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Achieving Success as a Broadband Wireless Service Provider: Demand & Business Focused Progressive Network Implementation Strategies Gordon Moller Vice President Ceragon Networks, Inc. [email protected] www.ceragon.com Broadband Wireless World 2001

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Achieving Success as a Broadband Wireless Service Provider:

Demand & Business Focused Progressive Network Implementation Strategies

Gordon MollerVice President

Ceragon Networks, Inc.

[email protected]

www.ceragon.com

Broadband Wireless World

2001

Company Overview Service Provider Challenges Progressive Implementation Concept Real World Network Examples

Employing Various Technologies Wireless Gigabit Ethernet Advent Conclusions

Presentation Outline

Our Business

Metropolitan Broadband Wireless Infrastructure

Broadband Transport and Access Networks

for

Internet, Voice, Data and Video

for

Service Providers & Enterprises:

ILECs, CLECs, ISPs, Private Networks, Mobile Telephony/Data

Established in 1996 Product Launch in 1998 IPO in August 2000, NASDAQ - CRNT >300 Employees Headquarters: Tel Aviv, Israel

New Jersey, USA

Birmingham, UK Offices: 4 in USA, Mexico,

Germany, France, Spain Customers: 54 in 23 Countries OEMs: Nortel, Siemens, Lucent

Company At-A-Glance

Next Generation InfrastructureWhere We Fit

IXC/InternetIXC/InternetTransportTransport

Medium/large Medium/large businessbusiness

MobileMobile

Residential/SOHOResidential/SOHO

MetropolitanMetropolitanSONET, IP, orSONET, IP, or

ATM ringATM ring MDUMDU

From Within the Core to the Curb:From Within the Core to the Curb:High Capacity Infrastructure & AccessHigh Capacity Infrastructure & Access

Last/First Mile Options

Approximate Building Size (Sq.

Ft.)25k – 50k 50k – 180k >180k

Mobile Wireless

PMP

DSL/Cable

High-Capacity Connectivity

Fiber

Broadband(128k – 10Mbps)

High Capacity(>100Mbps)

800,000 commercial buildings in the US:only 3 – 4% of those have fiber

Source: CSFB Research

Point-to-Point Broadband Wireless

Next Generation Networks

Broadband 128 Kbps – 10 Mbps– xDSL Asymmetrical– Cable Low deployments in business areas– WLL Shared E1/ T1– PMP Shared sector capacity

High Capacity >100 Mbps+– Fiber Expensive, cumbersome to deploy

$150,000 per mile construction cost

– Wireless Immediate – “same day service”

Much lower installed cost per bit

Quick revenue generation

Easy to redeploy

?

Internet

Data

Video

Voice

SONET/SDH

IP

SONET/SDH

PSTN

ATM

Applications Networks

Challenge: Connect a Variety of Applications to a Variety of Legacy & Emerging NextGen Networks

?

?

?

Protocol ConvertersAdd/Drop MuxesMedia TranslatorsAggregation Devices, etc.= ? Cost & Space

Challenge: Multiple Global Standards –Digital Formats & Frequency Bands

39 GHz

28-31 GHzLMDS/LMCS

24 GHz

23 GHz

18 GHz

North AmericaT1 Format

InternationalE1/ETSI Format

38 GHz

LMDS?

26 GHz

23 GHz

22 GHz

18 GHz

15 GHz

Critical Challenges

Network Topology Flexibility – Service Application, not Hardware Technology, Should Dictate

Time to Market – Capture Most Desirable Customers Quickly

Rapid Revenue Generation without Huge Initial Expenditures

Bandwidth & QOS – You Can Never Have Enough

Ability to Cost Effectively Evolve and Scale Services

Compatibility with Existing/Impending Networks

Minimize “Sunken” Costs of Fixed, Unmovable Infrastructure

Lowest Possible Network Installed & Life Cycle Cost

Family

Global standard compliant– North America (FCC, Can.)– International (ETSI)– Japan (ARIB)

Frequency bands covered– 18, 23, 24, 26– 28, 29, & 31 LMDS/LMCS– 38/39 GHz

High Capacity/Flexibility/Scalability– 45, 155, 311, 622 Mbps– OC-3, OC-6, OC-12– N x 100baseT Fast Ethernet– N x DS3– Gigabit Ethernet

SONET, SDH, IP, ATM

Modular Architecture

FibeAir

SONET/SDH

Intelligent Network Element

Data

Voice

Video

Internet

IP

SONET/SDH

ATM

OC-3Fast

Ethernet

Modular Interface & Protocol Flexibility

3 X DS3/E3

Fast Ethernet + DS3/E3

2 x Fast Ethernet

T1

Optical MM

Optical SM

Electrical CMI

UTP/STP

Main Channel

Wayside/User Channel

E1/G.703

V.24/RS.232

10 Base T

X.21

38 GHz

28, 29, 31 GHz (LMDS)

