Small Cell Ciena Global Leader in PacketOptical Carrier

SMALL CELL - THE NEXT WAVE IN MOBILITY NETWORKS Smartphones 8 Billion 1 Smartphones 2014 -18 Mobile Data 61% CAGR 2 2014 -2018 Mobile Video Cell Towers 2/3 rd Mobile Traffic is Video by 20173 51% Tower Share VELOCITY, PACKAGING, RELIABILITY AND L 2 COST SUPERIORITY ARE DIFFERENTIATORS 2 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Mobile Data & Internet Traffic Surging Worldwide Mobile Bandwidth Growth 3 Copyright © Ciena

Business Drivers at AT&T 4 Copyright © Ciena Corporation 2014. All rights reserved. Confidential

Small Cell Backhaul Technologies Heavy Reading Oct 2012 Radio is the dominant solution due to capacity and location requirements, approx 60% of all towers Microwave link from small cells to nearby macrocell. Fiber 2 nd preferred choice, approx 35%. Use when fiber passes the small cell, hard to prove biz case to trench fiber Copper a distant 3 rd with 6%. 5 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Outdoor Small Cell Challenges Backhaul is only one part of a complex problem Access/Acquisition Power Deployment & provisioning Physical security Synchronization Cost per cell/user is critical Fragmented solution set Fiber Copper (DSL, DOCSIS) Microwave (LOS, NLOS) Centralized – Distributed Baseband Unit (BBU) Untrusted Network Backhaul 6 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Why Small Cells? Mobile Traffic Density Best Approach for Expansion Options to support massive growth in bandwidth demand Densify Add Spectrum Enhance Dense Urban Suburban Improve Spectral Efficiency Rural Spectrum Re-Use via Small Cells. Building out more MACRO cells is not feasible from economic, environmental, regulatory, and time-to-market perspectives Industry solution is to deploy numerous SMALL cells closer to end users Public & User Deployed Primary market will be wholesale backhaul SP 7 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. Indoor and Outdoor

Premier Mobile Network: Small Cell Technologies Small Cells: Delivering Flexible Coverage Where It’s Most Needed Improve in-building coverage Used in densely populated areas to help augment the wireless carrier’s capacity and coverage needs Multi-technology UMTS/HSPA+/LTE/Wi. Fi Initially 3 G UMTS and 4 G HSPA+ 4 Q 12: First field application 1 Q 13: Start general deployment 2014: Future evolution to 4 G LTE and Wi-Fi 8 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. of densification program to use Small Cell Technology by 2015

Small Cell Mobile Backhaul Market Sizing Quantity General Public Access Source: Heavy Reading February 2014 The Small Cell market space is just at the start of its significant growth curve 9 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

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Small Cell Opportunities In-Building, High-Density Suburban, Medium Density 13 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. Outdoor, High-Density Rural, Low Density

Outdoor Small Cell Flexible Mounting Options Pole Mount Mast Mount Strand Mount Wall Mount Flexible mounting options for a variety of outdoor installation scenarios 14 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Public Small Cell - examples 15 Copyright © Ciena Corporation 2014. All rights reserved.

Small Cells vs. Macro Cells Different Technologies, Same End Goals Summary Macro Cell vs. Small Cell Technical Comparison Attributes Macro Cells Small Cells Maximum users per cell 2, 000 3 -200 Maximum range 30 km 200 m, in urban areas Maximum transmit power 60 W 5 W User Types Fast moving Stationary, slow moving Macro Cell 16 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. Small Cell

What is a small cell? Macro Micro Pico Femto Range 10 km-40 km Up to 2 km 100 -250 m 10 -15 m Users 2, 000 200 32 -64 3 -5 residential 16 -32 enterprise Public/Private Public/Private 150 Mb to 1 Gb / carrier 50 to 150 Mb 20 -50 Mb Usually use existing internet access Backhaul capacity Technically all of these are small cells 17 These are the primary drivers for new backhaul solutions for small cell backhaul Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Small Cell Radios ALU 9363 Metro Cell - Indoor W-CDMA - 3 G Networks - 48 VDC power - Po. E+ - 25 watts max consumption - 32 users (voice + data) - 250 m. W transmit power - 4. 4 lbs. - -5 o. C to +45 o. C - Hotel Lobbies - Railway Stations - Airports - Malls 18 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

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Small Cell Data 20 Copyright © Ciena Corporation 2014. All rights reserved. Confidential &

