Verizon Optical Product Seminar Presented by: Verizon Wholesale Markets Quintin Lew, Vice President Access Marketing Lisa Houser, Director New Product Development Larry O Neill, Sr. Product Manager Jeff Perkins, Sr. Product Manager 1
Seminar Agenda Welcome and Introductions Verizon s Tariffed Optical Products Point-to-Point SONET - IntelliLight Broadband Transport/Custom Connect Dedicated SONET Ring Customer Network Management Optional Features Metro Dense Wave Division Multiplexing (DWDM) IntelliLight Optical Transport Service Ethernet and Storage Private Line Services Verizon Optical Networking WDM (Wave Division Multiplexing) Entrance Facility Optical Hubbing Service Additional Information Q&A 2
Market View of Optical Services "Digital data traffic is doubling approximately every year. As IT systems have become ubiquitous and enterprises are becoming completely networked entities, the need to manipulate, store and move data has become imperative. Business on demand, the mantra spurred on by IBM, has come to stay and businesses demand lightning speed connectivity to serve the customer. This trend bodes well for the SONET market." Frost & Sullivan - North American Wholesale SONET services - Dec. 30, 2004 3
Transport Network of the 1980 s END USER Location Access Service Verizon Central Offices Inter -Office Entrance Carrier POP Facility Location POTS Lines PSTN DS1 Private Line DS1 to DS3 Multiplexing DS3 Handoff DDS /VG Private Line DS0 to DS1 Multiplexing POTS lines connected to End Office switches End office Switches and Carriers connected to Tandem Switches DDS and VG private line circuits terminated in DS0 to DS1 multiplexers All of these services, combined with DS1 private Line, got aggregated onto DS3s for delivery to a Carrier s POP Location 4
Verizon s Transport Network of Today END USER Location TDM Voice Access Service Verizon Central Offices Inter -Office PSTN Hi-Cap / OCn NG ADM NG ADM Entrance Facility IEF/Express Connect Carrier POP Location NG ADM Hi-Cap / OCn Routers/GigE NG ADM NG ADM NG ADM NG ADM Dedicated SONET Ring (DSR) NG ADM NG ADM Storage & Video OCn/GigE DWDM DWDM DWDM DWDM IntelliLight Optical Transport Service (IOTS) DWDM DWDM Ethernet Hi-Cap OCn Verizon Optical Networking NG ADM CWDM Custom Connect or OPTICAL IntelliLight Broadband Transport (IBT) HUB Optical Hubbing Service (OHS) CWDM 5
Point-to-Point SONET Services 6
Point-to-Point SONET Two distinct tariff offerings *East: IntelliLight Broadband Transport (IBT) **West: Custom Connect Linear optical service over a shared SONET network Premise to Premise Premise to Premise node and/or wire center node Node sites can be multiplexed for lower speed drops Single routed or diversely routed Protected interfaces: 2-fiber or 4-fiber Bandwidths: OC3/3c, OC12/12c, OC48/48c, OC192 Term plans available East: Month-to-month, 3yr, 5yr West: 1yr, 3yr, 5yr, 7yr 12 month minimum commitment *East states: ME, NH, VT, MA, RI, NY, NJ, PA, DE, MD, DC, VA, WV **West states: WA, OR, ID, CA, TX, PA, VA, WI, MI, IL, IN, OH, NC, SC, FL 7
Point-to-Point SONET With Fiber Diversity Typical SONET Configuration IXC POP SWC SWC EU OC3 Port Entrance Facility IOF Ring(s) EU Loop OC3 Port OC-3 Pt to Pt, non-multiplexed Fiber diversity provides that the transport will be self-healing end to end. Network Equipment 8
Point-to-Point SONET Rate Elements with Multiplexing Typical SONET Configuration OC3 with C. O. Node with DS3 end user drops 4-fiber Protected interface (optional) OC3 Port Termination Charge Mileage/Transport Node Charge DS3 Port DS3 Chan Term/SAL Network Equipment Pt-to-Pt Svc Node 9
IBT and Custom Connect SONET Meeting Your Needs Application Agnostic - A BIG Pipe! Transport of ATM Traffic Transport of IP Traffic Medical Imaging Mainframe Connections High Speed Data File Transfer And more 10
IBT and Custom Connect SONET Planned Enhancements Recent enhancements: OC192/192c added to IBT in FCC #1 and FCC #11 June 2005 Planned enhancements: 2005 OC192c being added to Custom Connect in FCC #14 and FCC #16 Custom Connect CDL Link w/optical Cross Connect grandfathered Previous methodology to connect to a collocation arrangement Point-to-Point connectivity to an IOTS ring, using either protected or unprotected optical transport channels IBT, FCC #1 and FCC #11 Custom Connect, FCC #14 and FCC #16 11
Dedicated SONET Ring 12
