IP Converged Services

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1 IP Converged Services

2 Company Milestones Surpassed 600 customers, including multiple top-tier carriers YTD Acquired Carrier Access Corp Announced the iconnect solutions strategy Surpassed 250 customers worldwide Traverse NGE awarded full MEF Certification Acquired White Rock Networks product portfolio Launched Traverse Next-Generation Ethernet solution Surpassed 100 customers, including 1 st top-tier carriers Launched TraverseEdge product family Signed global OEM partnership with Ciena First international customer deployments (AP & EMEA) Signed global OEM partnership with Motorola First customer deployments Launched Traverse product family First trials and interoperability demos 1999 Turin Networks is founded Telecommunications Magazine s Top 10 Coolest Companies Turin Networks Confidential - Do Not Distribute 2

3 Company Profile Market Position Turin is an established, global leader in the evolution of metro service edge and access aggregation networks Customers include the top five U.S. wireless operators and 11 of the top 17 providers of broadband Internet services 300k platforms deployed worldwide ($750M installed equipment base) Locations and Employees Headquartered in Northern CA (Petaluma Telecom Valley) Corporate offices in Boulder, Plano, Boston and Shanghai 400 employees worldwide Turin Networks Confidential - Do Not Distribute 3

4 Our Broad Customer Base Diverse Customer Types Turin now serves a roster of 600+ customers worldwide, de, in 27 countries ILECs/RLECs Competitive Carriers Wireless Operators Cable MSOs Global Carriers Government Utilities & Transportation Enterprises & Education Turin Networks Confidential - Do Not Distribute 4

5 Our Solutions The Challenge: New high-growth, high-bandwidth applications are driving changes throughout the telecom industry For network operators, profitable growth requires evolution to an infrastructure that is optimized for these new generation applications itunes Turin addresses network operators real-world evolution challenges with our iconnect Solutions: iconnect for Carrier Ethernet iconnect for Wireless Backhaul iconnect for Converged Services iconnect solutions o s simplify and facilitate a the migration from TDM- based networks to a packet optimized infrastructure Turin Networks Confidential - Do Not Distribute 5

6 The Access Metro Core

7 Converged Services The Converged Advantage Small/medium businesses are, for the most part, equipped with voice and data service. But voice and data are most likely to be served by separate WAN connectivity streams and use separate on-premise networks as well. By converging g these separate WAN connections into a single IP connection, Service Providers are able to offer the same traditional voice and data services over a single WAN connection to the customer. Provides significant cost savings to the customer Allows Providers to offer additional managed services to SMB Multi-services are key to provider ROI and Margin Turin Networks Confidential - Do Not Distribute 7

8 Communications Convergence Communication Capabilities Mobile Phones Voic Fax Integrated Communication Solutions IM and Presence Web and Video Conferencing VoIP VIP PBX Integration Integration with Applications Communications Convergence Occurs IP Telephony Mobile/Remote Solutions Horizontally Integrated Communications Expanded VoIP Scenarios Common Directory Standards Based Turin Networks Confidential - Do Not Distribute 8

9 Decentralized Work-Force Trend North American Multi-Site Business Characteristics: Average Employees Per Business ~ 248 Trending Flat (no change over past five years) Average Sites Per Business ~ 5 Trending Up ( ~3 in 2002) Average Employees Per Site ~ 60 Trending Down (~80 in 2002) As distribution increases so do the requirements for Virtual Communications and Standardization Source TWTC Turin Networks Confidential - Do Not Distribute 9

10 Typical Multi-Site Configuration Standard PBX and IP PBX functionality Separate providers for voice, data, and video services Unique proprietary p systems and support Limited functionality and feature support Turin Networks Confidential - Do Not Distribute 10

11 Virtual Office TeleCommunity Single provider for Unified Communications Service Integrated Platform Transport / Provider / Technology Agnostic Requires Ubiquity across disparate access Provider Network Turin Networks Confidential - Do Not Distribute 11

12 Evolution of the IAD / Router Capability Legacy IADS IP Business Gateways Bandwidth termination Phone support Threat protection QoS Management Emergency services support WAN support Business Processes Integration T1 or Less Analog Port blocking Best Effort Barely managed None Single WAN None 1-10 Mbps or more Fiber, Copper, Wireless Broadband TDM, IP, Femtocell Stateful Firewall, DOS, NAT, ALG, ACL Traffic policing and shaping VQM, VQA, secure & proactive management. Carrier and end user access E911 enabled gateway Multi WAN (WAN Redundancy & load sharing) Unified Communications, Turin Networks Confidential - Do Not Distribute 12

13 Converged Services Access Gateway These products fit in the multi-service business gateway category Products are used as a single network end-point that provides the following services: VPN (Secure network connections to other locations) VoIP (Voice over IP providing lower cost calling models) Firewall (Offering managed firewalls to secure customer networks) Data (WAN links for internet and remote data services like POS point of sale) Traditional Phone connectivity (Fax machines, regular phones) VoIP Phones (support for the new IP Phones) Connectivity for legacy phone systems (Small offices often have existing key systems, larger offices have PBXs) Turin Networks Confidential - Do Not Distribute 13

14 Converged Services Access Gateway Market 4X in 5 Year Multi-Service Business Gateway Market Growth Estimate $615M in 06 to $2.6B in 2011 Need for carrier-class customer business gateways for replacement of TDM access with all-ip access Enterprise, Government, and Small Business Segments Market is GROWING M illion s U S $for replacement of TDM access Worldwide MSBG Revenue Growth Source: IN-STAT Turin Networks Confidential - Do Not Distribute 14

15 Converged Services Access Gateway Market VoIP Driving Market Transition IP PBX Migration Transition to IP in full effect End of life PSTN switching gear IP line shipments exceed TDM IP PBX is natural Extension Turin Networks Confidential - Do Not Distribute 15

