Mobile Network Evolution Transforming Wireless Backhaul Networks to all-IP

Presentation Contents Mobile Backhaul market drivers Why use microwave backhaul? Mobile Network Evolution Eclipse Packet Node Backhaul Solution Summary

Mobile Backhaul market drivers

Why use microwave backhaul?

Mobile Network Evolution

Eclipse Packet Node Backhaul Solution

Summary

The Growing Revenue Gap Increased data traffic Falling revenues Operators must lower OPEX

Increased data traffic

Falling revenues

Increased mobile broadband download speeds Growing download speeds will drive the need for increased backhaul network capacity Operators also need to lower network costs and manage network migration Source: Vodafone Technology Update March 2008

Growing download speeds will drive the need for increased backhaul network capacity

Operators also need to lower network costs and manage network migration

Huge expected growth in Broadband traffic Relative data download per user (company estimates) 2005 2015 x 450 Significant Backhaul Bandwidth Crunch Wireless Backhaul Has Lower Total Cost of Ownership 2009 x 30

Increasing backhaul capacity Backhaul capacity requirements growing rapidly, esp. in urban areas Traditional reliance on leased lines will not meet future capacity needs Fiber connectivity replacing copper Microwave backhaul will play an increasingly important role Source: Heavy Reading’s Ethernet Backhaul Quarterly Tracker Service

Backhaul capacity requirements growing rapidly, esp. in urban areas

Traditional reliance on leased lines will not meet future capacity needs

Fiber connectivity replacing copper

Microwave backhaul will play an increasingly important role

Wireless Backhaul Works! Cost-effective alternative to leased lines or fiber deployment Fast payback – ROI within 12 months or less Rapid deployment – carry traffic in a matter of days Spans difficult terrain and/or long distances Re-deployable Highly reliable – guaranteed 99.999% link availability Key technology for 4G backhaul

Cost-effective alternative to leased lines or fiber deployment

Fast payback – ROI within 12 months or less

Rapid deployment – carry traffic in a matter of days

Spans difficult terrain and/or long distances

Re-deployable

Highly reliable – guaranteed 99.999% link availability

The dominant backhaul technology, globally >50% of the world’s mobile base stations are connected by microwave The global market for microwave backhaul is growing at 6% CAGR (2008 -2013) The growth of Ethernet/IP microwave is growing at >20% Source: Skylight Research & HSTX June 2008 Data $Bn $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 2008 2009 2010 2011 2012 2013 Legacy TDM Ethernet/IP Capable

>50% of the world’s mobile base stations are connected by microwave

The global market for microwave backhaul is growing at 6% CAGR (2008 -2013)

The growth of Ethernet/IP microwave is growing at >20%

Wireless Backhaul balances conflicting network needs Maintain existing service quality and continuity Reduce costs Reduce network deployment time Increase network capacity Improved spectrum efficiency Introduce new data services

Key Considerations for Mobile Operators Backhaul networks are key for Operator success Extend the network to remote areas to provide basic, low cost voice services Make more efficient use of limited and/or costly backhaul spectrum resources Prepare the network to support next generation IP-based broadband services and traffic demands Microwave is, and will remain, the dominant technology deployed for mobile backhaul networks worldwide Driving down operational costs

Backhaul networks are key for Operator success

Extend the network to remote areas to provide basic, low cost voice services

Make more efficient use of limited and/or costly backhaul spectrum resources

Prepare the network to support next generation IP-based broadband services and traffic demands

Microwave is, and will remain, the dominant technology deployed for mobile backhaul networks worldwide

Long Term Network Evolution with Graceful Migration Mobile backhaul networks must evolve Introduction of IP transport to support new broadband services Optimizing the network to support hybrid TDM+IP Maintain high quality TDM voice services – the bread and butter Support network expansion Gradual migration path the next generation 4G Maintain existing TDM voice services Transition Optimization & introduction of IP Transform All-Packet 4G Backhaul

Mobile backhaul networks must evolve

Introduction of IP transport to support new broadband services

Optimizing the network to support hybrid TDM+IP

Maintain high quality TDM voice services – the bread and butter

Support network expansion

Gradual migration path the next generation 4G

Eclipse Packet Node Microwave Transport LTE-ready wireless backhaul Highest nodal switching capacity on the market Highest radio throughput on the market Enhanced packet handling and switching Integrated features to facilitate and accelerate network migration Gigabit IP transport for 4G Networks

LTE-ready wireless backhaul

Highest nodal switching capacity on the market

Highest radio throughput on the market

Enhanced packet handling and switching

Integrated features to facilitate and accelerate network migration

Eclipse Packet Node delivers Quality of Experience 4G backhaul solution to support next generation mobile broadband services Avoid the ‘backhaul bottleneck’ and the ‘Capacity Crunch’ The leading wireless packet transport product Enables smooth transition from legacy networks Deliver the ultimate end-user experience

