all rights reserved © alcatel-lucent 2006, ##### alcatel-lucent optics division
TRANSCRIPT
All Rights Reserved © Alcatel-Lucent 2006, #####
Alcatel-Lucent Optics Division
All Rights Reserved © Alcatel-Lucent 20072 | Alcatel-Lucent Optics Presentation| February 2007
Agenda
1. Introduction/Overview
2. Our Vision & Strategy
3. Market Positioning
4. Solution Overview
5. Portfolio Overview
6. Customer Reference and Success Stories
7. Conclusion
All Rights Reserved © Alcatel-Lucent 20073 | Alcatel-Lucent Optics Presentation| February 2007
1 Introduction/Overview
All Rights Reserved © Alcatel-Lucent 20074 | Alcatel-Lucent Optics Presentation| February 2007
A Global Expertise, A Widespread Local Presence
MORE THAN… 700 Customers in 150 Countries700 Customers in 150 Countries
Best technology Best Product portfolio Massive customer references Best technology Best Product portfolio Massive customer references
218,000 MSPPs
12,300 Cross-Connects
461,500 Km Submarine Networks
34,300 WDM Systems
540,000 ADMs
One out of four optical transport equipment running in the market is from Alcatel-Lucent
One out of four optical transport equipment running in the market is from Alcatel-Lucent
All Rights Reserved © Alcatel-Lucent 20075 | Alcatel-Lucent Optics Presentation| February 2007
Major Optics Business Customers
We have the industry’s strongest, most diversified customer base with many opportunities toup-sell into respective customer bases.
We are THE ONLY SUPPLIER with the scale, innovation and end-to-end optics solutions to effectively support and partner with the converged global carriers.
APACAPAC EMAIEMAI NANA LATAMLATAM
All Rights Reserved © Alcatel-Lucent 20076 | Alcatel-Lucent Optics Presentation| February 2007
Locations
Paris, CalaisParis, Calais
Stuttgart, Nuremberg
Stuttgart, Nuremberg
Vimercate,Trieste,Genoa
Vimercate,Trieste,GenoaWestfordWestford
Murray Hill, HolmdelMurray Hill, Holmdel
Chengdu Chengdu
PlanoPlano
GreenwichGreenwich
Shanghai Shanghai
All Rights Reserved © Alcatel-Lucent 20077 | Alcatel-Lucent Optics Presentation| February 2007
Organization
Optics
Romano Valussi
Optics
Romano Valussi
ManagementControl
A. Veggetti
ManagementControl
A. Veggetti
Marketing &
Communic.*
T. Goodwin
Marketing &
Communic.*
T. Goodwin
CTO
B. Nelson
CTO
B. Nelson
Operations**
A. Sciarappa
Operations**
A. Sciarappa
Quality & CustomerSatisfaction
R.Castelli (acting)
Quality & CustomerSatisfaction
R.Castelli (acting)
HumanResources
S. Magni
HumanResources
S. Magni
OMSN
S. Schiavoni
OMSN
S. Schiavoni
CrossConnects
S. Fasce
CrossConnects
S. Fasce
WDM
D. Scordo
WDM
D. Scordo
Network Release &
Products CostImprovement
R. Fechner
Network Release &
Products CostImprovement
R. Fechner
Submarine
J. Godeluck
Submarine
J. Godeluck
NAR
D. Dixson
NAR
D. Dixson
APAC
R. Lozono
APAC
R. Lozono
E&S
S. Lorenzi
E&S
S. Lorenzi
E&N
S. McCaffery
E&N
S. McCaffery
* Direct reporting to Business Group Communications for communications responsibilities** Direct reporting to Global Industrial & Logistics for industrial logistics responsibilities
Business Unit
Centr
al
Funct
ions
Pro
duct
Gro
ups
Busi
ness
Unit
Regio
nal
Support
Cente
r
All Rights Reserved © Alcatel-Lucent 20078 | Alcatel-Lucent Optics Presentation| February 2007
2 Our vision & strategy
All Rights Reserved © Alcatel-Lucent 20079 | Alcatel-Lucent Optics Presentation| February 2007
More Value for Our Customers
1 We can serve you better everywhere
2
We can deliver you richer optical networking solutions3
We can better help you transform your network for the future
Alcatel-Lucent brings together the widest optical presence worldwide
Alcatel-Lucent brings together the most comprehensive optical portfolio
Alcatel-Lucent brings together the best of innovation and research in optics
All Rights Reserved © Alcatel-Lucent 200710 | Alcatel-Lucent Optics Presentation| February 2007
Our Vision, Customer advantages
