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					                     Hatteras Networks – Web Site Update Project (“Solutions”)


“Solution” Content At-A-Glance (Partial “Site Map”)

Carriers & Service Providers
 Overview of MECA in the Local Loop
        o Filling the T1/E1/DSL-DS3 Service Gap
        o Creating New Multi-Service Opportunities
        o Minimizing Technical and Financial Risks
        o Winning New (and Past) Customers
 MECA Applications [Link Only to Customer Section ???]
 Network Planners
        o Leveraging the Copper Infrastructure
        o Switching to Ethernet Switching
        o Reaching Out to All Customers in the CSA
        o Ease of Deployment and Expansion
        o Ease of Management
        o Getting Started
 MECA Benefits for the Carrier
        o Deliver Ethernet Today Throughout the CSA
        o Postpone or Avoid Pulling Fiber
        o Take Full Advantage of Ethernet Simplicity
        o Improve Customer Satisfaction
        o Maximize Profits by Lowering CapEx and OpEx
        o Pay-as-You-Grow with Full Investment Protection

Business Customers and Institutions
 Introducing Metro Ethernet Copper Access
 MECA Applications
       o Private Line Ethernet Service
       o Private LAN Ethernet Service
       o High-speed Internet Access Service
       o Multi-Tenant/Multi-Dwelling Unit (MTU/MDU) Networks
 MECA Benefits for the Enterprise
       o Maintain a Pure Ethernet Environment
       o Extend the LAN into the MAN… and Beyond
       o Get Broadband Bandwidth in the T1/E1-DS3 Gap
       o Eliminate the Headaches of Point-to-Point Wireless
       o Add Bandwidth on Demand

MECA Technology
 Advances On the Road to MECA
      o IEEE 802.3ah Ethernet
               Better Bonding with 2BASE-TL
               Carrier-class Rate & Reach
      o The Virtues of Virtual Services
      o Robust Quality of Service
      o Full OAM Integration
 Advantages of MECA
      o Complies with Industry Standards
      o Overcomes Digital Subscriber Line Limitations
      o Achieves Operational Simplicity Based on Pure Ethernet
      o Provides a True Carrier-Class Solution
 Industry Standards and Organizations




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   Notes Regarding this Revision (04/03/12):
    The content here is intended for the “Solutions” portion of the Web site.
    The outline on the previous page shows the content’s structure At-A-Glance.
    The three main sections and all nine (or ten) subsections are shown in BOLD BLUE titles
      here. Individual topics are shown using BLUE (sub)titles. All notes are in RED text.
    The content of all nine sub-sections is suitable for use in long pages; alternatively each topic
      could be treated as a link (with the possible addition of some introductory text).
    There are ample opportunities for cross-links that are not specified in this draft; the nature
      and extent of those will need to involve some discussion and coordination.
    Existing content (from both the current Web site and published white papers) was leveraged
      to the maximum extent possible.
    Entirely new content is identified as such because this will warrant more careful review.
    The nature of Web sites necessitates some duplication of related content. Conversely, it may
      be desirable to repeat certain key points even more. Hopefully a good balance of partitioning
      and repeating was achieved here.
    Nevertheless, there may be too much material. If so, suggestions will be welcomed on how
      to better consolidate/eliminate some content.
    Product model numbers were not used to keep the discussion “generic” (for a longer “shelf
      life”); these could easily be added if desired.
    No diagrams are suggested at this stage, although some will clearly be needed.


Carriers & Service Providers [Section]

[NOTE: The existing content in this entire section was modified as needed to reference MECA
(vs. ACE), to eliminate the inclusion of fiber optics in the solution, and to address all xLECs,
PTTs, IOCs, IXCs, etc.]

The last-mile of a carrier’s network presents both opportunity and challenge. By enabling
carriers to fully leverage the existing copper infrastructure to deliver enhanced services alongside
traditional services while reducing operating expenses, Hatteras Networks’ solutions address a
key pain point within the carrier network. With Hatteras Networks solutions installed, carriers
can increase the market opportunity for high-speed Ethernet services to business and institutional
customers by ten fold based on the current penetration of fiber optics—an attractive value
proposition in any market environment.

Carriers need a carrier-grade solution for delivering Ethernet to 100% of their business customer
base, but until today, such a solution simply did not exist. Metro Ethernet Copper Access
(MECA) enables carriers to take Ethernet the Extra Mile™ by delivering carrier-grade Ethernet
services at broadband data rates via the voice-grade copper infrastructures at traditional customer
serving area distances. Put simply, MECA enables carriers to mass market large-scale Ethernet-
based services without leaving a single business customer behind.

Metro Ethernet Copper Access from Hatteras Networks…
    Does not require a network evolution for applicability
    Provides simplicity, ubiquity and familiarity of connectivity
    Delivers flexibility in scaling bandwidth up and down on an as-needed basis
    Provides more efficient network utilization
    Enables carriers to deliver multiple services over a single connection


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      Enhances these services with QoS and SLA provisions
      Minimizes capital costs, especially in comparison to SONET or ATM
      Lowers operational costs in provisioning bandwidth to customers
      Aligns seamlessly with the growing set of enterprise data applications
      Brings carrier class OAM functionality to the Ethernet access network


Overview of MECA in the Local Loop [Sub-section]

Metro Ethernet Copper Access (MECA) enables carriers to do something never before possible:
Deliver carrier-grade Ethernet services over the copper local loop infrastructure at traditional
customer serving area (CSA) distances of 12,000 feet—and beyond. By delivering Ethernet-
based services over ordinary voice-grade copper wiring, Hatteras Networks enables carriers to
increase their potential customer base for high-capacity, high-margin data services without
requiring a forklift upgrade to the network infrastructure or losing existing T1/E1 and TDM
service business to a competitor.

From a carrier perspective, whether an ILEC/RBOC, PTT, CLEC, IXC, IOC or ISP, Hatteras
Networks’ purpose-built last-mile MECA solution enables the delivery of high-speed access to
nearly all businesses via the existing local loop infrastructure, thus avoiding the cost or delays
associated with trenching and new construction to install fiber optics. By broadly deploying
Ethernet across the entire access network, carriers can offer new services, reduce both capital and
operating expenditures, and achieve a higher, faster return on the investment.

With Hatteras’ equipment installed, carriers are able to layer multiple services over a single
connection, which eliminates the complexity and cost of deploying new circuits for each new
service. This feature, combined with an overall reduction in the number of network elements,
dynamic provisioning capabilities, a smaller footprint, fewer truck rolls for service activation, as
well as other management and service enhancements, together reduce the overall operational cost
per subscriber of delivering services by 40 to 80% over competing copper solutions, and 50-95%
over fiber-based systems.

From a business or institutional customer’s perspective, an Ethernet service is much simpler to
manage, particularly since Ethernet is already the technology of choice within the enterprise.
MECA also provides customers greater flexibility, enabling Ethernet subscribers to get only the
bandwidth they need—nothing more, but also nothing less—and to increase this bandwidth
virtually on-demand. Business customers also benefit from the higher broadband speeds carriers
can now provision based on better Ethernet bonding techniques. And because the carrier is able
to layer multiple services on a single connection, the customer no longer has to incur a service
delay associated with truck rolls, service installation and turn up.

Filling the T1/E1/DSL-DS3 Service Gap [Title change] [Includes an edited version of the
existing “Balancing Traditional (T1/E1) Services with Ethernet” content]

The typical enterprise local area network (LAN) utilizes a Gigabit Ethernet backbone running at
1000 Mbps with clients and servers connected via Ethernet at speeds of 100 Mbps or greater.



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Yet most businesses and institutions can only purchase T1/E1 or xDSL access in the
metropolitan area network (MAN) at speeds of 1.5-2 Mbps or less—about 1/1000TH the speed of
the LAN backbone.

