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Axerra Networks Solutions for Mobile Backhaul

About Axerra Networks

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Founded in 1999 Global provider of

SERVICE CONVERGENCE

solutions over packet transport

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A leading vendor of multiservice pseudowire solutions Active standard bodies participants and influencer Field proven with live deployments Award winning products Offices around the world

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Israel (HQ), EMEA, Russia (incl. CIS), USA, APAC (Hong Kong, Singapore) Financed by strong investors

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Carmel Ventures TLcom HarbourVest

Mobile Backhaul - Key Market Trends

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Enhanced user experience demands higher-speed data rates

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HSPA – the “killer application” for mobile backhaul – Flat rate

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Installed Worldwide cell site connections will grow from 3M in 2008 to 4.2M in 2011

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The vast majority of today installed cell sites are T1/E1 based

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Many of the cell sites can’t be upgraded to Ethernet

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Ethernet to the cell site will be required in order to support future NodeB / eNB (LTE)

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4G (LTE, WiMax) technology standardization is in final stage of the approval process

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Will take 3-4 years until mass deployment

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Many operators will use PW as IP solution until LTE availability in order to skip one hardware upgrade phase

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Access is definitely the bandwidth bottleneck

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PDH/TDM is not a scalable solution 5,000

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Backhaul networks migrating to Ethernet 4,000

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The mobile RAN is migrating from TDM and ATM to IP/ETH

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“All IP” RAN evolution will happen gradually and not in one step 3,000 2,000 1,000

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2G/3G Base Stations will co-exist for a long time with 3G taking over gradually

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Base Stations with TDM/ATM I/Fs will stay for at last 3~5 years 0 Installed connections New connections CY05 CY06 Worldwide Mobile Backhaul: Installed vs New Connections CY07 CY08 CY09 CY10

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, October 2008

CY11

TDM Backhaul Hits the Breaking Point

Ethernet Solutions for Cell Backhaul

Source: T-Mobile Europe

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Capacity requirements grow

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E1/T1 costs grow linearly Need to decouple cost and capacity Ethernet is more efficient over any media

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HSPA Base Stations come with Ethernet ports

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Ethernet enables scalable, flexible, lower cost per bit bandwidth to the cell site:

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Optimized for data Convergence

Migration to Ethernet

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WiMAX and 4G in general

Migrating to Ethernet Transport - MEF Use Cases

Hybrid RAN/HSPA Offload Enables phased migration to Ethernet while: Utilizing low cost and available broadband technology for transporting HSPA traffic

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Packet offload over Carrier Ethernet (HSPA offload)

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Overlay Carrier Ethernet does bandwidth offloading onto Ethernet services

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Legacy network continues to transport voice and deliver timing/signaling

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Voice services are migrated onto Ethernet in a later phase “Big Bang”

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Emulation over Carrier Ethernet (legacy services over Ethernet)

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RAN nodes with legacy interfaces transport all traffic over Ethernet services using emulation technologies – from Day 1

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Pseudo-Wire => the Packet-based RAN Migration Enabler

For the next few years the vast majority of cell site connections will be based on T1/E1 interfaces

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About 1/3 of overall cell sites are collocated 2G/3G sites Growing demand for Ethernet connectivity to high capacity cell sites

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The amount of bandwidth per cell site is estimated to grow by 3x to 4x over time

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New 3G and 4G NodeB will use Ethernet interfaces Most additions of 3G cell sites will take place in existing 2G cell sites

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Operators use existing foot print of 2G cell sites All traffic originating from the cell site will be carried over Ethernet using PWE3 gear Use PWE3 gear to serve collocated 2G/3G sites Use PWE3 gear with advanced functionality (Ethernet Link/Services OA&M and PM)

PWE3 CPE will become an Ethernet Demarcation Device

Widespread Agreement on the Need for Pseudo-Wires (PW)

