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(1)

Ethernet in the Metro

Status; Sevices; and the role of:

Metro Ethernet Forum

(2)

Agenda

• Ethernet in the Metro

• Metro Ethernet Services and Transport

• Critical Issues for Metro Ethernet

• MEF Overview

(3)

Ethernet in the Metro

(4)

What is Metro Ethernet?

A Metro Ethernet Network (MEN) offers Ethernet access and Ethernet based

services across a MAN.

Some service providers have introduced a MEN-like technology for the Wide

Area Network (WAN).

(5)

Why Ethernet in the Metro

• Packet traffic dominates

– Overtaken voice as the dominant traffic type in networks worldwide

• Today packet traffic is transported over networks designed for voice

– Inflexible

– High cost to design, provision, operate and offer

• Rapid growth in sites demanding high speed access and flexible services

– Service providers face a dilemma on how to meet demand and make a reasonable profit

(6)

Ethernet in the Metro

• Ethernet is the Media and interconnection interface of choice

– mature, predictable, simple and well-understood data networking technology

• Ethernet is the ideal service provider demarc

– It’s the predominate choice of connectivity in the LAN

– It’s the lowest cost interface for end customers to connect to a data service

• Ethernet in the Metro

– Most flexible means to offer service at the bandwidths customer demand

– Significantly lowers Total Cost of Ownership, which benefits carriers and their customers

(7)

Market for Metro Ethernet

• Strong demand for metro Ethernet in APAC and Europe (RBC Capital Market)

• Metro Ethernet is a key growth area for RBOCs in 2003 and beyond (Solomon Smith Barney)

• RBOCs/PTTs: Testing Metro Ethernet in 2Q/3Q 02, deployment in 4Q02 and 2003 (RBC & Yankee)

• $4 billion metro Ethernet service revenue is to be realized in 2006 in North America (RHK, 2002)

(8)

Ethernet Services Advantages for End-Users

• Beats the other high bandwidth Alternatives

– Uses Ethernet as service hand off rather than SONET – Avoids complex and costly CPE upgrades

– Avoids the expense and complexity and risk of building it themselves with dark fiber

• Economical service with greatest flexibility

– Lowest cost on a $ per Mbps basis than any other service – 1 Mbps – 1 Gbps service granularity

– Capable of same day service upgrades

• Wide range of service options

– Private line, to virtual private line and LAN extension services – Bet efforts to managed and protected service options

(9)

Ethernet Services –

Recurring cost Advantage

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Ethernet Private Line

Frame Relay

Internet Access Private Data Total MRC's

3 Yr Monthly Recurring Cost

Ethernet Saves more than 50% over a 3 year period

MRC: Monthly Recurring Cost Source: MEF Business

Case Study

(10)

Ethernet Services Advantages for Providers

• Simple lower cost Network Design and scaling

– Efficient data transport - eliminate over-provisioning

– Avoiding complex mid-stream architectural transition to satisfy high bandwidth

• Economical service turn-up and scalability

– Lower Cost Service demarc

– Flexible services delivery: 1 Mbps – 1 Gbps

• Lower engineering and operational support

– Reduced engineering and support cost – Simplified fault isolation and diagnostics – Dynamic, point-n-click service provisioning

• Faster time to Market with a lower TCO solution

(11)

Metro Ethernet Transport CapEx:

More than 50% savings

$-

$20

$40

$60

$80

$100

$120

Millions

Optical Ethernet Legacy SONET/SDH

3-Yr. Cumulative Capital Expenditure

Metro Access Metro Core

Source: MEF Business Case Study

(12)

Metro Ethernet transport OpEx:

More than 50% savings

$-

$20

$40

$60

$80

$100

$120

$140

Millions

Optical Ethernet Legacy SONET/SDH

3-Year Cumulative Operating Expenditures

Environmentals Ongoing Operations

Source: MEF Business Case Study

(13)

Critical Issues on Metro Ethernet

• Ethernet Service Definition…paving the way

– Services and required attributes need to be defined

• Ethernet must evolve to a services bearing a carrier-class transport technology

– Protection – QoS

– OAM&P – SLAs

! Interoperable solutions need provided

(14)

Metro Ethernet Forum Overview

(15)

What is the MEF?

The Metro Ethernet Forum is a non-profit organization dedicated to accelerating the adoption of optical

Ethernet as the technology of choice in metro networks worldwide.

The Forum is comprised of leading service providers, major incumbent local exchange carriers, top network equipment vendors and other prominent networking companies that share an interest in metro Ethernet. It has 80 members as of August, 2002.

