Maximizing the Impact of Optical Technology OFC/NFOEC 2007

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1 Maximizing the Impact of Optical Technology OFC/NFOEC 2007 Mark Wegleitner Senior VP Technology, CTO Verizon March 27, 2007

2 Traffic Growth 2000 Video downloads High-speed access Web browsing Game playing Music downloads NA traffic volume (PB/m) Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 2 Streaming video Streaming radio Voice-over-IP Petabytes/month PC adoption More Subscribers Higher Bandwidth Applications Greater Concurrency Source: Ovum-RHK

3 Verizon Optical Technology Thrusts 1977: First PSTN Optical deployment 1979: First Optical TV transmission 1982: First SMF deployment 1988: First FTTP deployment 1993: First EDFA deployment 1995: First OC-192 deployment 2004: First large scale FTTP deployment 2004: First US ULH deployment 2007: 40G ULH deployment Time 3

4 The Verizon Global Network 6 Continents 150+ Countries 2700 Cities 4500 PoPs 446K Route Miles 130K Enterprise Customer Relationships One of the Largest Wholly Owned Facilities-Based Networks in the World 4

5 Trans-Pacific Express Korea. Qingdao Chongming China Keoje Toucheng Nedonna Beach U.S. Total Distance Over 18,000 Km Initial Capacity 1.28 Tbps Design Capacity 5.12 Tbps In Service 3Q08 Verizon Is The Only US Member Of The Initial Consortium 5

6 Atlantic Mesh Network TAT-14 North East Coast USA Flag FA1 South Apollo North Flag FA1 North TAT-14 South Multiple Countries in Europe Apollo South Terrestrial Wet Terrestrial Multiple Diverse Paths On Land And Across The Sea New Routes And More Capacity Being Added In 2007 Automated, Control Plane Based Restoration Of Faults 6

7 Control Plane Based Network Service Control Network B-SCP Router C C C C C C Router OXC ADM NG Optical Transport Network Dynamic Service Provisioning and Maintenance Self-Inventory Self-Assignment Self-Configuration Self-Healing A Fully Automated End-To-End Network 7

8 Multi-Degree WSS 7100 WSS WSS WSS Port Card ADM ADM Wavelength Selective Switch (WSS) Supports Up To 8 Fiber Degrees Switches Wavelengths Under Software Control Improves Reach By Providing Per Wavelength Power Equalization 8

9 Regional Network Infrastructure End s End s Data Hub & End Upgradeable Amps Core DWDM Network Upgradeable Amps Data Hub Long Haul POP Video Hub End s Start With Unidirectional Video Broadcast And Combined VOD/Data Support An Architecture That Incrementally Scales Based On Demand Amplifiers Pre-Positioned For Node Upgrade 9

10 Regional Network Infrastructure End s End s Data Hub & End & End Core DWDM Network Data Hub Long Haul POP & End Video Hub Amplifiers Upgraded To Support Additional s and s WSS Enables Easy Node Degree Increase 10

11 Regional Network Infrastructure Spurs End s & End Data Hub & End & End Spurs & End Core DWDM Network Video Hub Data Hub Long Haul POP End s Dual Hubbed Spur Core Structure Further Extended With Additional s Spurs To Support Additional End s Common Network To Support FiOS, IOF, And Enterprise Service Infrastructure 11

12 Convergence STS-1 & VT1.5 Switching TDM GFP & VCAT P-OTP Packet Ethernet & MPLS Switching TDM-on-a- Wavelength Packet Over Wavelength WDM Network Flexibility Service Flexibility Lower Cost Wavelength Switching A Triple Play In Transport Technology 12

13 Packet-OTP I/O WSS I/O TDM TDM VCAT TDM Hybrid Fabric Packet Packet Packet PoS TDM Packet Single Network Element Hybrid Fabric To Support Mix Of TDM And Packet Switching WSS Based To Support Multi-Degree Connectivity Fully Automated Control Plane 13

14 Applications and Media Bandwidth Upstream Downstream Web Surfing Video Conferencing, Premises Surveillance SDTV VOD, Telecommuting File Sharing, Home Video Sharing/Streaming Real Time SDTV, Network PVR Multi-Player Gaming, Interactive Distance Learning Premises Web Hosting Large File Sharing Video Uploads/Downloads HDTV VOD Network Hosted Applications & Storage Next Generation 3D TV FTTP VDSL2 ADSL2+ Cable Modem ADSL WiMax Dial-Up Mbps 14

15 FiOS Next Slide 15

16 Simplified FTTP Architecture Super Head End Long Haul Optical Transport Video Hub Internet Interactive Video Services Verizon IP Network SER Medium Haul Optical Transport Local CO (Video Serving ) OLT Broadcast Video Services ONT POTS Data Voice Network Video Power & Battery 16

17 FTTP BPON Video EDFA Erbium Doped Fiber Amplifier Central Customer Premises Voice Data VOD OLT (Optical Line Terminal) Optical Couplers (WDM) Optical Splitter 1x32 ONT (Optical Network Terminal) Upstream Services & Bandwidth Downstream Voice and 155 Mbps Voice, Data & 622 Mbps Broadcast Video (860 MHz equiv.) 1310 nm 1490 nm 1550 nm 17

18 FTTP GPON Voice Data VOD Central OLT (Optical Line Terminal) Video Increases Bandwidth 2.4 Gbps/1.2 Gbps EDFA Erbium Doped Fiber Amplifier Optical Couplers (WDM) Optical Splitter Announcement 1x32 ONT Optical Network Terminal Initial Deployments Include A Third Wavelength To Maintain Service Package and Accelerate Deployment Expanded Bandwidth Enables Full IPTV Implementation Later Customer Premises 18

19 Verizon s FTTP Deployment Over 6M Homes Passed To Date Target Is 18M By 2011 (3M / Year) GPON And More HDTV In 2007 Same Infrastructure For SMB Markets 19

20 Transport Generic Requirements Support Residential, Enterprise/Government, Wholesale, And Internal Requirements Remain X able Accessible (Protocol Agnostic, Defined Interfaces) Predictable (Throughput, Latency,...) Scalable (Rate Adaptive/Adjustable Port) Reliable/Survivable (Protected Nodal, Port, Link, Route, Service, ) Become Dynamic Control Plane Enabled Topology, Element And Capacity Aware Routing, Bandwidth Allocation, And Protection/Restoration Functional 20

21 Future Optical Network Requirements More Capacity (Speed and Wavelengths) Greater End User Access Bandwidth Common Control Standards Easier Fiber Administration In Central And Outside Plant Fiber In the Premises for Higher Bandwidth and Ease of Installation Higher Functional Integration (To Reduce Cost) Bandwidth On Demand Capability Multi-Vendor Supply Maintenance Of Reach And ITU Spacing At Higher Speeds Routing Flexibility 21

22 Optical Innovation Areas Beyond GPON: 10GPON And/Or WDM PON Low Loss/Bend Insensitive Fibers Mechanized Optical Patch Panels For Central, CEV And FDH Applications GMPLS Control Plane Standards For SONET And DWDM More Wavelengths Per Fiber Higher Bit Rates: 40G/100G Alien Wavelength Advanced Modulation Techniques For 40/100 Gbps Dynamic Colorless Mesh Networking Optical Packet Switching 22

23 Summary Verizon is... Focused On Optical As Key To The Future Widely Deploying Optical Technology Supporting A Variety Of Applications Pushing The Status Quo To Insure Support For Future Growth/Scale Looking To Leverage Optical Investment For New Applications And Services Taking Advantage Of Next Generation Optical To Lower Costs And Achieve Greater Performance 23

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