Carrier Ethernet 101

Featuring:
John Sauer, Senior Principal Engineer & Carlos Benavides, Group Manager
Tellabs Verizon Business — Metro Ethernet Services
Carrier Ethernet is at the forefront of the telecommunication’s industry ongoing effort to provide reliable, cost-effective and easy-
to-manage bandwidth. Even so, there’s a great deal of confusion about exactly what Carrier Ethernet is and what’s viable today.

This session of Get Schooled provides a primer on Carrier Ethernet as a solution, what limitations are facing Ethernet today,
hurdles to overcome and how standards bodies are addressing them.
> To download podcasts, visit www.inspirethenewlife.com

Additional References (on tellabs.com)

Verizon Business Ethernet Services

www.verizonbusiness.com/us/data/ethernet/

Tellabs Recognized as Most Advanced Vendor for End-to-End Ethernet

Backhaul Network Solutions
www.tellabs.com/solutions/integratedmobile/hr-tlab_etherback-na.pdf

Tellabs Emerge Magazine Article Reprints

Carrier Ethernet 101
www.tellabs.com/news/reprints/emerge_fall07_carrier101_reprint.pdf

Inside MetroEthernet
www.tellabs.com/news/reprints/metroethernet_spring06-reprint.pdf

Measuring the Chicago Mercantile Exchange’s Success One Millisecond at a Time

http://www.tellabs.com/news/reprints/emerge_summer07_chicagomercs_reprint.pdf

One Tellabs Center • 1415 West Diehl Road • Naperville, IL 60563 • 630 798 8800 • www.tellabs.com
Statements herein may contain projections or other forward-looking statements regarding future events, products, features, technology and resulting commercial or technological benefits and advantages. These statements are for discussion
purposes only, are subject to change and are not to be construed as instructions, product specifications, guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned by Tellabs Operations,
Inc., or its affiliates in the United States and/or other countries: TELLABS®, TELLABS and T symbol®, and T symbol®. Any other company or product names may be trademarks of their respective companies. © 2007 Tellabs. All rights reserved.
News Releases
Tellabs® 7100 Optical Transport System: Lighting the Way to Converged Networks
www.tellabs.com/news/2007/nr082107.shtml

MetroNet Delivers More in Mexico Worldwide Metro Ethernet

www.tellabs.com/news/2007/nr091007.shtml Equipment Market Size
$16
$14
$12

$ In Billions
$10
Product Literature: $8
$6
Tellabs® AssuredEthernetSM Solution $4 Total Revenue
www.tellabs.com/solutions/assuredethernet/ $2
$0
Tellabs® 7100 Optical Transport System 2004 2005 2006 2007 2008 2009
Growth N/A 91% 83% 23% 15% 12%
www.tellabs.com/products/7000/tellabs7100.shtml
Source: © 2007 Infonetics Research, Inc.

Tellabs® 8800 Series of Intelligent Multiservice Routers

www.tellabs.com/products/8000/tellabs8800.shtml

Tellabs® 8800 Multiservice Router (MSR) Series — Enabling New Services and Network Convergence
www.tellabs.com/products/8000/tlab8800msr.pdf

Tellabs® 6300 Managed Transport System

www.tellabs.com/products/6000/tellabs6300.shtml

?
Other Links:
IEEE
www.ieee.org/
www.ieee802.org/1

Metro Ethernet Forum

www.metroethernetforum.org/

MEF Services:
a E-LINE
a E-LAN
What is the difference between
a E-TREE
Ethernet and Ethernet Service?
MEF Carrier Ethernet Attributes:
a Standardized Services Ethernet is the underlying technology.
a Scalability Ethernet Service is what you deliver
a Reliability to your enterprise customer.
a Service Mgmt
a Quality of Service