26 GHz

23/24 GHz

18 GHz

Physical Interfaces

Frequencies

622 Mbps311 Mbps155 Mbps45 Mbps

Capacities

System Architecture

ScalableCapacity &

ModularInterfaceOptions

Architecture

Progressive Implementation – 1A

Business Park

Initial Off & OnNetwork Campus

Deployments

IXC/LEC/CAP Fiber

Progressive Implementation – 1B

SONET/SDH,ATM or IP

Wireless Metro Ring

Ring Network

Connectivity

IXC, LEC, CAP,ISP Backbone Fiber

Business Park

Progressive Implementation - 2

ISPGateway

Remote Company Site

Business Park

Access

Network

Connectivity

VPN Connectivity

SONET/SDH,ATM or IP

Wireless Metro Ring

IXC, LEC, CAP,ISP Backbone Fiber

Progressive Implementation - 3

PMP

Backhaul

ISPGateway

Remote Company Site

Business Park

In BuildingDSL Access

Network Connectivity

VLAN/VPN Connectivity

Multipoint Interconnection

Building or Campus DSL,

Cable or Wireless Distribution

CampusDSL

Access

WirelessPMP

Access

WirelessPMP

Access

IXC, LEC, CAP,ISP Backbone Fiber

SONET/SDH,ATM or IP

Wireless Metro Ring

Convergence of SONET & IP:Fast Ethernet, Ethernet, & PSTN Circuits

OC-3

Relay

Data CenterData Center

Data CenterGSR12000

Data CenterGSR12000

STM-1 RingHong Kong26 GHz

PTMP

PTMP

Router

Wireless ISP Networks

RouterRouter

RouterRouter

Hong Kong26 GHz

Wireless ISP Networks

Cable ModemInternet

Telephone

TV

E3 Access

STM-1 Access

Fiber

Fiber Fiber

PTMP

PTMP

PTMP

PTMP

PTMP

Lisbon26 GHz

38 GHz

Wireless and Wireline SDH Rings

Switching Center + NMC

IP and SDH Network

PTMP

Router

Router

PTMP

PTMP

PTMP

PTMP

Amsterdam18 GHz

38 GHz

STM-1 Ring

IP

IP IPIP

IP

155 Mpbs

2x100 BaseT

Router Router

0.70

Km

0.73 Km

0.70 Km

0.67

Km

0.80 Km

0.80 Km

0.71 Km

0.75 Km0.66

Km

0.70

Km

0.69

Km

0.64 Km

0.66 Km

0.67 Km

0.68 Km

0.65 Km

0.74 Km

STM-1 Ring – ParisSingle Channel & Single Polarization

Ultra High Capacity Systems

OC-6/STM-2

OC-12/STM-4

Gigabit Ethernet

Dual Channel

Dual Polarization

OC-12 Ring

Site A

STM-4/OC-12 Ring622 Mbps

Site B

Site C Site D

Tributaries

ADM-4

Site E

STM-1

Site F

Site G

FibeAir 10000Gigabit Ethernet Radio

Wireless Extension of Gigabit Ethernet

Scalable, grow with demand system

Full Ethernet switch compatibility

Eliminates the need for external switches when provisioning Fast Ethernet ports

Modular interface design

Access and Backbone solutions

Quick to deploy and cost effective

ISP

Gigabit Ethernet

Gigabit Ethernet

POP

Switch

Router

150 – 600 Mbps

FibeAir

10000

FibeAir

10000

Gigabit EthernetPoint-to-Point 1

N x FE PortProvisioning

ISPGateway

Access

SONET &IP Ring

Private Network

Gigabit Ethernet Implementation

IXC/LEC/CAP Fiber

Data CenterASP

Server Farm

Ceragon Customer Base – Feb. 2001

HollandHong KongIcelandIsraelJapan

LatviaMexicoNorwayPortugalSlovakia

ColombiaCzech Rep.DenmarkFinlandFranceGermany

SpainSwedenUSUK

ArgentinaAustraliaAustriaBelgiumBrazilCanada

Over 50 Customers In Over 20 Countries

Unique Service Provider Benefits:Available Today, Globally Proven Scalable High Capacity – 45Mbps to 622 Mbps, DS-3/E-3 to

OC-12/STM-4, & N x 100BaseT Fast Ethernet to Gigabit Ethernet

Flexibility of Interfaces & Bands – Global Applicability: SONET/SDH, DS-X/E-X, ATM, IP; 15 – 38 GHz north American & international bands

Topology Flexibility – Rings, stars, cascade (daisy chain), 1+1, mesh

Seamless Network Connectivity – Compatible with SONET/SDH, ATM, & Next Generation IP global networks; PMP, DSL, cable, & optical access technologies.

Progressive Implementation – Immediate incremental revenue with each link deployment, business grows with the network, not after

Easiest Install or Relocation – Industry standard form factor & minimal site requirements, small size & weights, generic installers = quick & inexpensive installation

Future proof – No sunken costs; easily scaled up/down or redeployed

Thank You

NASDAQ - CRNT www.ceragon.com

Making Broadband Accessible – Today!