Small Cell Solution Set Outdoor Small Cell Indoor Small Cell Non Sync Access Sync Playbook: § Focus on key strengths – Packet Fiber, OAM toolkit & Flexible Topologies : Zero Touch ease of installation. 1 ST & 2 ND Tier Aggregation § Packaging differentiation & flexibility Sync § Tactical backhaul options - GPON SFP and DOCSIS § Design in sync for future preparedness § Leverage Macro incumbency and Aggregation portfolio 21 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

3904 Service Aware OS - SAOS: Indoor Small Cell 1 G Sync Model Planned 3904 Sophisticated OAM capabilities: “ 3904” 4 G Non-Blocking Next generation 1 G NTE focused on the Sync as a Service and Indoor Small Cell applications with latest advanced OAM & Networking feature support. 22 Virtual Switching Architecture MEF 2. 0 Services Networking - Q-in-Q, G. 8032, MPLS-TP** Flexible UNI Classification: EPL, EVPL, Hybrid Hierarchical QOS NNI/UNI 2 2 1 G / 100 M SFP & RJ-45 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. RFC 2544/Y. 1564 Performance Generator & Reflector ITU-T Y. 1731 Performance Monitoring: Delay, Jitter, Loss IEEE 802. 3 ah link layer OAM IEEE 802. 1 ag Connectivity Fault Management IETF TWAMP Sender & Responder for L 3 SLA Monitoring Hardware Ethernet OAM Stringent clocking/synchronization Synchronization via BITS, Synch-E or 1588 v 2 External sync inputs/outputs (BITS, 10 MHz, 1 PPS, To. D) Packaging: Dual AC or Dual DC Power Wall-mount or rack-mount kit 0 C to +65 C temperature range

3904 Hardware Details Single or Dual AC Power 100 -240 V, 50 -60 Hz 2 x 10/1000 M RJ-45 +100/1000 M SFP UNI combo ports 2 x 100/1000 M SFP NNI/UNI ports BITS In/Out with To. D and 1 PPS 1 RU Height 8. 0” depth (204 mm) 10. 7” Width (273 mm) Front to rear airflow 23 GPS Frequency 1 PPS/To. D Note: Dual AC chassis shown Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. Console Port

3905 Outdoor Small Cell Backhaul Packet Access and Aggregation Radio Access Ring or Point/Point Radio Network Fiber UNIs Fiber Copper UNIs DOCSIS Packet Network Power over Ethernet Craft SAOS Features Go-Anywhere, Weather Proof Platform - Strand, Pole, Wall, Mast Zero-Touch Turn-up for high velocity service rollout Radio Support H-QOS and flexible UNI Classification Copper UNIs: 10/1000 Po. E: 25 W IEEE 802. 3 at Fiber UNIs 1588 v 2 Ordinary & Boundary Clock Sync. E High-accuracy SLA conformance testing and service health check through hardware-based OAM RFC 2544/Y. 1564 Performance Engine for Service Activation & Test Network Solutions Fiber: Q-in-Q, G. 8032, MPLS–TP** Ciena aggregation solutions Wi. Fi Radio Management Option Sync Meeting the Challenge of Small Cell Radio Deployment 24 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

3905 System Capacity Targeting radios with either fiber or copper Ethernet feeds 4 Gigabit Ethernet Ports (2) 1 G SFP NNI (2) Copper/Fiber Combo Ports Wirespeed, Non-blocking fabric Providing Power Over Ethernet Powering of Radios 802. 3 at POE+ support on RJ-45 Copper ports Up to 25 W output per port 25 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Flexible Mounting Strand-mounted 3905 26 Copyright © Ciena Corporation 2014. All rights reserved. Confidential

3905 Small Cell Backhaul Options Two 3905 backhaul options: DOCSIS 3905 Fiber backhaul Cable version of 3905 with integrated DOCSIS backhaul module Module approach lessens integration risk, permits future flexibility as DOCSIS needs evolve Current DOCSIS Module Cable. Labs DOCSIS 3. 0 compliant 8 Bonded Downstream Channels 4 Bonded Upstream Channels Future Evolution DOCSIS 3. 1 Leverage your Infrastructure for Maximum Advantage 27 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary.

Ciena Knows Mobile Backhaul Leverage Installed Based & Acquired Knowledge AT&T Lightower +170, 000 Ethernet-enabled macro cell towers in North America alone Century. Link Lumos Comcast +90, 000 Served by Ciena packet solutions Phonoscop e Fibertech Sprint +50% Ciena NA market share Frontier 5 x to 10 x 28 Copyright © Ciena Corporation 2014. All rights reserved. Confidential & Proprietary. Small cells to be rolled out, rapidly