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Koby Ganini Director Sales and Marketing

Ceragon Company Presentation


Koby Ganini Director Sales and Marketing May 2008
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Ceragon Networks proprietary and confidential

Ceragon Networks

Leaders in High-Capacity Wireless Backhaul


Incorporation: 1996 Personnel: 300+ HQ: Tel-Aviv Revenues in 2007: $162M 55% CAGR in the last five years The fastest growing microwave company NASDAQ: CRNT

Ceragon Networks proprietary and confidential

Ceragon Networks

Leaders in High-Capacity Wireless Backhaul


No. 1
Leaders in IP Wireless Backhaul through: Innovation & technology Complete solution Extensive experience

Top 3
Leaders in SDH Wireless Backhaul through: Technology & performance Operational excellence Cost innovation

Ceragon Networks proprietary and confidential

Where We Play

Cellular Backhaul Cellular Operators Alternative Backhaul Providers

WiMAX Backhaul Alternative Carriers Cellular Operators

Private Networks Enterprise Networks Government & Defense Networks

Metro Area Networks ILECs Alternative Carriers

Ceragon Networks proprietary and confidential

Global Reach

Direct sales
17 sales offices

Indirect sales
System Integrators Distributors VARs

OEM and partnerships


Nokia-Siemens Networks and others

Ceragon Networks proprietary and confidential

Expansion to the Access

Layer 2 Switch TDM Cross Connect

Access

Edge

CORE

Ceragon Networks proprietary and confidential

Expansion to the Access

Layer 2 Switch TDM Cross Connect

Access

Edge

CORE

Ceragon Networks proprietary and confidential

Expansion to the Access

Layer 2 Switch TDM Cross Connect

Access

Edge

CORE

Ceragon Networks proprietary and confidential

FibeAir IP-10 Overview


Next-Generation Native2 MW radio platform optimized for mobile backhaul migration to IP
Combines native Ethernet with optional native TDM Flexible bandwidth sharing between TDM and Ethernet traffic

Highest radio capacity and flexibility


10 - 500Mbps per radio carrier 7MHz - 56MHz channel bandwidth 6GHz - 38GHz bands

Unique Adaptive Coding & Modulation (ACM) - QPSK-256QAM Integrated advanced Ethernet switching, TDM cross-connect and nodal capabilities Full redundancy support

Optimized for mobile backhaul all-IP and TDM-to-IP migration


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Ceragon Networks proprietary and confidential

FibeAir IP-10 Benefits


Flexible design to address all network migration scenarios Powerful Ethernet capabilities for advanced networks Native2 capability for optimal Ethernet and TDM traffic delivery Modular architecture to fit all sites (Tail, Chain, Agg3, Agg2) Widest capacity range (10-500 Mbps) to deliver all capacity needs Advanced Adaptive Code Modulation for the best spectrum utilization Scalable system to accommodate future needs

IP-10 is the ideal solution for a risk-free migration


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Ceragon Networks proprietary and confidential

FibeAir IP-10 Interfaces and assembly options


Split-mount architecture - Compatible with all Ceragon RFUs. Dimensions: Height - 1RU , width < 19" , Depth <12" (ETSI)

Craft Terminal (DB9)

External Alarms (DB9) Engineering order-wire

TDM Interfaces: 16/32 E1s STM-1

User Channel (RJ45)

1 x GE copper 10/100/1000BaseT (RJ45) 5 x FE copper 10/100BaseT (RJ45)

RFU interface Power (N-Type) -48V DC

1 x GE optical 1000baseX (SFP)

* AUX channels are optional


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Ceragon Networks proprietary and confidential

Ceragons Offering FibeAir IP-10 Family For Migration and Beyond


Service Management Ethernet Switch ACM Gigabit Ethernet Fast Ethernet Native2 Radio Ethernet + TDM
10-500Mbps, 7-56MHz

OAM Cross Connect


Capacity doubling 2+0 XPIC

E1

STM1

RFU-C (6-38GHz)
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Ceragon Networks proprietary and confidential

Cellular networks migration to IP The challenge


Operators face the challenge of economically enhancing their network to support
Voice services over legacy TDM network The fast growing data intensive services

Hybrid backhaul - Support for TDM and Ethernet/IP services


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Ceragon Networks proprietary and confidential

Multiple migration strategies being evaluated by operators


nXT1/E1 n X T1/E1

?
ETH
Control

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Ceragon Networks proprietary and confidential

Multiple migration strategies being evaluated by operators


nXT1/E1 n X T1/E1

?
ETH
Control

All Packet

Map TDM over packet (PWE)

Complexity? Cost? Interoperability?

