PWE3 Web-cast Pseudo Wire End to End Emulation

Telecom Dominance in 2007!

Telecom Dominance in 2007!

The Networking Division mission statement declares: Agere Systems will be the #1 Communications Solutions Provider by 2008 Service Provider Networking will lead the way to that goal! SPN owns a major share of market - Now is the time to DOMINATE! Let's CTD (Close-the-Deals) with Speed, Persistence, and Intensity: Announcing - Operation PWE: Pave Wintegra's Elimination Now!
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Operation PWE

Agere Systems Proprietary

Agere PWE contacts

PWE system solutions covers functions such as:
Ethenet PWE, ATM PWE, and TDM PWE using SAToP and CESoPSN Clock recovery approaches including adaptive, differential, synchronous PDH, synchronous Ethernet , and IEEE 1588v2/NTP Agere FPI Software

Agere devices include: APP3v1.2 and v2, LLP v2 and Ethernet PHYs Contacts: Mark Bordogna System Product Manager PWE Ed Nuber Business Development Asia/PAC - Strategic Marketing PWE Mike Wallace Product Manager LLP Brendan McKenna Product manager APP3 Ron Steudler Product Manager Ethenret PHYs Sindhu Xirasagar - Software Marketing Manager

Agere Systems Proprietary

Agenda
Ageres value to PWE Segment Agere solution value proposition PWE definitions Access Solution
Market application What to Sell

Aggregation Solution
Market application What to Sell

PWE competitors Agere demo plans Call to Action Next Steps Take aways

Agere Systems Proprietary

Leveraging Ageres Heritage for Building NG Networks

Segment Value Agere has a long history of E1/T1, ATM/IMA, IP interworking expertise in the access market Agere is leveraging this expertise to support the PWE market

Agere Systems Proprietary

Leveraging Ageres Heritage for Building NG Networks

Agere's component solutions helped build the most reliable communications system ever invented: the phone system. As a result, our solutions are built on a foundation of reliability. The five nines of reliability specified two hours of downtime in forty years of operation. All of Agere's core expertise still holds true to that promise of real time reliability!

Analog & Storage

System-ona-Chip

Switching Voice & Signal Processing

High-Speed Transmission

Bringing Real-time Reliability to Next Gen Services

TM & QoS

Agere Systems Proprietary

Overall Communication Semi-Conductor Landscape by Product and by Company

Segment Value Agere established in Communication Market Wintegra and Zarlink are niche players

Agere Systems Proprietary

Overall Communication Semi-Conductor Landscape by Product and by Company

Product Category Vendor Broadcom Conexant Systems Infineon Technologies Intel Texas Instruments 2005 Revenue $1,251 $551 $478 $377 $340 2005 Market Share 21.1% 9.3% 8.1% 6.4% 5.7% Network Processors Encryption Processors Ethernet ICs Broadband Interface ICs Sonet, RPR Framer/Mapper ATM ICs T/E Carrier ICs Network Search Engines Other Wired Comm. ASSPs Total Wired Comm ASSP Product Category Communications Processors High-End Embedded CPU 2005 Revenue Target Niche NP Replace SMB/Home Agere NAS, DSP forecast high growth in MGW, Wireless, SMB, Enterprise $5,919 #1 #1 #2 #5, recent entry growing rapidly (Home & Business) Agere Market Position #3 today, On track to #1/#2 in 2006

Agere Systems

$317

5.4%

Marvell Investment Agere Technology Snapshot $218

3.7% Group Merged Telecom and Enterprise Division in 2005 Silicon Laboratories $199 3.4% TAM growing 2005=$6B to $11B in 2009 PMC-Sierra $197 3.3% SAM growing 2005=$2.3B to $4.7B in 2009 Realtek 3.3% Growing SAM/SOM by entering $195 expanding traditional Semiconductor infrastructure segments Other vendorsMGW, wireless $1,806 30.5% DSP and wireline infrastructure New Markets Total SMB, Home $5,919