Dedicated SONET Ring SONET ring facility over a dedicated, secure network Dedicated nodes and fibers, self-healing ring Only next-generation add-drop multiplexers (NG-ADM) used Ring capacity bandwidths: OC3, OC12, OC48, OC192 Ports: DS1, STS1, DS3, OC3/3c, OC12/12c, OC48/48c Variety of Ethernet ports also supported Individually designed to meet your specifications Customer selects locations, bandwidths, and circuits types Nodes/ports can be added to meet traffic growth/changes Acts as a private dedicated network, without you needing to build Term plans available 3yr, 5yr, 7yr 24 month minimum commitment 13
Dedicated SONET Ring - Network Chargeable Rate Elements Node charge, per site Airline mileage Around the ring Ports, for services dropped One to enter, one to exit Premise Premise Typical DSR Configuration Highly protected network topology - Dedicated fibers, dedicated nodes - 2 fibers routed East, 2 routed West - NG-ADM s used exclusively - Self-healing rings, monitored 24x7x365 POP C.O. 14
Dedicated SONET Ring Meeting Your Needs Very High Bandwidth Capacity Bandwidth Assurance/ Capacity Control Flexible Ring Designs Supports Ethernet and SAN Protocols Dedicated Ring Survivability Disaster Recovery Options via CSM And more 15
Dedicated SONET Ring Planned Enhancements 10Mb and 100Mb Ethernet ports added Tariff standardization SONET multiplexing enhancements Interconnecting rings Addition of Fibre channel and FiCON ports Ethernet Packet Ring Service 16
Customer Network Management Optional Features Features for Dedicated SONET Ring 17
Customer Service Management (CSM) Web-based Monitoring / Management tool Password-protected website Available in three different support levels: Level 1: Network View Level 2: Network View and Reports circuit availability, network uptime, channel utilization, mean time to repair may request more customized reports Level 3: Network View, Reports, and Reconfiguration 3, 5, and 7 yr terms available, co-terminus with ring 18
Web-based CSM Level 1: Network View 19
Web-based CSM Level 2: Circuit Detail 20
Web-based CSM Level 3: Reconfiguration Pre-Plan Path Primary Path Customer can reconfigure from Primary path A-C to Pre-Plan path A-B 21
Direct TL1 Monitoring (DTM) Provides access to system-generated alarms and performance messages for the Verizon-provided DSR network over a TL1 (machine-to-machine communications language protocol) connection Query and response capability enables two-way communications to poll and retrieve messages Enables access to the customers DSR ring inventory information that will assist in maintaining its own inventory database Provides notification that a power failure has occurred on a DSR network element and that the element has reverted to battery back-up The customer must be able to send and receive TL1 commands 3, 5, and 7 yr terms available, must terminate with ring 22
Metro Dense Wave Division Multiplexing 23
Metro Dense Wave Division Multiplexing Market Drivers Some applications include: Exchange of high volumes of information between data creators and data storage facilities Video and Medical imaging Need for Privacy and Security of Optical transmissions Mainframe peering / Mainframe mirroring 24
Wave Division Multiplexing At Ingress: Multiple optical signals of differing wavelengths are combined to form a single optical signal At Egress: A single optical signal is refracted to separate multiple optical signals of differing wavelengths 25
Metro Dense Wave Division Multiplexing (DWDM) Verizon s offer is tariffed as IntelliLight Optical Transport Service (IOTS) Dedicated, diversely routed fiber pairs connecting Optical Add/Drop Multiplexers (OADMs) offer maximum survivability Provides a private network for provisioning optical circuits between premise locations or between a premise and a Verizon wire center 24 x 7 x 365 proactive network monitoring 3, 5, and 7 yr term for nodes, miles, and amps Monthly, 3, 5, and 7 yr term on Optical Transport Channel 26
IntelliLight Optical Transport Service The Metro Ring DWDM itself does not perform protection switching in the event of a fiber cut like SONET, however, the individual channels are provisioned as either protected or unprotected. IOTS supports a wide variety of optical protocols: Typical IOTS Configuration - Node capacities available in 4, 16 or 32 protected channels ATM/IP SONET OC3/c-OC192/c Gigabit Ethernet 10G LAN-PHY 10G WAN-PHY Fast Ethernet - 100Mg ESCON FiCON (1G and 2G) Fibre Channel (1G and 2G) FDDI ISC/ISC3 D1 Video 27
IntelliLight Optical Transport Service Metro Ring DWDM A metro ring DWDM is comprised of Nodes, Miles and Amplifiers. Whereas a SONET ring s capacity is measured by bandwidth, DWDMs are measured by quantity of optical paths. This product will offer 32 protected or 64 unprotected paths. Application of rates 4 Nodes 30 Miles 1 Mid-Span Amp 4 At-Node Amps 3 miles Wire Center Node B 5 miles Customer Premises Node C 8 miles Node A Customer Premises Typical IOTS Configuration Wire Center Customer Premises Node D 7 miles 7 miles Ampl. 28
