Security Level Cloud Metro Network Contents Metro Network

Security Level: Cloud Metro Network

Contents Metro Network Requirements Cloud Metro --- 5 G Bearer Network Cloud Metro --- HSI Solution Cloud Metro --- Agile Lease Line Summary

Metro Network: One of the Fundamental “enabler” for BIZ Success 2 C@5 G 2 H@Cloud. VR VR Music e. MBB VR Education m. MTC VR Gaming 2 B@Private Line office system Production System … Cloud … VR Shopping Private Line u. RLLC 1 Gbps/Site 10 Gbps/Site E 2 E 50 ms E 2 E 5 ms Complex & dynamic connections Gbps Bandwidth/user 20 ms low latency 1/10/100 GE /Connection Agile connection to the cloud

Contents Metro Network Requirements Cloud Metro --- 5 G Bearer Network Cloud Metro --- HSI Solution Cloud Metro --- Agile Lease Line Summary

Service Experience Requirement Evolution PHASE 1 PHASE 2 PHASE 3 2019 -2020 2021 -2023~ Strategy Focus Service: FWA/e. MBB Service: FWA/ e. MBB, Public Service: e. MBB/ u. RLLC/ start of m. MTC* Latency FWA 40 ms Hologram 4 K Video Pre-VR 30 ms 8 k Video / Entry VR Ultimate VR 20 ms Advance VR 10 Gbps Advanced Video Driven 1 Gbps 500 Mbps HD 360 Live 200 Mbps DL Speed UL Speed FWAIPTV 70 Mbps VR Live Events TOD VR Gaming Drone 120 Mbps >50 Mbps 100 Mbps Advance VR 10 ms Surveillance FWA >100 Mbps 4 K Camera Driven Ultimate VR e. Health V 2 X 3~5 ms 1~2 ms 5 ms 20 Mbps Smart Energy Robot control 5 Mbps ~100 Mbps <40 ms ~N*100 Mbps <10 ms > 1 Gbps <5 ms *m. MTC use case not included

Challenges and Requirements from 4 G to 5 G transport Services LTE EPC-Centric Transport P 2 MP Service 5 G Cloud RAN BW / Site 100 -300 Mbps e. MBB Latency S 1<10 ms X 2<4 ms u. RLLC DC-Centric 5 G MP 2 MP + DCI Transport Service More Complex Service 5~10 Gbps @ C-band Higher Bandwidth RTT < 2 ms Fronthaul Sync. IF：CPRI LTE FDD：Frequency BW： 10 Gbps Sync. Latency：<100 us LTE TDD：± 1. 5 us Co. MP & Lower OPEX Slicing NA FDD to TDD IF：e. CPRI TDD Need Phase Sync. BW： 25 Gbps Basic Service: ± 1. 5 us Latency：<100 us Co. MP(Sub-6 G): ± 200 ns Lower More Higher accurate Latency deployment Sync. Vertical Industry Slicing E 2 E Slicing

5 G Network Architecture From MNO’s Point of View CORE (DC & DCI) 5 G Core. CP Core -UP APP <40 ms Core -UP National DC Micro-service v Distributed Core Io. T CUPS Regional DC APP <10 ms TRANSPORT v 10 GE to Site, 50 GE Access Ring AR/VR Core -UP APP V 2 X <5 ms Access 50 GE v L 3 to Edge, OTN to Aggregation Edge DC RAN v New Radio add-on Site 10 GE C Band 100 MHz, UL & DL Decoupling × × × 100 MHz v Cloudification × × × × × × × × × × × × × × × × × × v Single. RAN Pro × × × M-MIMO All-in-One Base Station 2 G/3 G/4 G/5 G

5 G Network Architecture From Network Vendor’s Point of View 5 G Control Cloud Means to network • DCN-SDN + NFV • DCI Network 5 G 5 G Radio Access Network Bearer Network Means to network • Indoor Coverage (Lampsite/Wifi) • Outdoor Fronthaul (RRU-DU) • LTE/5 G Access (WTTx/e. LTE) Means to network • Transmission Network • IP RAN – Midhaul & Backhaul • Metro & Backbone Network