Content Sharing Broadband Mobile Triple Play
Fast Bandwidth Growth
Optimized for data Highly robust Easy to manage
Cost Control
Smooth Migration to All-packet Transport
ITU-T editor for TMPLS GFP/VCAT/LCAS
innovator Leading research in
100Gb
1850 TSS: Light Reading Product of the Year
Portfolio trusted in the world’s biggest IP transformation projects
Twice the market share of nearest competitor
World leader in MSPP, optical switches and WDM
No-one is better positioned than Alcatel-Lucent to transform operators network, from any starting point, to the simplified, intelligent network of
the future
Leading the industry in standards and research
for optical packet transport networks
The best optical products in the world
The most successful optical vendor in the
world
All Rights Reserved © Alcatel-Lucent 200711 | Alcatel-Lucent Optics Presentation| February 2007
3 Market Positioning
All Rights Reserved © Alcatel-Lucent 200712 | Alcatel-Lucent Optics Presentation| February 2007
The World Leader in Optical Network
$0
$500
$1,000
$1,500
$2,000
2005
Rev
enue
($M
)
AlcatelLucent
Nortel Huawei Fujitsu NokiaSiemens
Cisco Nec Ericsson
ADM
MSPP
OXC
LH WDM
M WDM
Source: Dell’Oro
Alcatel-Lucent over U.S. $2 billion in optical
More than double next nearest competitor (Nortel)
2.5 times Huawei
Share leader in 4 of 5 product segments
Alcatel-Lucent over U.S. $2 billion in optical
More than double next nearest competitor (Nortel)
2.5 times Huawei
Share leader in 4 of 5 product segments
All Rights Reserved © Alcatel-Lucent 200713 | Alcatel-Lucent Optics Presentation| February 2007
4 Solutions Overview
All Rights Reserved © Alcatel-Lucent 200714 | Alcatel-Lucent Optics Presentation| February 2007
Solution PortfolioTM
P(t
op m
ark
eti
ng
pg)
TM
P(t
op m
ark
eti
ng
pg)
Wir
elin
e B
G
Solu
tion
sW
irelin
e B
G
Solu
tion
s
Op
tics
D
ivis
ion
Solu
tion
s
Op
tics
D
ivis
ion
Solu
tion
s
Alcatel-Lucent is leading the transformationof the transport layer toward packets
with innovative technology
Alcatel-Lucent is leading the transformationof the transport layer toward packets
with innovative technology
Network TransformationNetwork transformation is needed to serve the service revolution
Alcatel-Lucent solution enables real-time workflows and efficiencies through unprecedented
high level of network availability and reliability
Alcatel-Lucent solution enables real-time workflows and efficiencies through unprecedented
high level of network availability and reliability
Mission-Critical Communication Integrated end-to-end security and safety solutions for the vertical market
Alcatel-Lucent is massively deployingoptical networks to answer the huge capacity
demand created by video services
Alcatel-Lucent is massively deployingoptical networks to answer the huge capacity
demand created by video services
Triple Play End-to-end reference architecture and complete solution for designing and developing triple play
Alcatel-Lucent has already successfullydeployed Ethernet business connectivity
over optical networks to avoid costly overlays
Alcatel-Lucent has already successfullydeployed Ethernet business connectivity
over optical networks to avoid costly overlays
Optical Ethernet Networking solutions for the new wave of on-demand applications used by enterprises
An optimized combination of DWDM and OXC in a GMPLS environment
with integrated management to reduce TCO
An optimized combination of DWDM and OXC in a GMPLS environment
with integrated management to reduce TCO
Intelligent Optical Networks End-to-end reference architecture and complete solution for designing and developing triple play
Alcatel-Lucent can efficiently help MSPs reduce their cost of transport for the
new wave of mobile multimedia services
Alcatel-Lucent can efficiently help MSPs reduce their cost of transport for the
new wave of mobile multimedia services
Mobile Transport Backhauling and transport of mobile services over any medium (copper, air, fiber)
