Cube Optics AG The Road to 100G Metropolitan Networks. Cube Optics AG

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1 The Road to 100G Metropolitan Networks

2 Cube Optics: Fact Sheet Cube Optics is a leading provider of WDM optical networking hardware solutions for broadband access networks. Launched Location Employees Financials Technology Products Customer base Channels Management Investors x in Mainz, Germany + CM in China (+ Subsidiary in China) Ca. 150 people Revenue ca.30m EUR, positive net income Platform based on polymer optical benches, uniquely protected by 10 patents Engineered Components Ultra-compact passive and active optical components & modules Access Network Solutions Outside plant suitable sub-systems for access capacity upgrades >300+ clients incl. leading OEMs and telecom/cable operators Direct sales force 10 people strong Indirect channel through worldwide distribution network Strong management bringing operational and technology leadership Equity: Star Ventures, Target Partners, Sevin Rosen Funds Mezzanine debt: KfW Bankengruppe

3 Product / Technology Highlights Components World s smallest optical WDM, 95% market share in 100Gbps LR4 CFP transceivers Leading edge on passive-active integration, first to market with 100Gbps LR4 Receiver Optical Sub-Assembly (ROSA) Network Solutions World leader for passive transport solutions: simplifying metro data transport, eco-friendly (no energy consumption), plug-nplay, lowest latency First to market with 100Gbps passive metro connections and reach extension Layer 2 hardware encryption on Layer 2 with AES algorithm: making traffic interception impossible at the lowest possible latency

4 Cube Optics Product Portfolio Engineered Components for OEMs Access/Transport Network Solutions for Operators Passive components Active components Passive Transport Solutions Active Transport Solutions CWDM / DWDM / WWDM / LAN-WDM Customized lambda grids Ultra-compact, OSP Couplers, switches, attenuators, etc. Private labeled line cards, modules and assemblies Multi-lambda detectors for T&M 4x10 Gbps CWDM ROSA & TOSA 4x25 Gbps LAN-WDM ROSA & TOSA Passive W/C/DWDM systems for rack mounting, splice enclosures or line cards, highly customizable Full suit of Transceivers, as well 3 rd party compatible PON Solutions Active transport solutions for metro core to long haul with optional amplification Conversion, Repeaters, Aggregation Metro Access Demarcation Consulting, Network Planning Installation, Provisioning Service and Support

5 PB per Month Metro traffic to grow 3x over next 5 years Traffic % CAGR Source: Cisco VNI, 2013 Metro-only traffic will surpass long-haul traffic this year. Metro-only traffic will grow nearly twice as fast as long-haul traffic from 2012 to If you have a 40-channel 10G DWDM system filled at 50% capacity (= 200 Gbps) today, you will need to upgrade that system in the next two years What are the options?

6 Options for n*100g transport in metropolitan networks Add parallel dark fibers and replicate n*10g passive DWDM systems Expensive opex (fiber RTUs, maintenance, supervision) Add channels to existing n*10g passive DWDM systems Expensive capex (passive mux replacement, new 10G optics) Add active 100G transmission systems Very expensive capex and opex Passive 100G architectures are becoming the most cost-effective option

7 Optical Transmission Windows O-band C-band

8 100Gig LR4 CFP Supported by many vendors 100G Ethernet IEEE 802.3ba (103.1Gb/s) 4 x 25G LAN-WDM Power <24W Maximum distance <10km Can be extended with pre-amplification

9 100G DWDM Direct Detect Based on simpler PDs, reach limited by CD & PMD 4 x 25Gb/s per 100G used 50Ghz or 100Ghz ITU-T grid Fixed Tunable IEEE 803.3ba Power < 24 W Produced by >5 module makers in 100Ks since 2011 Price ~ 25% - 30% cost of Coherent

10 100G Passive Metro Network Architectures 100G in O Band 100G in C Band Single Circuit 100G 10G DWDM + 100G overlay 10G DWDM + 100G DWDM overlay 100G DWDM Maximum capacity 100 Gbps (= 1*100G) 500 Gbps (= 1*100G+40*10G) 1.6 Tbps (=12*4*25G+40*10G) 2.4 Tbps (= 24*4*25G) Number of wavelengths Number of transceivers 1 41 (1*100G, 40*10G) 52 (12*100G, 40*10G) 24 (24*100G) Maximum distance 10 kms (no amp) Up to 70 kms (SOA) < 10 kms (no amp) Up to 70 kms (SOA) < 100 kms (EDFA) < 100 kms (EDFA) Typical transceiver CFP 100GBASE-LR4 CFP 100GBASE-LR4 CFP DWDM (direct detect) CFP DWDM (direct detect)

11 100G overlay in O-band (1310nm) Requirements: 100Gbps Base-LR4 transceiver module Transports 4x25Gbps with integrated optical 4- channel (de)mux One single mode duplex fiber SC/PC connectors for SMF fiber pair Reach < 10km Silicon Optical Amplifier (SOA) Extends the reach of 100G BASE-LR optical transceivers to ca. 70 km SOA current can be varied to adjust the optical gain

12 Overlaying 10G DWDM with 100G (1310nm) Up to 500 Gbps per fiber pair Up to 40 DWDM channels at 10G + additional 100G link over passive DWDM Option for km with SOA for 100G LR4 ~ 70% lower cost vs active 100G platform, 80% lower cost vs 100GBase-ER4 40x 10 Gbps over DWDM Total 400 Gbps MUX nm DWDM +1310nm 500 Gbps MUX nm SOA 100G BASE-LR4 over 1310nm Further Information:

13 100G DWDM over C-band Requirements 100Gbps DWDM CFP transceiver module Transports 4x25Gbps Four single mode duplex fibers Employs 4 tunable lasers in the 50GHz ITU-T channel grid (DWDM) and 4 receivers Requirements DWDM multiplexers/demultiplexers Passive DWDM mux/demux with 50GHz grid over a single mode fiber pair Up to 24 "differently colored" 100Gbps DWDM CFP transceivers can be transported via a 96 channel MUX Reach extendable with standard, stand-alone EDFAs to >100kms

14 Overlaying 10G DWDM with 100G (C-Band) 10G SFP 10G SFP 10G SFP 100GHz DWDM Mux 100GHz. Odd channels Compensation 50/100 GHz INT. 100G CFP 4 in 100GHz 100GHz DWDM Mux Amplification. Even channels 100GHz 4x25G CFP output Complementing the existing 10Gbps DWDM system with 100Gbps upgrades

15 Multiple 100G DWDM in non FEC environment Vendor 100G DWDM Direct Detect Extreme Q Brocade Juniper Alcatel-Lucent 100Gbps DWDM direct detect testing 20km, 40km and 60+km - without central location for multiple 100G DWDM services in 100GHz grid Proven to work with existing DWDM 10G Long term stability over temp C (cycled) running stable over 350hrs (2 weeks)

16 Conclusion 100G is still not making sense for all metro connections, but has become a valid solution for fiber-constrained areas and native 100G port transport. 100G Passive Transport has already become a powerful, simpler, and lower-cost alternative to traditional active transmission solutions. More information: Cube Optics offers simple, robust, end-to-end transmission solutions over dark fiber, from n*100 Mbps to N*100 Gbps

17 Thank you. Thierry SAMAMA Thierry.Samama@cubeoptics.com

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