Access for today Connected for tomorrow Tod Brinkerhoff

Access for today. Connected for tomorrow. Tod Brinkerhoff Director – Sales Engineer Tod. Brinkerhoff@tellabs. com 908 -964 -2855 ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Challenges for Network Providers during Transitional Periods

ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Network Transformation The Transition – What is it? ? ? M D F Class 5 Switch ØThe Last Mile ØThe Network NFV/SDN CO ØVirtualized Management M D F Class 5 Switch ØFunding ØRegulatory CO © 2018 Tellabs Access LLC All rights reserved. 2

ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Network Transformation Copper Elimination Switch Apartment / office (MDU) Eliminate Copper Drops Switch Service Drops GR-303 Tellabs BFAP Ocx / Gb. E Local Exchange Terminal CO Add Transitional Equipment Local Exchange Terminal Remote Service Terminal Add Transitional Equipment Receiving CO © 2018 Tellabs Access LLC All rights reserved. Collapsing CO 3

ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Network Transformation Why Collapse / Replace / Modernize – the Challenges Ø Lack of Support: No new parts are available; systems/equipment are Manufacture Discontinued and most of the OEMs are out of business Ø Lack of Expertise: As personnel retire, service providers are faced with significant cost to retain or develop technical support capabilities without the manufacturer’s support Ø Greater Liability: As systems near end of life, component and system failure rates increase Ø Increased Operational Expense: Relative to newer softswitch and IP solutions, Class 5 switches use significantly more power, HVAC and occupy more real-estate Ø Legacy Services Remain: Huge loss of traditional copper served lines leading to 50% or less capacity and still need to support that PON just can’t handle today This initiative is a step forward but not a final, overall solution for complete TDM removal © 2018 Tellabs Access LLC All rights reserved. 4

ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Network Transformation The Issues Ø There is no cost like a sunk cost with no additional revenue coming in Ø Service Providers are positioning to move to a network that is Ethernet / IP enabled Ø Logistical hurdles (i. e. copper & Class 5) are present that prevent complete migration to an IP switch environment Ø Legacy NEs do not provide for a seam-less transition or require that many legacy elements be left in place Ø Still require Emergency Standalone service for intraoffice calls to local emergency services Ø FCC has been looking at TDM sunset for sometime but with no real solutions to support funding Ø What other equipment can/should be replaced while modernizing the network? Ø Replacing platform MUST be able to support, POTS, Coin, ISDN, Ground Start, CLASS features, and many Special Service Circuits including x. DSL © 2018 Tellabs Access LLC All rights reserved. 5

Network Transformation ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Objectives / Quantifiable Benefits Ø Eliminate Class 5 Switches § Use for spare parts for MD’ed switches § Eliminate RTU fees, CO tech presence Ø Eliminate Legacy Transport Equipment § Migrating specials to D 4 s continues TDM deployment Ø Evolve to an IP / Ethernet Centric Network Ø Decouple voice switch upgrades from access network upgrades © 2018 Tellabs Access LLC All rights reserved. 6

ACCESS FOR TODAY. CONNECTED FOR TOMORROW.

ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Back up

Network Transformation ACCESS FOR TODAY. CONNECTED FOR TOMORROW. Objectives / Quantifiable Benefits Ø OSP Copper Elimination Ø CO Bypass; TDM Collapse § Removing Hosts and/or Remotes Ø Reduce Power, OPEX, Real Estate Holdings, Property Tax Ø Collapse, Converge, Connect the Network Ø Reduce, Reuse, Recycle Equipment Parts for the Network Ø Depreciate A$$et$ by Retiring Equipment § Class 5 Switch, D 4 Channel Banks, Misc. Equipment © 2018 Tellabs Access LLC All rights reserved. 9