What Does an MSAN Give You Tuesday, April 13, 2010 Definition of an MSAN A 'Multi-Service access node' or (MSAN) also known as MSAG or 'Multi-Service Access Gateway' is a device typically installed in a telephone exchange (although sometimes in a roadside serving area interface cabinet) which connects customers' telephone lines to the core network, to provide telephone, ISDN, and broadband such as DSL all from a single platform. Typical outdoor MSAN cabinet consists of NarrowBand (POTS), BroadBand (xDSL) services, batteries with rectifiers, optical transmission unit and copper distribution frame. Referenced: http://en.wikipedia.org/wiki/MSAN ® Adtran, Inc. 2008 All rights reserved 2 The Access Network Many Pieces of the Access Network Puzzle – – – – – Next Gen Network Network Migration To Retrofit or not Copper and fiber Multi-play service delivery No single solution for all networks – FTTP – FTTN – Transport – star, chain, ring Network Solutions to Build on Service delivery is key Minimize Friction ® Adtran, Inc. 2008 All rights reserved 3 Next Generation Networks Ethernet-based Access Network Fiber to the Premises (FTTP) Fiber to the Node (FTTN) Triple Play Services 20-100 Mbps per subscriber Fiber to the Home (FTTH) ® Adtran, Inc. 2008 All rights reserved 4 Drivers for FTTx Growth Demand for bandwidth – Predominately driven by video applications, peer-to-peer (P2P) file sharing and online gaming – Allows service providers to differentiate on wider content Government subsidies – Ongoing national initiatives to support deep fiber access – Japan, Korea, China, Singapore, Malaysia, Australia and France – US Broadband Stimulus is North America’s first push Reduced operational costs of maintaining legacy copper based services – Eliminates distance sensitivity and largely eliminates asymmetrical nature of services (bigger upstream for P2P and Online Gaming) – Less active equipment in the network to serve a large base of customers ® Adtran, Inc. 2008 All rights reserved 5 What’s Causing the Need for Speed? ® Adtran, Inc. 2008 All rights reserved 6 GPON and Active Ethernet Millions ADTRAN Addressable Market GPON and Active Ethernet $600 $500 $400 $300 $200 $100 $0 2009 2010 GPON OLT 2011 2012 2013 Active E Aggregation Global products available in 2nd half driving increased market share moving forward ® Adtran, Inc. 2008 All rights reserved 7 Total Access Solution ® Adtran, Inc. 2008 All rights reserved 9 Total Access 5000 Complete MSAP ® Adtran, Inc. 2010 All rights reserved Integrated Business and Residential Services OSS Common platform for Residential and Business Services ADTRAN Total Access Element Management System 1/10GE Scalable architecture for future services Residential Access agnostic architecture for “Ethernet Everywhere” Business Single Common Platform and Management for All Services ® Adtran, Inc. 2008 All rights reserved 11 IPDSLAM OSS IPDSLAM GigE Management Gateway -Optional bonding of pairs for enhanced rate/reach -Integrated fiber or copper transport options -Smaller, lower density units to minimize the deployment cost (OPEX) TA5000 GigE GigE GigE TA1448A 12 Pair DMT TA1248A TA1148A ADSL2+ Bonded ADSL2+ ® Adtran, Inc. 2008 All rights reserved ADSL2+ Bonded ADSL2+ TA1148A DMT ADSL2+ ADSL2+ Bonded ADSL2+ Bonded ADSL2+ 12 FTTN OSS GigE Management Gateway TA5000 GigE GigE GigE GigE TA1448A FTTN 12 Pair DMT TA1248A -Better scalability for lower density deployments TA1148A TA1148A -Unique sealed architecture helps DMT ADSL2+ ADSL2+ ADSL2+ minimize first port ADSL2+ deployment costs Bonded ADSL2+ ® Adtran, Inc. 2008 All rights reserved Bonded ADSL2+ GigE Bonded ADSL2+ Bonded ADSL2+ TA1248V TA1148V VDSL2 Bonded VDSL2 VDSL2 Bonded VDSL2 VDSL2 Bonded VDSL2 13 FTTH OSS GigE Active Ethernet / GPON