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Maximizing the Impactof

Optical Technology

OFC/NFOEC 2007

Mark WegleitnerSenior VP – Technology, CTOVerizonMarch 27, 2007

© Verizon 2007 – All Rights Reserved2

Traffic Growth

0

100

200

300

400

500

600

700

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

NA

traf

fic v

olum

e (P

B/m

)

Streaming video

Streaming radio

Voice-over-IP

Web browsing

High-speed access

Music downloads

Game playing

Source: Ovum-RHK2000 2005 2010

2000

1500

1000

500

0

Video downloads

• More Subscribers• Higher Bandwidth Applications• Greater ConcurrencyPC adoption

Peta

byte

s/m

onth

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Verizon Optical Technology Thrusts

Time

1979:First Optical

TV transmission

1988:First FTTP

deployment

1993:First EDFAdeployment

1995:First OC-192deployment

2004:First large scale

FTTP deployment

2004:First US

ULHdeployment

2007:40G ULH

deployment

1977:First PSTN

Optical deployment

1982:First SMF

deployment

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The Verizon Global Network

• 6 Continents• 150+ Countries• 2700 Cities

One of the Largest Wholly Owned Facilities-Based Networks in the World

• 4500 PoPs• 446K Route Miles• 130K Enterprise Customer Relationships

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Keoje

NedonnaBeach

Toucheng

Chongming

QingdaoKeoje

NedonnaBeach

Toucheng

Chongming

Qingdao

China

U.S.

Korea.

• Total Distance Over 18,000 Km• Initial Capacity 1.28 Tbps• Design Capacity 5.12 Tbps • In Service 3Q08• Verizon Is The Only US Member Of The Initial

Consortium

Trans-Pacific Express

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Atlantic Mesh Network

Wet

TAT-14 North

TAT-14 South

Flag FA1 North

Apollo North

Apollo South

Terrestrial Terrestrial

Flag FA1 South

MultipleCountriesin Europe

• Multiple Diverse Paths On Land And Across The Sea• New Routes And More Capacity Being Added In 2007 • Automated, Control Plane Based Restoration Of Faults

East CoastUSA

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• Dynamic Service Provisioning and Maintenance–Self-Inventory –Self-Assignment –Self-Configuration–Self-Healing

Control Plane Based Network

RouterOXC ROADM ADM

Router

Service Control Network

B-SCP

CC C C C C

NG Optical Transport Network

A Fully Automated End-To-End Network

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ROADMROADM

ROADMROADM

ROADMROADM ROADMROADM

ROADMROADM

ROADMROADM

Multi-Degree ROADM

7100ROADM

WSS

WSS

ADM

ADM

WSS

ADM

ADM

WSS

Port

Port

Card

Card

Wavelength Selective Switch (WSS)• Supports Up To 8 Fiber Degrees• Switches Wavelengths Under Software Control• Improves Reach By Providing Per Wavelength Power Equalization

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Regional Network Infrastructure

• End Offices Start With Unidirectional Video Broadcast And Combined VOD/Data• Support An Architecture That Incrementally Scales Based On Demand• Amplifiers Pre-Positioned For Node Upgrade

DistributionRing

AggregationOffice

End Offices

End Offices

Long Haul POP

Video Hub

Office

Data Hub

Office

Data Hub

Office

Aggregation& End Office

DistributionRing

Core DWDM Network

Upgradeable Amps

Upgradeable Amps

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DistributionRing

DistributionRing

Regional Network Infrastructure

DistributionRing

AggregationOffice

Aggregation& End Office

AggregationOffice

End Offices

End Offices

Core DWDM Network

DistributionRing

Long Haul POP

Video Hub

OfficeAggregation& End Office

AggregationOffice

Data Hub

Office

Data Hub

Office

Aggregation& End Office

• Amplifiers Upgraded To Support Additional Aggregation Offices and Distribution Rings

• WSS Enables Easy Node Degree Increase

DistributionRing

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DistributionRing

Dual Hubbed

Spur

Spurs

SpursDistribution

Ring

Regional Network Infrastructure

• Core Structure Further Extended With Additional Aggregation Offices

DistributionRing

AggregationOffice

Aggregation& End Office

AggregationOffice

End Offices

End Offices

Core DWDM Network

DistributionRing

AggregationOffice

DistributionRing

AggregationOffice

Aggregation& End Office

DistributionRing

Long Haul POP

Video Hub

OfficeAggregation& End Office

AggregationOffice

Data Hub

Office

Data Hub

Office

Aggregation& End Office

• Spurs To Support Additional End Offices • Common Network To Support FiOS, IOF, And Enterprise Service

