The Future of Submarine Networks in Latin America

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The slide deck from an October 23, 2012, webcast on the Future of Submarine Networks in Latin America. Tim Stronge of TeleGeography presented an overview of current network connectivity pricing and trends in the region. Then Francisco Moussier-Dominguez of Ciena talked about Ciena's submarine network solutions and presence in the CALA market.

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Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

The Future of Submarine Networks in Latin America

Tim Stronge

TeleGeography

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Bandwidth Demand is Strong Latin American Used International Bandwidth, 2007-12

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

End-users Drive Internet Traffic LatAm Broadband Subscribers and Average Access Speeds

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Connectivity Still Focused on U.S.

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Biggest Roads Lead Northward Top 10 International Internet Routes of Latin America

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

One Reason to Connect to Miami: Prices

GigE Full Port IP Transit Prices,Q2 2012

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Faster Declines in the U.S. Median 10 GigE IP Transit Price Erosion, 2009-2012

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Transport Prices are Still Costly Median 10 Gbps Wavelength Prices, Q2 2012

Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com

Planned Cables in Latin America

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Tim Stronge

+1-202-741-0040

tstronge@telegeography.com

© Ciena Confidential and Proprietary

Global Network Design Trends

Francisco Moussier-Dominguez Ciena October 23, 2012

© Ciena Confidential and Proprietary

© Ciena Confidential and Proprietary

Ciena Submarine Network Presence Latin America

Coherent Transport Field Experience SIX LATAM submarine cables upgraded 40G/100G deployed over 700,000 kilometers 2009 FIRST 40G submarine network upgrade 2011 FIRST 100G submarine network upgrade Intelligent Switching L0 & L1 Control Plane protection deployments

© Ciena Confidential and Proprietary

Think of the Global Network… … in a new way …

Global Networks Must Optimized Data Center to Data Center Network Designs

© Ciena Confidential and Proprietary

PoP-to-PoP Network Connectivity Rethinking “segmented” network designs

CLS : Cable Landing Station PoP = Point of Presence

CLS CLS

© Ciena Confidential and Proprietary

Data Center

TLTE XCON TLTE

Metro/Regional Terrestrial Backhaul

SIE SLTE AMP

Cable Landing Station Wet Plant

HEAD END

Terrestrial - Submarine Network Demarcation

Data Center

AMP

PoP to PoP

NID + SLTE

ROADM

NID

Legacy Network Design vs. Tomorrow’s Network Design Terrestrial/Submarine Demarcation Point Removal

AMP = Amplifier NID = Network Interface Device ROADM = Reconfigurable Optical Add/Drop Multiplexer SIE = SDH Interconnection Equipment SLTE – Submarine Line Terminating Equipment TLTE = Terrestrial Line Terminating Equipment XCON – Cross-Connect

© Ciena Confidential and Proprietary

Traditional Submarine-Terrestrial Network Handoff Reliable… but there is a better way

© Ciena Confidential and Proprietary

Next Generation Submarine-Terrestrial Network Handoff SLTE physically relocated directly into the PoP (ex. data center)

© Ciena Confidential and Proprietary

PoP-to-PoP Global Network Design Trends Summary

Designing PoP-to-PoP global networks greatly simplifies resultant designs

Cable Landing Station network designs evolution continues to evolve

Demarcation point between terrestrial and submarine networks is blurring

Significant reductions in cost, space, power, and latency is achievable

Remove all unnecessary optical-electrical-optical stages, where possible

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