Management Gateway TA5000 TA3xx TA3xx GigE GigE GigE TA1448A FTTH 12 Pair GigE GigE DMT TA1248A ADSL2+ Bonded ADSL2+ ® Adtran, Inc. 2008 All rights reserved -Differentiated ONT portfolio with TA1248V purpose built residential, business and mobile backhaul solutions -AbilityTA1148A to support TA1148A IP DMT DSLAM, FTTN and FTTH from same platform VDSL2 ADSL2+ ADSL2+ ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded ADSL2+ Bonded VDSL2 TA3xx TA1148V VDSL2 Bonded VDSL2 VDSL2 Bonded VDSL2 14 Extending the range of GPON 40 km Reach 30 km Reach 20 km Reach 20 km Reach 2 Standard reach today In customer trials Class C optics ® Adtran, Inc. 2008 All rights reserved 15 Migration of Legacy Services to Ethernet Business Customers OSS GigE Management Gateway Ch DS3 Business Service Migration -Migration of TDM based (DS1/E1) legacy data services (PPP, Frame Relay, ATM) -No new customer premises based equipment -Migrate existing data traffic from existing inter-office transport and DACS to IP/MPLS Core TA5000 DS1 E1 TDM ACCESS DS1 Data Circuit ® Adtran, Inc. 2008 All rights reserved DS1 Data Circuit E1 Data Circuit 16 Migration of Legacy Services to Ethernet Residential Customers OSS GigE DS3/OC3 ATM Management Gateway Ch DS3 TA5000 DS1 E1 Residential Service Migration TDM ACCESS -Extend the life of existing ATM DSLAMs for customers still buying lower rate services (< 7M-10M) -Intelligent learning to build ATM circuit to Ethernet VLANs -Migrate existing data traffic from DS1 DS1 existing inter-office andData Circuit Datatransport Circuit DACS to IP/MPLS Core ® Adtran, Inc. 2008 All rights reserved DS3/OC3 ATM T1/E1 IMA ATM Existing ATM DSLAMs Existing ATM DSLAMs E1 Data Circuit 17 Ethernet Access Solutions OSS Ethernet over Copper GigE Management Gateway TA5000 -Bonded copper pairs for Ethernet access up to 40Mbps+ symmetric -Optimized Mobile backhaul form factors for cell site deployment -Enhanced lightning protection -Hardened outdoor enclosures Bonded E.SHDSL Bonded E.SHDSL NV838 NV838 OSP ® Adtran, Inc. 2008 All rights reserved 18 Extending Carrier Ethernet Footprint Ethernet over TDM OSS GigE Management Gateway -Bonded TDM circuits from existing infrastructure offering up to 135Mbps symmetric -Extends Ethernet service reach TA5000 DS3 DS1/E1 Ch DS3 Bonded E.SHDSL Bonded E.SHDSL TDM ACCESS NV838 Bonded DS3 NV838 OSP Bonded DS1 Bonded DS1/E1 NV873 NV818 NV818 ® Adtran, Inc. 2008 All rights reserved 19 Extending EoCu Reach OSS Ethernet over Copper from the RT GigE Management Gateway -Size and density optimized for deployment at existing cabinet sites -Enables bonded copper pairs for Ethernet access offering up to 40 Mbps symmetric -Consistent feature set and OSS integration with existing Carrier Ethernet deployment -Offers targeted migration from Ethernet over TDM solution TA5000 GigE Bonded E.SHDSL Bonded E.SHDSL TA1448S-CE Bonded E.SHDSL Bonded E.SHDSL NV838 NV838 NV838 OSP ® Adtran, Inc. 2008 All rights reserved NV838EP 20 Enabling Fiber-based Ethernet Access GigE or 10G OSS Management Gateway TA5000 EoCu GigE DS3 GigE DS1/E1 Bonded E.SHDSL Bonded E.SHDSL Ethernet over Fiber -Ethernet Access Module for aggregation of fiber NV838 Ethernet services -Dark fiber Ethernet access for service offerings up to 1G NV838 OSP NCTE allows rapid -Hybrid copper/fiber Ethernet deployment of Ethernet over Copper with upgrade path to Ethernet over Fiber (40M to 1G) without changing NCTE -High bandwidth (10G) uplink options to support blending of Ethernet over X solutions ® Adtran, Inc. 2008 All rights reserved Hybrid NTU Ch DS3 TDM ACCESS Fiber NTU Bonded DS3 Bonded DS1 Bonded DS1/E1 NV873 NV818 NV818 21 Breadth of Services Broadband Access Services Migration • All Ethernet Core Product – Highly scalable Ethernet