IntelliLight Optical Transport Service Meeting Your Needs End-user RFP responses High bandwidth Privacy / Security Reliability Optical Aggregation of multiple customers traffic for delivery to Wholesale provider Well positioned for exchanging optical traffic between a providers hub locations And more 29
IntelliLight Optical Transport Service Planned Enhancements Price reductions Customer Network Management for IOTS Multi-Port Interfaces Allow for additional service interconnections with Verizon Optical Networking, IBT & Custom Connect 30
Ethernet and Storage Private Line Services 31
Ethernet and Storage Private Line Services Market Drivers Affordability Availability Mass Market Appeal Consumer Familiarity Simplicity for Users Flexibility 32
Ethernet and Storage Private Line Services Verizon s product is tariffed as Verizon Optical Networking For customers who require high level of resiliency and protection Platform provides dedicated path through Verizon s SONET network (guaranteed throughput) Does not present any QoS issues Allows for point-to-point transmission of varying bandwidths between customer designated premises or between customer designated location and collocation arrangement 33
Verizon Optical Networking Offerings 10Mb, 100Mb, 1Gb Ethernet over SONET Ethernet Mapping (10Mb Full rate only) Fast Ethernet Mappings (50Mb,100Mb/s, Full Rate) Gigabit Ethernet Mappings (50 Mb, 150Mb, 300Mb, 450Mb, 600Mb, Full rate) Gigabit Fibre Channel and Gigabit FiCON Full rate mapping only Also available with SONET handoffs at one end Verizon Optical Networking services can be mapped into OC3, OC12, and OC48 Access Aggregation Ports Monthly, 3, 5, and 7 yr terms available 34
Verizon Optical Networking Rate Elements Typical Verizon Optical Networking Configuration Serving Wire Center Serving Wire Center Customer Designated Location Verizon s SONET / WDM IOF backbone Customer Designated Location Verizon Optical Networking Channel Extension (not distance-sensitive) (Protected or Unprotected) Verizon Optical Networking Channel Mileage (fixed + per-mile) Verizon Optical Networking Channel Extension (not distance-sensitive) (Protected or Unprotected) = Next-Generation Add-Drop Multiplexer (NGADM) Pricing in F.C.C. 11 (North), F.C.C. 1 (South), or F.C.C. 14/16 (West) 35
Verizon Optical Networking Meeting Your Needs Provides most Ethernet and Storage Area Networking Protocols/Speeds Should align well with most Wholesale customers offerings Allows a service provider to extend their Ethernet network reach directly to CPE Transparent transmission of customer generated signal Can manage your priority traffic as a single network Competitively priced when compared with similar bandwidth alternatives Reduce CPE/Edge devices necessary to convert to traditional telephony interfaces And more 36
Verizon Optical Networking Planned Enhancements 10 Gigabit Ethernet 2 Gigabit Fibre Channel Express 2 Gigabit FiCON Express Hitless Bandwidth Upgrades Enhanced Ordering Information on Web Re-branding of Verizon Optical Networking 37
Wave Division Multiplexing Entrance Facilities 38
Wave Division Multiplexing Entrance Facilities Market Drivers Large business desire for more optical long haul services U.S. business telecom spending increased in the past two years The popularity of Storage Area Networking Introduction by IXCs of IP based services to enterprise customers Convergence in the telecommunication equipment manufacturing industry 39
WDM (Wave Division Multiplexing) Entrance Facility Verizon s service offering tariffed as Optical Hubbing Service (OHS) OHS is a Point to Point WDM technology offered as an extended entrance facility. Only offered from Customer Prem locations to Verizon Designated Optical Hubs Protected Architecture requires fiber route diversity Low Cost / All optical entrance facility Intended to be combined with OCn Private Line and Ethernet Private Line OHS Supports: Point to Point SONET at OC3/OC3c-C48/OC48c Ethernet and Storage Private Line 40
Optical Hubbing Service Requires diversely routed fiber facilities Available Optical Hub locations identified in FCC Tariffs 1, 11, 14 Each proposed OHS will require a facility check to ensure that the Hub and POP/Prem are within the optical parameters Currently, all handoffs from Optical Hubbing service will be 4 fiber Only protected circuit designs permitted Verizon Designated Optical Hub Pass Thru Wire Center Typical OHS Configuration Pass Thru Wire Center Each design will require a facilities check POP or Prem 41