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Major operators are deploying PW solutions at the cell site and it plays an important role in the evolution of mobile backhaul networks to IP/Ethernet

– Some of the operators that announced PW deployment in 2007: T-Mobile, Telecom Italia, Swisscom, Taiwan Mobile, and eMobile (Japan) – Standardisation is almost accomplished, including 1588-2008 Precision Time Protocol – For most carriers it’s not a question of “if” but a question of “where” and “when”

NodeB BTS ATM/IMA E1 ETH R5/LTE/ WiMax Emulated TDM/ ATM/HDLC PW Service ETH PWE3 Cell Site Device G.823/824/8261 Compliant Clock Carrier Ethernet RAN ETH PWE3 Gateway

TDM ATM IP BSC RNC aGW

PWE3 CPE Will Become an Ethernet Demarcation Device

Monitoring SLA Over 3rd Party Transport Networks

CE Subscriber Interface OAM PWE3Access Device Network Interface OAM AC UNI Eth Link OAM Ethernet Link OA&M: Discovery, Link Monitoring, Remote Failure Indication, and Loopback Network Interface OAM

PWE3 GW

Subscriber Interface OAM PE PSN Tunnel PE UNI Eth Link OAM AC CE Ethernet Service OAM PW OAM

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Ethernet demarcation features enable:

– End to End Service Level Assurance  Ethernet QoS – Investment protection  PWE3 CPE of today will evolve to Ethernet Demarcation Device – Lower total cost of ownership  Fewer devices in the Cell Tower 8 - © 2009 Axerra Networks®. All rights reserved.

Highlights of Key Trends in Mobile Backhaul

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Migration to IP/MPLS backhaul networks is inevitable

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Drivers are RAN capacity growth, IP base stations and service evolution Immediate OpEx savings and short ROI

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Carriers will deploy Ethernet for 3G and 4G backhaul to realize significant cost advantages and close the gap between mobile revenue and expense

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Investment protection

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Shifting to Ethernet Assurance and added value features … RAN Evolution versus Revolution

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2G/3G Base Stations are collocated and will co-exist for a long time with 3G taking over gradually

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Migration to All IP RAN will happen gradually and not in one step PW Mobile Backhaul solutions are picking up, becoming mainstream

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Pseudo-Wire is the Packet-based RAN Migration Enabler Field-proven with large deployments PW Mobile Backhaul Solutions Available Today..for 2G, 3G, and Beyond

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PW Mobile Backhaul over ANY packet transport network

Typical 2G/3G RAN Backhaul Architecture

Radio Access Network BTS Abis E1/T1 Iub TDM Leased Lines ATM/IMA, n x E1/T1 NodeB E1/ T1/ ChSTM-1 DXC E1/T1 ChSTM-1 ATM Switch Abis E1/ T1/ ChSTM-1 BSC A Iub STM-1 ATM RNC Iu Both 2G TDM and 3G ATM traffic are backhauled over TDM leased lines Leased lines for backhaul today account for 20%-40% of Mobile Operators’ Operational Expenses (OpEx)

Key Requirements of Ethernet-based Backhaul

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Meeting clocking/synchronization requirements

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Compliant with G.823/824/8261

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Low end-to-end delay must be maintained

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Ethernet Service and Link OAM & PM

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High Availability

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Ensuring QoS of different traffic types

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Voice, data, video, signaling, management, etc.

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Traffic Optimization (TDM grooming, ATM aggregation, encapsulation overhead reduction)

GSM/UMTS Backhaul over PSN

PSN Tunnel BTS Iub - ATM Pseudo-Wire Abis - CES Pseudo-Wire BSC E1/T1 WiMax WiFi ETH ETH Carrier Ethernet/ MPLS ETH Abis RNC NodeB Iub AXN10 PWE3 CPE AXN PWE3 Gateway Iub

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Supports all generations (GSM, EDGE, UMTS and HSPA) of mobile voice and data, also WiMax and WiFi and even Enterprise Services Preserves native features and signaling across packet networks

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Meets strict clock synchronization requirements through Axerra’s High-Precision Clock Recovery (HPCR ® )

– As specified in ETSI TS 125 402 or 3GPP TS25.104

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Ensures QoS of different traffic types such as voice, data, signaling, management, etc.

