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May 1, 2002
RPR and Ethernet : Strategic Options in Metro
Networks
Luminous Networks Proprietary Information
NA Metro Market
> Metro Ethernet Service• $0.5 Billion in 2002 to $4.1 Billion in 2006
– CAGR – 70%
> T1 Circuits for Datacom• 2.3 Million in 2002 to 4.8 Million in 2006
– Cannibalization of T1 market – 2%
Luminous Networks Proprietary Information
Carrier Challenge
0
500
1000
1500
2000 2001 2002 2003 2004
% of Base
Data Demand @ 100% CAGR
Revenues @ 20% CAGR
Voice Demand @ 0% CAGR
Source: RHK
Luminous Networks Proprietary Information
Carrier Service Mix
> All the growth is in data• 50% of traffic• 24% of ILEC revenues*• 95% of traffic growth
> Must optimize for packets
> But can’t ignore voice• 76% of ILEC revenues• Even greater % of profits!
> Must provide TDM services
0%
20%
40%
60%
80%
100%
1990 2000
Traffic Mix
VoiceData
0%
50%
100%
1990
Revenue Mix
VoiceData
*Source: Morgan Stanley 2002
Luminous Networks Proprietary Information
Metro Services> Data
• Virtual Private Wire Service (VPWS)• Virtual Private LAN Service (VPLS)• Direct Internet Access
> TDM• Voice• Private Line
> Video• Broadcast Video• Video on Demand
Luminous Networks Proprietary Information
What about SONET/SDH
OAMP: Protection, Monitoringand Troubleshooting
TDM Multiplexing
Ethernet
SONET/SDH
10M 100M 1Gb
Luminous Networks Proprietary Information
Where RPR Fits
OAMP: Protection, Monitoringand Troubleshooting
Ethernet
SONET/SDH
10M 100M 1Gb
RPR
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BEAF1AF2AF3Other EFTDM
Statistical Multiplexing
OAMP: Protection, Monitoringand Troubleshooting
Ethernet
SONET/SDH
10M 100M 1Gb
RPR
Luminous Networks Proprietary Information
Resilient Packet Rings
> Layer 2 Protocol for Shared Packet Rings> Optimized for packets over any optical
infrastructure> Enables new converged services> Compelling economics> Carrier class and scalable network> Resilient> Supports Guaranteed and Non-Guaranteed
Services
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Why RPR
Optical Transmission Choice(Ethernet, SONET,…new ones)
RPRForwarding, QoS and Guarantees
Service Intelligence & Adaptation (MPLS, IP, MPEG,….etc)
TDMData Video
RPR ring operationPHY layer independent
RPR provides service enabling mechanisms
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SONET/SDH
Ethernet
T1/E1/DS3
Video
RPRMACX
RPRMAC
X
RPRMAC
X
RPRMAC
X
Payload agnostic:
RPR is a Layer 2 protocol
RPR Architecture
Luminous Networks Proprietary Information
Ethernet
> Universal Interface for Packet Services> Provision End-to-End Service > Scalable : 10M, 100M, 1G and 10G> Low cost> Statistical Multiplexing
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Why Ethernet
End to End Ethernet Services
Allocate Transport resources
Ethernet
Optical Transmission Choice(Ethernet, SONET, GFP…new ones)
RPRForwarding, QoS and Guarantees
Service Port
Ethernet
Optical Transmission Choice(Ethernet, SONET, GFP…new ones)
RPRForwarding, QoS and Guarantees
Service PortClassificationRate Limiting
Service Provisioning,Monitoring and SLAs
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MPLS, Ethernet and RPR
> Ethernet• Universal Service interface• No service guarantees or bandwidth management
> RPR• Metro Network• Convergence of services• Service enabling mechanisms
> MPLS• End-to-End path set up • Service creation• Adaptation layer• Traffic engineering
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End to End Data Service
RPR RPR802.3 802.3
Metro Network
MPLS
Core
Ethernet Service
Luminous Networks Proprietary Information
End to End Data Service
RPR RPR802.3 802.3
Metro Network
IP
Core
Ethernet Service
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Financial Pressure
>Reduce Capex>Reduce IT costs $$>Accelerate revenue
Stop building overlay networks !!
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Summary
> Optimize for packets> Converge!> Add New Services > Generate More Revenues> Simplify management> Don’t Sacrifice Circuits
Evolution, not Revolution
Network
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Traditional Approach
> IP
> ATM (or GE)
> SONET
> DWDM
Multiple Boxes. Multiple layers to manage. Multiple management systems. Multiple organizations!
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Legacy Transport: SONET/SDH> SONET/SDH is…
• Time Slotted TDM Hierarchical Multiplexing– Grooming TDM circuits
• OAMP– Performance Monitoring & Troubleshooting– Protection : APS, UPSR, BLSR– Flow Through Provisioning
> Good Physical Layer Transmission Technology but…• Not a Layer 2 Technology: No Switching• Inefficient for Data: Stranded Bandwidth