Given current capital constraints, carriers will not be able to solve this problem by deploying
fiber-to-the-building as a means of giving subscribers greater access. What carriers need instead
is a carrier-grade solution for delivering Ethernet to 100% of their business customers in the
CSA—and they need it now! Put simply: By leveraging the copper infrastructure to its fullest
extent, Metro Ethernet Copper Access enables carriers to mass-market Ethernet-based services to
every customer—and potential customer—leaving none behind.

A related challenge often sited by carriers today is how to protect profitable T1/E1 revenues
while responding to demand for Ethernet services. With such a solid market for these TDM-
based services, some carriers are reluctant to deploy a technology that risks cannibalizing this
substantial revenue opportunity. Carriers are painfully aware, however, that voice revenues
continue to remain relatively flat, while data traffic continues to experience tremendous growth.
The simple truth is: customers are willing to pay as much and more for Ethernet access, whether
delivered wholesale or retail from an ILEC/PTT, a CLEC, an IXC, an ISP or whomever. And
because MECA is Ethernet, carriers are generally free to tariff the service at any rate required.
So the real risk involves losing business (or not being able to win it back) from a competitor.

Unlike most equipment vendors, Hatteras understands that this is a critical business issue for all
carriers. MECA enables any xLEC/PTT, IXC or ISP to profitably manage the migration of
subscribers from TDM-based services to higher-speed Ethernet services. MECA also provides a
solid solution for ―second wave‖ demand from copper-connected customers—a ―build it and
they will come‖ opportunity which Hatteras Networks is uniquely positioned to address.

Creating New Multi-Service Opportunities [Title change to incorporate “Multi-service”]

By deploying a Metro Ethernet Copper Access solution from Hatteras Network, carriers can
increase the potential customer serving area for high-speed Ethernet access from 10% (based on
the typical current penetration of fiber optics) to 100%—a ten-fold improvement. With MECA,
carriers can better serve their existing customers—and attract new ones—by delivering
bandwidth when and where it’s needed throughout the CSA. Additionally, carriers can deliver
(and charge a premium for) multiple services on a single, secure connection, which eliminates
the costs of installing and managing separate circuits for each service. These two advantages
together lower the overall network complexity, resulting in dramatic reductions to CapEx and
OpEx, and completely eliminate the time-to-market delays normally associated with deploying
new, sophisticated services—two compelling advantages that ultimately benefit both provider
and subscriber alike.

The preferred method for service differentiation with Ethernet is the versatile IEEE 802.1Q
Virtual LAN standard. VLANs give carriers a way to map every customers’ traffic onto a
common switched Ethernet infrastructure, allowing each customer’s traffic to be securely
isolated from all other traffic, while still permitting individual VLANs to be administered under
different domains. This capability also allows the carrier to offer the same customer several



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different services over a single metro-Ethernet connection. In addition to providing traffic
segmentation, IEEE 802.1Q-based VLANs can be used to enhance network scaling by logically
partitioning a single, flat network into multiple smaller and independent subnetworks.

MECA offers robust support for VLANs, including the ability to add, re-map and stack tags as
needed to accommodate multiple subscribers with multiple applications—all from a single
switch. Such multi-service capability greatly increases the revenue potential of each and every
customer connection. The ability to re-map customer VLAN tags is particularly important
within the carrier infrastructure. Indeed, without this means for avoiding cross-customer tag
conflicts, mass deployment of Ethernet services would be impractical or impossible. The
tremendous flexibility afforded by so-called Q-in-Q VLAN tagging gives the carrier a capable
and cost-effective total solution for Ethernet access throughout the metropolitan area.

In addition to using multiple services to increase the revenue opportunity of any connection,
MECA allows a carrier to employ Class of Service (CoS) differentiation to increase revenue.
With CoS differentiation, a carrier can segregate customer traffic within the same service, or
across different services, into multiple traffic classes, and offer each class its own service level
agreement (SLA). A typical example of CoS differentiation is an enterprise customer with its
own VoIP application. By being able to offer a higher class and quality of service for the VoIP
traffic, a provider can increase its revenue stream without deploying any additional equipment.

The new multi-service and multi-QoS/SLA flexibility, combined with versatile VLAN tag
handling, can give any carrier new opportunities for increased revenue without any additional
infrastructure costs, and yields more efficient use of existing network resources.

Minimizing Technical and Financial Risks [Title change] [The content here is new]

Very few technologies have endured as long as Ethernet. With a proven track record that spans
more than three decades, Ethernet is as dependable as it is affordable. But carriers are well
aware that Ethernet in the metropolitan area is relatively new, and that Ethernet over voice-grade
local loop copper wiring represents a state-of-the-art advance.

Hatteras Networks understands these concerns and has designed the Metro Ethernet Copper
Access solution to minimize both the technical and financial risks associated with this profitable
business opportunity. The technical risks are reduced by strict adherence to industry standards, a
rugged ―carrier-class‖ product design and robust management capabilities.

The financial risks are effectively eliminated by allowing for success-based deployments, which
permit a pay-as-you-grow approach to rolling-out and scaling metro-Ethernet services. With
success-based deployments, there is no need for an investment until the customer signs the
service agreement. Then a pair of identical and low-cost ―bookend‖ units is deployed: one at the
customer premises, and one in the central office or remote terminal. A truck roll is not
necessary, but may be desired—and is certainly cost-justifiable given the premium price
associated with the service. The high margins result in a payback on the CapEx in less than three
months, and the low OpEx continues to yield a high return on investment.




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As more subscribers sign up, the carrier can begin to take advantage of the economies of scale
afforded by a multi-port chassis-based MECA platform. A single, stackable Switching and
Aggregation Platform [???] is capable of supporting up to __ [???] Ethernet links with different
customers throughout the CSA. The MECA customer premises equipment (CPE) remains the
same, so the switch (pun intended) has absolutely no impact on any customers. Multiple chassis
can be stacked and managed as a single system, which helps keeps OpEx at a minimum. And
full investment protection is afforded with the ability to redeploy the single-port units from the
carrier’s facilities to any new customer’s premises.

Winning New (and Past) Customers [Title change] [The content here is new]

With Metro Ethernet Copper Access from Hatteras Networks, carriers are in an excellent
position to add high-margin services for existing customers and win many new customers,
including those who may have switched providers in the past. The Ethernet option is quite
attractive to businesses, the vast majority of which long ago standardized on this popular
protocol. Indeed, most businesses and institutions have long wanted the ability to make the
enterprise network homogeneous owing to the many advantages of Ethernet. And this enormous
pent-up demand is there for any and all carriers willing to tariff metro-Ethernet services.

To accommodate this pent-up demand as quickly and effectively as possible, MECA has been
designed for deployment in both wholesale and retail arrangements. ILECs, RBOCs and PTTs
have direct access to the local loop wiring, and can therefore offer the services directly. CLECs,
IXCs and IOCs will need to lease the copper pairs and co-locate in central office or remote
terminal facilities. But even with these additional costs, the high margins afforded still make for
a compelling business case. Internet Service Providers (ISPs) may prefer a wholesale
arrangement with either a carrier. And here too, the premium associated with metro-Ethernet
access wins hands-down against all other broadband alternatives.

Perhaps in no other area of networking is everyone a winner with a solution like Metro Ethernet
Copper Access from Hatteras Networks. Carriers win with high-margin services. The customer
wins with better broadband that makes for a homogeneous enterprise network. With Ethernet’s
low cost and proven performance now available over copper in the metropolitan area, the long
wait for this win/win scenario is now over.


Applications [Sub-section]

[NOTE: This topic is covered at length in the customer sub-section. A link with a brief
introduction could be provided here. Or the customer-oriented content there could be ―re-
purposed‖ for the carrier audience and covered at length in this sub-section.]