switch fabric VDSL2 VDSL2 Combo – All services converted to Ethernet ADSL2+ ADSL2+ Combo for maximum scalability DS1 MS DS3 1 port Voice Gateway CH DS3 MS • Carrier-class platform RPOTS – Performance – Redundancy – Hardened Active E DS1 PWE GPON DS3 4 port OC3 1 port Quad OLT • Supports legacy and advanced RPR packet services GigE T-1 • Services are moving to IP and Ethernet HDSL is the most efficient ESHDSL DS1 DS3 transport medium OC3 4 port CH DS3 GigE 8 port Carrier Ethernet ® Adtran, Inc. 2008 All rights reserved 22 Ethernet End-to-End End-to-end network using standard 802.1Q VLANs Converged Service Delivery Data Serving CO or RT GE or 10GE Transport COT VoIP Video Per HSI Node TA5000 TA5000 NxGE or 10GE LACP VoIP Video VLAN Gold Silver HSI VLAN Bronze Core Video BNG/ BRAS Voice Set-top Box • IGMP Snooping at and within each Total Access 5000 Node • Channels only present when viewed • Support for multiple middleware vendors ® Adtran, Inc. 2008 All rights reserved 23 Enabling Advanced Service Delivery Ethernet creates a scalable architecture – True multi-play architecture – Transport and uplink to 10 Gbps for ultra high-speed service delivery Ubiquitous service delivery over copper and fiber ® Adtran, Inc. 2008 All rights reserved 24 Total Access 5000 System Overview ® Adtran, Inc. 2010 All rights reserved Total Access 5000 • Multi-Service Access and Aggregation Platform – Broadband Access • Broadband Loop Carrier • IP/Ethernet DSLAM • Fiber to the Premises – Services Migration • ATM Aggregation and Interworking • Business Service Migration • Switch Collapse – Carrier Ethernet • Ethernet over Copper • Ethernet over TDM • Ethernet over Fiber • Helping carriers deliver new revenue generating services and reduce operational expenses • Op-Ex – one platform, multiple services ® Adtran, Inc. 2008 All rights reserved 26 Unprecedented Success Total Access 5000 – Integrated into all three Tier 1s ATM to Ethernet Interworking – IP DSLAM BBDLC – FTTN / FTTP Ethernet over Copper and TDM – Tier II Approved, Deployed or FOA in four of five MSAP – Tier III & CLEC Approved, Deployed in over 100 companies MSAP Over 5,200 Total Access 5000s deployed Early in product lifecycle – Tremendous upside – Flagship product ® Adtran, Inc. 2008 All rights reserved 27 Fundamentally Different Ethernet based MSAP – Highly scalable Ethernet switch fabric – All services converted to Ethernet on access modules – SM natively switches Ethernet – No resources modules to add services Carrier-class platform – – – – – Chassis-based system Performance Redundancy Serviceability Hardened Supports legacy and advanced packet services Designed for an all IP future ® Adtran, Inc. 2008 All rights reserved 28 System Architecture Fully redundant dual star bus backplane Common Control – Native IP/Ethernet architecture – Up to 20 Gbps per slot bi-directional – Three (3) common control slots with carrier class redundancy – Twenty-One (21) configurable access slots Physical – 23” rack mount – 15.75” height (9RU) – Environmentally hardened for Central Office or OSP deployment Access Modules Capacity to meet future bandwidth demands ® Adtran, Inc. 2008 All rights reserved 29 Flexible Transport Options • Many Transport Options – All Ethernet based – BBDLC, IP DSLAM, and Ethernet Services are supported • Ethernet Ring – 2.5Gb RPR – 10Gb ERPS GR303 TR008 MGCP SIP 1 to 10 GigE 2.5/10G Ring COT • Gigabit Ethernet Star – Scale with Quad GE Line Module GigE GigE • Gigabit Ethernet Linear Chain – Fiber starved environments Sub-ring support – From RT nodes GigE All Fully Redundant Intra-nodal 2.5G connections – Quad GE – SM Chain ® Adtran, Inc. 2008 All rights reserved 30 ERPS Access Ring Ethernet Ring Protection Switching 10G Link Aggregation – ITU-T G.8032 