Transcript Investor Presentation

Axerra Networks Solutions
for Mobile Backhaul
About Axerra Networks

Founded in 1999

Global provider of SERVICE CONVERGENCE solutions over packet
transport
–
A leading vendor of multiservice pseudowire solutions
–
Active standard bodies participants and influencer
–
Field proven with live deployments

Award winning products

Offices around the world
–

Israel (HQ), EMEA, Russia (incl. CIS), USA,
APAC (Hong Kong, Singapore)
Financed by strong investors
–
Carmel Ventures
–
TLcom
–
HarbourVest
2 - © 2009 Axerra Networks®. All rights reserved.
Mobile Backhaul - Key Market Trends

Enhanced user experience demands higher-speed data rates
– HSPA – the “killer application” for mobile backhaul – Flat rate

Installed Worldwide cell site connections will grow from 3M in 2008 to 4.2M in 2011
– The vast majority of today installed cell sites are T1/E1 based
– Many of the cell sites can’t be upgraded to Ethernet
– Ethernet to the cell site will be required in order to support future NodeB / eNB (LTE)

4G (LTE, WiMax) technology standardization is in final stage of the approval process
– Will take 3-4 years until mass deployment
– Many operators will use PW as IP solution until LTE availability in order to skip one hardware
upgrade phase

Access is definitely the bandwidth bottleneck
Worldwide Mobile Backhaul:
Installed vs New Connections
– PDH/TDM is not a scalable solution
5,000
Backhaul networks migrating to Ethernet
– The mobile RAN is migrating from
TDM and ATM to IP/ETH

“All IP” RAN evolution will happen
gradually and not in one step
– 2G/3G Base Stations will co-exist for
a long time with 3G taking over gradually
– Base Stations with TDM/ATM I/Fs
will stay for at last 3~5 years
3 - © 2009 Axerra Networks®. All rights reserved.
Installed connections
New connections
4,000
Connections (K)

3,000
2,000
1,000
0
CY05
CY06
CY07
CY08
CY09
CY10
Source: Infonetics Research Mobile Backhaul Equipment,
Installed Base & Services, October 2008
CY11
TDM Backhaul Hits the Breaking Point
Ethernet Solutions for Cell Backhaul
Source: T-Mobile Europe

Capacity requirements grow
– E1/T1 costs grow linearly
– Need to decouple cost and capacity
– Ethernet is more efficient over any media
HSPA Base Stations come
with Ethernet ports
 Ethernet enables scalable, flexible, lower cost
per bit bandwidth to the cell site:

–
–
–
Optimized for data
Convergence
WiMAX and 4G in general
4 - © 2009 Axerra Networks®. All rights reserved.
Migration to Ethernet
Migrating to Ethernet Transport - MEF Use Cases
Hybrid RAN/HSPA Offload Enables phased migration to
Ethernet while:
Utilizing low cost and available
broadband technology for
transporting HSPA traffic
Packet offload over Carrier Ethernet (HSPA offload)
 Overlay Carrier Ethernet does bandwidth offloading onto Ethernet services
 Legacy network continues to transport voice and deliver timing/signaling
 Voice services are migrated onto Ethernet in a later phase

“Big Bang”

Emulation over Carrier Ethernet (legacy services over Ethernet)

RAN nodes with legacy interfaces transport all traffic over Ethernet services using
emulation technologies – from Day 1
5 - © 2009 Axerra Networks®. All rights reserved.
Pseudo-Wire => the Packet-based RAN Migration Enabler

For the next few years the vast majority of cell site connections will be
based on T1/E1 interfaces

About 1/3 of overall cell sites are collocated 2G/3G sites
Growing demand for Ethernet connectivity to high capacity cell sites

– The amount of bandwidth per cell site is estimated to grow by 3x to 4x over time
– New 3G and 4G NodeB will use Ethernet interfaces

Most additions of 3G cell sites will take place in existing 2G cell sites
– Operators use existing foot print of 2G cell sites