All Rights Reserved © Alcatel-Lucent 200715 | Alcatel-Lucent Optics Presentation| February 2007
Optical Ethernet Services
Deliver mission-critical business Ethernet services over Ethernet-enabled optical transport combining low-cost Ethernet with the resiliency and robustness of SONET/SDH
Service-provider challenge Satisfy strong demand for E-
LINE and E-LAN business services worldwide
Provide scalable, resilient point-to-point and multipoint Ethernet services backed by strict SLAs
Economically adds Ethernet to large installed base of SONET/SDH
Global reach: deploy metro, national and international Ethernet services
Multiservice: all existing SONET/SDH features and support of legacy I/Os
Carrier-class features applied to Ethernet (SONET/SDH OAM&P, reliability and management)
Integration of Ethernet switching improves bandwidth efficiency
Access MSPP/CPE
Hub MSPP
Ethernet over SONET/SDH
Eth over Copper extensions
IP/MPLS
2004 2005 2006 2007 2009
5000
10000
15000
20000 E-LANE-LINE
$ M
illio
ns
0
Worldwide Enterprise Ethernet Services Revenue Forecast
2008Source: Ovum-RHK 2006
Packet Transport(GE/10GE/λ)) TSS
TSS
The solution Value proposition
Some references
All Rights Reserved © Alcatel-Lucent 200716 | Alcatel-Lucent Optics Presentation| February 2007
Triple Play over Optical Network
Triple play backhauling using centralized (WDM) or distributed (MSPP, 1850TSS) aggregation solutions
SP challenge Video is creating
unprecedented capacity demand in the Metro networks
Carrier-grade
Assured service availability and reliability
Operational efficiency with fast provisioning and reduced troubleshooting
Support of unicast, multicast (IGMP)
and broadcast traffic
Widely deployed solutions
For fixed op., cable op. and TV broadcasters
WDM or SONET/SDH
More than 30 major deployment so far
The solution Value proposition
Some references
6x
Private Lines
Voice
Video Distribution
BB Internet Access SMEs
BB InternetAccess Residential
Data Services
Centralized
Distributed
MetroWDM
MSPP1850TSSL2 aggregation
close to the access sites
Transparent transport up to the central site
50%
10%3%
7%
24%
6%
2005
25%
27%
2%
11%
4% 2008
31%
Video
All Rights Reserved © Alcatel-Lucent 200717 | Alcatel-Lucent Optics Presentation| February 2007
Optical Mobile Transport
Switching site
Switchingsite interconnect
2G 2.5G 3G HSPA
Optical transport for backhaul and core networks to efficiently handle rapid growth of data services
MSP challenge Sharp rise in bandwidth
intensive services
Need to reduce the cost of transport to stay profitable
Leading portfolio, strong expertise in mobile market
Reference with major MSP all around the world
Clear migration path towards packets
Ethernet already supported today in MSPPs and WDM
Unique migration scenario to full packet with 1850TSS
The solution Value proposition
Some references
Revenue
Capacity
b/s€
WiMAX
2G
3G TDM grooming ATM, Eth aggregation
Backhaul
Backbone
IP/MPLS
MSCSGSN
Controller
TSS
All Rights Reserved © Alcatel-Lucent 200718 | Alcatel-Lucent Optics Presentation| February 2007
Intelligent Optical Networks
An optimized combination of DWDM and OXC in a GMPLS environment with integrated management
SP challenge Operators seek to extend the
performance and improve the efficiency of their existing networks, minimize operating costs, and add new capabilities to meet customer demands without making major capital investments
Intrinsic awareness of network resources, i.e. topology, network inventory improves resource allocation
Simplifies provisioning and speeds provisioning cycle
Enables service activation with service aware resource management and QoS to maintain end-end SLAs
Improves Multi-Vendor Interworking via E-NNI
Dynamic bandwidth management helps pave the way for new services – such as Ethernet-on-demand
The solution Value proposition
Some references
OC-NSTM-N
UNI or E-NNI
CustomerPremises