Network Planners [Sub-section]

The access network remains one of the most challenging and complex segments of a carrier's
infrastructure, with stringent controls that exceed that of most other network segments. Indeed,



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most next-generation equipment vendors underestimate the hostility of the carrier’s access
network. By taking a purpose-built approach, Hatteras Networks has delivered a fundamentally
new platform architecture that enables a new level of service creation without requiring a forklift
upgrade of the carrier’s existing infrastructure.

The role and reach of the metro-Ethernet network continue to expand as higher-bandwidth
packet services are increasingly demanded by end users. Although the all-reaching copper local
loop access network has been used to deliver data services for many years, the use of time-
division multiplexing (TDM) and asynchronous transfer mode (ATM) technologies has been les
than optimal for data-oriented services. The cost, complexities and limitations of the existing
TDM and ATM access architectures will lead to a clear preference by both providers and
subscribers for metro-Ethernet with the advent of draft IEEE 802.3ah standard. Network
planners can rest assured, however, that the change will be as painless as it is rewarding.

Leveraging the Copper Infrastructure [New title for the “Copper Challenge” that is now
treated as being in the past]

One of the primary challenges carriers faced in the past was how to bridge the service and
performance gap between the backbone networks and the business customers’ local area
networks. With greater than 90% of all businesses connected to the public infrastructure via
voice-grade copper wiring, increasing the service, bandwidth and revenue potential to these
customers was problematic. Carriers were constrained by available technologies to the relatively
low levels of bandwidth than could be delivered over a single copper connection. T1/E1
multiplexing, multi-line frame relay and digital subscriber line (DSL) technologies alleviated
some of the pain, but these platforms fail to scale cost-effectively in the face of relentless
demand for more and more data bandwidth from business subscribers.

Given current capital constraints, carriers will not be able to solve this problem by deploying
fiber-to-the-building as a means to give business customers true broadband access. Only an
estimated 10% of all business facilities are currently served by fiber. What carriers need is a
carrier-grade solution for delivering metro-Ethernet at broadband data rates to 100% of the
business customers throughout the CSA.

This long-standing copper challenge has now come to an end with the advent of technological
advances on several fronts. These advances have been embraced by the IEEE 802.3ah draft
standard, which specifies an interoperable means for getting significantly more bandwidth onto
the existing local loop infrastructure without interrupting existing voice and data services.

Hatteras Networks is leading the way by delivering a fundamentally new first-mile access
solution, called Metro Ethernet Copper Access (MECA), that enables carriers to deliver high-
margin, high-speed services that are in high demand. With Hatteras Networks equipment
installed, carriers can deliver broadband metro-Ethernet services throughout the access network,
reaching the carrier’s entire customer serving area. As the industry’s only purpose-built first-
mile Ethernet access platform, MECA provides the rate and reach required for carriers to fully
leverage the existing local loop infrastructure to cost-effectively deliver new services to 100% of
business customers—and prospects.



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Switching to Ethernet Switching [Title change] [Content adapted from white paper]

A fundamental difference between metro-Ethernet and previous access technologies is that
Ethernet (and its common companion IP) are connectionless, while TDM and ATM are both
connection-oriented. This fundamental difference has been the source of great consternation in
the past when using voice-oriented networks to carry data traffic.

Connection-oriented switches operate, in general, by having an ingress label mapping on each
interface; the ingress label is used to look up the egress interface for forwarding. A multiplexer,
sometimes known as an aggregation device, is a simplified version of a connection-oriented
switch that has an asymmetric network application; that is, traffic is switched only between
―network‖ interfaces and ―access‖ interfaces (there is no local switching between access ports).
Successive nodes along the path operate in the same ―local‖ mode of switching. Ethernet
networks operate very differently with all forwarding nodes performing as fully-functional
switches or routers that have an awareness of the network end-to-end. Indeed, building an
Ethernet internetworking device as anything less than a full-featured switch offers no economic
advantage because the cost of Ethernet is extremely low when compared to ATM switches or
even IP routers.

The result of Ethernet’s robust switching capabilities and network-wide awareness give Ethernet
a distinct advantage in delivering multiple services to multiple customers. In addition to the
physical switching of packets, Ethernet also supports value-added virtual switching of Virtual
LAN (VLAN) traffic that can be tagged for different applications and/or different service levels.
These philosophical and architectural differences yield far greater versatility for the carrier when
planning and deploying a metro-Ethernet access solution.

Reaching Out to All Customers in the CSA [Title change] [Content adapted from white
paper]

Perhaps the most attractive aspect of extending the metro-Ethernet network with copper access is
the ubiquitous reach of copper wiring to the potential customer base. Unlike optical fiber, which
reaches only about 10% of all potential customers, the copper access network extends almost
everywhere. This universal reach can open up the metro-Ethernet market from only a few
customers to virtually every business in the industrialized world.

To reach all of these customers, however, metro-Ethernet equipment must be designed and built
in a new way. In the copper access network, equipment cannot be restricted to the temperature-
controlled confines of a central office. Owing to the inherent reach limitations of copper
compared to fiber, equipment must be deployable in controlled environment vaults (CEVs), in
the central office (CO), as well as in the remote terminals (RTs) and non-environmentally
controlled basements and wiring terminals. In such harsh conditions, equipment must be
environmentally hardened to withstand a diverse range of temperatures. Such hardening is
common for existing voice-centric platforms such as Digital Loop Carriers (DLCs), but has been
traditionally unnecessary in the Ethernet market, where Ethernet equipment has been deployed
exclusively in the relative comfort of the central office or a point of presence (POP).



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To be deployable in either an RT or a CO, equipment must not only be hardened, it must also fit
the physical characteristics of the enclosures available. In particular, it must adhere to the depth
limitations of an RT, and have only frontal access to all connectors so that it can fit flush against
the wall in a CO or CEV. These physical and environmental demands make most existing
Ethernet equipment unsuitable for outside plant deployments.

To fully leverage the deployment possibilities of metro-Ethernet, copper access equipment must
support such remote deployments, where the equipment can be located at a considerable distance
from the next switch in the network. Such distant deployments require the option for optical
interfaces so that Gigabit Ethernet can be used to aggregate traffic for backhaul to the next node
in the metro-Ethernet network.

For metro-Ethernet deployments to become ubiquitous, it will first be necessary to make
Ethernet access equipment that is universally deployable, in any environment and at any distance
to the CO or to the customer. And this ability was a fundamental design goal of the purpose-
built Metro Ethernet Copper Access solution from Hatteras Networks.

Ease of Deployment and Expansion [Title change] [The content here is new]

A major reason for Ethernet’s popularity is its utter simplicity. Indeed, after 30 years of
enhancements, Ethernet is about as plug-and-play as any networking protocol could ever hope to
be. Hatteras Networks brings this same level of sophisticated simplicity to the Ethernet’s next
frontier: the metropolitan local loop.

Initial deployments of the Hatteras Metro Ethernet Copper Access solution begin with simple,
modem-like systems that are installed at each end of the connection. The back-to-back
―bookend‖ nature of the link makes getting started with Ethernet almost as effortless as it is
affordable. With the ability to deploy these systems from the central office to the customer’s
premises—and anywhere in between—the service roll-out is not much different from
installations of CSU/DSU equipment.

The bandwidth delivered to individual subscribers can be increased just as easily. Each Ethernet
access connection utilizes up to four [8 ???] copper wire pairs to deliver the near equivalent of
10Base-T in bandwidth. The service can begin with as ―little‖ as 2.3 Mbps (still more than a T1
or E1) and grow in equal increments to nearly 10 Mbps.

As the inevitable occurs, and more customers sign up for the metro-Ethernet access service,
MECA provides a growth path to a multi-port chassis platform. Although a little more
sophisticated in its design, the platform affords the economies of scale that can substantially
improve the profit potential of the endeavor.

