d s l s t r a t e g i e s

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1 Ad d ressing the netwo rk needs of carriers deploy i n g DSL te ch n o l o gy. d s l s t r a t e g i e s otal Access Systems Internet Video CSA In t e g rated DLC Truck Roll D TV Existing DLC D S LAM To t a ccess Systems Internet Video CSA Integrated DLC Truck Roll HDTV xisting DLC D S LAM Total Ac c e s s

2 d s l s t r a t e g i e s Expand Your DSL O p p o rt u n i t i e s. A n s we rs for Difficult Network Questions. Integrated DLC or DSLAM? Pre-provisioned or truck roll per subscriber addition? ADSL2, ADSL2+, VDSL, or VDSL2? Can video be deployed from the existing network? What about HDTV? How much bandwidth is enough? ADTRAN can help. With our years of experience in loop plant, combined with our expertise in leading edge technologies, we can assist you in making decisions that are right for your network. DSL is key to business success, from sustaining and growing market share to additional revenue opportunities such as video. Choosing the right solution for your network can be overwhelming. ADTRAN has the expertise and the solutions you need to grow your DSL opportunities. Integrated DLC or DSLAM Which is more cost-effective? DSL equipment costs have continued to fall, creating wider opport u n i t i e s for DSL service offeri n g s. The cost to p rovision the DSL serv i c e, including the truck dispatch to connect the s e rv i c e, has become a more significant cost factor in ove rall serv i c e d e l i ve ry. ADTRAN T M has examined DSL implementation altern a t i ves that consider both hard w a re and prov i- sioning costs with the goal of d e veloping effective network stra t e- gies with our customers. In existing networks, consider an adjunct DSLAM. In networks where POTS service already exists, DSL can be added with the placement of an adjunct DSLAM. The adjunct DSLAM is an attractive alternative in existing applications since the DLC has a l ready been purchased and paid for. In greenfield applications where both P OTS and DSL must be purchased, the costs of an integrated or pre - p rov i s i o n e d solution may be more compelling and is worth consideration. If POTS already exists, use a DSLA M and roll the tru c k. An integrated DLC can be significantly more costly than a D S LAM, even with a truck dispatch to a c t i vate DSL subscri b e r s. DSL take ra t e s must exceed 40% to 50% before any cost advantage is gained with an i n t e g rated DLC approach. An adjunct D S LAM provisioned for eve ry POTS p o rt will eliminate the dispatch and still may offer cost advantages over an i n t e g rated DLC solution.

3 In new developments or rehab, use the DLC or DSLAM. For facility rehab or new construction that requires new POTS services anyway, the cost advantages of the truck roll approach diminish. A pre-provisioned DLC or DSLAM gains cost advantages at DSL take rates of 20% to 30%. ADTRAN s new packet voice capabilities provide carriers the unique advantages of BDLCs from the existing Total Access 3000 DSLAM platform. For Internet and video services, the adjunct DSLAM is the most costeffective DSL solution for existing networks, whether you roll a truck or pre-provision DSL. Total Access D S L A M 224 DSL ports, expands to 1344 CO and RT applications ADSL2+, VDSL, ADSL, SHDSL, IMA Aggregation 10/100/1000 Base-T/Ethernet, DS3, OC-3c network interfaces Integrated Voice and Data P O T S Existing Network Applications Total Access Series Mini-DSLAMs 24 ports ADSL, expands to / 4 8 ports ADSL2+, expands to 192 T1/E1 10/100Base-T Integrated splitters Overall Cost Analysis for DSL in Existing Network In c remental DSLAM lines re p resent adjunct DSLAM and truck dispatch. Pre - p rov i s i o n e d c u rves re p resent DSL on eve ry POTS port with no truck dispatch. Graph results based on c o n s e rva t i ve industry estimates. To calculate the cost points for your network, visit our website at w w w. a d t ra n. c o m / d s l c a l c u l a t o r Total Access 1100 Series OSP DSLAMs Self-contained, pole, wall, or pedestal mounted Environmentally hardened Line or locally powered 24 ports ADSL with expandable architecture 24/48 ports ADSL2+ with gigabit expansion up to 192 ports