Ageres Mission to be #2 Commmunication IC Provider by end of 2008

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Market Need Leverage Agere Value

Solution Value Proposition Multi-Protocol support with independent clocking Scalable platform approach from 1-63E1 and beyond

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Agere Systems Proprietary

Market Need Leverage Agere Value

Market Need: Cost reduce OpEx by Network Convergence Target market: Access aggregation devices supporting multi-protocols Real OpEx Savings:
E1/T1 lease cost per line is approx $600 to $1000 per month Ethernet port into IP Network typically less than $100 per month

Market Oppty: Converge Multiple protocols to converged network

CES ATM/IMA HDLC ML-PPP

E1/T1 service

CES ATM/IMA HDLC ML-PPP

MultiProtocol Network Convergence

Packet Network
In CO, there is another PWE card (Hub Card) that converts SAToP/CESoP back into E1 stream for processing
Agere Systems Proprietary

New FE data service

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Pseudo Wire Technology Enabling Technology for Packet Network

Standardized by IETF PWE3 working group
Pseudowire Emulation Edge to Edge

Defines:
Pseudowire encapsulation for TDM, FR, HDLC/PPP, Ethernet & ATM circuits as pseudowires Pseudowire signaling (a control protocol for setup & maintenance of pseudowire based on targeted LDP)

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Agere Systems Proprietary

Definitions
Encapsulation Protocols ATM service emulation features:
OAM Traffic Management and Shaping Statistics PWE encapsulations: IMA (Inverse Mux over ATM)
AAL1 format (Constant Rate/static allocation

Clock Recovery Schemes Varies by service provider Adaptive Timing

Filling buffer in LLP and monitoring fill level

Do NOT need same network timing at both ends of PWE link

Differential Timing with RTP

Uses Packet timestamps to determine network clock

of timeslots) AAL2 format (dynamic allocation of timeslots)

More precise than adaptive timing

Preferred solution when available

Need same network timing at both ends of PWE link If not available default back to adaptive timing

TDM service emulation features:

SAToP/CESoPSN Encapsulation protocols SAToP encapsulates E1/T1 payload
Most customers use this

IEEE 1588 (Timing over Packet)

Recover GPS clock from packet network Precise Applications

Radio Clock (0.05 ppm) for Node B/BTS using IP backhaul

Synchronous Ethernet
Ethernet syncd to network timing

CESoPSN NxDS0 encapsulation

Used when looking for additional BW

Simple and more precise than IEEE1588\ Legacy issues, but getting attention of carriers

efficiency where most DS0 slots in E1 frame are not full Penalty is added delay in end to end system

Synchronous PDH
Today, TDM ports are syncd to network timing

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Agere Systems Proprietary

PWE Solutions for Access Points

1-4E1 service

E1 service emulation (SAToP or CESoPSN) over IP/MPLS Network 1-4E1 service Packet Network
In CO, there is another PWE card (Hub Card) that converts SAToP/CESoPSN back into E1 stream for processing

New FE data service

LIU

E1/T1

Network/Cleint

LLP

APP3

ET1081

FE/GE

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Agere Systems Proprietary

Agere PWE solution access point: Option 1

Option 1: devices + reference code
LLPv2.1 and APP320 v1.2 are available now
APP3v2 (IEEE1588 v2/NTP HW support) in test samples in Nov 06

LLP/APP provides complete solution for wireless backhaul applications

IMA testing is complete (test report available) SAToP/AAL1 testing is in progress (test report available)

LLPv2.1
IMA - APIs are available AAL1 APIs are available

APP320
APIs are available SAToP reference code free of charge is available today CESoPSN reference code in progress SW development tools are available
Datapath simulators available

HW reference design
Wireless reference design
APP3 + LLP + Ultramapper PDH framer

Raybit HW platform
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Agere PWE solution access point: option 2A

Includes Option 1 plus: Software FPI (Functional Programming Interface)
Release 2.5 - IP-ATM-PWE FPI

