Orckit-Corrigent

Company brief, December 2011

Table of content
About Orckit-Corrigent The PTN market opportunity Orckit-Corrigent CM-4000 PTN products and technologies Orckit-Corrigent PTN solution for mobile networks Orckit-Corrigent PTN solution for SDH and PDH migration Orckit-Corrigent PTN solution for Carrier Ethernet enterprise and residential applications Summary 3 4-5 6-7 8-10 11-13 14-15 16

List of figures
Ethernet/TDM traffic split in a typical network infrastructure Analyst (HeavyReading) forecast on SDH, Packet-Optical, and Carrier Ethernet markets Orckit-Corrigent CM-4000 PTN products overview End-to-end PTN for mobile, including cell site, hub site, and aggregation site gateways End-to-end PTN for mobile based on Orckit-Corrigent products 4 5 7 8 9

Customer case study: mobile backhauling based on Orckit-Corrigent 10 PTN Typical legacy transport network SDH rings with WDM at the core SDH migration and the path towards unified PTN PTN adds TDM services over MPLS PW, while P-OTS has dedicated hardware and software for TDM and Packet Networking diagram showing Orckit-Corrigent PTN solutions enabling enterprise and residential services 11 12 13 14

About Orckit-Corrigent
Orckit-Corrigent (Nasdaq: ORCT) facilitates the delivery of mobile backhauling, SDH infrastructure migration and Carrier Ethernet residential triple play and enterprise VPN applications telecommunication service providers around the world. The company was founded in 1990, went public in 1996, and is active in APAC, Western and Eastern Europe and America. Orckit-Corrigent has been supplying networking infrastructure solutions for metro aggregation networks since 2000. In 2004, the first generation of its mobile, enterprise, and residential solutions was selected for large scale deployment by KDDI - a Tier-1 service provider in Japan. Today, the company's next-generation products serve 20+ service providers worldwide, including Indian incumbent BSNL, German Media Broadcast, European Tele2 and its subsidiaries, Mexican MetroNet, and others. The company markets its products directly and indirectly through strategic alliances, as well as distribution and reseller partners worldwide. Orckit-Corrigent's Packet Transport Network (PTN) solutions, led by its CM4000 line of products, includes standard and interoperable MPLS and MPLSTP switches with a wide set of transport features, enabling advanced packet, as well as legacy services, over unified packet transport networks. The companys transport-class CM-View is a unified and scalable service oriented management system with graphical point and click provisioning, multilayer OAM functionality, and full FCAPS support, allowing for the quick roll-out of next generation services, simplifying the network operation and reducing operational costs.

The PTN market opportunity

TDM services and SDH technologies were originally designed to deliver voice. Voice is a mandatory service with specific requirements, but its capacity in the entire network is very small - less than 10 percent in most cases. Most of TDM services today are leased-lined that enterprises consume to connect their remote offices. TDM is considered as reliable and a secure connection, and therefore it was widely adopted as a VPN enabler. 155Mbps that is achievable with an STM-1 connection is a popular example. The introduction of carrier-grade switches and routers brought an alternative with a much higher capacity and lower cost. The result was acceptance of Ethernet services for enterprise VPN and residential triple-play service. A closer look at the actual business that is deriving from the TDM leased-lines reflects this trend - most of the TDM services are actually Ethernet-over-SDH services that are still producing good margins to the telecom service providers. But the increased competition (a practical alternative for an enterprise to replace its STM-1 service with Gigabit Ethernet service) with the exponential growth of packet services is changing the overall picture. A long term view on the traffic that networks will need to deliver is clear Ethernet is the growth engine, and Ethernet will capture most of the traffic in the next-generation networks.