All traffic originating from the cell site will be carried over Ethernet using
PWE3 gear
Use PWE3 gear to serve
collocated 2G/3G sites
Use PWE3 gear with
advanced functionality
(Ethernet Link/Services OA&M and PM)
PWE3 CPE will become an
Ethernet Demarcation Device
6 - © 2009 Axerra Networks®. All rights reserved.
Widespread Agreement on the
Need for Pseudo-Wires (PW)
 Major
operators are deploying PW solutions at the cell site and
it plays an important role in the evolution of mobile backhaul
networks to IP/Ethernet
– Some of the operators that announced PW deployment in 2007: T-Mobile,
Telecom Italia, Swisscom, Taiwan Mobile, and eMobile (Japan)
– Standardisation is almost accomplished, including 1588-2008
Precision Time Protocol
– For most carriers it’s not a question of “if” but a question of “where”
and “when”
Emulated TDM/ ATM/HDLC PW Service
BTS
BSC
TDM
E1
ETH
ETH
ATM
ATM/IMA
NodeB
R5/LTE/
WiMax
ETH
PWE3 Cell
Site Device
G.823/824/8261
Compliant
Clock
7 - © 2009 Axerra Networks®. All rights reserved.
Carrier Ethernet
RAN
PWE3
Gateway
RNC
IP
aGW
PWE3 CPE Will Become an Ethernet Demarcation Device
Monitoring SLA Over 3rd Party Transport Networks
Subscriber
Interface
OAM
PWE3Access
Device
CE
Network
Interface
OAM
Ethernet Link OA&M: Discovery,
Link Monitoring, Remote Failure Indication,
and Loopback
PE
AC
PSN Tunnel
Network
Interface
OAM
PWE3
GW
Subscriber
Interface
OAM
PE
UNI
UNI
Eth Link OAM
Eth Link OAM
Ethernet Service OAM
PW OAM
Ethernet
demarcation features enable:
– End to End Service Level Assurance
 Ethernet QoS
– Investment protection
 PWE3 CPE of today will evolve to Ethernet Demarcation Device
– Lower total cost of ownership
 Fewer devices in the Cell Tower
8 - © 2009 Axerra Networks®. All rights reserved.
AC
CE
Highlights of Key Trends in Mobile Backhaul

Migration to IP/MPLS backhaul networks is inevitable
– Drivers are RAN capacity growth, IP base stations and service evolution

Immediate OpEx savings and short ROI
– Carriers will deploy Ethernet for 3G and 4G backhaul to realize significant
cost advantages and close the gap between mobile revenue and expense

Investment protection
– Shifting to Ethernet Assurance and added value features…

RAN Evolution versus Revolution
– 2G/3G Base Stations are collocated and will co-exist for a long time
with 3G taking over gradually
– Migration to All IP RAN will happen gradually and not in one step

PW Mobile Backhaul solutions are picking up, becoming mainstream
– Pseudo-Wire is the Packet-based RAN Migration Enabler
– Field-proven with large deployments

PW Mobile Backhaul Solutions Available Today..for 2G, 3G, and Beyond

PW Mobile Backhaul over ANY packet transport network
9 - © 2009 Axerra Networks®. All rights reserved.
Typical 2G/3G RAN Backhaul Architecture
Radio Access Network
BTS
BSC
Abis
E1/ T1/
ChSTM-1
Abis
DXC
A
E1/ T1/
ChSTM-1
E1/T1
TDM Leased Lines
Iub
RNC
ATM/IMA, n x E1/T1
NodeB
E1/T1
ChSTM-1
ATM
Switch
Iub
STM-1
ATM
Iu
Both 2G TDM and 3G ATM traffic are backhauled over TDM
leased lines
Leased lines for backhaul today account for 20%-40%
of Mobile Operators’ Operational Expenses (OpEx)
10 - © 2009 Axerra Networks®. All rights reserved.
Key Requirements of Ethernet-based Backhaul

Meeting clocking/synchronization requirements
– Compliant with G.823/824/8261

Low end-to-end delay must be maintained

Ethernet Service and Link OAM & PM

High Availability

Ensuring QoS of different traffic types
– Voice, data, video, signaling, management, etc.

Traffic Optimization (TDM grooming, ATM aggregation,
encapsulation overhead reduction)
11 - © 2009 Axerra Networks®. All rights reserved.
GSM/UMTS Backhaul over PSN
PSN Tunnel
Iub - ATM Pseudo-Wire
Abis - CES Pseudo-Wire
BTS
BSC
E1/T1
WiMax
WiFi
NodeB
ETH
ETH
Carrier
Ethernet/
MPLS
Abis
ETH
RNC
Iub
AXN10 PWE3
CPE
AXN PWE3
Gateway
Iub

Supports all generations (GSM, EDGE, UMTS and HSPA) of mobile voice
and data, also WiMax and WiFi and even Enterprise Services

Preserves native features and signaling across packet networks

Meets strict clock synchronization requirements through Axerra’s
High-Precision Clock Recovery (HPCR®)
– As specified in ETSI TS 125 402 or 3GPP TS25.104

Ensures QoS of different traffic types such as voice, data, signaling,
management, etc.

Eliminates the need for expensive ATM switch
12 - © 2009 Axerra Networks®. All rights reserved.
HPCR® –High Precision Clock Recovery ±15 PPB
BTS/NodeB
AXN
Gateway
AXN10 PWE3
CPE
Carrier
Ethernet/
MPLS
E1/T1s
G.823/824/8261
Compliant Clock
BSC/RNC
E1/T1/STM-1
HPCR
Synchronization Information
High accuracy
Primary Reference
Source (PRS) clock

Complies with ITU-T G.823, G.824, G.8261

Designed to meet the clock synchronization requirements as
specified in ETSI EN 300 912 and TS 125 402 “Synchronization in
UTRAN stage 2."