4 CNBRDSLStrategies /2/04 2:43 PM Page 4 dsl Video Over DSL Can you cost-effectively meet the rising demand for Internet access while building an infrastructure that supports video? Up to now it has been difficult and expensive, but three enabling standards may significantly reduce the costs associated with the "triple play." By implementing these Video is key to driving higher DSL take rates, and HDTV must be offered to be competitive in today s market. ADTRAN develops solutions that meet your needs for network services today and tomorrow. standards in their broadband networks, service providers will have a significant advantage over current solutions that do not offer the cost and competitive benefits of industry standards. ADSL2+. A sustainable video offering 2-Pair Subscriber Loop Bonding. requires DSL bandwidths approaching With the introduction of DSL and 20 Mbps. ADSL2+, combined with cellular phones, access line growth has 2-pair subscriber loop bonding and been negative, freeing copper pairs. advanced video compression, can The addition of a pair to the house- deliver three channel HDTV-based hold from the DSLAM can reduce the programming across most of a need to re-engineer the network for network designed within CSA guide- video applications by extending the lines. While VDSL offers single pair effectiverange of a competitive video access at video bandwidths, it is service. While 2-pair bonding can be constrained to short loops, requiring accomplished using proprietary re-engineering to place loop electro n- techniques, it limits the serv i c e ics within 4 kft of the subscriber. provider to a single vendor and elimi- ADSL2+ extends the downstream nates the "best of breed" attributes frequency spectrum used in ADSL that standards afford through compe- from 1.1 to 2.2 MHz and has become tition. Standards efforts are underw a y an ITU standard, with commercially and will be applicable to existing and available products in the near term. future DSL technologies.

5 s l o p p o r t u n i t i e s Co m p ression Algori t h m s. A l t h o u g h s m a l l - s c a l e, standard definition video s e rvice can be deployed using MPE G 2 c o m p ression, the advent of MPE G 4 AVC/H.264 and other adva n c e d c o m p ression techniques provides the i n c reased quality and the reduced data rates that dramatically change the economics of providing a competitive video serv i c e. In d u s t ry experts expect c o m m e rcially available implementation of these coding techniques by the end of The introduction of n e wer compression algorithms will impact equipment decisions such as the set top box, for example, in whether to offer a current solution that cannot be upgraded or to delive r video service with the latest compre s- sion technology. A D S L G standard June 1999 Frequency range: 138 khz to 1.1 MHz downstream 25 khz to 138 khz upstream Operates over POTS A D S L 2 G standard June 2002 Incremental improvement over ADSL Double-ended test support Extended reach mode (READSL) - Objective of 192/128 kbps on 1500 ohm loops Optional higher upstream mode -Frequency range up to 276 khz DSL Performance Comparison 24 AWG ADSL 2+ Latest ADSL standard G May 2003 Higher downstream mode - Extended downstream frequency range to 2.2 MHz - Operates over POTS Optional higher upstream mode -frequency range up to 276 khz upstream V D S L DMT VDSL adopted by T1E1.4 for North America Frequency Plan 998: 22/3 4 kft 10/ kft To d a y s DSL technologies offer similar performance at CSA limits, b u t techniques such as 2-pair bonding can dramatically increase the effective ra n g e of a video serv i c e. A D T RAN is committed to establishing industry standards that i m p rove ove rall system cost and perf o r m a n c e. Total Access systems are designed with the flexibility to offer the benefits of emerging technologies while re m a i n- ing the industry s most cost-effective solutions for DSL access. V D S L 2 Standard under consideration Bridges ADSL2+ and VDSL technologies * Graph does not reflect implementation loss. Pe rformance can va ry as a function of noise and PSD assumptions.