standards based – Fully redundant – 10 Gbps line rate with 10 Gbps throughput on the ring – 10 Gbps add/drop from each span – Interface via XFP cages on faceplate of SM – All Ethernet solution Integrated transport – Transport and uplink on SMs – Redundant hardware and path Same UI, point-to-point buses – East and West Advanced capabilities – Topology Aware Easy adds and deletes No single point of failure – Misconfiguration Detection – Wait to Restore (WTR) East and West 10G ERPS ® Adtran, Inc. 2008 All rights reserved 31 Leveraging SONET • Utilize SONET network for transport • COT or RT connectivity • Up to 4 bonded DS3 uplink 1 to 10 GigE 2.5/10G Ring GR303 TR008 COT DS3 DS3 GigE EFM Bonded DS3s TDM / SONET Network EFM Bonded DS3s • Perfect for CLECing or SONET fed cabinets • Scales as an aggregated uplink, not separate STSs • Ethernet model with TDM transport • EFM 802.3ah ® Adtran, Inc. 2008 All rights reserved 32 Additional benefits ® Adtran, Inc. 2010 All rights reserved The Access Network Many Pieces of the Access Network Puzzle – – – – – Next Gen Network Network Migration To Retrofit or not Copper and fiber Multi-play service delivery No single solution for all networks – FTTP – FTTN – Transport – star, chain, ring Network Solutions to Build on Service delivery is key Minimize Friction ® Adtran, Inc. 2008 All rights reserved 34 Complete Access Solutions Broadband Product Suite for Copper and Fiber Delivery Central Office ® Adtran, Inc. 2008 All rights reserved Remote Terminal Remote Node Customer Premises 35 Providing Smart Connectivity for Delivery of Services Broadband Access Network Transport/Aggregation – Higher Speed Internet – Optical – IPTV / VoD – Ethernet – POTS / Specials – Mobile Backhaul VoIP/IP Telephony – Leading Softswitch Interop – Network Migration – Switch Collapse Metro Ethernet – Fiber and Copper Managed Network Services – Provisioning – Fault Management – Performance Management ® Adtran, Inc. 2008 All rights reserved 36 Beyond the Products Active Standards Participation – – – – – IEEE FSAN MEF DSL Forum ITU Staff Scientists drive standards – Ensure Product adherence – Push for latest technologies Combine research with realism – Understand OSP deployment realities Copper and Fiber based Innovate rather than provide “off the shelf” solutions ® Adtran, Inc. 2008 All rights reserved 37 Foundation for Success • Reliable access for today’s communications networks – Comprehensive product portfolio – Founded in 1985 – 2009 revenue $484M • 124M in 4Q09 • 18M profit – 1,700 employees worldwide • Traded on NASDAQ: ADTN • Product Development Locations – Huntsville, AL (Corporate HQ) – Phoenix, AZ – Mountain View, CA • Stability in tough times – > 270M in cash – Debt free – Managing expenses ® Adtran, Inc. 2008 All rights reserved 38 More Than Just Products Benefits ADTRAN brings – – – – – No Maintenance Fees No Software Upgrade Fees No Tech Support Fees 10 year warranty Total Access EMS manages complete suite of ADTRAN products Large but agile – Quick turns on new product development – Engineering teams are involved with customer requirements Focused SP team – RBOCs & CLECs have dedicated teams ® Adtran, Inc. 2008 All rights reserved 39 Summary Fully Featured MSAP for Advanced Service Delivery – – – – – – All Ethernet architecture 1G to 10G transport and uplinks Backplane exceeds bandwidth needs Standards-based Carrier-class chassis design Copper and Fiber Solutions Solutions for GPON and Active Eth – Breadth of ONTs – Addition of Active Ethernet – Single platform support Dedicated to Customer’s Success – 10 Year Warranty – No TAC or Software Fees – Will be here for the long haul ® Adtran, Inc. 2008 All rights reserved 40 Question and Answers ® Adtran, Inc. 2008 All rights reserved 41