Axerra Networks Solutions for Business Services Delivery About

Axerra Networks Solutions for Business Services Delivery

About Axerra Networks = Founded in 1999 = Global provider of SERVICE CONVERGENCE solutions over packet transport – A leading vendor of multiservice pseudowire solutions – Active standard bodies participants and influencer – Field proven with live deployments = Award winning products = Offices around the world – = Israel (HQ), EMEA, Russia (incl. CIS), USA, APAC (Hong Kong, Singapore) Financed by strong investors – Carmel Ventures – TLcom – Harbour. Vest 2 - © 2009 Axerra Networks®. All rights reserved.

Business Services Delivery over Packet Access (1) = The Problem – Today Carrier Ethernet provider can sell only IP and Ethernet services for Business customers – For TDM or legacy services they need additional overlay networks for each service type – Current profits are based on wealth of existing legacy services (Leased Line, FR, ATM. . . ) for business customers and Mobile Backhaul for Mobile Operators • Traditional services are still the dominant element in the revenue stream – IP and Ethernet services are not enough to grow revenue and maintain good margins § Full portfolio of services is required in order to compete and be profitable – Lower-cost packet-based networks (Ethernet) needed for legacy services with TDM, FR, and ATM protocols over T 1/E 1 3 - © 2009 Axerra Networks®. All rights reserved.

Business Services Delivery over Packet Access (2) = The Solution – Use Pseudo-Wire to provide any legacy service over any type of Packet Access network as cost-effective alternative with full service to TDM access § Ethernet services with PWE 3 capabilities enable service providers to migrate from TDM networks to a new and richer service portfolio using converged network technology – Proven compatibility with TDM, FR, ATM, and IP protocols for support of any type of Business Services or Mobile Backhaul Services – Use Carrier Ethernet, x. DSL, Wi. Max, x. PON, and HFC in the access network = Value Proposition – Big improvement in revenue stream and profitability – Dramatic reduction in Op. Ex as a result of using a single Access Network with short ROI on equipment – The same infrastructure can be used to deliver Mobile Backhaul Services to mobile operators with strong synergy 4 - © 2009 Axerra Networks®. All rights reserved.

Introduction to Pseudo-Wires = Pseudo-wire (PW/PWE 3) is a standardized mechanism that emulates the essential attributes of a native service while transporting over a Packet Switched Network (IP, Ethernet, and MPLS) – PWs are virtual circuits that use MPLS/IP tunnels & control plane to emulate all Layer 2 transport services across an MPLS/IP network § PWs are bidirectional (unlike MPLS LSPs) – PW architecture is an extension of VPN architecture Packet Network Tunnel CES Pseudo-Wire ATM Pseudo-Wire Frame Relay Pseudo-Wire Data Carrier ETH PBX ETH Voice PW Access Device Ethernet PW Gateway 5 - © 2009 Axerra Networks®. All rights reserved. Mobile 2 G, 3 G+

Pseudo-Wire Benefits POP / CO DSL POP / CO PSTN Gig. E FE DSLAM Router FRAD Telco Access Gig. E FE IAD E 3/T 3/STM 1 PBX FR/ATM Metro Ethernet PWE 3 CPE PWE 3 Gateway POP / CO E 1/T 1 -based services IP/MPLS = Provide traditional T 1/E 1 and legacy services + emerging services over single, converged, packet access network instead of multiple overlay networks = Leverage current investments in new packet infrastructure, furnishing dramatically lower costs – Reduce operating expenses dramatically = Are compatible with TDM, FR, ATM & IP protocols for support of any type of business service – Maintain current profits based on revenues from traditional services 6 - © 2009 Axerra Networks®. All rights reserved.