All Rights Reserved © Alcatel-Lucent 200719 | Alcatel-Lucent Optics Presentation| February 2007
5 Portfolio Overview
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Portfolio Strategy
Alcatel-Lucent optics portfolio fits inside the long-term vision of all-packets transport Scalable multiservice platforms enabling optimized transport of data Evolution path towards full packet and transparent photonic networks
Data
Cap
acit
yFeatu
re r
ich
ness
SONET/SDH ringsDCS
WDM pt-to-pt
SONET/SDH ringsDCS
WDM pt-to-pt
< 2000 > 2010
Key drivers• Capacity• Performance• Reliability
Key drivers• Service assurance• Bandwidth
optimization• Automation
Key drivers• Convergence• Operational
efficiency• Availability
NG-SONET/SDHION
ROADM
NG-SONET/SDHION
ROADM
Full-packet transportTransparent photonicsFull-packet transport
Transparent photonics
today
All Rights Reserved © Alcatel-Lucent 200721 | Alcatel-Lucent Optics Presentation| February 2007
Transition Strategy & Customer Support
The Alcatel-Lucent product portfolio fits inside the long-term vision of all-packettransport Scalable multiservice platforms enabling optimized transport of data Evolution path towards full packet
The Alcatel-Lucent product portfolio will transition considering The synergies and overlap between the Alcatel and Lucent products The installed base The current customer commitments The forecasts for each product The market demand The best, continued support to our existing customers – minimizing disruptions
and allowing co-existence, if necessary
Fulfillment of existing customer commitments for feature development Analysis of new development requirements Elaboration of customer evolution strategy
All Rights Reserved © Alcatel-Lucent 200722 | Alcatel-Lucent Optics Presentation| February 2007
Photonic Portfolio at a Glance
• 96 wavelength at 10 Gb/s, upgradable to 192 channels • Optimized configurations from regional to pan-continental networks
Leading-edge technology• ROADM, 40 G, G.709 support• Best-in-class footprint and power
consumption
• Combined 8-wavelength CWDM/32-wavelength DWDM system in one platform
Modular platform• Compact or Central Office shelf• Best-in-class footprint and power
consumption
• 8-wavelength CWDM system, ready for 16 wavelength
Carrier-grade platform with low cost technology • High performance • Abundant protection options
• Best-in-class footprint and power consumption
• Traffic concentrators, colored plug-ins
Highly successful platforms : > 50 customers in LH WDM, > 100 customers in Metro WDM
• Easy and fast installation and commissioning
• Traffic concentrators, colored plug-ins
1626 Light Manager - Multireach DWDM platform
1696 Metrospan - Mixed CWDM/DWDM platform for carrier-grade Metro networks
1692 Metrospan Edge - Stand-alone CWDM system
All Rights Reserved © Alcatel-Lucent 200723 | Alcatel-Lucent Optics Presentation| February 2007
Aggregation Portfolio - ETSI
Metro CPE STM-1/4, TDM, EthernetMetro CPE STM-1/4, TDM, Ethernet
Metro Access STM-4, TDM, Ethernet, ATM, SHDSL, DVB-ASIMetro Access STM-4, TDM, Ethernet, ATM, SHDSL, DVB-ASI
Metro STM-16, TDM, Ethernet, ATM, CWDM,SHDSL, DVB-ASI
Metro STM-16, TDM, Ethernet, ATM, CWDM,SHDSL, DVB-ASI
1650 SMC
1660 SM
1662 SMC
1642 EM/EMCMetro RegionalSTM-64, TDM, Ethernet, ATM, CWDM,SHDSL, DVB-ASI
Metro RegionalSTM-64, TDM, Ethernet, ATM, CWDM,SHDSL, DVB-ASI
Metro CPE STM-1/4, TDM, Ethernet, SHDSLMetro CPE STM-1/4, TDM, Ethernet, SHDSL
AM/AMS
Integrated Service Adapters Ethernet/MPLS switching, ATM switching, SHDSL, DVB-ASI
Integrated Service Adapters Ethernet/MPLS switching, ATM switching, SHDSL, DVB-ASI
ISA Boards
The first MSPPs on the market, and by far the best-selling in the ETSI world The widest variety of service interfaces for any data service The first MSPPs on the market, and by far the best-selling in the ETSI world The widest variety of service interfaces for any data service