One Tellabs Center • 1415 West Diehl Road • Naperville, IL 60563 • 630 798 8800 • www.tellabs.com
Statements herein may contain projections or other forward-looking statements regarding future events, products, features, technology and resulting commercial or technological benefits and advantages. These statements are for discussion
purposes only, are subject to change and are not to be construed as instructions, product specifications, guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned by Tellabs Operations,
Inc., or its affiliates in the United States and/or other countries: TELLABS®, TELLABS and T symbol®, and T symbol®. Any other company or product names may be trademarks of their respective companies. © 2007 Tellabs. All rights reserved.
Podcast Transcript
Carrier Ethernet 101
Featuring: John Sauer, Senior Principal Engineer & Carlos Benavides,
Group Manager Tellabs Verizon Business — Metro Ethernet Services
Monsho: Hey, it’s Monsho here for an-
other episode of Get Schooled. Welcome
back.
Where are my straight A students at?
Are you ready for Carrier Ethernet 101?
It’s all about the basics of schooling. It’s
time for today’s pop quiz.
What’s the difference between Ethernet
and Ethernet service? Is it: (a) Ethernet
is to apple like Ethernet service is to
banana, (b) Ethernet is the underlying
technology, Ethernet service is what you
deliver to your enterprise customer, or
(c) seven little letters? Take your time
and think it over. Sit back, relax. I got you.
It’s time to get schooled.
Dave Morfas: Hi, I’m Dave Morfas, and
we’re here today with John Sauer, and
the topic today: carrier Ethernet.
John, I think where we need to start is,
carrier Ethernet, or Ethernet in general,
seems to be sort of the answer to ev-
eryone’s problems. What’s the network
migrating to, what’s the new silver bullet
and magic technology? Why is it such a
hot topic, and is it over-hyped or is the
hype justified?
John Sauer: Well, Dave, what’s happen-
ing is, the world’s moving to a packet
transport system, and Ethernet’s a good
candidate, because it’s been used so long
in the LAN. So all the enterprises out
there are very familiar with this technol-
ogy. They’re looking at the price points
for Ethernet interface cards, etc., and
they’re looking to move those interfaces
to Ethernet. So it’s sort of a difference
between TDM, which is a continu-
ous circuit, versus Ethernet, which is a
packet-based circuit. So for that reason
we’re seeing a lot of applications looking
for high-bandwidth links back to their
home servers, and those kind of applica-
tions are well-suited toward an Ethernet
interface.
Dave Morfas: We probably need to
clarify a couple of terms. You hear the
term “Ethernet” and you hear the term
“Ethernet service,” and you hear them
used interchangeably. Is there a differ-
ence, and is there a need to differentiate
the two?
John Sauer: What we’re talking about
with Ethernet is the underlying Ethernet
technology as standardized by IEEE.
When you talk about Ethernet service,
you’re talking about what you deliver to
your enterprise customer. So in that case,
instead of saying delivering an IP service,
say, with Internet connect, you will be
delivering an Ethernet service, an end-to-
end Ethernet connection, say, between
routers.
Carlos Benavides: There is a differ-
ence between Ethernet and Ethernet
services. Ethernet is really the handoff
to a customer. A customer sees that
the demarcation point of their network
interface device has an Ethernet plug
they can simply plug into; very simple.
Ethernet services are a little more com-
plex. Ethernet services really are not only
the Ethernet connection, but everything
in between that enables that connection
and those packets to move from site to
site. It includes optical transport technol-
ogy, and other Ethernet technologies can
include IP signaling.
In Verizon Business, we’ve seen custom-
ers entrust their most critical applica-
tions to Ethernet services. It’s really a
good sign for Ethernet and Ethernet
services going forward. What we’ve seen
in places like the healthcare industry and
in geographically dispersed areas such
as Seattle, it’s often hard for a patient to
get to the downtown facility, downtown
hospital, where really the experts are,
the oncologists, the pulmonologists that
really need to see them to diagnose their
symptoms.
So with Ethernet services, it creates a
high bandwidth pipe between clinics and
the downtown hospitals where these CT
scans, these x-rays can be transported
back to the specialists. Specialists can
immediately diagnose the customer or
the patient at that downtown hospital,
get that information back to the clinic