Ethernet/TDM traffic split in a typical network infrastructure

Industry analysts describe this dramatic shift from legacy TDM circuits to packet based networks in their market segmentation and forecasts. SDH gear that was heavily deployed as networking transport layer is approaching its end-of-life / end-of-service and is not capable of delivering large capacity of Ethernet services over its circuits. As a result, SDH market is declining from ~ $4 billion market today to $2 billion market at 2013. New investments are allocated in packet based networking solutions. This includes the emerging Packet-Optical Transport System (P-OTS) and Carrier Ethernet Switches and Routers (CESR) markets. The CESR market today captures ~ $2 billion and is expected to reach $3 billion at 2014, and the P-OTS market with its hybrid WDM + SDH + MPLS vision is starting to capture significant role as next-generation MSPP. From early adoption today, this market is expected to grow aggressively in the near future. The PTN market opportunity, both within the CESR and P-OTS markets is to enable unified transport layer for mobile backhaul, SDH migration, and Carrier Ethernet applications.

Analyst (HeavyReading) forecast on SDH, Packet-Optical, and Carrier Ethernet markets

Orckit-Corrigent CM-4000 PTN products and technologies

Orckit-Corrigent's CM-4000 is a standard and interoperable PTN solution with a wide set of transport features. The CM-4000 metro aggregation switches are based on dual stack MPLS and MPLS-TP technologies and include innovative QoS, OAM and protection technologies for carrier grade, end-toend services. The CM-4000 solution enables telecom services, including mobile backhauling, SDH migration, enterprise VPN, and residential tripleplay. This is achieved over a scalable, cost optimized and unified PTN. The CM-4000 TDM-over-packet solution uses standard circuit emulation technologies over synchronous packet network. The CM4000 enables any type of Ethernet services as well as any rate of TDM service (from PDH E1/E3 to SDH STM-1, STM-4, STM-16) over packet, using a dense mixture of 10GE, GE and PDH/SDH interfaces. The TDM migration solution provides a phased and cost optimized migration from TDM to packet networking environment, while protecting legacy subscribers, services and investments in the access network. The CM-4000 optimizes traffic by using unified MPLS / MPLS-TP networking with efficient transport for Layer 3 traffic, and service awareness for Layer 2 traffic. This PTN architecture reduces routers' loads and infrastructure investment. The CM-4000 PTN solution is cost optimized in its Capex and Opex and is field-proven in large scale networks.
Why Orckit-Corrigent's CM-4000 PTN Solution Any type of Ethernet application Mobile backhaul Enterprise VPN Residential triple-play (IPV/VoD, VoIP, Broadband) Any SDH and PDH service over packet Gradual migration of the TDM transport network, without affecting the access network Guarantees investment protection for new and existing infrastructure Utilizes standard, interoperable, and field proven TDM over packet technologies Enables any type of TDM services, including low rate PDH, and high rate SDH over PTN Traffic and infrastructure optimization Packet transport layer for IP services scalable and cost effective delivery of IP services from CE to PE Packet transport layer at metro aggregation / metro area networks Dual stack IP/MPLS and MPLS-TP Introduction of standard, scalable and affordable MPLS / MPLS-TP Select IP/MPLS and/or MPLS-TP per LSP / application / region Broader gateway between current IP/MPLS and new MPLS-TP Innovative carrier grade technologies Full-blown MPLS / MPLS-TP PDH and SDH circuit emulation Carrier-class QoS Carrier-class OAM Carrier-class resiliency / protection High end scalability Complete Interoperability Provides smooth integration with any existing networking equipment or service Cost effectiveness Designed to cost, both for Capex and Opex Small footprint Low power consumption Transport-class network management