Infrastructure

DistributionRing

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Convergence

TDM

WDM

STS-1 & VT1.5 Switching

Packet

Ethernet & MPLS Switching

GFP & VCAT

P-OTP

Wavelength Switching

TDM-on-a-Wavelength

Packet Over Wavelength

• Network Flexibility• Service Flexibility• Lower Cost

A “Triple Play”In TransportTechnology

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Packet-OTP

TDM

TDM

Packet

TDM

Packet

PoS

TDM

Hybrid Fabric

VCAT

I/O I/O

PacketPacket

…

WSS ROADM

• Single Network Element• Hybrid Fabric To Support Mix Of TDM And Packet Switching • WSS Based ROADM To Support Multi-Degree Connectivity • Fully Automated Control Plane

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5 10 15 20 250 100

Upstream Downstream

510152025100Mbps

File Sharing, Home Video Sharing/Streaming

Multi-Player Gaming, Interactive Distance Learning

Large File Sharing

HDTV VODNetwork Hosted Applications & Storage

Video Conferencing, Premises Surveillance

Video Uploads/Downloads

SDTV VOD, Telecommuting

Next Generation 3D TV

Premises Web Hosting

Applications and Media Bandwidth

Web Surfing

Real Time SDTV, Network PVR

Upstream

FTTPVDSL2

ADSL2+ Cable Modem

ADSLWiMaxDial-Up

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FiOS

Next Slide

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Simplified FTTP Architecture

Power &

Battery

Data

POTS

OLT

Internet

Video

Super Head End

Broadcast VideoServices

SER

VideoHub

Office

VerizonIP

Network

Interactive VideoServices

VoiceNetwork

Local CO(Video Serving Office)

Medium HaulOptical Transport

Long HaulOptical Transport

ONT

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DownstreamUpstream

Voice, Data & VOD@ 622 Mbps

Broadcast Video(860 MHz equiv.)

Voice and Data@ 155 Mbps

Services & Bandwidth

FTTP BPON

OLT(Optical

LineTerminal)

ONT(Optical Network

Terminal)

Central Office Customer Premises

Video

Data

Voice

1x32

Optical Splitter

Optical Couplers (WDM)

1310 nm 1490 nm 1550 nm

VOD

EDFA Erbium Doped Fiber

Amplifier

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EDFA Erbium Doped Fiber

Amplifier

Optical Couplers (WDM)

ONTOptical Network

Terminal

Optical Splitter

1x32

• Increases Bandwidth– 2.4 Gbps/1.2 Gbps

• Initial Deployments Include A Third Wavelength To Maintain Service Package and Accelerate Deployment

• Expanded Bandwidth Enables Full IPTV Implementation Later

Central Office

FTTP GPON

Customer Premises

Data

Voice

VOD

OLT(Optical

LineTerminal)

Video

Announcement

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Verizon’s FTTP Deployment

Over 6M Homes Passed To DateTarget Is 18M By 2011 (3M / Year)GPON And More HDTV In 2007Same Infrastructure For SMB Markets

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Transport Generic Requirements

• Support Residential, Enterprise/Government, Wholesale, And Internal Requirements

• Remain “X”able– Accessible (Protocol Agnostic, Defined Interfaces) – Predictable (Throughput, Latency, ...)– Scalable (Rate Adaptive/Adjustable Port) – Reliable/Survivable (Protected – Nodal, Port, Link,

Route, Service, …)

• Become Dynamic– Control Plane Enabled– Topology, Element And Capacity Aware– Routing, Bandwidth Allocation, And

Protection/Restoration Functional

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Future Optical Network Requirements

• More Capacity (Speed and Wavelengths)• Greater End User Access Bandwidth• Common Control Standards• Easier Fiber Administration In Central Office And

Outside Plant• Fiber In the Premises for Higher Bandwidth and Ease

of Installation• Higher Functional Integration (To Reduce Cost)• Bandwidth On Demand Capability• Multi-Vendor Supply• Maintenance Of Reach And ITU Spacing At Higher

Speeds• Routing Flexibility

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Optical Innovation Areas

• Beyond GPON: 10GPON And/Or WDM PON• Low Loss/Bend Insensitive Fibers • Mechanized Optical Patch Panels For Central Office,

CEV And FDH Applications • GMPLS Control Plane Standards For SONET And

DWDM• More Wavelengths Per Fiber• Higher Bit Rates: 40G/100G• Alien Wavelength• Advanced Modulation Techniques For 40/100 Gbps • Dynamic Colorless Mesh Networking• Optical Packet Switching

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Summary

• Focused On Optical As Key To The Future

• Widely Deploying Optical Technology Supporting A Variety Of Applications

• Pushing The Status Quo To Insure Support For Future Growth/Scale

• Looking To Leverage Optical Investment For New Applications And Services

• Taking Advantage Of Next Generation Optical To Lower Costs And Achieve Greater Performance

Verizon is . . .

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