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Eliminates the need for expensive ATM switch

HPCR

–High Precision Clock Recovery ±15 PPB

BTS/NodeB E1/T1s AXN10 PWE3 CPE Carrier Ethernet/ MPLS AXN Gateway BSC/RNC E1/T1/STM-1 G.823/824/8261 Compliant Clock HPCR Synchronization Information High accuracy Primary Reference Source (PRS) clock

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Complies with ITU-T G.823, G.824, G.8261

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Designed to meet the clock synchronization requirements as specified in ETSI EN 300 912 and TS 125 402 “Synchronization in UTRAN stage 2."

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Tested and approved by major mobile equipment vendors

Backhaul from Cell Site - HSPA Offload

2G BTS E1s/Ch STM-1 SDH/Leased Lines NodeB

1-2xT1/E1 for R99 Voice/Signalling

T1/E1 E1s/Ch STM-1 ATM Switch STM-1 ATM BSC AXN10 PWE3 ETH

HSDPA

ADSL DSL + Ethernet or IP or ATM ETH/ATM AXN PWE3 Gateway Emulated ATM Circuits

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The Hybrid approach:

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R99 voice/data and signaling remain on traditional TDM leased lines HSPA data traffic runs on Ethernet network – possibly ADSL

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Enables phased migration to Ethernet while:

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Utilizing low-cost and available broadband technology for transporting HSDPA traffic

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Lower quality Ethernet network needed HPCR not needed: sync via SDH – same as today

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Lower cost savings, but possibly easier deployment

RNC

Backhaul From Aggregation/Hubbing PoP

BTS/ BTS/ NodeB NodeB BTS/ NodeB PmP LL nxE1/T1s PDH MW STM-1 ATM Hubbing Site ETH Central Site (CO) BSC nxCh. STM-1 Carrier Ethernet/ IP/ MPLS Transport ETH AXN Gateway nxSTM-1 ATM RNC Emulated TDM/ATM Circuits

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The majority of cells will use TDM access for many years

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About 75% of cells in 2009 will still be connected over Microwave and PDH/SDH Today Tier 2 backhaul is done mainly with SONET/SDH but Ethernet/MPLS will follow to the Aggregation PoPs Carrier Ethernet and MPLS will be available in Aggregation PoPs much earlier than in the cells Wireline and Wireless network unification plays a major factor Provides major OpEx saving Extends grooming to hub sites - 3/1/0 and VPI/VCI

Multiple Services – One Solution

MSC

BSC

BTS T1/E1 ATM FR/HDLC 3G Ethernet EVDO WiMAX Ethernet Cell Site

AXN Pseudo-Wire Tunnel Multiprotocol Pseudo-Wires Ethernet Service AXN

TDM ATM/FR/HDLC GigE

RNC RNC Axerra Service CES Pseudo-Wire ATM Pseudo-Wire HDLC Pseudo-Wire FR Pseudo-Wire Ethernet switching Supported Service AMPS, GSM, CDMA Cell Site Interface TDM: T1/E1, DS3/E3, OC3/STM-1 UMTS, HSDPA 1xRTT, EVDO iDEN EVDO, WiMAX, 4G MSC Interface TDM: T1/E1, DS3/E3, OC3/STM-1, Benefit B/W gains from DS0 grooming ATM & ATM IMA: T1/E1, DS3/E3, OC3/STM-1 HDLC: FR: T1/E1, DS3/E3 T1/E1, DS3/E3 Ethernet: FE ATM: T1/E1, DS3/E3, OC3/STM-1 HDLC: T1/E1, DS3/E3, OC3/STM-1 FR: T1/E1, DS3/E3, OC3/STM-1 Ethernet: GigE Stat-mux gains No ATM switch needed in CO Stat-mux gains HDLC data interface Stat-mux gains FR data interface No need for TDM interface on router