6 d s l e x p a n s i o n A D T R A N s cost-engineered products and standards-based technology deliver reliable, flexible, and scalable equipment solutions for network access. Outside Plant Solutions Total Access 1100 Series Entire coverage of network DSLAM coverage beyond CO and RT Fit-anywhere functionality ADTRAN Total Access DSLAM Systems The Total Ac c e s s 3000 has become the D S LAM standard for large and small LECs throughout the industry. Co s t - e f f e c t i ve and compact, the highdensity Total Access 3000 has cre a t e d DSL expansion opportunities in are a s that we re previously considere d uneconomical. With the realization of its power and flexibility, the To t a l Access 3000 is increasingly becoming the standard for high-density applications as well, providing the low initial d e p l oyment costs and growth potential lacking in traditional DSLA M p l a t f o rm s. The Total Access 1200 Se ri e s of Mi n i - D S LAMs expands DSL cove r- age effectively as the ideal solution for D LCs constrained by space and lowe r line counts. The Total Access 1100 s e ries offers span and local-powe re d remote access even beyond the remote term i n a l. Central Offices and Re m o t e Te rm i n a l s. Line counts, cost, ava i l- able space, and DSL take ra t e s influence the proper choice of DSLA M s o l u t i o n s. ADTRAN offers the ri g h t DSL solution for any combination of factors with the Total Access 3000, 1200, and 1100 series of DSLA M s. T h e Total Access 3000 provides up to 224 DSL interfaces and is available in i n t e g rated and external splitter shelf c o n f i g u rations using the Total Ac c e s s For lower density are a s, the Total Access 1200 series offers 24 or 48 DSL ports in a single rack unit of s p a c e, with expansion capabilities f rom 96 to 192 port s. Likewise, the Total Access 1100 series offers 24 or 48 p o rts in an environmentally hard e n e d package for outdoor deploy m e n t s. The modularity of both systems offers n u m e rous altern a t i ves for network, s u b s c ri b e r, and switching interf a c e s. I M A / ATM Aggre g a t i o n. Ma n y D S LAMs u t i l i ze multiple DS1s to t ra n s p o rt user data tow a rd the centra l- i zed switch or router to interface the In t e rnet. Multiple DS1 interfaces can exhaust the port capacity of the ro u t e r long b e f o re any router pro c e s s i n g l i m i t a t i o n s a re reached, causing e x p e n s i ve, inefficient usage of network re s o u rc e s. The Total Access 3000 is commonly used throughout the i n d u s t ry to aggregate up to 112 DS1s into a single DS3 or OC-3c

7 CNBRDSLStrategies /2/04 2:43 PM Page 7 interface, minimizing router port tra n s p o rt. Both POTS and requirements and increasing system ADSL2+/POTS line modules provide efficiency. The Total Access 3000 can GR-57 compliant POTS using standard provide subscriber access through packet backhaul techniques such as ADSL, SHDSL, and DSX-1 interf a c e s BLES, MGCP, and H.248. while simultaneously providing IMA aggregation services. Outside Pl a n t. To ensure entire n e t w o rk cove rage, ADTRAN created IP/Ethernet. Et h e rnet has migrated DSL solutions that extend DSLA M from a local extension technology to functionality beyond the CO and RT. a Wide Area Ne t w o rk component. All The Total Access 1100 Se ries of OSP ADTRAN Total Access DSL platform s D S LAMs are self-contained, enviro n- offer Gigabit Et h e rnet network inter- mentally hardened DSLAMs that can faces with ATM intern e t w o rking with be mounted on a pedestal or pole. existing, industry-standard DSL, Express, span, or locally powered, these s u p p o rting network migration using DSLAMs are also a low-cost enclosure existing network resources. solution for cross-box and DLC retrofits. POTS and DSL Delivery from Total Access 3000 ATM or GigE backhaul POTS only or ADSL2+/POTS S/W upgradable for multi-protocol support Packet Voice. The Total Access 3000, known for its strengths as a DSL and IMA Aggregation platform, provides DLC functionality with packet-based DSL Solutions For Your Network From low line count, existing network applications to high density Central Office and greenfield opportunities, ADTRAN has a Total Access Small Office and RT Solutions Total Access 1200 Series Low start-up costs with future application scalability 1U size for space constrained locations Modular expansion with a single network connection DSLAM solution that is right for your network.

8 d s l s t r a t e g i e s A D T R A N, I n c E x p l o r e r B o u l e v a r d H u n t s v i l l e, A l a b a m a A D T R A N i n f a d t r a n. c o m w w w. a d t r a n. c o m V i s i t w w w. a d t r a n. c o m / d s l a m s f o r m o r e i n f o r m a t i o n o n A D T R A N ' s D S L d e l i v e r y s o l u t i o n s t h a t a r e r i g h t f o r y o u r n e t w o r k a n d m a x i m i z e y o u r c u r r e n t i n f r a s t r u c t u r e. ADTRAN products are RUS a c c e p t e d ADTRAN, Inc. All rights reserved. ADTRAN and Total Access are registered trademarks of ADTRAN, Inc. All other trademarks and registered trademarks are the property of their respective owners. Printed in the USA. C N B R D S L S t r a te g i e s