OHS Tariff Rate Structure Optical Hubbing Facility (OHF) Provides 8 optical paths Distance Limited Single Charge 3, 5, 7yr Pricing POP or Prem Verizon Designated Optical Hub OCF-123 OCn Optical Channel Facility (OCF-123) Provides 4 SONET services across a single optical path on the Optical Hubbing Facility OC3, OC3c, OC12, OC12c Single Charge 3, 5, 7yr pricing Optical Hubbing Interface (OHI) All 4 fiber handoffs (currently) All Channels are protected OC3, OC3c, OC12, OC12c available on Optical Channel Facility only OC48, OC48c available on Optical Hubbing Facility only Single Charge OC48c Optical Channel Facility without Verizon s permission Monthly, 3, 5, 7yr pricing PRIVATE: Not for use or disclosure outside of Verizon Companies except under written agreement OC3 OC3c OC12 OC12c Verizon Designated Optical Hub 42
Optical Hubbing Service Meeting Your Needs Meet Verizon at an optical level Reduce optical channel termination charges at your end Reduce power, space, and equipment costs within your own locations Low start-up costs Allows connectivity to Ethernet and SONET services And more 43
Optical Hubbing Service Planned Enhancements 2-fiber interface Additional service interconnections, such as more Ethernet over SONET connectivity OCF-Gigabit ability to carry two 1-GigE services over a single wavelength 10G WAN PHY/LAN PHY and OC192/c Back-to-back optical hubs 44
Additional Information 45
Verizon Stands Behind Our Products Service Guarantees IBT/Custom Connect IBT with Fiber Path Diversity 1 hour IBT Basic 4 hours Custom Connect 30 minute Verizon Optical Networking Protected On-Net Channel Extensions and Mileage 1 minute Un-protected On-Net Channel Extensions 4 hours OHS 1 hour DSR 1 minute IOTS Protected Channels 1 minute One Month MRC credit applied for all affected rate elements which do not meet the service guarantee Please see Section 2 of each tariff for more information on Verizon s service guarantees 46
Current Price Promotions Dedicated SONET Ring On new installs, upgrades and conversions 20% discount with a 3 or 5 year term plan 10% discount with a 7 year term plan Available through December 23, 2005 Please see Verizon FCC tariffs for additional terms and conditions 47
Any questions? 48
Legal Disclaimer The rates, terms, and conditions of the services described in this presentation are set forth in full detail in Verizon s FCC Tariffs (Tariffs). This summary of the Tariffs is being provided for your convenience, but is not intended to provide a complete description of the terms and conditions of the relevant Services. You should not rely on this summary, and should conduct your own review and analysis of the Tariffs. Any failure or error by Verizon to fully or accurately set forth all relevant terms and conditions of the Tariffs shall not be deemed to bar Verizon from exercising its rights under the Tariffs. Notwithstanding anything to the contrary herein, the Tariffs shall govern over any inconsistent provision set forth in this presentation. In this presentation Verizon may provide certain opinions regarding the potential uses or applicability of its Services. Such opinions are Verizon s estimations and judgments based on a number of internal and external factors, and are not intended to apply to any particular customer or situation. Verizon may also provide certain information about planned enhancements for the Services. These are Verizon s projections regarding changes to the service, and such projections may change, be modified, or be cancelled in their entirety. Verizon can only offer such enhancements when such changes are tariffed or otherwise lawfully authorized. 49
Thank you for joining us today for the Optical Product Seminar! THANK YOU FOR JOINING US TODAY! Please contact your Verizon Account Manager if you have additional questions. http://www22.verizon.com/wholesale/ 50
Acronyms ATM Asynchronous Transfer Mode CDL Customer Designated Location CPE Customer Premises Equipment DWDM Dense Wave Division Multiplexing DSR Dedicated SONET Ring FiCON Fiber Connection IBT IntelliLight Broadband Transport IOF Inter-office Facility IOTS IntelliLight Optical Transport Service MRC Monthly Recurring Charge OCF Optical Channel Facility OHF Optical Hubbing Facility OHS Optical Hubbing Service QoS Quality of Service SAN Storage Area Network SWC Serving Wire Center WDM Wave Division Multiplexing 51