Making Mobile Backhaul 4G Ready Delivering Transitional Mobile Backhaul Solutions Enabling Mobile Broadband ADTRAN Mobile Backhaul Leadership Leadership in enabling mobile services over any access – Dominant T1 backhaul provider in U.S.A. – TDM (HDSLx), SONET(OPTI-6100), Ethernet (NetVanta/TA5000) – Copper, Fiber, Microwave Focused on Ethernet backhaul for demanding IP services – Ethernet over Fiber, GPON – Resilient architectures – Advanced Cos/ QoS features Innovation to drive down cost of delivering IP and legacy services – – – – Integrated tools/function to reduce cost Automated installation processes Simplified operational models Packet/ Ethernet based timing ® Adtran, Inc. 2007 All rights reserved 3 Mobile Broadband is here 10X bandwidth w/o corresponding profit Mobile TV is here – i.TV 2.0 for iPhone coming soon – Enjoy full NBC videos on your iPhone – CBS releases TV.com iPhone app – Hulu coming to the iPhone? TV program watched on Smart Phone 4G technology being deployed – Rivals Wireline Broadband speeds – VzW deploying LTE – Sprint/Clearwire WiMAX – All WSP have 4G plans for 2010-2013 ® Adtran, Inc. 2007 All rights reserved Evolution from 2G 3G 4G 4 Mobile Broadband hammers Profitability Data usage way up; disproportionate ARPU Revenue and OpEx were once linear. – Voice and text messages drove majority of current revenue as well as majority of backhaul impact. Traffic Gap Gap between between traffic Gap between traffic traffic revenue andand revenue increases All you can Eat Pricing Models drives demand to lower cost per bit delivered to user – Revenue per bit delivered is driven to lowest levels. – Significantly expand data capacity to enable new devices, services and applications ARPU growth – LTE is 1st generation wireless network built as a data network ® Adtran, Inc. 2007 All rights reserved Revenues Voice Dominant Data Dominant Source: Light Reading 5 Demand for Next-Gen Mobile Backhaul Ethernet Access Missing link to Profitability Wireless (Mobile) Network Operators moving to Packetnetworks drive down Operational Cost Core Networks and Applications Infrastructure have moved to packet, IP/MPLS upgrades. First Packet-based RF technologies being deployed at cell sites Mobile Backhaul Access last hold-out to All-Packet Network Realization LTE is Packet Mobile Backhaul (Access) Connection needs to be Packet IMS and EPC are packet 100s or 1000s of Base Stations served Mobile Telephone Switching Offices (MTSO) ® Adtran, Inc. 2007 All rights reserved 6 Hybrid Backhaul Model Baby step toward All-IP Convergence Key backhaul transformation required for 4G (LTE) – LTE forecast to be 80%+ of traffic, 50 – 100Mbps required – Desire to freeze, decouple TDM leased line growth Leaves Voice Network Undisturbed - Revenue Protection – No changes to Network Timing, Operational Processes Service Cell Site Access & Aggregation Central Office/Mobile Core Two Networks TDM/SDH PSTN Circuit Core 2G 3G 4G IP/Ethernet Packet Core PDSN Cost /bit Scale ® Adtran, Inc. 2007 All rights reserved Access: 2G: T1/E1 (PDH) 3G: ATM IMA/PDH 3G: ML-PPP/PDH 4G: Ethernet over X Backhaul Aggregation: 2G: SDH/FIber 3G: ATM/SDH 3G: ML-PPP/SDH 4G: Ethernet over GE Fiber Internet HA 7 Key Attributes for an Ethernet NTU Robust enough for Mobile Backhaul Low Cost/Scalable Bandwidth – Ethernet over Fiber (EoF) – first choice 4G/LTE Bandwidth, 100Mbps+ – 10x increase in data rate, 1Gbps through-put available Time to Market for Service Ubiquity, – Every cell site must be served. 