All Rights Reserved © Alcatel-Lucent 200724 | Alcatel-Lucent Optics Presentation| February 2007
Aggregation Portfolio - ANSI
Metro AccessOC-3/12/48, Ethernet, Gigabit Ethernet, FICON/FC/ESCON, DS1/DS3
Metro AccessOC-3/12/48, Ethernet, Gigabit Ethernet, FICON/FC/ESCON, DS1/DS3
Metro Core OC-3/12/48/192, Ethernet, Gigabit Ethernet, FICON/FC/ESCON, TransMUX, DS1/DS3
Metro Core OC-3/12/48/192, Ethernet, Gigabit Ethernet, FICON/FC/ESCON, TransMUX, DS1/DS3
Industry’s First Standards-based GFP and VCAT
deployment Standards-based RPR deployment Standards-based FCBB3 for
storage area networking (SAN) distance extension
Mine new revenue opportunities
TDM, Ethernet, RPR, SAN on same platform
Metro CPE OC-3/12, 10/100 Ethernet, DS1/DS3 Metro CPE OC-3/12, 10/100 Ethernet, DS1/DS3
DMXplore
DMXtend
DMX
All Rights Reserved © Alcatel-Lucent 200725 | Alcatel-Lucent Optics Presentation| February 2007
Maintained Products & ROADM
• Continuing to support existing customers with ultra long-haul networks over 2,600 km
Very specialized networks • Very high-capacities over very long spans (up to 4,000
km)
• Continuing to support existing customers commitments• Co-existence with the 1696 Metrospan in the very near term for specific
applications
LambdaXtreme
ADMs and 167 7 SL
• Fulfillment of existing customer commitments for future development • Analysis of new development requirements • Elaboration of customer evolution strategy
WSM
Metro ROADM
• We will continue to support existing customers commitments, products and requirements until decision on the long-term strategy is made
Emphasis on minimal customer disruptions and products co-existence, if necessaryEmphasis on minimal customer disruptions and products co-existence, if necessary
All Rights Reserved © Alcatel-Lucent 200726 | Alcatel-Lucent Optics Presentation| February 2007
Multiservice optical platform purpose-designed for all-packet transport
Unique, innovative universal switch Fully scalable Ethernet/MPLS, SONET/SDH and
WDM mix in one box Enhanced by UPM development
IP transformation enabler Smooth transition from TDM to all-IP packet
transport Full 100% packet configurations supported
Secure investment Start anywhere, get anywhere to match any
transport need today and in future Freedom in planning transport network
resources Interoperable with Alcatel and Lucent SDH
networks
Top market recognition More than 30 customer
contracts and lab trials worldwide
“Best New Product” Awards MEF certification
1850 Transport Service Switch (TSS)
1850 Transport Service Switch (TSS) Global Next Generation Aggregation
Ethernet/MPLS
TDM
WDM3 separate platforms
1 purpose-builtconvergence platform
UniversUniversal al SwitchiSwitchingng
All Rights Reserved © Alcatel-Lucent 200727 | Alcatel-Lucent Optics Presentation| February 2007
Cross-Connect Portfolio
1678 MCC LambdaUnite 1671 SC
PacketSwitching
Broadband OCS
Broadband OCS
Wideband DCS
Wideband DCS
Narrowband DCS
Narrowband DCS
PacketSwitching
Switch Switch
Broadband OCS
Broadband OCS
Wideband DCS
Wideband DCS
PacketSwitching
Switch Switch
Broadband OCS
Broadband OCS
Wideband DCS
Wideband DCS
640 G capacity in half-rack 160 G to 640 G switch
capacity ASON/GMPLS control plane Optical transport network
(OTN) Scalability to 2.5T Layer 2 aggregation
Market-leading OXC 160 G to 640 G switch capacity ASON/GMPLS control plane Scalable to 1.3T ASON/GMPLS control plane
240 G WB matrix (SONET) GMPLS-ready Packet switching
(MPLS/Ethernet) Narrow-band DS0 Groomer Transmux Wide range of SONET
interfaces
All Rights Reserved © Alcatel-Lucent 200728 | Alcatel-Lucent Optics Presentation| February 2007
NMS Portfolio
Alcatel1350 MSAlcatel
1350 MS
LucentOMS
LucentOMS
Alcatel-Lucent 1350 OMS
Newdevelopment
s and products
Newdevelopment
s and products
1350 MS + OMS
Compatible with the way networks are operated today with 1350 MS and 1350 OMS
Evolution from installed base
Interoperable with Wireline NMS portfolio (access and IP)