TDMoETH

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Ceragon Networks proprietary and confidential

Multiple migration strategies being evaluated by operators


nXT1/E1 n X T1/E1

?
ETH
Control

All Packet

Map TDM over packet (PWE)

Complexity? Cost? Interoperability?

TDMoETH

SONET/SDH

Map Ethernet over PDH/ SDH

Safe & Familiar but Inefficient for packet services

ETHoTDM

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Ceragon Networks proprietary and confidential

Multiple migration strategies being evaluated by operators


nXT1/E1 n X T1/E1

?
ETH
Control

All Packet

Map TDM over packet (PWE)

Complexity? Cost? Interoperability?

TDMoETH

SONET/SDH

Map Ethernet over PDH/ SDH

Safe & Familiar but Inefficient for packet services

ETHoTDM

Native2

Carry natively each traffic

Enjoy Both Worlds

ETH & TDM

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Ceragon Networks proprietary and confidential

Ceragons Ethernet MW radio


A Native Ethernet Platform

Highest throughput
Optimal utilization of radio link bandwidth

Lowest latency
Vital for VoIP & delay-sensitive applications

Optional native2:
native TDM (E1/T1) with native Ethernet traffic, whereby none is mapped over the other, yet both IP and PDH dynamically share the same overall bandwidth Native TDM network synchronization
Native Ethernet Native (Legacy) PDH

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Ceragon Networks proprietary and confidential

Cellular networks migration to IP Ceragons position


Ceragons believe that Native2 is the optimal and most cost effective migration approach for MW radio based backhaul networks (low-high capacity) We consider both PWE and Ethernet-over-PDH/SDH as complementary approaches.

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Ceragon Networks proprietary and confidential

Cellular networks migration to IP Ceragons position


Ceragons believe that Native2 is the optimal and most cost effective migration approach for MW radio based backhaul networks (low-high capacity) We consider both PWE and Ethernet-over-PDH/SDH as complementary approaches.

Ceragons Native2

Ceragons Native2

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Ceragon Networks proprietary and confidential

Cellular backhaul based on IP-10 Native2 devices


(with integrated switching/XC/nodal capabilities)
IP-10 Native2 1+0 IP-10 Native2 1+0

Edge site #1

IP-10

Native2 1+1

IP-10

Edge site #2 Native2 1+0 IP-10 Agg. site Native2 1+1 Fiber site

Packet or TDM based fiber aggregation network or leased lines

Edge site #3 Native2 1+0 IP-10


n x T1/E1 interface

RNC/ BSC

IP-10

Edge site #4

Chain site

FE/GE interface MW Radio link IP-10 with integrated Ethernet switching & TDM cross-connect

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Channelized STM1/OC3 interface

Ceragon Networks proprietary and confidential

FibeAir IP-10 Main features

Unique Adaptive Coding & Modulation (ACM) Enhanced radio efficiency and capacity for Ethernet traffic Stackable Nodal solution Integrated native2 networking functionality between all ports / radios
Native Ethernet switching Native E1/T1 cross-connect

Enhanced QoS for differentiated services Extensive set of radio capacity/utilization statistics MEF-9 & MEF-14 compliance for all service types (EPL, EVPL and ELAN) STM-1 interface

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Ceragon Networks proprietary and confidential

FibeAir IP-10 main features


Enhanced ACM support

8 modulation/coding working points (~3db system gain for each point change)

256QAM

256QAM

256 QAM 128QAM 64QAM 32QAM 16QAM 8PSK

QPSK

Voice & real time services Non-real time services


Time

Throughput per radio carrier:


10 to 50 Mbps @ 7MHz Channel 25 to 100 Mbps @ 14MHz Channel 45 to 220 Mbps @ 28 MHz Channel 90 to 500 Mbps @ 56 MHz Channel

Increased capacity and availability Service differentiation with Improved SLA


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Ceragon Networks proprietary and confidential

Integrated QoS support


Similar to IP-MAX family Four CoS (priority) queues per switch port Advanced CoS classification based on L2/L3 header fields: Classify
Source Port VLAN 802.1p VLAN ID IPv4 TOS/IPv6 TC Highest priority to BPDUs
Arrivals Priority Queues W1 - Highest priority

W2

Scheduling departures

W3

Advanced ingress traffic policing/rate-limiting per CoS Flexible scheduling scheme per port
Strict priority (SP) Weighted Round Robin (WRR) Hybrid any combination of SP & WRR

W4 lowest priority

Support differentiated Ethernet services with SLA assurance

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Ceragon Networks proprietary and confidential