2011 launch – EoF not everywhere, can use alternative EoX Allows Services Convergence – Path to all-packet architecture – Retire leased lines, integral sync capabilities SLA Management – CoS support e.g. Real-time vs. Best-Effort Resiliency – 99.99% service availability Hardened for cell site deployment – Robust operating range, metallic interface protection ® Adtran, Inc. 2007 All rights reserved 8 A Cell site is not a Wiring Closet Flexible mounting/powering options In BTS or eNB enclosures – Single RMU in size In CO or Street Cabinet – NEBS, IEC compliance In uncontrolled environments – Temperature hardened Near Tower – Surge protected/isolated interfaces e.g. cell site is a lightning rod LTE eNB No space, rack or GR-487 cabinet – Rack as well as wall mounting options – OSP options +24V & -48VDC powering options OSP EAD – Resilient, Dual feed powering ® Adtran, Inc. 2007 All rights reserved 9 Fiber cell sites grow in all regions 1,000,000 Cell Sites (M) 800,000 600,000 400,000 200,000 0 CY07 CY08 North America CY10 CY09 EMEA CY11 CY12 Asia Pacific CY13 CALA The number and portion of cell sites with fiber grows in each region in each year through 2013, and won’t stop there ® Adtran, Inc. 2007 All rights reserved 10 EoCu, EoTDM, EoF, EoS equals EoX Completing the customer reach puzzle • EoCu – Ethernet over Copper – Optimized bandwidth per loop – Perfect for short to medium length loops – Requires local deployments & loop access • EoTDM – Ethernet over TDM – Predictable bandwidth per circuit – Time to Market effective deployments – Minimizes CapEx by centralizing aggregation platform • EoF - Ethernet over Fiber – Active Ethernet for higher rate business services – PON for cost-effective SOHO service offer • EoS - Ethernet over SONET/SDH – Outstanding reputation – Resiliency – Proven TDM/Synchronization for mobile backhaul ® Adtran, Inc. 2007 2010 All rights reserved Proprietary and Confidential 11 Same service, Varied Deployments 10Mbps to 1Gbps Service Delivery Mobile Exchange BTS/Node B Total Access 5000 Carrier Ethernet Aggregation NetVanta 838 OSP NTU Up to 8 pairs e.SDHSL Copper Typical 10, 20, 30, 40Mbps Carrier Ethernet via GigE Mobile Exchange Total Access 5000 Carrier Ethernet Aggregation BTS/Node B NetVanta 8044 Ethernet Access Device (EAD) Carrier Ethernet via GigE 100Mbps or GE Optical Fiber ® Adtran, Inc. 2007 All rights reserved 12 Carrier Ethernet Service Coverage Uncontrolled Environmental Conditions • Key Application is Mobile Backhaul • GR-487 Compliant Hardening and Environmental sealed Outside Plant (OSP) Options • Enhanced Protection (EP) for Lightning Isolation for WAN, LAN and Power interfaces • Environmental Alarming NetVanta 838 EP NetVanta 838 OSP ® Adtran, Inc. 2007 All rights reserved 13 Key Attributes for an Ethernet NTU Robust enough for Mobile Backhaul Low Cost/Scalable Bandwidth – Ethernet over Fiber (EoF) – first choice 4G/LTE Bandwidth, 100Mbps+ – 10x increase in data rate, 1Gbps through-put available Time to Market for Service Ubiquity, – Every cell site must be served. 2011 launch – EoF not everywhere, can use alternative EoX Allows Services Convergence – Path to all-packet architecture – Retire leased lines, integral sync capabilities SLA Management – CoS support e.g. Real-time vs. Best-Effort Resiliency – 99.99% service availability Hardened for cell site deployment – Robust operating range, metallic interface protection ® Adtran, Inc. 2007 All rights reserved 14 Mobile Backhaul Convergence Service Cell Site Access & Aggregation Central Office Core 2G, 3G Voice Clock Sync IAD PSTN TDM/SONET 2G EAD/NTE 3G Internet 4G Ethernet TA5000 2G, 3G, 4G Data IAD 2G 3G 4G PSTN EAD/NTE 2G, 3G Voice Clock Sync 2G, 3G Voice Internet Ethernet TA5000 ® Adtran, Inc. 2007 All rights reserved 2G, 3G, 4G Data 15 Pseudowire and Circuit Emulation Required for all-IP backhaul Bridge 2G, 3G services a.k.a Circuit Emulation or Pseudowire – ATM IMA (UMTS) support – TDM (GSM, CDMA) support – ML-PPP (EV-DO, HSPA) support Packets carry block of T1 data and RTP stamp SAToP – DS1 or E1 over Packet – ITU Y.1453, RFC 4553, MEF 8 CESoPSN Pseudowire T1 Provider Edge Provider Edge Provider IP Network Customer Edge Attachment