Builds 5 G Ready Metro Network Intelligence Ready: Intent-Driven Network(IDN) Architecture Ready: 4 G/5 G Convergence, Smooth Evolution Atom GPS L 3 to site, unified SR/EVPN, seamless transport DRAN 10 GE/2 5 GE to Microwave CRAN RRU site Backhaul 50 GE/100 GE Access ul Frontha I CPRI/e BBU N * 100 GE 200 GE Agg. Core WDM WDM URLLC e. MBB m. MTC Capacity Ready E 2 E network slicing Slicing Ready CRAN 4 G RRU 5 G RRU Front Haul CPRI/e. CPRI Front Haul BBU DU Middle Haul Back Haul CU MEC CN Back Haul CN

Joint Innovation on 5 G Transport Solution Phase 2 ⑤ 5 G MW ⑥OTN Fronthaul ⑦NCE CPRI/e. CPRI OSN 810 e. CPRI 5 Slicing Need to Be Considered E 2 E on Transport Network for Service Segregation SR/EVPN 2 ATN 980 B High Bandwidth Requires 50/100 GE towards the Access and Content Proximity Low Latency Requires Content Delivered as Virtualized Function due to Space and Energy Constraints OSN 1800 V 5 G MW 1 ATOM GPS Cloud BB 10 GE 8 6 OTN Fronthaul CPRI/e. CPRI 10 GE 7 ⑧ATOM GPS Telefonica Views on 5 G Transport NG CORE 4 2*50 GE Bonding 3 Flex. E Slicing CX 600 M 8 A CX 600 -X 8 A ①L 3 to Edge ② 2*50 GE Bonding ③Flex. E Slicing ④SR/EVPN Low Latency Forwarding Smooth Evolution to 100 GE 100% Inter-Slice Validated EVPN Over the Shortest Path No Packet Loss or Reordering Service Isolation Service Based on SRTE Phase 1 Live Demo Supported by Huawei E 2 E 5 G Transport @Telefonica Booth on MWC 2018

Case A: MNO(L) Selected E 2 E new build L 3 IPRAN for 5 G 2011: built IPRAN for LTE 2016: Merged BA and MCOT EPC RBA BA 2018~2019: E 2 E new build 5 G Backhaul EPC/v. EPC RBA IP Core MAB N*10 GE v. EPC RBA IP Core N*10 GE IP Core N*100 GE MAB MCOT N*10 GE MRT N*100 GE MEC/g. NB-CU MRT ACOT ART MINT ACOT 10 GE LTE e. NB ART IPTV ART 10 GE 100 GE LTE e. NB Why MNO(L) build new IPRAN for 5 G? (Challenges): 1. 2. Bandwidth requirement: in LTE backhaul metro, no slots for bandwidth expansion and access box can not support 100 GE; 3. Complex service deployment and O&AM: Native eth + L 2 VPLS + Native L 3 solution, totally Command line based O&M. Network Architecture limitation: Big L 2 architecture, hard to meet future 5 G services； 5 G g. NB

Case B: MNO(S) IP-RAN Evolution, Partially new Built 2015: Built L 3 IPRAN 2017: merged P and PE 2019: build new 5 G IPRAN NE 9000: 80 T PE PE+P PE IP Core P PE+P N*10 GE P P PE PE IBC LTE IPRAN IBRR NE 40 E-X 8 A: 3. 2 T IBRR LTE e. NB PE+P IBR LTE IPRAN 10 GE Ring N*100 GE 5 G IPRAN N*10 GE IBR PE+P IBRR IBR 10 GE Ring IBRR IBC N*100 GE N*10 GE IBR NE 40 E-M 2 E: 80 G IBC NE 40 E-X 16 A: 32 T IBRR LTE e. NB IBRR IBR 100 GE Ring IBRR 5 G g. NB Key Challenges to MNO(S): 1. 2. Bandwidth Requirement: similar to MNO(L). MNO(S) will build new 5 G IPRAN first, and merge LTE service to 5 G IPRAN after 2021; O&M: CMD line based, inefficiently；MNO(S) want to deploy self-developed SDN platform interworking with NCE for automatic multi-vendor nefficiently devices management. NE 40 E-M 2 K: 910 G