16 Market and Technology Directions Providers are already offering hosted VoIP with PBX features, data and Internet access, and video services. They plan to do more The installation of an MSBG in a small/medium business can serve as the basis for offering a wide variety of new business services on a subscription model. With the MSBG on site and an IP WAN connection, the service provider can activate services already installed in the box, download and/or host new services from service provider servers. networked data storage premise security FMC Fixed-Mobile convergence collaborative productivity applications. Turin Networks Confidential - Do Not Distribute 16

17 Customer Unified Communications Location Based Secure Workgroups IMS Managed Security Business Continuity Wireless Integration Session Border Control Circuit- Switched Voice Hosted VoIP Private IP Internet Internet MPLS Legacy / Integrated Speed Security Voice T1 MLPPP or Ethernet Adit enables SP to offer Managed Multi- Service WAN Access Existing Phone Systems Existing LAN Corporate Network Turin Networks Confidential - Do Not Distribute 17

18 Eco-system for Hosted VoIP Hosted Native IP Hosted Line Termination PSTN LA N LA N Gateway Customer/Carrier Hosted Feature Server Adit 3200 Adit 3104 Adit 3500 Hosted Trunk Adit 600 Fax Modem PBX Turin Networks Confidential - Do Not Distribute 18

19 Converged Access Market Landscape Integrated Access Device Evolution VoIP is the driver Carrier demarcation point Office in a box Voice, Data, SaaS, ALG Intelligence pushed to the edge Standardization of deployment Lowest cost / Highest bandwidth Access Copper, Coax, Wireless, Optical Interoperability is key Transparency for features Fierce competition for TDM replacement MSBG IS Trojan horse for additional revenue streams Turin Networks Confidential - Do Not Distribute 19

20 SMB Market driving Network Needs In 2008: There are 8.5 million Small Businesses in the US There are 22 million Small Businesses in EMEA There are 15 million Small Businesses in AsiaPac There are 55 million Small Businesses Worldwide There are 350 Million Users in this installed base Small business Telecom spending will grow 70% over the next 5 years Over 70% of Small (and Medium) Businesses have 1Mb+ connectivity Source: isupply Turin Networks Confidential - Do Not Distribute 20

21 Small Business Defined Turin Networks Confidential - Do Not Distribute 21

22 The Access Metro Core

23 State of the Telecom Industry Competition and Convergence Traditional boundaries between different types of service providers have blurred, intensifying if i competition: Services: Voice Telco Cable Wireless Telco Cable Wireless Video Data Turin Networks Confidential - Do Not Distribute 23

24 Industry Trends Consumers are leading the way Wireless data usage ramping significantly Asia and Europe ahead in mobile Internet adoption China current leader in multiple tech metrics Turin Networks Confidential - Do Not Distribute 24

25 Consumers Leading The Way 30M Global IP Traffic Month IP Tr raffic (TB / 25M 20M 15M 10M 5M E 2006E 2007E 2008E 2009E 2010E 2011E Total Consumer Business Source: Morgan Stanley Internet Trends Report Turin Networks 25 Confidential - Do Not Distribute 25

26 Next Generation Services To compete, network operators must continuously deliver a diverse portfolio of new high-growth growth services, such as: Business Ethernet Wireless Enterprises increasingly prefer the bandwidth agility of IP-based Ethernet WAN connectivity vs. TDM IPTV IP-based video is a disruptive force closely tied to residential broadband growth requiring massive increases in optical capacity 3G/4G Wireless Subscriber growth of IP-based wireless data/video, and deployments of new Wi-Fi and WIMAX networks are increasing The common thread: new high-growth growth services are all IP-based and bandwidth-intensive Turin Networks Confidential - Do Not Distribute 26

27 The Ethernet Transport Problem 1) Carriers have TDM interfaces in access and edge 2) Customers want to engineer the bandwidth across their edge and core 3) Ethernet Transport is supposed to go end to end. 4) Ethernet relies on higher layers (example: MPLS) to achieve traffic engineering and quality of service 5) Ethernet was supposed to be cheap! MPLS has made it expensive! 6) As a result lower layer technology (such as Carrier Ethernet) are emerging as the choice to go between the IP/MPLS core to the access and/or edge. Turin Networks Confidential - Do Not Distribute 27

28 The Carrier Network Access Edge Core Edge Access Cust TDM MPLS TDM Cust MPLS MPLS IP IP Ethernet No QOS QOS No QOS Turin Networks Confidential - Do Not Distribute 28

29 Carrier Ethernet Solution Ethernett Router for IP / Pseudowire Ethernet Transport Over PDH Any Service can be transported using Ethernet Access IP/ Pseudowire Edge Core Edge Access IP/ Pseudowire TDM SONET/SDH MPLS TDM Existing TDM IP Ethernet GFP 1gb or 10Gb Ethernet over SDH IP Ethernet MPLS SDH IP Ethernet GFP Existing TDM Ethernet Over SDH Turin Networks Confidential - Do Not Distribute 29

30 The Challenge Migration to Carrier Ethernet Network Operators of all types are migrating their networks to deliver new high-growth growth services more efficiently Transitioning from TDM to Ethernet/IP-optimized, converged network infrastructure Carrier Ethernet plays a key role in 2 dimensions of this network migration: 1. The Service Delivery Infrastructure Ethernet is the service delivery technology for packet data services 2. The Transport Infrastructure Ethernet services are delivered over SONET/SDH, Ethernet or WDM Ethernet transport is evolving to emulate the carrier grade reliability and service OAM characteristics of SONET/SDH Turin Networks Confidential - Do Not Distribute 30

31 Turin Networks Confidential - Do Not Distribute 31

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