With the MECA approach, the entire roll-out becomes success-based; that is, no action or
investment is required until a customer signs up for the service. And with MECA, there are no
truck rolls required and no complex manual provisioning procedures involved to delay service
activation or limit the rate of deployment—or add to the cost.



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Ease of Management

The inability of some Ethernet-based solutions to provide a seamless integration into established
OSS and network management operations can add significantly to carrier operating expenses,
impacting service margins and ultimately the service fees customers pay. One critical carrier
requirement that is often undervalued—particularly as infrastructure manufacturers unfamiliar
with carrier needs bring new technologies to market—is OSMINE. Such management
requirements, which can appear cumbersome, costly and bureaucratic to outsiders, are what
allow carriers to scale their operations to serve mass markets. CLECs, IOCs and IXCs may
deploy service to hundreds of customers within a serving area; ILECs, RBOCs and PTTs need to
deploy service to hundreds of thousands.

Incumbent carriers may also require higher levels of reliability, availability and serviceability
than other carriers, given the scope and complexity of their operations and the range of services
offered. Enterprise-class equipment and management platforms have never before had to meet
such demanding requirements. Which is why Hatteras has designed Metro Ethernet Copper
Access to be a true carrier-class solution—from the basic environment specifications to the
management integration capabilities. The OSS-level management features result in a lower cost
of service and a higher quality of service. Customers expect nothing less of their carriers, so
why should carriers expect anything less of their equipment vendors?

Getting Started [Content adapted from white paper]

In today’s business environment, market factors continue to heavily influence technology
decisions. Factors such as initial cost and product evolution are more important than ever as
carriers look for ways to start small and validate new products and services, while at the same
time be able to plan big and protect the initial investment.

To appeal to carriers products must, therefore, now offer both a low initial cost and high
scalability. The low initial cost is necessary to give providers a profitable way to introduce new
services that substantiate the business opportunity, and to become familiar with the operational
aspects of the technology.

In such ―starting small‖ applications, a primary objective is to have a low initial cost. The initial
cost can be reduced by having relatively inexpensive products that minimize the capital
expenditure required to initiate service deployments and provide an almost immediate return on
the modest investment. To truly provide low initial cost, however, these products must also have
lower operational expenditures. In simple ―getting started‖ configurations, being plug-and-play
and completely interoperable with the wide base of installed equipment is crucial to minimizing
operational expenses.

Even though the initial service introduction may be relatively small in scope, the products and
technology must still scale to support large deployments. Ideally, there will be a ―pay as you
grow‖ capability where new costs are only incurred as new revenue opportunities unfold. This




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strategy ensures a profitable business segment for the carrier, and yields a fundamentally strong
growth pattern for years to come.

Metro Ethernet Copper Access from Hatteras Networks satisfies all of these needs—and more.
From the ILEC or PTT with direct access to the local loop, to the CLEC or IXC needing to lease
copper pairs and co-locate, or to the ISP preferring a wholesale arrangement, MECA makes
metro-Ethernet access a profitable part of any business model.


MECA Benefits for the Carrier [Sub-section] [Title change] [Ordering was changed
slightly to improve the flow.]

Enabling carriers to deliver more bandwidth when and where it’s needed is no longer a sufficient
advantage when trying to introduce new technologies into the metropolitan access network. In
order to effectively deliver services via the local loop to new and existing enterprise customers,
carriers also need:
     A solution that allows for gradual migration of T1/E1 customers to high-speed metro-
        Ethernet services, thereby preserving or improving overall profitability;
     A solution that delivers new services over the existing infrastructure without increasing
        the operational costs associated with deploying these services; and
     A solution that cost-effectively provisions bandwidth-on-demand and supports multiple
        services over a single connection to all business customers throughout the CSA.

In other words, for carriers to achieve the full benefits of Ethernet in the local loop, a genuine
carrier-class solution is required. And that solution is Metro Ethernet Copper Access from
Hatteras Networks. Here are just a few of the benefits carriers get with a MECA solution.

Deliver Ethernet Today Throughout the CSA [Title change] [Content based on the
existing “Increasing Service Velocity” content]

By deploying Metro Ethernet Copper Access from Hatteras Networks, a carrier will leave no
customer behind with its high-speed metro-Ethernet services offering. Based on the typical 10%
rate of fiber optic penetration today, the number of potential Ethernet customers increases ten-
fold with MECA in the local loop. With the Hatteras solution installed, carriers can better serve
existing customers by delivering bandwidth when and where it's needed. When is today, and
where is virtually everywhere throughout the CSA given the ubiquity of Ethernet.

With MECA, carriers can deliver multiple services on a single connection, which eliminates the
cost and complexity of adding separate circuits for different services or applications. This
capability alone reduces the time-to-market for new services—a benefit to the carrier and the
customer alike.

Postpone or Avoid Pulling Fiber [The content here is new]

Nothing beats fiber optics for its remarkable bandwidth potential, low error rate, and immunity
from noise and interference. But these advantages come at an enormous cost to the carrier. By



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utilizing the existing voice-grade copper wiring in the local loop, a Metro Ethernet Copper
Access solution minimizes the urgency and necessity of laying fiber throughout the customer
serving area. And this is great news for carriers who wish to deliver new high-speed services
now, before—and in some locations without ever—paying the premium for fiber.

Take Full Advantage of Ethernet Simplicity [The content here is new]

Why use Ethernet? Because now you can!

Ethernet cannot be beat for its simplicity, scalability, flexibility, interoperability, manageability,
affordability, and resulting ubiquity and familiarity. With carriers spending an estimated 40% of
operating expenses on the access portion of the network, any solution that helps reduce this
burden to the bottom line will have great appeal. And that is precisely what a Metro Ethernet
Copper Access solution does. MECA enables carriers to fully leverage every one of Ethernet’s
many advantages to maximize revenue and minimize costs. In effect, the result of using pure
Ethernet is the closest a carrier may ever get to pure profit!

Improve Customer Satisfaction [The content here is new]

Customers love Ethernet. As the overwhelmingly predominate protocol of choice for local area
networking technology, IT managers understand the management and operational aspects of
Ethernet-based services. Which is why any solution that delivers Ethernet to the premises will
be well received. Customers also crave bandwidth, so the ability to deliver Ethernet in
increments up to nearly a 10Base-T data rate of 10 Mbps will be welcomed relief to the chasm
that exists between T1/E1/DSL and DS-3.

In addition, customers are always trying to save money, especially in tough economic times.
And they know that an Ethernet service that utilizes the existing local loop infrastructure will
result in the most cost-effective solution available. Finally, customers hate to wait. With Metro
Ethernet Copper Access from Hatteras Networks the wait for cost-effective broadband Ethernet
services is over. MECA was designed for carriers with all of the functionality needed to deliver
new services to customers and keep them fully satisfied.

Maximize Profits by Lowering CapEx and OpEx

Ethernet has delivered on low-cost, low-maintenance solutions for more than three decades, and
these same cost-saving advantages are now available in the local loop of the metropolitan area.
Recent studies have shown that carriers can save 23% or more in operational expenditures when
using Ethernet compared to traditional technologies. These savings are all the more significant
given the estimated 40% of operating budgets that carriers spend on the access portion of the
network infrastructure, according to Infonetics Research.

The Metro Ethernet Copper Access solution from Hatteras Networks affords even more cost-
saving advantages. CapEx is minimized with a choice of systems that keep deployment costs
low initially, and allow the roll-out to scale cost-effectively. OpEx is minimized with robust




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OAM capabilities that integrate within the existing OSS framework. And Hatteras intends to
keep MECA at the forefront of affordability—and profitability.