Tested and approved by major mobile equipment vendors
13 - © 2009 Axerra Networks®. All rights reserved.
Backhaul from Cell Site - HSPA Offload
2G BTS
BSC
SDH/Leased Lines
NodeB
E1s/Ch STM-1
ATM
Switch
1-2xT1/E1 for R99
Voice/Signalling
E1s/Ch STM-1
STM-1 ATM
T1/E1
AXN10
PWE3
ETH
HSDPA
ADSL
DSL + Ethernet or IP
or ATM
RNC
ETH/ATM
AXN PWE3
Gateway
Emulated ATM Circuits

The Hybrid approach:
–
–

R99 voice/data and signaling remain on traditional TDM leased lines
HSPA data traffic runs on Ethernet network – possibly ADSL
Enables phased migration to Ethernet while:
–
–
–
–
Utilizing low-cost and available broadband technology for transporting HSDPA
traffic
Lower quality Ethernet network needed
HPCR not needed: sync via SDH – same as today
Lower cost savings, but possibly easier deployment
14 - © 2009 Axerra Networks®. All rights reserved.
Backhaul From Aggregation/Hubbing PoP
Central Site (CO)
BTS/
NodeB
LL
BSC
Hubbing Site
nxCh.
STM-1
nxE1/T1s PDH MW
BTS/
NodeB
ETH
Carrier Ethernet/
IP/ MPLS
Transport
PmP
BTS/
NodeB
ETH
AXN
Gateway
STM-1 ATM
nxSTM-1
ATM
RNC
Emulated TDM/ATM Circuits

The majority of cells will use TDM access for many years
–
About 75% of cells in 2009 will still be connected over Microwave and PDH/SDH

Today Tier 2 backhaul is done mainly with SONET/SDH but Ethernet/MPLS will
follow to the Aggregation PoPs

Carrier Ethernet and MPLS will be available in Aggregation PoPs much earlier
than in the cells

Wireline and Wireless network unification plays a major factor

Provides major OpEx saving

Extends grooming to hub sites - 3/1/0 and VPI/VCI
15 - © 2009 Axerra Networks®. All rights reserved.
Multiple Services – One Solution
MSC
BSC
Pseudo-Wire Tunnel
Cell Site
BTS
3G
EVDO
WiMAX
T1/E1
Ethernet
TDM
Ethernet
ATM
FR/HDLC
ATM/FR/HDLC
GigE
AXN
Ethernet
Service
RNC
AXN
Multiprotocol
Pseudo-Wires
RNC
Axerra Service
Supported Service
Cell Site Interface
MSC Interface
Benefit
CES Pseudo-Wire
AMPS, GSM, CDMA
TDM: T1/E1, DS3/E3,
OC3/STM-1
TDM: T1/E1, DS3/E3,
OC3/STM-1,
B/W gains from DS0
grooming
ATM Pseudo-Wire
UMTS, HSDPA
ATM & ATM IMA: T1/E1,
DS3/E3, OC3/STM-1
ATM: T1/E1, DS3/E3,
OC3/STM-1
Stat-mux gains
HDLC: T1/E1, DS3/E3
HDLC: T1/E1, DS3/E3,
OC3/STM-1
Stat-mux gains
FR: T1/E1, DS3/E3,
OC3/STM-1
Stat-mux gains
Ethernet: GigE
No need for TDM
interface on router
HDLC Pseudo-Wire
FR Pseudo-Wire
Ethernet switching
1xRTT, EVDO
iDEN
EVDO, WiMAX, 4G
16 - © 2009 Axerra Networks®. All rights reserved.
FR: T1/E1, DS3/E3
Ethernet: FE
No ATM switch
needed in CO
HDLC data interface
FR data interface
Axerra’s Complete Product Family
AXN Product Portfolio of Access Devices and Gateways
Capacity

Scalable family of platforms
– 1 to 1000 E1/T1 capacity
– Carrier Class Reliability

AXN1600
N
1000
E1/T1
AXN800
Multiservice Pseudo-Wire
– CES + Layer 2 Pseudo-Wire

AXN10
Pseudo-Wire flexibility
– Axerra-owned code
– Software-based architecture
– 5 patents + 1 pending
AXN1
1 E1/T1
CPE/Cell Site
AXNVision

Point-and-Click provisioning

Performance Monitoring

Comprehensive Fault Management

Standards-based
17 - © 2009 Axerra Networks®. All rights reserved.
MTU
PoP/CO
Location
Axerra’s Unique Value Proposition

Single and robust platform supporting both Mobile Backhaul
and Business Service Delivery
– Best-of-Breed Pseudo-Wire industry leader and solution provider
– Enable leased line replacement such as PBX backhaul and converging
legacy services over PSN covering private line, FR, ATM, and HDLC
services
– Multiple Services – One Solution

Beyond Circuit Emulation – variety of Layer-2 Pseudo-Wire services

Scalable solution with modular and flexible platform

Supports all generations of mobile & business services

Robust and accurate adaptive clock recovery mechanism

Strong momentum with world class OEM and SI partners

Field proven
18 - © 2009 Axerra Networks®. All rights reserved.
Thank you for your attention
Visit our website at www.axerra.com