Orckit-Corrigent CM-4000 PTN products overview

Orckit-Corrigent CM-401x PTN portfolio is a complete access solution for mobile backhaul, legacy SDH and PDH migration, and enterprise CLE and pre-aggregation applications. The CM-401x portfolio includes CM-4012 and CM-4013 products and is fully compatible with the companys metro aggregation products that include the CM-4140, CM-4206, and CM4314T/4314 chassis based PTN products, and the companys CM-View NMS product. All CM-401x products deliver 16G of non blocking switching capacity and are packed only in 1RU fixed configuration size. The CM-401x portfolio is equipped with a broad mixture of Ethernet, PDH and SDH interfaces and therefore fits to various networking scenarios and increases network scalability. As packet transport solution, Ethernet, IP/MPLS and MPLS-TP technologies are implemented in the CM-401x portfolio, as well as standard and interoperable packet synchronization and circuit emulation technologies. Orckit-Corrigent CM-View is a transport-class, service oriented NMS with point-and-click GUI, full FCAPS support, bi-directional A-Z provisioning (tunnel and LSP), physical + logical + service trees, multiple partition views, VPLS on graphical map, and additional transport-class capabilities. The CMView allows quick roll-out of next generation services, simplifying the network operation and reducing operational costs.

Orckit-Corrigent PTN solution for mobile networks

One of the most important growth engines for mobile operators is their ability to offer any type of content. Massive delivery of internet and TV content is impacting the mobile backhauling infrastructure that was originally built to handle voice traffic. The roadmap to fulfill the clear needs and vision includes technical challenges such as how to deliver significantly more data while preserving the synchronous nature of the network and how to perform phased migration from a TDM network to a packet-based network. MPLS and MPLSTP technologies that are adopted by fixed-line service providers are offering a field-proven and cost effective basis for PTN based mobile backhauling. A typical PTN architecture for mobile backhauling includes the access network where Ethernet and PDH devices are located below the antennas and receives all the voice and data services. In the access network, a Cell Site Gateway (CSG) switch is encapsulating E1 and Ethernet to packets. From the CSG, synchronization and QoS is assured from the PTN. PTN aggregation layer is typically based on MPLS-TP technology and includes Hub Site Gateway (HSG) switch and transport capabilities to effectively deliver all the traffic to centralized controllers. At the core, Aggregation Site gateway (ASG) is handling all incoming traffic and sends Ethernet/SDH/ATM services to their appropriate controller. Note that the Ethernet traffic doesnt need the gateway functionality and is simply being carried over MPLS PW towards the controller at the backbone.

End-to-end PTN for mobile, including cell site, hub site, and aggregation site gateways

Orckit-Corrigent PTN solutions are optimized for specific needs of mobile backhauling. This include the following key capabilities CSG/HSG/ASG functionality on dual stack IP/MPLS and MPLS-TP switches A dense mixture of GE, 10GE and PDH/SDH interfaces Any PDH and SDH services over packet, using standard and interoperable packet synchronization and circuit emulation technologies Packet synchronization technologies, including Synchronous Ethernet and IEEE 1588v2 TDM circuit emulation technologies including CEP, SAToP and CESoP ATM over packet and ATM cross-connect Orckit-Corrigent PTN solutions for mobile backhauling are based on the CM4000, CM-401x, and CM-View products. The CM-4140 PTN switch ideally ts in 2G/3G/4G mobile networks with the following key capabilities 168G switching capacity at 3RU footprint with 250W of power consumption HSG and ASG functionality on MPLS-TP switch Dual stack IP/MPLS and MPLS-TP E1, STM-1/4/16 over packet CEP, SAToP, CESoP STM1/4 ATM Synchronous Ethernet, IEEE 1588v2 Standard and interoperable Ethernet, MPLS, synchronization and circuit emulation technologies The CM-401x is a exible multi-service access ideally ts in 2G/3G/4G mobile networks with the following key capabilities Ethernet, IP/MPLS and MPLS-TP E1, STM-1, STM-4, FE and GE interfaces SAToP and CEP Synchronous Ethernet, IEEE 1588v2

End-to-end PTN for mobile based on Orckit-Corrigent products

Example for Pan-European service provider selection of Orckit-Corrigent PTN solution for mobile backhauling: The following networking diagram demonstrates how one of Orckit-Corrigent customers was building its next generation mobile backhauling. As part of the service providers continuous expansion, upgrading the networking infrastructure was done to enable significant traffic growth, derived from LTE initiatives, digital TV and IPTV, high speed internet access, mobile backhauling for voice and data, and enterprise VPN services. The networking upgrade includes the build-out of a standard and interoperable PTN that will deliver any Ethernet as well as TDM traffic arriving from the access network, over a unified, MPLS-based, metro aggregation network. With Orckit-Corrigent PTN solution, the customer was able to smoothly migrate its legacy network and to benefit from End-to-end packet network that handles all Ethernet, SDH and PDH services Preserving the TDM subscribers, services, and investments in the legacy access network Low Capex, Opex, and total-cost-of-ownership

