

Center

19

Ethernet over Any Infrastructure Ethernet over Any Infrastructure Yesterday, Today and TomorrowYesterday, Today and Tomorrowy, yy, y

R l h S tito oRalph SantitoroDirector of Carrier Ethernet Market Development, Fujitsu

Founding Member and Director, MEFSeptember 13, 2010

Customers want to purchase Ethernet services based on service capabilities, not technology

FundamentalCapabilities

DifferentiatingCapabilities

Ports (UNIs/ENNIs)10/100Mbps electrical10/100/1000Mbps electrical

Service AvailabilityMTTRProtected or Unprotected10/100/1000Mbps electrical

10Gbps optical

Connectivity of Ports (EVC)

otected o U p otected

Service MultiplexingPort-based service

i l i (EVC) tPoint-to-Point Any-to-Any (Multipoint)

• 3 or more locations

• single service (EVC) per portVLAN-aware service

• Multiple services (EVCs) per port

Bandwidth of EVCLine rate of portSub-rate (CIR < Line Rate)

po

Classes of ServiceService Performance

2121 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 -- Dallas, TXDallas, TX

• 40Mbps on a 100Mbps port One-way or round trip delayMaximum packet loss

How Ethernet Services Are Sold TodayHow Ethernet Services Are Sold Today

Services typically defined based on transport technology over which they are delivered

Ethernet over SONET (EoS) serviceEthernet over SONET (EoS) serviceEthernet over WDM (EoWDM / Eoλ) serviceEthernet over TDM/PDH (bonded T1s) serviceEthernet over Copper/DSL (EoCu) serviceEthernet over Copper/DSL (EoCu) serviceEthernet over Fiber (EoF) serviceEthernet over MPLS service (VPLS)

Thi i bl ti f tThis is problematic for two reasons:Sales personnel have many products to learn that all offer almost the same capabilities

• How do they position an EoS service versus an EoF service ?How do they position an EoS service versus an EoF service ?

Customers have to sort through so many product/technology choices• They just want to specify the service capabilities to meet their requirements• These choices just delay their purchasing decisionj y p g

2222 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 -- Dallas, TXDallas, TX9/13/20109/13/2010

How do you meet customer needs How do you meet customer needs over a diverse set of access network assets ?over a diverse set of access network assets ?

EoX Gateway and ApplicationsEoX Gateway and ApplicationsEoX

Access CPE

FW CDS

EoX Aggregation

FF

Service Edges

Internet Access

Ethernet ENNI/UNI

Ethernet UNI

Customer Premises

GbE

EoFEoF

Access Network

FW CDS

FW CDS

Ethernet Internet Ethernet Internet Access ServiceAccess Service

FW 9420

FW CDS

W 95

W 95

Voice

VoD & IPTV

GbE/10GbE

EoPDHEoPDH

FW CDS

NxDS-1

FW 9420

FW 9420 00 Eo00 Eo

VoD & IPTV

MPLS / OTN Inter-Metro Transport

PDH Access Network

EoCuEoCu

FW 4100 ES

NxDS-3

OC-n

Retail ERetail E LineLinexDSL CPE

oX Gat

oX Gat

Mobile Switching

OfficeGbE

Copper Access Network

IP DSLAM

Retail ERetail E‐‐Line Line ServicesServicesEE‐‐Access to Access to 

EE‐‐LAN ServicesLAN Services

FW 4100 ES

teway

teway Ethernet

E-LAN / VPLS Services

SONET

EoSEoSEoSEoS

FW 4100 ES

FW 4100 ES

Wholesale Wholesale EE‐‐Access ServicesAccess Services

yy

Exchange

2323 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 -- Dallas, TXDallas, TX9/13/20109/13/2010EoX Gateway unifies Ethernet Services over Any Access NetworkEoX Gateway unifies Ethernet Services over Any Access Network

SummarySummary

Customers want to purchase Ethernet services based on service characteristics

Port speed/type connectivity (EVC) EVC Bandwidth etcPort speed/type, connectivity (EVC), EVC Bandwidth, etc.

Ethernet services sold today based on transport technologiesE S E TDM E WDM E MPLS tEoS, EoTDM, EoWDM, EoMPLS, etc.

Deliver a unified Ethernet service portfolio with an EoX GatewayGateway

Based on Ethernet service characteristicsIndependent of transport technologies

EoX Gateways connected to Ethernet Exchanges creates new opportunities for Wholesale Ethernet access services

Opens up and accelerates new revenue opportunities that leverageOpens up and accelerates new revenue opportunities that leverage your existing access network assets

2424 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 © 2010 Fujitsu Network Communications, Inc. All rights reserved. Comptel Fall 2010 -- Dallas, TXDallas, TX