Pay-as-You-Grow with Full Investment Protection [The content here is new]

By utilizing the existing local loop infrastructure, a Metro Ethernet Copper Access solution
preserves this investment and alleviates the need to lay fiber optic cabling. But MECA does so
much more to minimize and protect the investment in metro-Ethernet access services.

The Hatteras Networks pay-as-you-grow approach to rolling-out and scaling metro-Ethernet
services makes MECA unique in the industry. By allowing for success-based deployments, there
is no need for any investment until a customer signs up for the service. Then a pair of identical
and low-cost ―bookend‖ units is deployed: one at the customer premises, and a companion one
in the central office or remote terminal. A truck roll is unnecessary, but may be desired—and is
certainly justifiable given the premium price associated with the service. The high margins
result in a payback on the CapEx in less than three months, and the low OpEx continues to yield
a high return on investment.

As more subscribers sign up, the carrier can begin to take advantage of the economies of scale
afforded by a multi-port chassis-based MECA solution. A single, stackable Switching and
Aggregation Platform [???] is capable of supporting up to __ [???] metro-Ethernet links with
different customers throughout the CSA. The MECA customer premises equipment (CPE)
remains the same, so there is no impact on any existing customers. And full investment
protection is afforded with the ability to re-deploy the single-port units from the carrier’s
facilities to any new customer’s premises.

With Metro Ethernet Copper Access from Hatteras Networks carriers can get their ―feet wet‖ in
Ethernet without having to ―dive in head first.‖ Indeed, MECA delivers metro-Ethernet with all
its rewards and few of the technical and financial risks normally associate with a new service.


Business Customers and Institutions [Section]

[NOTE: Nearly all of the material in this section is new or has been substantially modified to
appeal the carrier’s customer. Of course, the messaging is also ―subliminal‖ for the carrier!]

Businesses need bandwidth. And lots of it. And not just businesses, but virtually every public or
private institution seems to have an insatiable appetite for higher speeds. Rich content. New
applications, especially involving voice and video. Intranets. Extranets. Virtual private
networks. The list goes on and on.

Yet the supply has clearly lagged the demand. Witness the advent of a number of solutions that
purport to fill the bandwidth gap in the MAN and WAN between T1/E1 at 1.5-2 Mbps and DS-3
at 45 Mbps. T1/E1 multiplexing (works over copper but is complicated and costly). Fractional
DS-3 (still requires a fiber optic link and is expensive). Wireless and Free Space Optics (both
suffering from limitations). So too does this list go on and on. Until now.



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Introducing Metro Ethernet Copper Access [Sub-section] [Title change]

Metro Ethernet Copper Access, or MECA, from Hatteras Networks is what businesses and
institutions have long craved: Ethernet at broadband data rates from the premises to the carrier’s
central office or point of presence.

The IEEE 802.3ah committee recently completed a draft standard specifying a new version of
Ethernet: 2BASE-TL. 2BASE-TL or metro-Ethernet delivers a 2.3 Mbps service (based on a
Symmetric High-bitrate DSL physical layer, or G.shdsl) at up to 2700 meters (8900 feet). With
loop aggregation, four such 2BASE-TL line pairs can be bonded to deliver nearly a 10 Mbps
service similar to 10Base-T.

The only other contender that comes even close to 2BASE-TL is digital subscriber line (DSL).
And DSL is a great solution for residential subscribers. But for a variety of reasons, DSL falls
short of what businesses really need: full-featured LAN to LAN communications. And the LAN
of choice—backed by three decades of enhancements and cost reductions—is Ethernet.

So the only question that remains is ―Why subscribe to Ethernet over copper wiring?‖ And the
answer is ―Because now you can.‖

MECA Applications [Sub-section] [Covered in-depth here from a customer perspective
with a link from Carrier sub-section]

Various standards bodies, including the International Telecommunications Union (ITU) and
Metro Ethernet Forum (MEF), have developed a solid set of service definitions for metropolitan
Ethernet networks. Supporting these services is now the objective of all metro-Ethernet
equipment vendors, which will enable service providers to offer a valuable and consistent set of
services across a multi-vendor network. And Hatteras Networks is leading the industry in
support of these and other relevant standards.

The twin primary service types defined by these organizations are:
    VP-LINE as the next-generation Virtual Private (VP) equivalent of today’s private line
       service, where the premises is connected with a secure, point-to-point Ethernet link.
    VP-LAN as the multi-point counterpart to the VP-LINE, whereby multiple sites are
       connected over a network that either is or emulates an Ethernet LAN. VP-LAN services
       are ideal for multi-site companies that require a transparent Layer 2 Virtual LAN that is
       compatible with, yet independent from, IP/Layer 3 routing.

In addition to basic Ethernet switching capabilities, the access equipment must perform a variety
of other standard functions to deliver these services. To give business subscribers full ―Ethernet-
class‖ flexibility and affordability, the Metro Ethernet Copper Access (MECA) solution from
Hatteras Networks supports Layer 2 protocol handling, VLAN stacking (Q-in-Q), spanning tree
and related Class of Service provisions.




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The following four applications benefit the most from metro-Ethernet access: [NOTE: Two of
the original applications were combined (both involving backhaul) and one was eliminated
(―Campus-wide Ethernet‖).]
     Private Line Ethernet Service
     Private LAN Ethernet Service
     High-speed Internet Access Service
     Multi-Tenant/Multi-Dwelling Unit (MTU/MDU) Networks

[NOTE: Each of these application scenarios probably needs a diagram.]

Private Line Ethernet Service

The Private Line Ethernet Service is essentially the VP-LINE service defined by various
standards bodies. It is a point-to-point connection from the customer premises to the carrier’s
network, where traffic is switched or routed according to the application requirements. MECA
supports virtually any application in this arrangement—from high-speed data access to Voice
and Video over IP (VoIP).

Private LAN Ethernet Service

The Private LAN Ethernet Service is essentially the VP-LAN service defined by the standards
bodies. It begins as a point-to-point connection from carrier’s network to each customer
premises included in the extended LAN. Switching systems in the carrier’s network then handle
various applications as virtual services with an appropriate quality of service. Because Hatteras
Networks provides robust support for Q-in-Q VLAN stacking with the ability to rewrite tags as
needed, the MECA solution is able to able to accommodate different VLANs from different
customers, without compromising security and integrity, even when the same tags are used.

High-speed Internet Access Service

The High-speed Internet Access Service is a special case of both the VP-LINE and VP-LAN
services. The point-to-point connection between the customer premises and the carrier’s
network delivers symmetrical IP bandwidth in the 2-10 Mbps range. In addition to handling e-
mail, Web and other public Internet applications, the same connection can also carry virtual
private networking (VPN) traffic based on either the IP Security (IPSec) or Secure Sockets Layer
(SSL) standards. With VPNs, the public Internet is turned into a private WAN backbone for the
entire enterprise, resulting in unprecedented reach, flexibility and affordability.

Multi-Tenant/Multi-Dwelling Unit (MTU/MDU) Networks

Metro Ethernet Copper Access has an increasing role to play in networks that are shared among
multiple subscribers. For example, an apartment building (an MDU) may provide Ethernet or
DSL connections as a way of attracting tenants. Property managers that operate office buildings
(MTUs) also do the same for their business tenants. In either situation, a high-speed link is
required from the building to the carrier’s central office or point of presence. Security in such a
shared network is normally provided as virtual services in the form of VLANs or VPNs.


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MECA Benefits for the Enterprise [Sub-section] [Ordering was changed slightly to
improve the flow]

The benefits of a homogeneous network infrastructure based on the pervasive protocol—
Ethernet—are as compelling as they are copious. And these same advantages are preserved all
the way to the top of the protocol stack at the Application Layer. Indeed, Ethernet is now
inseparable from the Internet Protocol (IP) and its many applications. Here are just a few of the
benefits users of Metro Ethernet Copper Access can now enjoy.