Status: Production Release Today (PWE-OAM in interoperability testing phase) IMA ATM Services Emulation to MPLS IMA ATM Services Emulation to IP PWE-OAM

IP-ATM PWE FPI

Includes: PWE OAM IETF BFD-base-04.txt; PWE3-VCCV-07.txt ATM over MPLS PWE3 encapsulation Draft-ietf-pwe3-atm-encap-10.txt (and 11) ATM N-to-1 cell encapsulation mode with multiple VCI/VPI's per Pseudo-Wire IP based PW encapsulation - MPLS-in-IP (RFC 4023) Availability now Production at tier 1

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Agere Systems Proprietary

Agere wireless backhaul solution (client): option 2B

Includes Option 2A plus: Full Software FPI for PWE IP-ATM/SAToP/CESoPSN
Per port flexibility for ATM/SAToP/CESoPSN

Release 3.0 SAToP FPI

Status: Final stage of spec and plan SAToP TDM Services emulation to MPLS SAToP TDM Services emulation to IP

Release 4.0 - CESoPSN FPI

Status: Final stage of spec and plan CESoPSN TDM Services emulation to MPLS CESoPSN TDM Services emulation to IP

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Agere Systems Proprietary

PWE Hub side Agere solution

FE/GE
NxE1 access

Packet Network

Network Interface (n x FE/GE)

E1/T1

ET1081

APP3

LLP

Ultra Mapper

Interface

Network side original E1/T1 stream is re-produced and forwarded to existing RNC or Central Office This can also be a card in the CO equipment Supports up to 63E1/84T1, STM-1

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Agere Systems Proprietary

Agere PWE Hub solution: option 1

Option 1: devices + reference code
Ultramapper 3.0, LLPv2.1 and APP320 v1.2 are available now for SAToP/CESoPSN
84T1/63E1 solution

LLP/APP provides complete solution for wireless backhaul applications

IMA testing is complete (test report available) SAToP/AAL1 testing is in progress (test report available)

Ultramapper 3.0:
Fully available

LLPv2.1
IMA - APIs are available AAL1 APIs are available

APP320 (SAToP/CESoPSN/ATM)
APIs are available SAToP reference code is available CESoPSN reference code in progress SW development tools are available

HW reference design
Wireless reference design
APP3 + LLP + Ultramapper PDH framer
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Agere PWE Hub solution: option 2A

Includes Option 1 plus: Software FPI (Functional Programming Interface)
Release 2.5 - IP-ATM-PWE FPI

Status: Production Release Today (PWE-OAM in interoperability testing phase) IMA ATM Services Emulation to MPLS IMA ATM Services Emulation to IP PWE-OAM

PWE IP-ATM FPI

Includes: PWE OAM IETF BFD-base-04.txt; PWE3-VCCV-07.txt ATM over MPLS PWE3 encapsulation Draft-ietf-pwe3-atm-encap-10.txt (and 11) ATM N-to-1 cell encapsulation mode with multiple VCI/VPI's per Pseudo-Wire IP based PW encapsulation - MPLS-in-IP (RFC 4023) Availability now

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Agere Systems Proprietary

Agere PWE Hub solution: option 2B

Includes Option 2A plus: Full Software FPI for PWE IP-ATM/SAToP/CESoPSN
Per port flexibility for ATM/SAToP/CESoPSN

Release 3.0 SAToP FPI

Status: Final stage of spec and plan SAToP TDM Services emulation to MPLS SAToP TDM Services emulation to IP

Release 4.0 - CESoPSN FPI

Status: Final stage of spec and plan CESoPSN TDM Services emulation to MPLS CESoPSN TDM Services emulation to IP

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Agere Systems Proprietary

Agere PWE FPI Software Package Options

Release 2.5 - IP-ATM-PWE FPI
Status: Production Release Today (PWE-OAM in interoperability testing phase) IMA ATM Services Emulation to MPLS IMA ATM Services Emulation to IP PWE-OAM

Release 3.0 SAToP FPI

Status: Final stage of spec and plan Phase 1 Dec 1 SAToP TDM Services emulation to MPLS SAToP TDM Services emulation to IP