Axerra’s Complete Product Family

AXN Product Portfolio of Access Devices and Gateways

Capacity

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Scalable family of platforms

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1 to 1000 E1/T1 capacity Carrier Class Reliability 1000 E1/T1

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Multiservice Pseudo-Wire

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CES + Layer 2 Pseudo-Wire

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Pseudo-Wire flexibility

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Axerra-owned code Software-based architecture 5 patents + 1 pending 1 E1/T1 AXN1 CPE/Cell Site AXN10 MTU AXN800 AXNVision

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Point-and-Click provisioning

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Performance Monitoring

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Comprehensive Fault Management

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Standards-based AXN1600 N PoP/CO Location

Axerra’s Unique Value Proposition

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Single and robust platform supporting both Mobile Backhaul and Business Service Delivery

– Best-of-Breed Pseudo-Wire industry leader and solution provider – Enable leased line replacement such as PBX backhaul and converging legacy services over PSN covering private line, FR, ATM, and HDLC services – Multiple Services – One Solution 

Beyond Circuit Emulation – variety of Layer-2 Pseudo-Wire services

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Scalable solution with modular and flexible platform

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Supports all generations of mobile & business services

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Robust and accurate adaptive clock recovery mechanism

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Strong momentum with world class OEM and SI partners

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Field proven

Investor Presentation

Transcript Investor Presentation

Axerra Networks Solutions for Mobile Backhaul

About Axerra Networks

Mobile Backhaul - Key Market Trends

TDM Backhaul Hits the Breaking Point

Ethernet Solutions for Cell Backhaul

Migration to Ethernet

Migrating to Ethernet Transport - MEF Use Cases

Pseudo-Wire => the Packet-based RAN Migration Enabler

Widespread Agreement on the Need for Pseudo-Wires (PW)

PWE3 CPE Will Become an Ethernet Demarcation Device

Highlights of Key Trends in Mobile Backhaul

Typical 2G/3G RAN Backhaul Architecture

Key Requirements of Ethernet-based Backhaul

GSM/UMTS Backhaul over PSN

HPCR

–High Precision Clock Recovery ±15 PPB

Backhaul from Cell Site - HSPA Offload

Backhaul From Aggregation/Hubbing PoP

Multiple Services – One Solution

Axerra’s Complete Product Family

AXN Product Portfolio of Access Devices and Gateways

Axerra’s Unique Value Proposition

Thank you for your attention

Visit our website at www.axerra.com

Investor Presentation

Transcript Investor Presentation

Axerra Networks Solutions for Mobile Backhaul

About Axerra Networks

Mobile Backhaul - Key Market Trends

TDM Backhaul Hits the Breaking Point

Ethernet Solutions for Cell Backhaul

Migration to Ethernet

Migrating to Ethernet Transport - MEF Use Cases

Pseudo-Wire => the Packet-based RAN Migration Enabler

Widespread Agreement on the Need for Pseudo-Wires (PW)

PWE3 CPE Will Become an Ethernet Demarcation Device

Highlights of Key Trends in Mobile Backhaul

Typical 2G/3G RAN Backhaul Architecture

Key Requirements of Ethernet-based Backhaul

GSM/UMTS Backhaul over PSN

HPCR

–High Precision Clock Recovery ±15 PPB

Backhaul from Cell Site - HSPA Offload

Backhaul From Aggregation/Hubbing PoP

Multiple Services – One Solution

Axerra’s Complete Product Family

AXN Product Portfolio of Access Devices and Gateways

Axerra’s Unique Value Proposition

Thank you for your attention

Visit our website at www.axerra.com

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