Customer case study: mobile backhauling based on Orckit-Corrigent PTN

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Orckit-Corrigent PTN solution for SDH and PDH migration

It is common knowledge that telecommunication service providers worldwide have transport networks that were originally designed to deliver TDM services. Yet due to the exponential growth in data services we have experienced over the past few years, next-generation transport is facing scalability and cost challenges and therefore embedding packet capabilities. In order for telecom service providers to preserve their TDM services, knowhow and investment, it has become increasingly obvious that some kind of a migration plan is needed. One such approach would be to emulate TDM in packet-based switches and routers. In line, another option would be to embed packet technologies such as Ethernet and MPLS / MPLS-TP into the traditional transport systems. A typical TDM networking infrastructure is based on SDH rings. Access network connect the subscribers to PDH service such as E1 and E3. Ethernet services are delivered over SDH. Networking upgrade is starting with additional linecards on the existing network elements and even additional rings. Since packet based services are growing exponentially, upgrade is needed to support packet services over TDM rings. The PTN migration solution offers a natural, scalable and cost effective alternative instead of adding Ethernet service on SDH infrastructure, add Ethernet services on Ethernet infrastructure and carry all the legacy services on the new and unified networking layer.

Typical legacy transport network SDH rings with WDM at the core

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Orckit-Corrigent PTN solution for SDH and PDH migration uses the standard and interoperable PTN switches that were originally built for the delivery of large capacity packet services, and adds packet synchronization and circuit emulation technologies to enable any SDH and PDH TDM services. The packetized TDM services are equivalent in their quality to those being provided by the traditional SDH networks. This approach provides the opportunity for smooth migration from a legacy TDM network to a packet network, since the TDM linecards can be added and removed at any time. Orckit-Corrigent PTN is a packet-based, future-proof solution both for legacy and next-generation services. Unlike MSPP and P-OTS alternatives, it is not an intermediate solution that optimizes specific mix of TDM and Ethernet. With Orckit-Corrigent PTN solution, the smooth SDH migration is done in the following few steps 1. Step #1: Building MPLS / MPLS-TP aggregation network and offloading high capacity TDM traffic from the SDH backbone 2. Step #2: Adding a multi-service access network to carry any service from the access network 3. Step #3: Phasing out the SDH backbone while preserving the investment, subscribers and services in the TDM access 4. Step #4: Completing the phased migration with a standard and interoperable PTN This process has few valuable benefits to the telco service provider: starting with PTN at the metro and offloading SDH high capacity services gives the opportunity to experience the PTN layer without affecting the existing subscribers and services. Adding the Ethernet access network while preserving the legacy TDM access, is saving Capex and simplifies the solution. At a cretin point, where SDH backbone Opex is higher than its running service and unified packet layer is in place the complete migration towards unified PTN is done naturally.

SDH migration and the path towards unified PTN

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Important note about SDH migration using PTN is that TDM service is encapsulated to a packet service, running on a regular MPLS PW. When this service is removed any other packet service it taking his place and resources. In P-OTS implementation, a hybrid TDM + packet hardware and software is being implemented and therefore each service has dedicated processing (this is done both in universal switching fabric and dual switching fabrics).