Release 4.0 - CESoP FPI

Status: Final stage of spec and plan Phase 1 Dec 1 CESoP TDM Services emulation to MPLS CESoP TDM Services emulation to IP

Release 5.0 1588 Timing Over Packet

Status: In spec and plan IEEE1588 TDM Services emulation to MPLS IEEE1588 TDM Services emulation to IP

Roadmap Additional Ethernet Features

Status: Market requirements analysis
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Agere clock recovery plans

Available today:
Adaptive buffering Differential clocking Synchronous PDH (T1/E1s are locked to the network clock) Synchronous Ethernet (Ethernet is locked to the network clock) Timing over packet: IEEE 1588 v2

Roadmap
Single chip Timing over Packet (IEEE 1588 v2, NTP, )

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Agere Systems Proprietary

Agere clock recovery strategy

Multiple clock recovery schemes are necessary Each has advantages and disadvantages Differential clocking and Synchronous will meet the more stringent Wireless timing requirements Per port clock recovery is critical
Multiple wireless carriers could interface to the same PWE backhaul network element Each wireless carrier could have its own timing domain

Per port clock recovery selection is critical

One group of T1s could run with differential clock recovery, while a different set of T1s could run with adaptive clock recovery

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Agere Systems Proprietary

PWE SW Schedule
Version 2.5 10/23/2006 PWE ATM FPI with IMA PWE ATM/SAToP FPI PWE ATM/SAToP/CESoPSN Full PWE FPI With Integ. Timing over packet Version 3.0 Version 4.0 Version 5.0

FPI

Reference code Clock Rec.

SAToP

Other functions upon request APP3v2, Single chip IEEE 1588, NTP,

Adaptive Differential Sync PDH Sync Ethernet IEEE 1588

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Agere Systems Proprietary

Competitive Summary Wintegra

Key Competitive Point
Or other applications that require aggregation of different clock domains See ITU G.8261

Wintegra cannot be deployed in a PWE wireless backhaul (2G, 2.5G, 3G) environment

Market Need Agere Advantage Typically multiple cellular carriers (Sprint, Verizon, Cingular) are on one tower each having independent network timing or will aggregate multiple (and different wireless carriers) single carrier towers at a common location
Wireline Service Provider will deploy PWE solution at cell site access point aggregate E1 traffic from multiple wireless carriers with independent clocks

Agere Advantage support of independent clocks on each E1/T1

3 independent Cellular Providers 3 independent clocks Wintegra does not met Agere does
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3 independent Cellular Providers 3 independent clocks Wintegra does not met Agere does

Competitive Summary Zarlink

Key competitive point Cannot be deployed in multi-protocol applications Lacks QoS for Ethernet PWE that Sprint requires
APP gives us the Ethernet PWE QoS

Cannot be deployed in a PWE wireless backhaul (2G, 2.5G, 3G) environment

Zarlink Deficiencies
No independent clocking Fixed function standalone devices
Different chips for IMA/ATM and CESoPSN

Does not public ally support SAToP

Not scalable to Hub solution

Must partner with Agere UltraMapper for Hub solution

Fact - Zarlink did call Agere looking to partner on Hub solutions

Zarlink Market niche

Good low cost fixed function device for low end / low feature set E1 circuit emulation

Agere price aggressive and bundle with broader solution portfolio Has working demo and passing test report at customers

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Agere Systems Proprietary

Agere demo plans

Hardware
The Raybit boxes are re-named to Agere PDS5000 family (PWE Development System) PDS5000
Status: in field today Customer use demo SAToP features not performance

PDS5100
Status: boards built in test Demo SAToP features Performance evaluation

Meets Jitter and Wander spec

Wireless Reference Board

Capable of demonstrating IP-ATM PWE FPI Not performance (jitter, wander) evaluation

Demo Today
FAE can demo SAToP reference code (see next page) running on PDS5000

Demo in December
FAE can demo SAToP reference code (see next page) running on PDS5000 or 5100 Performance evaluation of Jitter, Wander