No disruption in
operations
Both OMS and 1350 MS continued support for all current products
Alcatel equipment
still in the newportfolio
• OMSN• 1850 TSS• 1678 MCC• 1626 LM• 1696 MS• 1692 MSE
Alcatel equipment
still in the newportfolio
• OMSN• 1850 TSS• 1678 MCC• 1626 LM• 1696 MS• 1692 MSE
Lucent equipment
still in the newportfolio
• LambdaUnite• DMX• AM/AMS
Lucent equipment
still in the newportfolio
• LambdaUnite• DMX• AM/AMS
All Rights Reserved © Alcatel-Lucent 200729 | Alcatel-Lucent Optics Presentation| February 2007
6 Customer Reference and Success Stories
All Rights Reserved © Alcatel-Lucent 200730 | Alcatel-Lucent Optics Presentation| February 2007
Deutsche Telekom – SDH2000+
Infrastructure based on Alcatel and Lucent
DWDM and SDH 14 single-vendor regional and
2 backbone networks
The challenge Centralized configuration and fault
management across multiple domains in a multi-vendor and multi-technology environment
The solution: OneVision® Centralized end-to-end solution for
managing transport network
28 000 NE under management
720,000 monitored SDH paths
The benefits Faster provisioning of services
Simplification of operational workflow
Rapid fault localization
Optimization of network utilization
Alcatel
Lucent
Alcatel RegionalNetworks
Lucent
BackboneNetwork
12,000 NE 10,500 OMSN 300 Cross-Connects 440 DWDM
16,000 NE 15,200 SDH 540 Cross-Connects 270 DWDM
SDH2000+ NETWORK
All Rights Reserved © Alcatel-Lucent 200731 | Alcatel-Lucent Optics Presentation| February 2007
Mobile Backhaul Aggregation / Mobile Backbone Transport
Reduce mobile backhaul leasing costs
Prepare national rollout of a 3G CDMA2000® 1xEV-DO mobile high-speed data network
Reduce mobile backhaul leasing costs
Prepare national rollout of a 3G CDMA2000® 1xEV-DO mobile high-speed data network
Business Advantages
Challenges
Solution
LambdaUnite MSS and Metropolis DMX
Avoid expense of leasing fiber and facilities from other companies
Add the capacity and reliability for high speed data network
LambdaUnite MSS and Metropolis DMX
Avoid expense of leasing fiber and facilities from other companies
Add the capacity and reliability for high speed data network
Prepares network for Ethernet enabled BTS equipment
Adds transport flexibility and increased capacity
Supports broadband and wideband grooming functionality to efficiently aggregate traffic
Prepares network for Ethernet enabled BTS equipment
Adds transport flexibility and increased capacity
Supports broadband and wideband grooming functionality to efficiently aggregate traffic
• DS1/DS3/OC-3/12/Ethernet support
• Traffic Grooming (3/1 Cross Connect)
• Cost effective
• Small footprint
All Rights Reserved © Alcatel-Lucent 200732 | Alcatel-Lucent Optics Presentation| February 2007
Sea-Me-We 4 – Submarine Optical Network
Links 14 countries from France to Singapore
16 landing points
Alcatel products
1620 LM
1626 LM 1678 MCC
1350 management suite
Comprehensive set of services
Marine and terrestrial installationcommissioning and integration1620 Light Manager
• Submarine Line Terminal Equipment (SLTE)• Designed for high-capacity repeatered submarine cable
systems• 192 x 10 Gbit/s channels
20,000 km, more than 32 times the initial capacity of the Sea-Me-We 3 system
Prime benefits: delivers a new Terabit cable supporting huge data growth, leased line and broadband services
All Rights Reserved © Alcatel-Lucent 200733 | Alcatel-Lucent Optics Presentation| February 2007
7 Conclusion
All Rights Reserved © Alcatel-Lucent 200734 | Alcatel-Lucent Optics Presentation| February 2007
Conclusion
Optical networks are under transformation
IP bandwidth growth fuelling Photonic and Packet Transport
Alcatel-Lucent is the strategic partner
A strengthened position in every geographic segment
The very best portfolio in the industry
A cutting-edge innovation with roots in the best worldresearch labs
Experience of major IP network transformation projects