PTN adds TDM services over MPLS PW, while P-OTS has dedicated hardware and software for TDM and Packet

P-OTS is the technology of choice for multiservice national backbones which require integration between high capacity ROADM technology, packet transport and TDM transport in a single box. When attempting to use the same technology for metro applications, however, its major disadvantages become clear. The multiservice switching technology forces the P-OTS devices to act as two separate products in one cage with TDM traffic handled completely separate from the packet transport. Converging the two technologies by means of Ethernet over SDH simply turns the P-OTS into a regular MSPP. PTN solution, on the other hand, is designed and optimized for metro applications. Its unified packet switching keeps the system cost at a very low price point and the Opex is kept low with a single transport approach.

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Orckit-Corrigent PTN solution for Carrier Ethernet enterprise and residential applications
Enterprises consume Ethernet connectivity services from telecommunication service providers and demand strict service level agreement (SLA). This means that the required networking infrastructure needs to provide advanced quality of service (QoS), availability, and reliability mechanisms. Metro Ethernet Forum (MEF) has defined the de-facto services terminology for Ethernet-based VPN services. The most popular terms include: Ethernet Line (E-Line) service for point-to-point connections, Ethernet Tree (E-Tree) services for point-to-multipoint/hub-and-spoke connections, and Ethernet Local Area Network (E-LAN) service for multipoint-to-multipoint connections. While small enterprises generally consume IP/Layer 3 VPN services, medium and large enterprises prefer Ethernet/Layer 2 VPN services due to simplicity, cost, and scale advantages. Therefore, connection-oriented Ethernet and MPLS / MPLS-TP technologies are the natural choice at metro area networks. In addition to enterprise VPN services, residential triple-play is a very popular term that includes voice (VoIP), video (IPTV/VoD), and data (high speed internet) services to a large number of household subscribers. A typical metro area network includes one or more levels of aggregation and therefore a high granularity of Ethernet interfaces and switching capacity is essential. In addition, metro area network needs carrier-grade switches and routers with connection-oriented technologies. MPLS is the dominant technology in Packet Transport Networks and since the technology is standard and interoperable, multivendor approach is feasible in ring or mesh network topologies.

Networking diagram showing Orckit-Corrigent PTN solutions enabling enterprise and residential services

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Orckit-Corrigent end-to-end PTN solutions for enterprise Ethernet-VPN and IP-VPN services enable any type of E-Line, E-LAN, E-Tree services and smooth integration to existing networks. This is being done with the following key capabilities Dual stack IP/MPLS and MPLS-TP Full MPLS interoperability Any SDH and PDH service over packet (TDM leased-lines migration) Hierarchical QoS, policing and shaping Standard Ethernet and MPLS OAM, performance monitoring and reports Sub 50 ms protection, end-to-end service level protection Point and Click service provisioning Orckit-Corrigent end-to-end PTN solutions for residential video services such as IPTV and VoD, voice over IP (VoIP), and best effort broadband services. This is being done with the following key capabilities VPLS for efficient distribution of Unicast (VOD, VoIP, HSIA) and multicast (IPTV) services Application-aware traffic management guarantee performance for all services Transport-class OAM, performance monitoring and diagnostic capabilities IGMP Snooping and Proxy Full MPLS interoperability and smooth integration into existing networks: DSL or PON access networks and Ethernet or MPLS aggregation networks

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Summary
Orckit-Corrigent provides comprehensive PTN solutions based on innovative technology assets SDH over packet: the ability to deliver any high rate SDH service and low rate PDH service over a unified packet network. This is being done with standard and interoperable packet synchronization and circuit emulation technologies. Dual stack MPLS and MPLS-TP: the ability to select IP/MPLS and/or MPLS-TP per LSP / application / region. This provides a broader gateway between existing IP/MPLS deployments and emerging MPLS-TP deployments Cost optimization both Capex and Opex: the ability to use products that were designed to the specific PTN needs. This includes a small footprint, low power consumption and integrated management in endto-end portfolio. Transport-class NMS: a high-end management and service provisioning system, providing "transport-like" management capabilities for PTN With Orckit-Corrigent CM-4000 PTN switches, service providers worldwide deploy end-to-end mobile backhauling networks; migrate legacy TDM networking infrastructure to packet based networks; and provide enterprise VPN and residential triple-play services.

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