Case C: MNO(3) Builds 5 G-ready Transport Network After unlimited packages are provisioned, traffic volume keeps increasing significantly Unit：Gbps 2500 a CAGR of around 40% 2000 2008 NCE-Super 1439 1500 1000 5 G-Ready ultra broadband, smoothly evolved protocols, and gradual introduction of intelligent features 247 443 738 Unified O&M ü E 2 E automatic. Traffic Optimization 1024 ü SDN third-party integration 3 rd Party NCE-IP ü IP Crystal network Planning 0 2016 2017 2018 2019 2020 2021 Ultra Broadband New-built Network ü 10 GE to Site No infrastructure and continuously rising rental costs and other operating expenses 600 550 500 450 400 350 300 551 480 495 402 2014 unit：M€ 2015 2016 2017 Source：Annual Report 2015/2016/2017 AGG CSG Pre-AGG SR-TE L 3 VPN IPv 6 MPLS SR-TE L#VPN ü 100 GE/400 GE in AGG. /CORE Core PE ü E 2 E network slicing Day 1 Programmable Arch. DAY 2 ü SRv 4 for X 2/S 1 Services ü BGP EPE for traffic optimization DAY 3 ü E 2 E IPv 6 enabling new services

Contents Metro Network Requirements Cloud Metro --- 5 G Bearer Network Cloud Metro --- HSI Solution Cloud Metro --- Agile Lease Line Summary

HW ETTx Network Solution Overview Resident Access Ring Aggregation Ring POP Switch SPE NPE BRAS MPLS STP HSI Ethernet L 2 VPN VPLS IPTV Ethernet PIM Per service per S-VLAN Vo. IP IPTV HSI Vo. IP IPTV Sub A Sub B HSI VLAN Sub A Sub B VOIP VLAN Sub A Sub B VOD VLAN CPE Access network Per user per S-VLAN Per user per service per VLAN HSI VOIP VOD Sub A VLAN HSI VOIP VOD Sub B VLAN Broadcast Storm GE/XG Sub A HSI Sub A VOIP Sub A VOD BTV VLAN GE/XG Access Switch Aggregation Switch GE/XG BTV VLAN Sub B HSI Sub B VOIP Sub B VOD L 2 VPN L 2 over L 3 Network BTV VLAN HSI IPTV Large scope of network failure Reduce Broadcast Storm Reduce the scope of network failure Slow MSTP Convergence BFD for PW reach mslevel convergence No E 2 E protection Hardware BFD for PW POP Switch

The Value of HW ETTx Network Solution Improve Reliability Bandwidth Increase 10 Times • GE uplink upgrade to 10 GE • Access LSW should support 100 GE uplink Improved Experience • • Large Buffer handle burst traffic to make sure no packet loss Hardware-based BFD provide no interruption switchover ETTH • Erase broadcast storm • Reduce the scope of failure Large scale network • MPLS VPN & EVPN is a mature solution for large scale network • ENP based LSW could support large scale network

HW Intent-Driven FTTx Solution Smart planning ROI 6 y → 3 y • Precise investment • Thick coverage short access • Network-centric • User-centric • Fragmented • Closed-loop • Reactive • Predictive • Skill-dependent • AI/Automation Value-Driven Deployment Intelligence, 50% efficiency “ 1”: 40+ Specifications • “ 1”: Fast. Connect • “ 1”: Digital delivery platform Intent Engine Intelligence Engine Automation Analytics Hotel 4 G/5 G Predictive optimization • Model-Driven programmable API enabling agile provision • Massive devices plug & play • Netco for Multi-ISP • Unified PON architecture • 10 GPON → 50 GPON Netconf / Yang FTTH D-CCAP Home • Simplicity & Ultra-Broadband Access Abstraction Telemetry Visualized experience & Precise trouble-shooting Automation, 30% TTM Experience-Driven Operation Deployment 200% Efficiency • • FTTH FTTC/B NG PON OLT

Contents Metro Network Requirements Cloud Metro --- 5 G Bearer Network Cloud Metro --- HSI Solution Cloud Metro --- Agile Lease Line Summary

Enterprise Services Require “Cloud Lease Line” ② Internet ① HQ of Enterprise ③ Public Cloud ① Branch of Enterprise Private Cloud Metro A Intern et Metro B Core Communication Video Conference Call Center CCTV Voice Production Mobile Office Core Ordinary Production Data Transfer … Emergency ① Site to Site … ② Site to Internet … ③ Site to Cloud … * Private Cloud Scenario * Public Cloud Scenario "Connection" is core ability of Enterprise Private Line, "Metro" is gold carrier of "Connection".