4G backhaul solution to support next generation mobile broadband services

Avoid the ‘backhaul bottleneck’ and the ‘Capacity Crunch’

The leading wireless packet transport product

Enables smooth transition from legacy networks

Complete solution for ‘any-G’ mobile network backhaul

Eclipse Packet Node Platform Advanced nodal indoor unit supports multiple radio paths Simple link or more complex linear/ring add/drop Equipment protection and diversity Choice of indoor (IRU600) or outdoor (ODU300) mounted RF unit Indoor Networking Unit Outdoor RF Unit All-Indoor RF Unit

Advanced nodal indoor unit supports multiple radio paths

Simple link or more complex linear/ring add/drop

Equipment protection and diversity

Choice of indoor (IRU600) or outdoor (ODU300) mounted RF unit

Highest Capacity Wireless Node 25 Gbit/s aggregate nodal switching capacity Enhanced traffic processing for maximum throughput Next generation modem technology Next-generation Layer 2 Ethernet switch New modules provide advanced features for network convergence and synchronization The leading nodal IP transport platform

25 Gbit/s aggregate nodal switching capacity

Enhanced traffic processing for maximum throughput

Next generation modem technology

Next-generation Layer 2 Ethernet switch

New modules provide advanced features for network convergence and synchronization

Intelligent Networking Unit Multi-service transport for both TDM and IP data 5 Gbit/s of Native IP traffic handling capacity Independent support for 200 Mbit/s of native TDM traffic Multi-Service Transport for Network Convergence

Multi-service transport for both TDM and IP data

5 Gbit/s of Native IP traffic handling capacity

Independent support for 200 Mbit/s of native TDM traffic

New IRU600 All-Indoor Radio Unit

IRU600 Key Features Specifically designed for North American applications All-indoor design for easy maintenance High system performance for long paths Lowest power consumption for green sites Compact design for minimal rack requirements Highest reliability for lowest overall OPEX Leading-edge IP transport capabilities

Specifically designed for North American applications

All-indoor design for easy maintenance

High system performance for long paths

Lowest power consumption for green sites

Compact design for minimal rack requirements

Highest reliability for lowest overall OPEX

Other IRU Key Characteristics 5.8 to 11 GHz Licensed & Unlicensed band coverage Up to 400 Mbit/s throughput per channel Easy combination of multiple channels for >>1 Gbit/s link speeds Full native IP, or hybrid mixed mode transport

5.8 to 11 GHz Licensed & Unlicensed band coverage

Up to 400 Mbit/s throughput per channel

Easy combination of multiple channels for >>1 Gbit/s link speeds

Full native IP, or hybrid mixed mode transport

Packet Node accelerates backhaul speeds Dazzling backhaul capacities now possible over a single RF channel Achieved using unique combination of: 256QAM Adaptive Coding and Modulation Co-channel operation with XPIC Ethernet frame suppression and compression Layer 1 Link Aggregation

Dazzling backhaul capacities now possible over a single RF channel

Achieved using unique combination of:

256QAM Adaptive Coding and Modulation

Co-channel operation with XPIC

Ethernet frame suppression and compression

Layer 1 Link Aggregation

Significantly more IP throughput *Throughputs are based upon 256QAM, co-channel operation with XPIC, for 64 byte Ethernet frame size * *

Adaptive Coding and Modulation More than triple link capacity without extra bandwidth Dynamic adjustment of both modulation and link FEC coding Adaptive Modulation from QPSK to 256QAM Adaptive Coding for either high throughput (light) or high system gain (heavy) Automatic traffic queuing and prioritization by built-in Layer 2 Ethernet switch

More than triple link capacity without extra bandwidth

Dynamic adjustment of both modulation and link FEC coding

Adaptive Modulation from QPSK to 256QAM

Adaptive Coding for either high throughput (light) or high system gain (heavy)

Automatic traffic queuing and prioritization by built-in Layer 2 Ethernet switch

A Key Component for 4G Network Evolution Packet Node provides the ultimate LTE-ready backhaul solution, to enable smooth wireless infrastructure evolution and transformation.

Packet Node provides the ultimate LTE-ready backhaul solution, to enable smooth wireless infrastructure evolution and transformation.

Meet Your 4G Network Challenges Manage Explosive Growth with industry leading 4G backhaul capacity Extend your Investment with seamless network migration Simplify your Network with a converged backhaul/transport solution Achieve “Peace of Mind” with turnkey packet-based services

Manage Explosive Growth

with industry leading 4G backhaul capacity

Extend your Investment

with seamless network migration

Simplify your Network

with a converged backhaul/transport solution

Achieve “Peace of Mind”

with turnkey packet-based services