(16)

Metro Ethernet Forum Mission

Accelerate adoption of optical Ethernet as

the technology of choice in metro networks

worldwide

(17)

MEF Key Objectives

Build consensus and unite service providers, equipment vendors, end customers on optical Ethernet

Facilitate implementation of optical Ethernet standards to allow delivery of Ethernet services and make Ethernet-based metro transport

networks carrier-class

Enhance worldwide awareness of the benefits of optical Ethernet services and Ethernet-based metro transport networks

(18)

MEF Priorities and Scope

• The primary priorities of the MEF are to define:

a. Ethernet Services for metro transport networks

Such services shall be delivered over native Ethernet-based Metro networks and could also be supported by other transport

technologies.

b. Carrier-class Ethernet-based metro transport technologies by specifying architecture, protocols and management for

Ethernet-based metro transport networks

• The secondary priorities of the MEF are (when deemed necessary) to define:

a. Work to be done by other organizations on other transport technologies

b. Non-Ethernet interfaces, if not defined by other organizations.

(19)

67 Members & Growing…

1 of 3

Agere Systems

Agilent Technologies, Inc.

Alcate

AMCC

Appian Communications

Atrica Inc.

Avaya Communications

AxON Link, Inc.

BellSouth

Ciena Corp.

Cisco Systems

Coriolis Networks

Corrigent Systems

CPLANE, Inc.

Crosswave Communications

Cypress Seminconductor

Ericsson AB

Extreme Networks

France Telecom

Fujitsu Networks Communications

Hatteras Networks, Inc.

Hewlett-Packard

Hitachi America, Ltd

Huawei Tech Company, Ltd.

Industraail Technology Research Institute

Internet Photonics, Inc.

Juniper Networks

KDDI R&D Laboratories, Inc.

Lantern Communications, Inc.

Lucent Technologies

(20)

67 Members & Growing...

2 of 3

Salira Optical Network Systems

SBC Technology

Spirent Communications

Sprint

Sycamore Networks

Telcordia Technologies

Telesyn

Tenor Networks

Terabeam

Texas Instruments

TiMetra Inc.

TippingPoint Technologies

Tpack Networks

Tropic Networks

Luminous Networks

Lycium Networks

Mahi Networks

Mindspeed Technologies

Native Networks

NEC Corporation

Nortel Networks

NTT Advanced Technology Corporation

Occam Networks

PMC-Sierra

Procket Networks

Raza Microelectronics

Redback Networks

Riverstone Networks

(21)

67 Members & Growing…

3 of 3

Vina Technologies

Vivace Networks

White Rock Networks

Xebeo Communications, Inc.

Xilinx, Inc.

Zarlink Semiconductor

ZTE Corporation

(22)

MEF Structure

Awareness

Marketing Committee

Standards

Technical Committee Officers

Board of Directors Members

(23)

Technical Sub-Committees*

Architecture

– Overall architecture and reference model

Services

– Service definition and requirements

Transport/Protocols

– Methods, procedures, protocols

Management

– OAM

(24)

MEF Key Agreements To Date

• Metro Ethernet Services Definition Draft 2.0

– EVPL, EPLn, CES

• Metro Ethernet OAM Technical Specification Draft 2.0

– SLA verification, status exchanges, connectivity verification & fault isolation

• Metro Ethernet User-Network Interface (UNI) Technical Specification Draft 1.0

– Protocols and procedures at demarcation point

• Metro Ethernet MPLS Protection Implementation agreement Draft 1.0

– Deliver sub-50 ms protection for metro Ethernet

• Ethernet over SONET/SDH Implementation Agreement Draft 1.0

– Recommend existing standards for encapsulations & mechanism for rate mismatches

(25)

MEF Agreements To Date

• Ethernet Services Model Draft 3.0

• Traffic and Parameters for Ethernet Service SLS Draft 2.0

• Circuit Emulation Services (CES) Requirement Draft 1.0

• Metro Ethernet Protection Framework Draft 2.0 (Straw Ballot)

• Metro Ethernet QoS Framework Draft 2.0

(26)

MEF Agreements To Date

• Element Management System (EMS) Requirement Draft 1.0

• EMS/NMS Information Model Draft 2.0

• MEF Architecture Framework Technical Specification Draft 2.0

• UNI Requirement Draft 1.0

• Ethernet Interworking - Network Network Interface (EI- NNI) Draft 1.0

• Network Interworking – Network Network Interface (NI- NNI) Draft 1.0

(27)

Marketing Sub-Committees*

Messaging/Collateral

– Value propositions, collateral, whitepapers, press/analysts

Events

– Conferences, seminars, shows

Economic Analysis

– Return on Investment Modeling

* As Currently Organized. Subject to Change

* As Currently Organized. Subject to Change

(28)

MEF: Diverse Leadership

The MEF Board of Directors is comprised of representatives from:

– BellSouth

– France Telecom – SBC

– Alcatel – Agilent – Atrica – Extreme – Nortel – Procket

For more information about the MEF leadership please visit http://www.MetroEthernetForum.org/

(29)

Optical Ethernet for Metro

www.MetroEthernetForum.org

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