Two Business Modes of Cloud LL for ISPs Mode 1：Bundle private line and self-owned cloud Mode 2：Connect with multiple 3 rd cloud（AT&T） AT&T colocation Private Line to cloud Community Cloud IPRAN PON Cloud Services Cloud Migration Achievement: After launching, the E cloud sales ranked first in China. Facilities Mobile devices Remote workers Io. T AT&T Net. Bond MPLS Backbone 20+ cloud partners Achievement: MPLS VPN lease line has achieved growth for the first time in the past 7 years for AT&T 20% for VPN services 4 times number of connection 8 times traffic

Challenges Faced by Operators on Cloud LL Operators’ Network Self-owned cloud Multiple Cloud Ethernet L 2 CGW Enterprise Users MPLS L 3 VPN Exchange Network OTN … … Challenge 1 : Provisioning is complicated, long TTM, high cost 1. Enterprises want hybrid cloud, want to use different application on different public cloud 2. Operators provide connectivity to multiple cloud for enterprises, the period of network planning is long, the related manual configuration is complex. It can not respond the rapid demand of cloud service Challenge 2：Hard to O&M 1. Without visualization system to monitor the private line to cloud, hard to trouble-shooting 2. Enterprises want BOD (bandwidth on demand), manual configuration is impossible mission

Suggested solution NCE Automation Automated service launch & Provisioning Intelligent E 2 E SLA Assurances Analytics Network Side x. DSL R Internet GW Cloud LL GW FTTx MPLS/Ethernet R Cable AGW R Cloud Side Internet Ethernet/IPRAN EGW Multiple Access modes R R CGW OTN Core R R Pre-configured connection between cloud and network VPC

Networking Scenarios of PON, VPDN and Multi-cloud Hub ONT FTTO 1. PON+VLL/VPLS/L 3 VPN OLT MSE FTTB CE Mx. U DAP FTTO QINQ been deployed. VLAN VLL/VPLS/L 3 VPN 2. PON+ Metro L 2 VXLAN OLT Mx. U MSE Metro CR Internet BB VPN GW DAP OLT VLAN Underlay solution. Application Scenario: If the legacy metro is Huawei, L 2 VPN/L 3 VPN has FTTB CE CR Fiber/ Transmission/ VPN GW MPLS BB OLT VLAN ONT Metro Overlay solution. Application Scenario: need to cross metro and internet Backbone network L 2 VXLAN QINQ VLAN 3. Mobile VPDN (virtual private dialup network) Phone BTS VPN GW &LNS MPLS BB PGW-LAC PPPo. E CE PE 3 VPN GW DAP PE 4 VPN GW DAP MPLS PE 2 L 3 VPN VLAN Underlay solution. Application Scenario: Mobile devices access to cloud（IOT） VLAN L 2 TP PE 1 DAP 4. Multi-cloud Hub Application Scenario: operator want to enable connection between multi-network and multicloud

Contents Metro Network Requirements Cloud Metro --- 5 G Bearer Network Cloud Metro --- HSI Solution Cloud Metro --- Agile Lease Line Summary

Metro Network: One of the Fundamental “enabler” for BIZ Success 2 C@5 G 2 H@Cloud. VR VR Music e. MBB VR Education m. MTC VR Gaming 2 B@Private Line office system Production System … Cloud … VR Shopping Private Line u. RLLC 1 Gbps/Site 10 Gbps/Site E 2 E 50 ms E 2 E 5 ms Complex & dynamic connections Gbps Bandwidth/user 20 ms low latency 1/10/100 GE /Connection Agile connection to the cloud

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