1 MEF Keynote Ethernet Services + MSOs = Success! Nan Chen President MEF President Qosera

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MEF KeynoteEthernet Services + MSOs = Success!

Nan ChenPresident MEF

President Qosera

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MEF@SCTE Expo 08

• MEF Update & Review– The MEF, its mission & key areas of work– Membership Growth: Cable Operators/MSOs embrace Carrier Ethernet – What is Carrier Ethernet?– New Standards & certification just announced– Business drivers and growth for the whole Carrier Ethernet market

• Ethernet Services + MSOs– Business expansion driven by footprint and mid-market opportunities– Carrier Ethernet for cable operators

• Other new Initiatives for MSOs– Global Service Directory– Mobile Backhaul

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The MEF

• Representative group of 146 service providers (Carriers & MSOs), equipment providers, software & test companies with uniformity of purpose - to accelerate the global adoption of Carrier Ethernet networks & services

• Highly successful in establishing 20+ globally adopted Carrier-class Ethernet specifications

• Over 200+ industry thought leaders at each quarterly meeting developing technical and marketing programs on a global and regional basis

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MEF Membership Includes increasing MSOs and related Suppliers

Now 146 Members• AboveNet• Alpheus Communications • AT&T• Bell Canada• Bright House Networks• British Telecom• Cable & Wireless• Charter Communications• China Telecom• Cincinnati Bell• Colt• Comcast• Cox Business• Demand Broadband • Embarq• IPC• KDDI R&D Laboratories• KPN Telecom• Level 3 Communications• ntl: Telewest• NTT• Optimum Lightpath• Orange Business Services• PCCW• PT Inovação

Service Provider, Cable/MSO Members

50

70

90

110

130

150

2006 2008

May 2008

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• Accedian Networks• Actelis Networks• Adtran• Adva Optical

Networking• Aethera Networks• Agilent Technologies• Aktino• Alcatel- Lucent• AMCC• ANDA Networks• ARRIS International• Atrica• Aurora Networks• Axerra Networks• Bay Microsystems• Broadcom• BTI Photonics• CableLabs• Calix• Canoga Perkins• Ceterus Networks• Ceragon Networks• Ciena Corporation• Cisco

Equipment Vendors, Test Companies, Lab Members

• Corrigent Systems • D-Link• Do Networks• Dowslake Microsystems• DragonWave• EANTC• ECI Telecom • Ericsson• Ethos Networks • EXFO• Extreme Networks• FibroLAN• FiberHome Technologies• Fluke Networks• Foundry Networks• Fujitsu Network

Communications• Gridpoint Systems• Hammerhead Systems• Harris Stratex• Hatteras Networks• Hitachi Cable• Huawei Technologies• IMC Networks• Infovista

• Iometrix• IP Infusion• Ixia• JDSU• Juniper Networks• Lightstorm Networks• Maipu Communications• Matisse Networks• Maxim• Motorola• MRV Communications• Nakina Systems• NEC• Nokia Siemens Networks • Nortel Networks Corp.• Occam Networks• Omnitron Systems• Overture Networks• Qosera• PCT International • RAD Data Communications• Raisecom• Resolute Networks• Rivulet Communications• Safenet

• Salira• SMC Networks • Soapstone Networks• Spirent Communications• Sunrise Telecom• T | Pack• Tejas Networks• Telco Systems• Telcordia Technologies• Tellabs• Telrad Networks• Transition Networks• Transmode Optical• Transwitch Corporation• Turin Networks• UNH-IOL• UTStarcom• Vitesse• Wipro• Wintegra• Wuhan Fiberhome Networks• Zarlink Semiconductor• Zhone• ZTE Corporation• Zyxel Communications

• Membership doubled over 2 years

• Diverse mix of SP, vendor and test groups

• Commitment and active involvement in Forum workgroups

• PT Prime• Qwest Communications• RCN Business Solutions• Reliance

Communications• Shanghai Information

Network• Singapore Telecom • Sprint• Suddenlink• Swisscom• Symphony

Communication• TATA Communications• Telecom Italia• Telekom Malaysia• Teliasonera AB• Telstra• Telus• Time Warner Cable• Time Warner Telecom• T-Systems• Uecomm• Verizon Business• XO Communications