Service Delivery over Carrier Ethernet Using Pseudo-Wire Access Devices = Small, low-cost PW access device provides any traditional T 1/E 1 service – Use of PW Emulation for TDM and Layer-2 services across Carrier Ethernet access network = Compatible with TDM, FR, ATM & IP protocols for support of all types of mobile backhaul & business services = Transforms packet access network into a full-service alternative to TDM access = Preserves revenue from high-margin TDM and Layer-2 services while leveraging strategic growth in Ethernet infrastructure PSTN T 1/E 1 V. 35 AXN PWE 3 Gateway AXN CPE Ethernet Access Network ETH TDM FR ETH Legacy FR/X. 25 Network ATM Emulated Services (PWs) 7 - © 2009 Axerra Networks®. All rights reserved. ATM Network

PBX Backhaul Over Carrier Ethernet Branch Office 1 PBX 1 -2 T 1/E 1 AXN 1 CE 802. 1 Q Po. P/CO Branch Office 2 ETH AXN PW Gateway PBX 4 x. T 1/E 1 AXN 10 -4 CE Data IP/MPLS Ethernet Access Network ETH 802. 1 Q PSTN Branch Office 3 Groomed Voice ETH PBX 1 x. T 1/E 1 AXN 1 CE 802. 1 Q SNMP AXNVision NMS = Backhaul of PBX and LAN/Internet traffic = Point-to-point or Point-to-Multipoint topology 8 - © 2009 Axerra Networks®. All rights reserved. CESo. PSN

IP Edge Aggregation IP-VPN Customers IP-VPN (2547) Aggregation Po. P IP FR IP HDLC TDM Access Network IP/MPLS Backbone IP ATM CE Router AXN Gateway PE 802. 1 Q Gigabit Ethernet VR VPN 1 VR VPN 2 VR VPN 3 = Low-cost replacement for expensive channelized line cards on PE routers 9 - © 2009 Axerra Networks®. All rights reserved.

Multiservice Edge Aggregation Core/Access Po. P TDM /V. 35 Network TDM Core/Access Po. P AXN PWE 3 Gateway PE X. 25/ FR Network TDM /V. 35 Network FR ETH IP/MPLS Backbone TDM PE ETH X. 25/ FR Network FR ATM ATM Network = Emulated Services ATM Network Enables Complete Edge Aggregation Solution for: – FR and ATM customers – Leased Line customers – IP customers = Eliminates the need to install FR and/or ATM switches as well as DACS for greenfield installations = Ideal for FR & ATM “port exhaust” and “end of life” platforms 10 - © 2009 Axerra Networks®. All rights reserved.

Axerra’s Complete Product Family AXN Product Portfolio of Access Devices and Gateways = Scalable family of platforms – 1 to 1000 E 1/T 1 capacity – Carrier Class Reliability = Capacity AXN 1600 N 1000 E 1/T 1 AXN 800 Multiservice Pseudo-Wire – CES + Layer 2 Pseudo-Wire = AXN 10 Pseudo-Wire flexibility – Axerra-owned code – Software-based architecture – 5 patents + 1 pending AXN 1 1 E 1/T 1 CPE/Cell Site AXNVision = Point-and-Click provisioning = Performance Monitoring = Comprehensive Fault Management = Standards-based 11 - © 2009 Axerra Networks®. All rights reserved. MTU Po. P/CO Location

Axerra’s Unique Value Proposition = Single and robust platform supporting both Mobile Backhaul and Business Service Delivery – Best-of-Breed Pseudo-Wire industry leader and solution provider – Enable leased line replacement such as PBX backhaul and converging legacy services over PSN covering private line, FR, ATM, and HDLC services – Multiple Services – One Solution § Beyond Circuit Emulation – variety of Layer-2 Pseudo-Wire services = Scalable solution with modular and flexible platform = Supports all generations of mobile & business services = Robust and accurate adaptive clock recovery mechanism = Strong momentum with world class OEM and SI partners = Field proven 12 - © 2009 Axerra Networks®. All rights reserved.

Thank you for your attention Visit our website at www. axerra. com