Maintain a Pure Ethernet Environment

End-to-end Ethernet affords numerous cost-saving advantages for the enterprise. The lack of
interworking arrangements among different protocols (TDM, Frame Relay, ATM and/or DSL)
makes for a far more efficient and trouble-free networking environment. With fewer protocol
conversions, along with a corresponding reduction in equipment needs, the management effort is
dramatically simplified. Virtual LANs are able to function across the enterprise without
complication, and users enjoy a more seamless experience. As a result, help desk and other
support costs drop to lows that are only possible with such a homogeneous infrastructure.

Extend the LAN into the MAN… and Beyond

The role of Ethernet exclusively as a LAN officially ended with the advent of the IEEE 802.11ah
draft standard. With solutions like Metro Ethernet Copper Access from Hatteras Networks,
Ethernet becomes a metropolitan area network (MAN) and potentially a wide area network
(WAN). Perhaps even more significantly is that everything else about Ethernet remains exactly
the same. Virtual LANs continue to operate and Class of Service (CoS) options continue to
apply, as do all other Ethernet options.

Get Broadband Bandwidth in the T1/E1-DS3 Gap

Enterprise facilities span the spectrum from the high-rise headquarters to the remote outpost.
Most exist somewhere in between where traditional metropolitan access networks have failed to
provide adequate bandwidth in a cost-effective way. With Metro Ethernet Copper Access every
office of every business in the industrialized world can now get network access in the ―sweet
spot‖ range of 2-10 Mbps.

Eliminate the Headaches of Point-to-Point Wireless

The use of voice-grade copper wiring in the local loop to deliver bandwidth in the 2-10 Mbps
range renders most other alternatives effectively obsolete. Even wireless solutions, whether
based on radio frequency transmissions or site-to-site laser light, no longer have any real
advantages—and still have plenty that can go wrong. With copper, there is no risk of problems
from RF interference or changing atmospheric conditions. After all, it is the very same wiring
that is now used to deliver all remarkably dependable voice services.



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Add Bandwidth on Demand

The Metro Ethernet Copper Access solution is able to deliver up to 10 Mbps of throughput by
―bonding‖ multiple pairs of copper wiring. Other technologies use a similar technique, most
notably T1/E1 multiplexers and certain forms of digital subscriber line, but MECA has a
significant advantage. The bonding used suffers from none of the previous limitations or
management complexities. The result is pure Ethernet delivered seamlessly and dependably at
the bandwidth desired. And because all the necessary wiring is already there, the bandwidth
delivered can be changed virtually on-demand in mere minutes.


MECA Technology [Section] [Content here is new]

Recent advances in technology now make it possible for carriers to deliver high-speed Ethernet
services over ordinary local loop copper wiring. Most of these advances are evolutionary, some
are revolutionary. The major breakthroughs are in the area of bonding, which is the technique
used to combine multiple copper pairs in a seamless fashion to deliver bandwidth incrementally
and on-demand. Some of the advances leverage existing Ethernet provisions to enhance service
differentiation in the metropolitan area. And the remaining advances involve management
capabilities in the demanding carrier environment.

Hatteras Networks supports all of these advances, and leads the industry in some. Which is why
the Hatteras Metro Ethernet Copper Access (MECA) solution represents the state-of-the-art in
metro-Ethernet equipment for carrier networks. No other solution available today is as powerful,
and no other solution can deliver the profit potential provided by MECA. Metro Ethernet
Copper Access is indeed a mecca for any carrier seeking to grow revenues and profits throughout
the customer serving area—now and for the foreseeable future.


Advances On the Road to MECA [Sub-section] [Title change] [Edited material from
draft white paper]

Existing digital subscriber line (DSL) deployments depend on asynchronous transfer mode
(ATM), which substantially complicates service delivery both to the premises and through the
backbone. To achieve higher data rates, Inverse Multiplexing over ATM (IMA) is normally used
to bond copper pairs. But IMA bonding suffers from numerous limitations, such as the when the
throughput of all pairs in the bonded group drop to the lowest data rate of any single pair. In
addition, the interworking required to convert from Ethernet to ATM (and vice versa)
complicates operation and drives up the cost. Frame relay suffers from this same extra layer of
complexity.

Recognizing the inherent limitations of DSL over ATM and other first/last mile solutions, the
Institute for Electrical and Electronic Engineers (IEEE) and the Ethernet in the First Mile
Alliance (EFMA) set out to standardize Ethernet over copper wiring in the local loop. The effort




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resulted in publication of an IEEE 802.3ah draft standard, which is well on its way to joining the
long list of other 802.3 standards that together govern all aspects of Ethernet.

IEEE 802.3ah metro-Ethernet [Replaces “G.shdsl Physical Layer” title]

The IEEE 802.3ah draft standard specifies point-to-point connections for both copper and fiber,
as well as point-to-multipoint connections for fiber. The copper-based services include both
short- and long-reach versions. The short-reach version, 10PASS-TS, offers 10 Mbps of
throughput at up to 750 meters (2500 feet). The draft standard specifies the use of Very-high-
bitrate DSL for the physical layer.

The more interesting of the copper connections is the long-reach version, 2BASE-TL, which
delivers a 2.3 Mbps service (based on a Symmetric High-bitrate DSL physical layer, or G.shdsl)
at up to 2700 meters (8900 feet). With loop aggregation, four such 2BASE-TL line pairs can be
bonded to deliver nearly a 10 Mbps service similar to 10Base-T. The aggregation approach
treats multiple copper lines as a unified physical layer, making it far more robust and ―business-
class‖ than traditional inverse multiplexing techniques. Although IEEE 802.3ah runs in the same
band plan as G.shdsl, it has all of the service characteristics of Ethernet. After all, one would
expect nothing less from the standards body that governs Ethernet.

For fiber optic links, IEEE 802.3ah specifies both point-to-point and point-to-multipoint
connections using Ethernet over passive optical networks, or EPON. While EPON offers
throughput of 100-1000 Mbps at distances up to 20 kilometers (12 miles), fiber optic cabling
now reaches only about 10% of business premises.

On the management side, IEEE 802.3ah also contains carrier-grade operations, administration
and management (OAM) provisions, which will dramatically enhance the quality of service and
lower the operating costs of delivering metro-Ethernet in the first mile.

Better Bonding with 2BASE-TL [Title change] [Edited material from white paper –
Incorporates “Better than IMA”]

With its focus on interoperability and the minimization of complexity, Ethernet networks
continue to be plug-and-play, supporting large multi-vendor deployments with reliable auto-
detection and auto-negotiation. This tradition continues in the new IEEE 802.3ah standards for
Ethernet-over-copper, including 2BASE-TL. One particularly interesting feature is the ability to
auto-detect which pairs are connected between two devices and are, therefore, eligible to be
aggregated into a single Ethernet connection. Using this bonding auto-detection, carriers are not
forced to configure the cross-connect information on each device. Instead, an IEEE 802.3ah-
capable switch exchanges information to negotiate which pairs are connected to the same remote
system, and then creates an aggregate port from those pairs. Pairs can even come and go, being
added and removed dynamically, without affecting the operational status of the aggregate port.

A major improvement over IMA with best-in-class 2BASE-TL bonding involves the utilization
of each pair at its maximum rate, making the aggregate truly the sum of its parts. The IEEE
802.3ah interfaces introduce an aggregation multiplexing and de-multiplexing layer into the



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Ethernet stack that is responsible for taking an Ethernet frame and partitioning it over multiple
variable speed links in a manner that best utilizes the speed of each pair. For example, an
implementation could partition a frame into variable size fragments, where the size of the
fragments depends upon the speed of the link, with the faster links carrying the larger fragments.