Circuit: T1 Customer Edge Ethernet CE Packet CE Packet CE Packet CE Packet CE Packet CE Packet Timing Reference – DSO visibility – ITU Y.1453, IETF pwe3-cesopsn, MEF 8 Timing Reference Emulated T1 ATM IMA over E1/T1 – Backhaul over SAToP – ATM PW saves DCS ports ® Adtran, Inc. 2007 All rights reserved 16 Traditional Network Timing Distro Sync Networks Deliver … Sync. Very well. ;p T1/E1 Secondary Reference Source Primary Reference Source GNSS/GPS • Frequency • Phase • Time-of-Day Traceability SONET/SDH Network SONET/SDH SONET/SDH or PDH T1/E1 • Frequency ® Adtran, Inc. 2007 All rights reserved 17 Three Aspects of Synchronization Frequency – This is what SONET/SDH delivers today – All that’s needed for the vast majority of network services – Synchronous Ethernet is an excellent replacement for SONET/SDH based sync distribution Phase – Required by Time Division Duplex (TDD) based mobile solutions – Beyond the capabilities of PHY based sync distribution (SONET/SDH or SyncE) – Today, typically delivered by GPS/Satellite – 1588v2 can provide this requirement in band Time-of-Day – Required for a CDMA2000 operation – 1588v2 can provide this requirement in band ® Adtran, Inc. 2007 All rights reserved 18 Key: Not Breaking the Sync Chain Considerations of Migrating Standards Timing Standard SONET/SDH/PDH Adaptive/Differential Entire Path is Sync Aware it delivers… Frequency Frequency Synchronous Ethernet Frequency GPS/Satellite Frequency Phase 1588v2 Time-of-Day Frequency Phase Time-of-Day ® Adtran, Inc. 2007 All rights reserved Implication of nonSync-aware node Sync Path Broken Not dependent on full NE awareness to pass sync Sync Path Broken Not dependent on full NE awareness to pass sync Dependent upon number of ‘unaware hops’ and network loading 19 Clock Synchronization/Recovery Requirements Precision Timing Protocol defined by IEEE 1588v2 Synchronous Ethernet defined by ITU-T G.8261/8262 ADTRAN Differential and Adaptive timing methods defined by ADTRAN pseudowire solution implementation/specifications Table 1: Sync Requirements in Mobile Networks (ON-SITE* error limits) Technology Frequency limit* Phase limit Time of Day Limit GSM, WCDMA FDD, LTE FDD +/- 16 ppb on site +/- 50 ppb on air +/- 5 us Ref to BTS +/- 10us BTS to BTS None WCDMA TDD, LTE TDD +/- 16 ppb on site +/- 50 ppb on air +/- 1.25us Ref to BTS +/- 2.5us BTS to BTS None WiMAX +/- 16 ppb on site +/- 50 ppb on air +/- 1.0us BTS to BTS None CDMA +/- 16 ppb on site +/- 50 ppb on air None +/- 3.0 us *Note: on-site (to the BTS/NodeB) limits shown not on air limits such as +/- 50 ppb ® Adtran, Inc. 2007 All rights reserved 20 Service Assurance Higher Availability Business Continuity SLA Attributes Considered Small Business or Suburban Base Station – Long-term availability – Switchover/recovery options ITU-T G.998.2 EFM Bonding with Redundant Loops Remote Cabinet Aggregation for Increased Copper Data Rate eSHDSL 1 eSHDSL 2 eSHDSL 3 eSHDSL 4 eSHDSL 5 eSHDSL 6 eSHDSL 7 Central Office/Exchange Aggregation at Ethernet Point of Presence eSHDSL 8 UNI Multi-Tenant Building Ring Protection Switching for Access Resiliency Bonding Group Metro Base Station Fiber Access Enabling Standards/Technology LACP for Network Resiliency – IEEE 802.3ad (LACP) Link Agg. Control Protocol – ITU-T G.8032 (ERPS) Ethernet Ring Protection – ITU-T G.998.2/IEEE 802.3ah Copper Bonding Protection ® Adtran, Inc. 2007 All rights reserved 21 Quality of Experience (QoE) Delivering Low Latency, Jitter ADTRAN Carrier Ethernet solutions incorporate the following features to support latency sensitive traffic requirements. – Ingress traffic mapping/ prioritization based on port, customer VLAN or p-bit marking. – Up to 8 Class of Service queues per port – Strict and Weighted Fair Queuing – Priority based rate shaping on egress ports ® Adtran, Inc. 2007 All rights reserved 22 Service