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Agere Systems Proprietary

Agere PWE-TDM Reference Software Available - Nov 30 fully documented

Available Date Comments

System SW:
APP object API and data path Application SW
RTE Data

(object API and driver for APP3xx)

X X x X SAToP now, CESoP future enhancement

path SW for SAToP/CESoP Compliant to RFC 4553 Including Alarm processing (L bit, etc.), configurable payload size, multiple T1/E1s (at least 336/252) Data path SW for network impairment compensation Packet loss processing Packet reordering processing Manual and dynamic adaptive buffer Min, max and average buffer depth PDV enhancement algorithms Differential timestamp processing Data path PWE OAM based on RFC IETF Draft BFD - Text 04 RTP Traffic management Ethernet and TDM services Link aggregation GbE failover and clock holdover Data path SW supports different packet switched network encapsulations UDP over IPv4/6, MPLS over IPv4/6, and MPLS/MPLS Support for 802.1ad and 802.1q Stats

X X X X x X X X X future enhancements x X x X IPV6 unscheduled release. Estimate mid 2007 future enhancements future enhancements On-going improvements planned part of Wireless FPI

LLP APIs
FW

for SAR processing for SAR UDT and SDT with CAS T1/E1 framer APIs Adaptive buffer algorithm and Delay compensation PDV enhancement algorithms 8 T1/E1 SAToP/CESoP for standalone LLP.
API

X X X X X X

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Agere Systems Proprietary

Competitive Summary

Agere

Wintegra

Zarlink

Single source End-to-End solution Simultaneously Multi-protocol support: IMA, HDLC, ML-PPP, AAL1, SAToP, CESoPSN 28 Independent clock recovery per T1/E1 ports Intelligent packet processing for critical QoS needs

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Agere Systems Proprietary

Call to Action / Next Steps

Focus
Sell APP3 and LLP Offer SAToP Reference code to customers that want to do their own development Sell IP-ATM PWE FPI for customer looking for time to market and ATM Encapsulation

Demo Today
FAE can demo SAToP reference code running on PDS5000

Demo in December
FAE can demo SAToP reference code running on PDS5000 or 5100 Performance evaluation of Jitter, Wander

Demo coordination
Filter demo request through Sabine Haeseler, Steve Vandris/Tim Sha, Jim Sepko to Ed Nuber for worldwide coordination

Next steps
Follow up PWE software only Webcast / FAE conference call in December
Will hold after PWE Software Phase 1

Software release plans and schedule provided at that point

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Agere Systems Proprietary

Top 10 List of Questions

Why does every customer have Zarlink in evaluation?
They were early to market with point product solution limited success Ask customer to define everything not clear to us and then compare True some customers prefer black box SW for PWE and do not want to program it

Wintegra Software is $75,000 for everything - how do we compete?

Counter with Wintegra is notorious for poor support how can this model scale create FUD

Why is Agere always Late to market

Agere was focusing on Node B and other mature markets with proven APP3/LLP Silicon and SW is available today depends on how much customer wants to do Agere has scaleable platform and will provide aggressive pricing across portfolio

How does Agere compete against Zarlink in low cost/feature E1/T1 transport? What is Raybit doing for Agere
Raybit acts as sub-contractor to Agere for custom Software development per OEM Raybit acts as ODM for PDS5000 series of demo hardware Contact Ed Nuber

How do I schedule a demo for my customer What can I demo

SAToP demo code / ATM-IP FPI on WRB showing ATM/IMA Alcatel asked us three separate times in same meeting they are evaluating Wintegra Zarlink called Agere to partner on 63E1 hub solution, want to use UltraMapper Agere has it all We need to DEFEND our space and create barriers to entry This is TAM expansion with existing products Need to leverage existing Access Wins and strong entrenched position over competitors
Agere Systems Proprietary

Is Independent clocking that important?

Zarlink really does not scale to high end so what Is Agere going to back-out of market

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