In addition to efficiency, the Ethernet-over-copper technologies of IEEE 802.3ah establish a
multi-vendor foundation for frame-optimized access networks. In effect, these new technologies
provide a better path to simplicity and interoperability in the network. IEEE 802.3ah is a pure
carrier-grade Ethernet technology and, therefore, eliminates the complex translation and
interworking functions that were previously required when taking the customers’ frames,
translating them into ATM cells in the access network, and then re-translating them back into
frames for the next-hop router or switch.

Carrier-class Rate & Reach [Title change] [Incorporates “Spectral Compatibility” and
“Outside Plant Requirements”]

The implementation of 2BASE-TL in the Metro Ethernet Copper Access solution from Hatteras
Networks gives carriers both the rate and reach needed to deliver business-class metro-Ethernet
services. MECA enables carriers to serve up nearly 10 Mbps of bandwidth via the local loop at
customer serving areas distances of up to 12,000 feet. With MECA, carriers can Take Ethernet
the Extra Mile™ to reach 100% of business customers in the CSA.

The MECA implementation satisfies all carrier requirements for outside cable plant, spectral
compatibility and more. The access network can be a hostile environment for sophisticated
switching equipment, and most traditional Ethernet vendors are unaccustomed to the stringent
temperature, power, space and interface requirements imposed by carrier facilities—from
controlled environmental vaults (CEVs) to remote terminals (RTs). Similarly, the importance of
spectral compatibility cannot be underestimated in the access network. To be carrier-class, any
new service delivery technology must operate within the standard spectral band plan to avoid any
adverse impact on existing services.

The Virtues of Virtual Services – [Title change] [Edited material from white paper]

Virtual LANs or VLANs are specified in the IEEE 802.1Q standard, and have become the
preferred means for partitioning Ethernet-based applications and services within the enterprise.
Building on this successful foundation, Hatteras Networks has added two important and
interoperable enhancements to 802.1Q. The first is dedicated per-port (per-customer) VLAN tag
spaces. This enhancement makes available the entire VLAN base tag space for each customer
connected to a Metro Ethernet Copper Access solution. The result dramatically simplifies policy
administration, and enhances traffic security and segregation. The second enhancement provides
support for VLAN tag re-writing and intelligent tag stacking. The added functionality enables
carriers to configure the platform to monitor and analyze a business customer’s VLAN tags, as
well as to assign outer carrier tags intelligently based on service agreements (e.g. Internet access
and private line Ethernet).




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These important enhancements enable carriers to segregate and protect traffic by transmitting
packets from a particular VLAN over specified ports, while not requiring the carrier to
administer and control each business customer’s internal VLAN policies. In addition, this
approach enables the carrier both to leverage and to preserve the business customers’ internal
VLAN tagging methodologies in a manner that was not possible with earlier Ethernet switch
architectures. For example, a traditional 802.1Q VLAN switch has a single VLAN tag space for
all ports, which causes the VLAN tags for different customers to overlap, making customer
segregation difficult if not impossible. With MECA, each port can be a trunk with its own
VLAN tag space. The carrier can create a service (i.e. a VLAN) by identifying the applicable
ports with the tag on each port used to identify the service. The MECA switch performs the
necessary VLAN tag insertion, removal and/or translation to deliver seamless connectivity.

In addition to the stacking of tags, the MECA solution enables carriers to modify and/or rewrite
the IDs of VLAN tags. With this feature, a carrier can efficiently overcome two significant
challenges: first, connecting two sites of a subscriber network that are being administered
separately, each with its own VLAN tags; and second, connecting a subscriber to a service
provider when has a different VLAN scheme for service identification.

The combination of these and other enhanced features gives Hatteras Networks a truly
differentiated 802.1Q implementation. Support for multiple services, guaranteed customer
segregation, automatic VLAN tag insertion, deletion and translation, and plug-and-play
provisioning all combine to create a truly unique, simple and flexible metro-Ethernet switching
platform for large carriers.

Robust Quality of Service [Title change] [Edited material from white paper]

In order to win high-margin business customers with next-generation metro-Ethernet services,
carriers must be able to offer Quality of Service (QoS) protection guarantees in the form of
service level agreements (SLAs) that are at least as good as those offered today with T1/E1
access. Protection must be provided at every layer in the network—from the physical to the
virtual—to successfully achieve this goal.

At the physical layer, the Metro Ethernet Copper Access solution offers resiliency in the form of
a ―Five-9’s‖ service guarantee. The MECA architecture is itself resilient, offering redundancy
options on both the network and management planes. On the network plane, protocols such as
802.3ad link aggregation, spanning tree and rapid spanning tree can be used to provide protection
against link and node failures in a metro-Ethernet network. Such methods not only provide
protection, but they do so in a manner consistent with and interoperable across multiple vendors.

The multiple pairs in the bonded metro-Ethernet link provide additional resiliency against facility
failures in the outside plant. For example, the loss of a copper pair, though affecting bandwidth,
does not result in a service failure. Additionally, the MECA solution can offer further resiliency
in multi-pair connections where aggregated pairs can be scattered across a large system, and the
failure of a component in the system loses only the pairs associated with that component. By
distributing the multi-pair group of an individual customer across a system, customers can even
be protected against hardware failures in the central office. In addition to the increased



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resiliency, distributed bonding offers the benefit of no stranded pairs, which means that any
copper pair anywhere in a system can be used for any bonded group.

In the virtual service layers, MECA employs the standard Ethernet Class of Service (CoS)
framework to support tiered services. With CoS, individual services are assigned different
priority values, which are then mapped to flows within the Ethernet switching infrastructure—
from the edge through the core. Separate discard eligibility parameters are used to handle
periods of congestion. SLAs can be configured using four flexible thresholds: Committed
Information Rate (CIR), Excess Information Rate (EIR), Peak Information Rate (PIR) and
Maximum Burst Size (MBS). The result is a solution that overcomes the limitations of DSL
access multiplexers, and permits smooth migration to Multi-Protocol Label Switching (MPLS)
technology.

Another advantage of the MECA QoS framework is its ability to help carriers deliver ―stickier‖
services. Higher levels of customer satisfaction lead to ―stickier‖ services, meaning business
customers are less likely to seek alternative carriers for their data service requirements. Keeping
customers satisfied, and loyal, is a key challenge for carriers today as they face and increased
competitive threat from cable providers for lower speed data services, and wireless providers for
traditional voice services. Metro-Ethernet can play a key role in keeping customers happy by
enabling carriers to deploy a wider range of services, delivering them more quickly, and tailoring
these services to more closely match specific customer needs.

Full OAM Integration [Edited material from white paper]

In addition to new standards for Ethernet-over-copper, IEEE 802.3ah has developed new
operations, administration and management (OAM) standards for Ethernet. The Ethernet OAM
standard brings to Ethernet much of the OAM functionality found on traditional carrier network
technologies. With advanced capabilities like link monitoring, fault signaling and remote
loopback, carriers now have the tools needed to maintain and monitor the metro-Ethernet
network in a manner consistent with other carrier technologies.

Other organizations, such as the Metro Ethernet Forum (MEF), the IEEE 802.1 committee and
the International Telecommunications Union (ITU), are investigating ways to expand the work
of IEEE 802.3ah OAM to wider applications. Whereas IEEE 802.3ah OAM monitors individual
Ethernet links, the work of these other bodies is focusing on the monitoring and fault signaling
capabilities across a large Ethernet network, which will help troubleshoot problems at the
network-wide and service layers rather than at just the link layer. With such tools, carriers are
able to verify a metro-Ethernet service’s SLA requirements across an entire network. Uptime,
latency and jitter are all metrics that could be constantly monitored using these end-to-end OAM
utilities, and this monitoring can prove and improve SLAs between a carrier and its customers, as
well as improve the revenue potential with enhanced services and reduced customer churn.