Level Agreement Requirements Table 2: SLA requirements for Mobile Networks (error limits) SLA attribute MUST support SHOULD support 10 <5 +/- 1 +/- 1 2-way Latency (ms) Jitter (ms) BER & FER 10-9 & 10-6 10-11 & 10-7 99.99 99.999 MTTR (Hrs) 4 2 Failover (ms) 50(150 for Voice) 50 Availability (%) ® Adtran, Inc. 2007 All rights reserved 23 CIR and EIR Bandwidth Profiles Configurable, Guaranteed Connections Total UNI Bandwidth • Confugurable BW profiles per EVC – CIR – Committed Information Rate • Frame delivery obligation per SLA – EIR – Excess Information Rate • Excess frame delivery allowed – not subject to SLA if available – CBS, EBS - size of burst window (ms) for allowed CIR / EIR rates EVC2 EVC1 EIR EVC3 2 rate, 3 Colour marking – Marking typically done at ingress port of service provider equipment Green Forwarded frames – CIR conforming traffic Yellow Discard Eligible frames – Over CIR , within EIR Red Discarded frames – Exceeds EIR ® Adtran, Inc. 2007 All rights reserved 24 Configurable Weighted Fair Queuing Any set of 4 or 8 Queues (EF, 2 or 6 AF, BE) TA5000 AM and NV8044M Ingress Ports User-1 Classifier User-2 Classifier . . . User-N ® Adtran, Inc. 2007 All rights reserved . . . Classifier P P P P P P P P P P P P P P P P P P Configurable for up to 8 queues EF Assign To Queues Based On Class of Service Egress shaping done here • Per port and / or per port per queue • N*64 kbps granularity AF Strict/ WRR Egress Port BE EF=expedited forwarding AF=assured forwarding BE=best effort 25 Detection Notification Verification Isolation Delay Jitter Loss IEEE 802.1ag ITU-T Y.1731 IETF TWAMP ITU-T Y.1731 IEEE 802.3ah Link OAM Performance Management Connectivity Fault Management (CFM) ADTRAN Ethernet OAM Multiple paths for both Fault & Performance Management ® Adtran, Inc. 2007 All rights reserved 26 Quick Reference Guide – EthOAM Standard Protocol/Mechanism Detection – There is a loss of signal 802.1ag/Y.1731 ETH-CC Loss of connectivity Unintended connectivity between two MAs or within an MA; Incorrect MD Level or period 802.3ah Link monitoring Loss of link Failure to receive Information OAMPDU Standard Protocol/Mechanism Notification – Fault triggers 802.1ag/Y.1731 RDI bit of CCM Loss of CCMs Y.1731 ETH-AIS Loss of CCMs Local defect E-LMI Status EVC change 802.3ah RFI bit of OAMPDU Link Fault; Dying Gasp; Critical Event 802.3ah Event Notification Threshold crossing Standard Protocol Fault Verification – Has the circuit failed? 802.1ag ETH-LB Verify connectivity between two MEPs Y.1731 ETH-LB Standard Protocol Verify connectivity between one MEP & all peer MEPs Fault Isolation - Where has the circuit failed? 802.1ag/Y.1731 ETH-LT ® Adtran, Inc. 2007 All rights reserved Determine points of reach Discover MIPs 27 ADTRAN Operations Environment Intelligent Service Activation Application awareness OSS integration via Robust Modular Gateway/Network Automation Interface (TL1/XML) Strong Decision Support Fault Response Advanced testing, troubleshooting and diagnostics Flexible Integrated Security Advanced PM, Traffic and Capacity Management Performance Monitoring/Trending Traffic Engineering/Network Tuning VQM/DQM Fully Integrated from Planning to Operations to Customer Service ® Adtran, Inc. 2007 All rights reserved 28 Barrier to Next-Gen Mobile Backhaul Lack of Single, Simple Operational Model Lack of Fiber to Cell sites – Less than 20% penetration Lack of Single, Simple Operational Solutions: – Need the new T1. Many different ad hoc Operational models for different mobile models – – – – – – – TDM ATM Microwave Fiber DS DS3 SONET/SDH ® Adtran, Inc. 2007 All rights reserved 29 A Single Centralized Solution Single Platform, Common OAM&P, Full Coverage – Single Service and Maintenance Launch Point – Full suite of dedicated, low cost Ethernet Access Gateway for every access medium ® Adtran, Inc. 2007 