ACM example #1 Benefit by reducing antennas size


4.3km path, 28MHz channel, 180Mbps, 128QAM, 99.999% availability
Without ACM: requires 2.5 ft antennas
Modulation Average Throughput (Mbps) Availability (%) Unavailability Outage 5minutes and 15 seconds per year 128QAM 180 99.999 5min, 15sec

With ACM: requires 1 ft antennas


Modulation Average Throughput (Mbps) Availability (%) Unavailability Outage 5minutes and 15 seconds per year QPSK 16QAM 32QAM 64QAM 128QAM
Assumed rain zone K, 23 [GHz] band

50 100 120 150 180

99.999 99.997436 99.996384 99.994746 99.993123

5min, 15sec 13min, 29sec 19min, 0sec 27min, 37sec 41min, 38sec

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Ceragon Networks proprietary and confidential

Throughput and Outage Over Time


Average Throughput - fixed modulation
200 150 100 50 0 0 75 150 225 300

Average Throughput (Mbps)

5minutes
200

Average Throughput - adaptive modulation

150

100

50

0 0 75 150 225 300

Average Throughput (Mbps)

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Ceragon Networks proprietary and confidential

SAVING$

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month


$12,000 over 5 years (1 ft) $30,000 over 5 years (2.5 ft)

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month


$12,000 over 5 years (1 ft) $30,000 over 5 years (2.5 ft)

$18,000 savings!!

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Ceragon Networks proprietary and confidential

Example #2 (Extreme) Saving Bucks with ACM Reducing Antenna size


4.3km path, 56MHz channel, 400Mbps, 256QAM, 99.999% availability
Without ACM: requires 4 ft antennas
Modulation Availability (%) Outage 5minutes and 15seconds 256QAM 400 99.999 5min, 15sec Unavailability

Without ACM: requires 1 ft antennas


Modulation Average Throughput (Mbps) Availability (%) Unavailability

Outage 5minutes and 15seconds QPSK 16QAM 32QAM 64QAM 128QAM 256QAM 22
Assumed rain zone K, 23 [GHz] band
Ceragon Networks proprietary and confidential

100 200 250 300 350 400

99.999 99.997476 99.996762 99.995159 99.991161 99.978141

5min, 15sec 13min, 16sec 17min, 1sec 25min, 27sec 46min, 27sec 1hr, 54min, 54sec

SAVING$

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month


$12,000 over 5 years (1 ft) $48,000 over 5 years (4 ft)

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Ceragon Networks proprietary and confidential

SAVING$

Roof / tower space lease: $100 per foot per month


$12,000 over 5 years (1 ft) $48,000 over 5 years (4 ft)

$36,000 savings!!

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Ceragon Networks proprietary and confidential

ACM example #3 Benefit from increasing link length

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Ceragon Networks proprietary and confidential

FibeAir IP-10 main features


Enhanced ACM Support
Hit-less and Error-less modulation/coding changes based on signal quality E1/T1 traffic has priority over Ethernet traffic Each E1/T1 service is assigned a priority - enables differentiated E1/T1 dropping during severe link degradation Integrated QoS with intelligent congestion management - ensures high priority Ethernet traffic is not affected during link fading

Zero downtime - A must for mission-critical services


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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10

IP-10 Ceragon Networks proprietary and confidential

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Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 Ceragon Networks proprietary and confidential

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Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10

IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10

IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Integrated nodal solution Stacking method


Same 1RU IP-10 unit can be used for terminal and nodal solution. Up to 6 units can be stacked to form single nodal device Each unit supports:
Radio carrier 7 Ethernet ports (2 GE & 5 FE) 16 or 32 E1/T1, ch-STM1/OC-3

Additional units can be added in the field as required Radios in each pair of units can be configured as either:
Dual independent 1+0 links Single fully redundant 1+1 link

Multiple nodes can be cascades to support large aggregation sites

IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10 IP-10

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Ceragon Networks proprietary and confidential

Why Ceragon

Ceragon Knows Carrier-Class


Extensive carrier experience A culture of innovation First microwave certified for Carrier Ethernet by the MEF

Leading Microwave Radio Technology


Highest capacity and spectral efficiency in the market The best radio performance in the market Advanced MultiService microwave radio

True Native Ethernet Microwave Network


Wireless carrier Ethernet networks Ideal migration path from TDM to Ethernet We have a long history with Ethernet

Global Reach and Breadth of Portfolio


Design, Build, Operate and Maintain customer networks Comprehensive solutions for any network evolution Enviable global success

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Ceragon Networks proprietary and confidential

Thank You !

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Ceragon Networks proprietary and confidential