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Carrier Ethernet Defined

Carrier Ethernet is:

Defined by five attributes that distinguish it from familiar LAN based Ethernet

A ubiquitous, standardized, carrier-class Service and Network

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Carrier Ethernet Scope and Reach

SoHo & Residential Triple-PlaySmall/Medium BusinessEnterprise Clients Mobile data/video

HD TV, TVoD, VoD, Content Providers

VideoSource

Gaming, DR, ERP Voice/VideoTelephony

Internet information & Software apps

Host applications, Consolidated

Servers

Carrier Ethernet Carrier Ethernet wire-line and mobile backhaul

with copper, fiber , cable, wireless access network delivery

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Carrier Ethernet for Mission Critical Applications

• Top Market Sectors• Healthcare, finance, education, government, media

• Principal Applications• Site-to-site access, server consolidation, business

continuity / disaster recovery, software as a service (SaaS), service orientated architecture (SOA), Internet access, distributed imagining, converged networking

• Benefits• Scalability, control, reliability, performance, data center &

server consolidation, expedites and enables new applications

• Cost reduction, revenue acceleration

Carrier Ethernet brings significant business benefits to mission critical applications

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Worldwide Business Ethernet Services

• Robust enterprise customer demand is projected for the next five years, with double-digit annual growth across all geographic regional markets: Asia/Pacific, EMEA, U.S., and ROW.

• Service providers throughout the world are committed to Ethernet as the future ubiquitous standard for network service connectivity.

• Ethernet equipment vendors are actively enabling this important transition.

• Customer accessibility to fiber facilities is the top challenge to worldwide growth of Ethernet services.

• Detailed market statistics are available through Vertical Systems Group’s ENS Research Programs (www.verticalsystems.com).

Business applications for Ethernet Services include Dedicated Internet Access (DIA), Ethernet Private Lines, Ethernet LAN / VPLS, and Ethernet access to other network services (e.g., IP/MPLS VPNs, Frame Relay, etc.).

Worldwide revenue for Business Ethernet Services mounts steadily to nearly $31 billion by 2012.

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Ethernet Services + MSOs = Success!

Carrier Ethernet enabled applications,

Simple technology, Certified, ubiquitous services

are key and ideal for mid market expansion for

MSO and Cable Operators

Carrier Ethernet enabled applications,

Simple technology, Certified, ubiquitous services

are key and ideal for mid market expansion for

MSO and Cable Operators

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Carrier Ethernet Architecture for Cable Operators

Headend Hub

EQAM

CMTS

Optical Metro Ring Network

VideoServer

D2A

AdInsertion

E-LAN

E-LineBusiness Services over Fiber (GigE)

Voice gateway

Voice/VideoTelephony

Digital TV, VOD,

Interactive TV, Gaming

Managed BusinessApplications

InternetAccess

AnalogTV Feeds

A2D

HubUNIUNI

CECE

E-NNIE-NNI

Another MSO or carrierNetwork

EoDOCSIS(future)

EoT1/DS3

PON

Greenfield Residential & Business Services

EoSONET/SDH,EoPDH

CECEUNIUNI

WDM

UNIUNIHome RunFiber

EoCoaxEoHFC

SwitchedFiber

Business Park

Business Services

Node

E-LineE-LAN

CECE

UNIUNI

CECE

WirelessPlant

ExtensionLeasedT1/DS3

CECEUNIUNI

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MSOs + Carrier Ethernet: Business grows locally

Mid-MarketHome Office

Home OfficeBranch Office or Retail

HD TV, TVoD, VoD, Content Providers

VideoSource

Gaming, DR, ERP Voice/VideoTelephony



Servers


Multi-regional cable operators extend footprint but are limited to selected markets

Via Carriers: QoS, bandwidth

& varies by region.