All rights reserved 30 Hybrid Copper / Fiber NetVanta Fiber trench can be time, cost prohibitive No secondary site visit to install/commision EoF service No re-provisioning of service. Service/SLA transparency TA5000 ‘One-button’ service push; Bandwidth on Demand Service TA5000 Initial EoCu provides time-to-market and revenue capture Planned EoF facility ADTRAN NetVanta 8044M Modular NTE Initial EoCu Facility provides diverse path 10/100/1000 Mbps EoF facility available Increased Bandwidth Demand 10/100/1000 Mbps Customer Interfaces/ Services remain untouched Accelerated Time To Market for 100Mbps 4G/LTE/NGMN Graceful Path to Fiber Access ® Adtran, Inc. 2007 All rights reserved 31 Introducing Modular Ethernet Access Delivering the New T1 (and E1) Complete Vision of Single Operational Model – Single Service and Maintenance Launch Point – Single, Versatile, High Value Ethernet Access Gateway for every access medium ® Adtran, Inc. 2007 All rights reserved 32 Introducing the NetVanta 8044M TA5000 8-port Gigabit Ethernet Access Module – 8 GigE SFP cages – Link Aggregation – Link OAM NetVanta 8044M – – – – – – 4 -10/100/1000BaseT WAN or LAN 4 - GigE SFP WAN or LAN 2 - Expansion Slots 1 and 2.5G ERPS Ring support with optical bypass option. Clock Sync over Packet Ready e.g. G.8261/62 SyncE Dual fed DC options (+/-24V, -48V DC) Carrier Ethernet – MEF 9, 14, 18 – Eth OAM CFM and PM – TACASC+ and RADIUS Authentication, Authorization 8-port GigE Access Module ® Adtran, Inc. 2007 All rights reserved NetVanta 8044M Modular NTE 33 NetVanta 8044M Expansion Modules • TDM over Packet Service Delivery – CESoPSN, SAToP, MEF8 standards – GR-1089 Metallic Isolation • GPON Access – 2.5Gbps – Fixed Optics – OMCI & Carrier Ethernet Mgmt 8-port DS1/E1 CES Service Module Ethernet over Copper Access GPON ONU Network Module – Ethernet over Copper (ULL) – ITU-T G.998.2 Bonding (45Mbps) – GR-1089 Metallic Isolation • Other Expansion Modules for Phase II – – – – – 2-port OC3/12 STM1/4 Access 8-port DS1/E1 GFP Access 8-port 10/100 BaseT Service 4-port VDLS2 Access 1-port DS3 GFP Access 8-port e.SHDSL Network Module NetVanta 8044M Modular NTE ® Adtran, Inc. 2007 All rights reserved 34 GigE to the Cell Site Service Expansion to Multiple WSP DS1 TA5000 MSAP 2xGE or 2x10GE Central Office/ Exchange TA5000 MSAP Carrier Ethernet Network 8 port EoFiber AM NetVanta 8044M 8 port PW Service Module CWDM GigE NV8044M Modular NTE NV8044M Modular NTE 8xDS1 & Clock Sync 10/100/1000 Cell Site ® Adtran, Inc. 2007 All rights reserved 8xDS1 & Clock Sync 10/100/1000 Cell Site 35 GPON to the Cell Site Justifying FTTH to Low Density Areas DS1 TA5000 MSAP 2xGE or 2x10GE Central Office/ Exchange TA5000 MSAP Carrier Ethernet Network NetVanta 8044M 8 port PW Service Module 2-port OLT AM NetVanta 8044M GPON ONT Module GPON NV8044M Modular NTE NV8044M Modular NTE 8xDS1 & Clock Sync 10/100/1000 Cell Site ® Adtran, Inc. 2007 All rights reserved 8xDS1 & Clock Sync 10/100/1000 Cell Site 36 Mobile Backhaul ERPS Application Drop & Continue Ethernet & TDM service SyncE From Up Stream 1Gbps or 2.5Gbps ERPS Ring Any to any ELAN 1- 16 x DS1/E1 1-500Mbps Ethernet typical Drop Customer 1 – 1000 Mbps Ethernet Service E.G. avg. 150Mbps Drop Customer TDM 1- 16 DS1/E1 Service Up to 64 nodes 1-500Mbps Ethernet 1-16 x DS1/E1 1-16 x DS1/E1 1/2.5Gbps ERPS Ring 3Gbps LAG 3Gbps LAG ® Adtran, Inc. 2007 All rights reserved Continue Down Stream Remainder of 1Gbps or 2.5Gbps ERPS Ring Capacity 4Gbps LAG via TA5000 8-port GigE AM OR 3rd party Eth Switch CES traffic 37 Barriers to Packet-backhaul Fiber/Ethernet availability, weak Ethernet business case, and lack of confidence in packet-based solutions hold back lower cost solutions Source: Infonetics 2009 ADTRAN solutions focused on eliminating these barriers ® Adtran, Inc. 2007 All rights reserved 38 Question and Answers