Ciena Confidential and Proprietary

Philippe Morin Senior Vice President, Global Field Operations

Ciena

September 21, 2011

THE NEW GLOBAL NETWORK IMPERATIVE Resilience at Lowest Unit Costs

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The New Global Network

Capacity Upgrades

Intelligent Switching & Restoration

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Inter-Continental Communications Dependence Borderless Communications

Increasing reliant upon global communications

Cloud Services

Research & Education

Financial Institutions

Medical Institutions

Consumer Multimedia

Multinational Corporations

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Bandwidth Demand Trends The Perfect Storm on the Horizon

1990 2000 2010 2020

100 Million+ Units Personal Computers

10 Billion+ Units/Users Mobile Internet

Desktop Internet 1 Billion+ Units/Users

Number of Broadband Subscriber Increases

Broadband Subscriber Bandwidth Increases

+

Growing Dominance of Video Traffic

+

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Trans-Atlantic

44%

85Tbps

Europe-Asia

58%

23Tbps

Intra Asia

54%

59Tbps

Trans-Pacific

49%

49Tbps

US/Latin America

45%

38Tbps

D Bandwidth by traffic route and country international bandwidth (CAGR 2010-2017)

Reference.: Global Bandwidth Forecast Service, Telegeography, 2011

International Bandwidth Growth Need for Speed

CAGR 2006 - 2010

: >100%

: 80% - 100%

: 60% - 80%

: 50% - 60%

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Global Communication Network Submarine Cables Worlds Most Strategic Network Links

Global network availability must be ensured

Minimize wet and dry plant network demarcation

Single seamless network that spans planet earth

The New Global Network erasing demarcation points between submarine and terrestrial networks

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Global Bandwidth Supply & Demand Demand Increasing Prices Decreasing

Significant increases in demand

International prices are declining

How can providers differentiate?

Reference: 1Q2011 Global Bandwidth Forecast, 2011 (TeleGeography)

Reference: Median Trans-Pacific 10 Gbps Wavelength Prices, Q2 2010-Q2 2011 (TeleGeography)

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Increasing Bandwidth Demands Cost-Effective Coherent-Based Capacity Upgrades

40G/100G coherent channel upgrades

Existing wet plants remains untouched

Far less expensive than laying new cables

Lowering the cost per transported bit

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Undersea Cable Protection Challenges Unique Operating Environment

Undersea cables laid along seismically active and

heavily fished/trawled routes

Multiple terrestrial networks funneled through same

Cable Landing Station thus amplifying any outages

National economy/security affected by outages

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Differentiation via Network Restoration Intelligence Customized Service Level Agreements

Traditional Linear/Ring Based Protection

Inability to survive more than 2 simultaneous failures

Minimal service protection differentiation

Intelligent Mesh Network Protection

Ability to survive multiple simultaneous failures

Intelligence enables customized protection offerings

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Differentiated Restoration Offerings Attracting and Retaining New Customers

Traditional (50ms) Protection

No Protection

Untapped Market

Untapped Market

100ms Protection + 1 Failure Survivability

250ms Protection + 1 Failure Survivability

500ms Protection + 1 Failure Survivability

1sec Protection + 1 Failure Survivability

10sec Protection + 1 Failure Survivability

50ms Restoration + Maximum Survivability

50ms Restoration + 3 Failure Survivability

Stric

ter S

erv

ice L

evel A

gre

em

ents

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The New Global Network Seamless Networking Spanning Wet & Dry Plants

Erasing traditional terrestrial/submarine demarcation for truly resilient global networks

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Summary Submarine Network Intelligence Key Enabler

Global intercontinental bandwidth

demand continues to increase

Intelligent network protection will

enable improved network resilience

Cost-effective capacity upgrades

over existing/new undersea cables

The New Global Network the whole is greater than the sum of its parts

Ciena Confidential and Proprietary

Thank You