Roadmap to Sustainability. Chuck Graff Director CNT April 27, 2010

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1 Roadmap to Sustainability Chuck Graff Director CNT April 27, 2010

2 Agenda Aligning Verizon s Corporate EE Initiatives The Green Network TEEER Energy Efficiency Metrics New EE programs for 2010 TMST RoHS Compliance testing 2

3 U.S Clean Energy Imperatives Energy Update Infrastructure Produce More Energy at Home Increase Renewable Energy Implement New Usage Models Promote Energy Efficiency Climate Climate Need for greenhouse gas reduction 60 to 80% in 40 years Power sector creates 40% of US green house gas emissions Smart grid can reduce US emissions ~ 8% by 2020 Develop energy capacity and demonstrate US leadership in clean energy and climate concerns Security Security Breaking Dependence on Foreign Energy Sources Improve energy system security 3

4 Reducing CO Emissions 2 Source: American Solar Energy Society 4

5 Energy Goals Reduce power consumption and carbon footprint for telecom equipment in the Verizon Telecom, Wireless & Business networks. Reduce yearly energy related spend for network gear in all business units 5

6 MSO/Central Office Energy Consumption Model Build. Switchgear DC Power Plant DC Distribution Lighting 2% 7% 7% 2% Telco Equipment: 48% 23% Class 5 Switch 34% 2% DSLAM 12% Cooling 11% Power and Cooling: 52% AC Load 6

7 Data Center Power Distribution 7

8 Cascading Effect (2.41X from the load) Telco Equipment Cumulative Saving 1 Watt Saved Here -1.16W DC-DC -1.21W Saves an additional 0.16W Distribution here and 0.05W here 1 Watt saved at the Telco Load saves a total of 2.41W in total consumption -1.42W DC Power System and 0.21W here -2.34W Cooling and 0.9W here and 0.07W here -2.41W Switchgear / Transformer -2.41W 8

9 Fiber v. Copper Small Businesses Office Parks ONT Residential ONT ONT Copper Distribution Copper Feeder Splitter Hub Fiber FiOS Power is 38% of Copper DSL Network Power Consumption - DSL Copper: 32 KW hours/year/line - Fiber FiOS: 12 KW hours/year/line DSLAM Central Office OLT 9

10 Verizon s Network Energy Efficiency Initiatives 3/ TCG Energy Summit, initiated by Verizon, held in Baltimore with key vendors and carriers in attendance 4/ Input from summit meeting provided to ATIS for formation of Energy Efficiency Working Group 6/ Released VZ.TPR.9205 to the vendor community 1/ Pass/Fail requirements of VZ.TPR.9205 became effective 1/ Metrics Quantification Document (VZ-TPR-9207) released 10/ TPR.9208 Thermal Management Simulation and Test (TMST ) Requirements Introduced at NEBS Conference in Baltimore on October 27, /1/ Thermal Management Simulation and Test program 7/1/ RoHS testing program *TPRs available free of charge at 10

11 The Green Network EE = M 2 11

12 Verizon s Contribution EE = M 2 Energy Efficiency = Metrics x 2 (TEEER +TMST) 12

13 Verizon s Global TEEER Initiative Created Energy Efficiency Policy (VZ.TPR.9205) effective 1/1/09 for our Fiber (FiOS), Broadband, Wireless solutions: Calls for 20% reduction in power effective January 1, 2009 Applies to CO, MSO, Data Center and CPE Provides TEEER methodology for calculating and reporting results First global telecom service provider to issue energy efficiency requirements for telecom gear 13

14 TEEER 1Q10 Results 14

15 TEEER Carbon Savings

16 New EE Program for 2010 Thermal Modeling, Simulation and Test (TMST) Program 16

17 Technological Challenges Over Heating Electrical Components Larger boards. Board Size is approximately 36 x 18 x 2 High Density, High Speed, Mixed Technology, Double Sided Boards High Power Dissipating Boards 17

18 Thermal Modeling, Simulation and Test (TMST) Certification Program The Thermal Modeling, Simulation and Test (TMST) Certification Program is a continuation of Verizon s drive to procure more energy efficient network equipment TMST is the vendor roadmap to realize a 20% reduction of overall power requirements in network gear The Goal is to reduce yearly energy related spend for network gear in all business units by reducing power consumption and carbon footprint for telecom equipment Conducted vendor/lab information meeting to review TMST TPR prior to release intent was to incorporate useful comments to maximize document value 18

19 Keys for Success Remove PCB hot spots Balance air flow 19

20 Value Proposition Verizon Cooler running, more reliable equipment Faster time to deploy Cheaper to operate a thermally optimized solution; reduced OPEX Manufacturer Replaces design-build-test with design-simulate-test process until design is optimized thus saving time and cost of building physical prototypes Shortens time to market Supports single design platform and data capture for electrical, mechanical and thermal design Environment Reduces the power consumption and carbon footprint of equipment Reduces heat emission 20

21 Understanding Impacts of ROHS Compliance 21

22 The Case Drivers EU Directive on RoHS Avoidance of separate product manufacturing lines Issues No standard lead-free solder alloy or printed board finish Component damage occurs at higher processing temperatures Potential for tin whiskering and intermetallic formation Questionable long term product reliability No standard qualification test(s) to confirm reliability of lead-free PBAs Solution Verizon Created test requirements to test long term reliability concerns Issued VZ.TPR.9307, Lead-Free PBA qualification Effective June

23 RoHS Impact Testing Program Purpose of new RoHS impact testing program: Determine long-term reliability of RoHS design New VZ.TPR.9307 created to further define Verizon s network reliability/purchasing requirements Applies to PBAs manufactured with lead-free solder PBAs designed to conform to GR-78 and GR-357 Tests to determine if PBAs with lead-free solder joints are acceptable for use in Verizon applications Tests include: Thermal, Mechanical, X-Ray, Power cycling Cross-section, Microstructure and Metallurgical analyses 23

24 Ensuring Network Safety, Reliability & Energy Efficiency Environmental (GR-63) Electrical (GR-1089) Verizon NEBS Programs RoHS Impact Testing (VZ-TPR-9307) FTTP/FOC (VZ TPR-9400 Series) Energy Efficiency (VZ-TPR-9205) TMST (VZ-TPR-9208) 24

25 VZ EE Programs: 25

26 Summary Implementing of 2 New NEBS Programs in 2010 TMST ROHS Impact Compliance Testing Committed to minimizing energy usage, continuous improvement and Innovation VZ Focuses on Customer needs and Supplier Partnerships Verizon s through demonstrated proven leadership in EE, NEBS, ITL, FOC etc 26

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