These new and developing metro-Ethernet OAM standards provide the mechanisms to better
manage Ethernet protocols and networks. They do not, however, provide any assistance in the
maintenance of the individual copper pairs. The physical copper access lines themselves have
traditionally required two techniques for qualification and continued maintenance. First, carriers



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have deployed copper test equipment, such as mechanized loop test (MLT) systems, that can be
patched to any copper pair to run diagnostic tests. Second, carriers usually apply a wetting
current over the access pairs to maintain quality. Which is why the carrier-class Metro Ethernet
Copper Access solution supports these two features for physical layer maintenance.

By mixing the new with the old—the developing Ethernet OAM standards with the legacy
physical copper maintenance—MECA allows carriers to deliver metro-Ethernet services with
total control and confidence. And Hatteras Networks is committed to continuing its leadership in
advanced management capabilities for Ethernet in the metropolitan area. By chairing the
committee for IEEE 802.3ah OAM, and with editorial leadership positions in the OAM work of
standards organizations like the Metropolitan Ethernet Forum (MEF), Hatteras is working to
provide the best possible tools for managing and troubleshooting metro-Ethernet networks.


Advantages of MECA [Sub-section] [The content here is new]

In today’s competitive landscape, carriers can use all of the advantages they can get. When it
comes to data communications, the Metro Ethernet Copper Access solution provides just such a
competitive advantage. With the exception of fiber optic cabling, no other medium is a capable
or available as the copper local loop for delivering pure Ethernet at broadband data rates. Either
the other solutions are not Ethernet, and therefore suffer from interworking complexities and
related limitations, or they lack the mission-critical performance characteristics demanded today
by business customers.

There are many business benefits of Metro Ethernet Copper Access for carriers and service
providers, as well as for business customers and institutions using metro-Ethernet network
services. The focus here is on the technological advantages of MECA.

Complies with Industry Standards [Title change] [The content here is new]

IEEE 802.3ah is, by definition, Ethernet. By joining the large body of other 802.3 standards that
together govern Ethernet, the ―ah‖ standard can bring an appropriately-named sigh of relief to
even the most risk-adverse carrier. Although admittedly in their first generation, products based
on IEEE 802.3ah and 2BASE-TL leverage enough other proven technologies to be considered
worthy of production use today. And the future is even brighter for solutions like Metro Ethernet
Copper Access that are on the right track to long-term success.

In the networking industry, standards rule. And in the competitive networking marketplace, the
first-to-market advantage often makes the difference between winning and losing. With the
Metro Ethernet Copper Access solution from Hatteras Networks, carriers get both advantages.

Overcomes Digital Subscriber Line Limitations [Title change] [Edited material from white
papers]

The DSLAM (DSL Access Multiplexer) is a great platform for delivering DSL services to
residential customers. But some of the same attributes that make it a good fit for the residential



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services market limit its applicability in the business services market. While it is possible to add
some limited Ethernet functionality to the platform, the solution fails to let carriers fully
leveraging the many benefits of Ethernet.

The true value of Ethernet is in the service flexibility provided, much of which is lost when
constrained by the rigid ATM architecture of DSLAMs. Because an ATM-based architecture is
unaware of a cell’s payload contents, it is difficult or impossible to provide per-packet
differentiation of services. In addition, there is no ability to leverage existing enterprise traffic
classification schemes, such as 802.1Q VLAN tags or MPLS tunneling, which further limits the
commercial value of the service. And standard DSL/ATM OAM provisions cannot handle the
additional complexities involved in mapping Ethernet packets into ATM cells. For example,
how does cell loss affect packet loss? These and other constraints make it extremely difficult to
take advantage of Ethernet’s multi-service capabilities, and limit the amount of bandwidth
available to each business customer based on the DSLAM’s bonding protocol and
oversubscription model. Simply put: Business customers, unlike most residential customers, are
unlikely to accept the limited service and quality of service delivered by a DSLAM.

In 2001, incumbent carriers reported churn rates of 26 to 34%, with the majority of that churn
related to poor QoS and network outages. Ethernet services deployed via a DSLAM will do little
to help carriers address this problem. Carriers who do attempt to deliver high-speed Ethernet
services via a DSLAM will quickly run into the limitations of the technique used to bond copper
pairs. With inverse multiplexing over ATM (IMA), if any pair in the bonded group is lost, so too
is the entire service. Additionally, with IMA bonding, all pairs within a bonded group train
down to run at the lowest bit-rate of any single pair, which ultimately limits the total available
bandwidth to the business customer.

With the purpose-built Metro Ethernet Copper Access solution from Hatteras Networks, carriers
can fully leverage the benefits of true Ethernet, offer 2-10 Mbps of broadband bandwidth on-
demand, layer multiple services over a single physical connection, and deliver superior QoS and
SLAs with greater confidence on a per-port and per-service basis. For carriers serious about
mass-marketing Ethernet services throughout the CSA, nothing short of a carrier-class metro-
Ethernet platform like MECA will suffice.

Achieves Operational Simplicity Based on Pure Ethernet [Title change] [The content
here is new]

Ethernet owes its ubiquity to its many desirable qualities: simplicity, scalability, flexibility,
interoperability, manageability and affordability. Which is why end-to-end Ethernet—from the
MAN to the LAN—affords numerous cost-saving advantages for both the service provider and
the enterprise subscriber. The lack of interworking arrangements among different protocols
(TDM, Frame Relay, ATM and/or DSL) makes for a far more efficient and trouble-free
networking environment. With fewer protocol conversions, along with a corresponding
simplification and reduction in equipment, the management effort is dramatically simplified.
Virtual LANs (VLANs) are able to function across the enterprise without complication, and
users are able to enjoy a more seamless experience. As a result, help desk and other support
costs drop to lows that are only possible with a homogeneous infrastructure.



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                      Hatteras Networks – Web Site Update Project (“Solutions”)




With carriers spending an estimated 40% of operating expenses on the access portion of the
network, and Ethernet affording an estimated savings of 23% or more, there is no longer any
reason not to offer Ethernet services in the local loop. A Metro Ethernet Copper Access solution
enables carriers to fully leverage every one of Ethernet’s many advantages to maximize revenue
and minimize costs. In effect, the result of using pure Ethernet is the closest a carrier may ever
get to pure profit!

Provides a True Carrier-Class Solution [Title change]

The ability to deliver high-margin, differentiated services is fundamental to a carrier’s ability to
generate meaningful new revenue opportunities, compete effectively for new business, and keep
old and new customers content. The Hatteras Networks industry-leading services architecture
was designed specifically to enable carriers to mass-market robust metro-Ethernet services
throughout the customer serving area. With a Metro Ethernet Copper Access solution from
Hatteras, the future of high-speed access in the local loop is here today. The multi-service
MECA solution enables carriers to deliver broadband access cost-effectively and in a way that
supports multiple customer applications—all at appropriate service levels and all on a single
connection. MECA simply has no equal when it comes to improving the time-to-market for
new, premium services, and lowering the overall cost of service activation. With carriers
increasingly focused on improving financial performance and obtaining a higher returns on
investment, the path to a better bottom line now leads to MECA.


Industry Standards and Organizations [Sub-section]

[NOTE: This material is unedited; help is needed updating it with current involvement.]

Hatteras Networks Involvement in Telecommunications Standards Bodies
    American National Standards Institute
          o Editor, G.shdsl Ethernet Enhancements
    Institute of Electrical and Electronic Engineers (IEEE)
          o Chair, OAM Sub-Task Force of 802.3ah (Ethernet in the First Mile)
    Internet Engineering Task Force (IETF)

Hatteras Networks Involvement in Industry Groups
    Ethernet In the First Mile Alliance (EFMA) – Founding Member
    Metro Ethernet Forum (MEF)
    Telecommunications Industry Association (TIA)
    International Engineering Consortium (IEC)




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