and the customer or patient has an im-
mediate diagnosis to get them the help
they need at that point.
Another customer segment that’s en-
trusting their applications to Ethernet is
the financial industry, and that’s really
a big step for us going forward, that the
financial industry, who really generates
and processes millions and billions and
trillions of dollars through their net-
works, are entrusting their network and
their dollars through Ethernet services.
They’re making trading decisions, their
partners are making trading decisions,
individual buyers are making trading
decisions that really cost dollars, millions
of dollars, if that decision is not made
instantaneously.
Dave Morfas: In what ways do service
providers need to evolve their networks
to support Ethernet service, and is this
an immediate replacement for, say, TDM
and SONET and SDH?
John Sauer: Well, what we’re seeing,
Dave, is that there is a migration to
providing these packet services. And in
that migration there is a movement away
over time from TDM services. However,
TDM services can still run Ethernet over
them, and they’ll still be present for quite
some time.
What we see is the introduction of IP/
MPLS-based pseudowire technologies.
We see the introduction of PBB technolo-
gies, which is a technology coming out
of IEEE. It’s packet backbone bridging.
And there are some traffic engineering
enhancements underway there. And we
see some PBT, which is Provider Back-
bone Transport, technologies. These are
all looking to provide the packet trans-
port solutions to provide these kinds of
services.
And the second area is in the operations
area. You have people to administer and
maintain these Ethernet networks just to
the quality that you had with SDH and
SONET. So our operators want to be able
to impress upon their enterprise custom-
ers that they’ll be able to establish the
same SLAs, which are the Service Level
Agreements, between our operators and
their customers.
Carlos Benavides: There’s been a lot of
talk about IP and Ethernet replacing tech-
nologies such as TDM and SONET. And
IP and Ethernet will continue to grow. IP
will be the prevalent technology moving
forward. But the reality is, we’ll continue
to leverage our optical base to transport
Ethernet throughout our network.
Moving forward, we’re just looking to
push packets, push Ethernet frames
through our network more efficiently.
So what we’re looking at going forward
is, technology that can have Ethernet
interfaces and can really push a lot of
bandwidth through the network and just
making our network more efficient.
Dave Morfas: Given the groundwork that
we’ve laid, and talked about some of the
hurdles, talked about some of the tech-
nologies and so forth that are coming
down the pike, what are service providers
doing today to provide carrier Ethernet
in a current network, and what is Tellabs
doing?
John Sauer: Well, there is explosive long-distance POP and transport critical
growth in providing Ethernet services, customer applications.
and our carriers are meeting this with a
Ethernet is a reality, but is it done yet?
range of technologies. We’re seeing the
No. It’ll continue to change and move
use of MPLS pseudowires, such as those
forward with the work done by stan-
provided by our Tellabs 8800 router line.
dards bodies such as the MEF. We’ll see
We’re seeing the introduction of optical
standards such as the ENNI, we’ll see the
technology here. And one of the things
link OA&M and we’ll see other standards
Tellabs is doing is putting a native Ether-
that will evolve Ethernet into the future.
net switching technology into our 7100
products. We’re also seeing different Monsho: Brains and beauty? You’ve
operators using T-MPLS technology such got the whole package, don’t you? The
as that provided by our 6300 line. We’re correct answer is (b). If you missed the
seeing different carriers using a native answer, your homework is to download
Ethernet technology as well, using some a cheat sheet at inspirethenewlife.com.
of the new PBB standards, which we are See, I’m not just another pretty face.
also working in.
We are very active in the MEF and the
IEEE to ensure that Tellabs is at the cut-
ting edge of these technologies. And the
market will ultimately decide which of
these technologies is the lowest-cost so-
lution, but Tellabs is prepared to deliver
whatever is required by the market.
Carlos Benavides: So Ethernet is a
technology that is carrier class now as
opposed to a LAN technology, as it was
before. It has really grown due to the
standards bodies’ efforts, including the
Metro Ethernet Forum, to really intro-
duce standards around the products
so it can go into a central office, into a