Simple low cost Carrier Ethernet

services grows Mid market business,

but still has limited penetration Carrier Ethernet

Network

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MSOs + Carrier Ethernet:Business growth improves nationally and globally


Cable Operator A

VideoSource



Servers, VoIP, etc


Cable Operator A


Business footprint unlimited, spanning other

cable operators and service providers

Carrier/PTT

Cable Operator B

Branch Offices

Standardized QoS, bandwidth

Carrier Ethernet Network

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VideoSource



Servers, VoIP, etc

MSOs + Carrier Ethernet: New Wholesaling Opportunities


Cable Operator A



Cable Operator B

Branch Offices

Cable Operator ACarrier Ethernet Network

Branch Office

Carrier/PTT

Large Enterprise

Remote Carrier buys wholesale service to access

branch office with Carrier Ethernet connections

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Drivers for Carrier Ethernet in the Cable Industry

• Business Benefits– Expansion of business footprint beyond local and regional

footprint– Cooperation and wholesale revenue from traditional carriers– Pooling of resources, simplicity of implementation enables

business cooperation creates new opportunities

• Standardization– Definition of Carrier Ethernet & implementation of products to

MEF specifications creates standardized networking within and between MSOs

• Certification now available for products, services– Certification of both products and services

creates confidence and scalability– 70 Services, 400 systems, 75 suppliers

and service providers now approved

• Rapid expansion, recognition of Carrier Ethernet TM

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Other Related New Initiatives

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MEF 18 Certification (1st announced companies June 18th)

• MEF 18 provides standard testing of Circuit Emulation Services over Ethernet – Speeds implementation and enables full inter-operability– 334 ground breaking tests and certification in the suite– MEF 18 has many applications but is key to Mobile Backhaul

migration strategies• Lead by strong service provider demand• Industry first impairment testing brings first test of

emulation of clock recovery• Raise the level of confidence that clock recovery will

meet the stringent requirements.

• Comparison with ITU 8261– ITU 8261 does not define a profile that allows a deterministic and

repeatable test– MEF 18 Certification: the first test bed to produce repeatable results

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Why a Certification Program?

• Assures service providers that Carrier Ethernet Equipment complies with MEF Specifications

• Assures enterprises that Certified Carrier Ethernet services will perform to defined service level specifications – minimizes risk

• Facilitates migration to Carrier Ethernet – Assurance that SP Carrier Ethernet offering is reliable and supports converged applications

“Are you MEF compliant?” frequently seen in RFP’s

MEF 9, MEF 14, MEF 18 for Equipment Manufacturers

MEF 9, MEF 14, for Service Providers

Approaching 500 systems and services certified

19 service providers, 59 equipment manufacturers

June 18, 2008

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New Global Services Directory

• Business Users– Find Carrier Ethernet services anywhere in the world.

• Service Providers (Carriers/MSOs)– Find a partner to build a global Carrier Ethernet service.

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Carrier Ethernet for Mobile Backhaul

• Carrier Ethernet – Economically meets exploding bandwidth requirements currently

constrained by the prohibitive costs of legacy networks – Leverages rapid move to Carrier Ethernet for wire-line traffic enabling

a single integrated wire-line and mobile backhaul network– Much easier for service providers to manage and maintain

• Most mobile traffic is broadband/IP centric– Carrier Ethernet is optimized for packet data traffic

• Overcomes TDM (T1/E1) services scalability – This alone makes Carrier Ethernet the compelling choice

• Time/urgency– Carrier Ethernet removes the barrier to timely progress

Worldwide Mobile Backhaul Service Charges per Connection:

PDH and ATM over PDH vs New Wireline

$21,780

$8,920

$0

$10,000

$20,000

$30,000

$40,000

CY05 CY06 CY07 CY08 CY09 CY10

Calendar Year

Re

ve

nu

e

PDH and ATMover PDH

New wireline

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Thank You

Q&AVisit www.metroethernetforum.org

Documents

1 MEF Keynote Ethernet Services + MSOs = Success! Nan Chen President MEF President Qosera