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MRV_FSO_2008-09-16

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					                 Introduction to
            Free Space Optics (FSO)


Isaac Kim
Director, Optical Transport

September 16, 2008

                                  ™
                              ™
Who is MRV?




       ™™
             MRV Fast Facts

                      - Americas      - Europe          - ASIA
                          US              Sweden            China
                          Canada          Germany           Singapore
                          Argentina
                           Brazil         France            Taiwan
                           Mexico         Belgium
                                          Switzerland
Founded July 1988                        UK
                                          Italy
Total Annual Revenues:                   Israel
     $448 million (2007)                  Finland
                                          Norway
    $356 million (2006)                   Denmark
     $284 million (2005)                  Netherlands
                                          Russia
NASDAQ: MRVC Since 1992
~1300 Employees
6 Divisions, 50 Offices in 23 countries

                                      ™
             MRV Communications


Started in ’88 with a small 5,000 sqft Fab. Today, dominates

Verizon and Bell South FTTP / FTTC Triplexers.

Legacy of combining Switching and Optics

Boasts largest Metro Ethernet deployment + Most console

server ports than all competitors combined

Grew revenue 32% (9 mo. ’06). Turned profitable, without

cutting expenses

Strong Balance Sheet. Cash >> $100 million


                                    ™
                  20 Years of Optical Innovation
          2008                   First 10 GigE Wireless system (TS-10GE)
                               First 10GigE service demarcation device (OS930)
        2007                 First to run DWDM SFPs over 200 km in the OS9000
                           eWDM + MPLS + Cross Connect in single platform
       2006               First SDI SFP for Video Optical Transport
      2005               First Optical Performance Monitoring in Ethernet Access
                       First WDM Optical Ethernet Access
     2004            First MPLS WDM Network deployment in the world
                    First all optical wireless
    2002          First 802.3AH Pluggable Optics System
   2000          First integration of 802.3AH over fiber and VDSL solution
               First ILEC Optical Ethernet Deployment
  1998        First 16 CWDM Optical Transport system
            First Metro Ethernet network deployment
 1995      First hardware-based Linux router
 1992 First Gigabit Ethernet to 75 km
        First with 10/100 Dual Speed LAN switch
1988 Founded as a Laser Diode Manufacturer
                                               ™
                    Luminent Leadership in FTTH / FTTP




FTTP Components
Integrated Triplexer
•   One per home
•   G-PON and B-PON optics
•   Voice, video and data
•   Complete CATV receiver
•   One fiber, three optical signals




Metro Transceivers
 Leading supplier to top OEMs
 Technological breakthrough DWDM SFPs to 200km




                                           ™
             From Wafer to System. Our Ability to Provide
             both Optical Components and Carrier Class
             Optical Systems is Unique in the Marketplace

• In-depth optical leadership since 1988
• 200 engineers, with more than 15% PhDs




 Wafer      Chip      Module      Transceiver    System



                                     ™
     State of the Art Components Facilities




Semiconductor Lasers        Semiconductor Lasers
Taiwan                      Chatsworth, CA




Photolithography                 Clean rooms
Labs


                        ™
                        MRV Who?

AKA…
Remote Presence Solutions
Xyplex, Whitacre/Xyplex, Nbase-Xyplex, iTOUCH= MRV in 2008!
Optical Infrastructure Management
Fibronics, Galcom, Harris, Zaffire, Nbase-Xyplex= MRV in 2008!!!
Ethernet Switching
Nbase, Optical Access, Zuma= MRV in 2008!!!
Free-Space Optics
Jolt, Astro-Terra, Optical Access= MRV in 2008!!!

                      MRV IN 2008!!!
                                    ™
              Unlimited Connectivity for Scalable Networks




• Fiber-Optic Components
   Building Blocks for Connectivity

• Fiber Optimizers, Repeaters & Converters
   Infinitely Flexible Fiber Optic Connectivity

• Wave Division Multiplexing
   Multi-Service Connectivity Over Fewer Fibers

• Free-Space Optics
   Connectivity From Building to Building
     Fiber Speeds without the Fiber!



                                             ™
           Unlimited Connectivity for Scalable Networks




• Switches and Routers
  Connectivity Within Your Campus
    Enterprise or Metro Backbone

• Fiber-to-the-X & Long Range
  Ethernet
  Connectivity to Your Commercial
    and Residential Customers

• Remote Presence (OOBM)
  Connectivity From You
  To Your Data Center Even If You're Not There

                                       ™
MRV: Connectivity for Networks that Scale




                     ™
Leading Companies Choose MRV
Carriers and Service Providers




                  ™
Leading Companies Choose MRV!
Healthcare & Education & Hospitality




                `




                    ™
Leading Companies Choose MRV!
Transportation & Utilities



                                NS



            `




                ™
Leading Companies Choose MRV!
Finance & Manufacturing




            `




                ™
Leading Companies Choose MRV!
Homeland Security / Government




              `




                   ™
               Leading Companies Choose MRV!

          Telecom                    Internet/Media

                                              Gov/Defense
Technology




                           `




Finance                                           Medical

                                     Manufacturing
             Education


                               ™
            Previous MRV wins (Optical Transport)



• Alberta Canada’s Supernet
  uses MRV’s remote
  managed optical termination
  devices to distribute Ethernet
  services to all of Alberta


    Fiber                Copper

   Management
                   CPE


                                  ™
         Previous MRV Win (Out of Band Management)

• Telus - Largest Telco in Canada
• Customer Needs: Standardized methodology for access to
  server, network, and operational elements both in-band and
  out-of-band
• First deal $2000, reoccurring revenue now $500,000 per year




                                   ™
™
  FSO application: Enterprise bottleneck




Data                                     Data


Voice                                    Voice


Video                                    Video


              Existing Copper Wire

        T-1 (1.5 Mbps), ADSL (6 Mbps),
             Cable Modem (5 Mbps)


                              ™
  FSO Solution to Enterprise Bottleneck

                 125 Mbps to
                  1.25 Gbps



Data                                     Data


Voice                                    Voice


Video                                    Video


              Existing Copper Wire

        T-1 (1.5 Mbps), ADSL (6 Mbps),
             Cable Modem (5 Mbps)


                              ™
           Why Free Space Optics?

• Ultra-high bandwidth (1.25 Gbps and beyond)
       • uses similar lasers and detectors found in fiber
         optic transceivers

• Rapid deployment time (days)
       • no extra time needed to:
          – obtain right of way permits (like fiber)
          – trench up the streets (like fiber)
          – obtain FCC frequency licenses (like microwave)

• Significant cost saving (no recurrent lease costs)
  (7 months T3 $45K)




                                    ™
                 FSO Applications


                             Secure Ultra Bandwidth Wireless Mesh




Point-to-Point




                  Ring
                                      ™
                           Free Space Optics Opportunity

            •     High bandwidth (greater than copper and microwave)
            •     Metro access


                10 Gbps

                                                                       Fiber
Bandwidth




                1 Gbps


                100 Mbps               FSO       LMDS
                                                               Microwave
                10 Mbps
                                                              MMDS
                1 Mbps
                                                 DSL          Cable        Copper

                            50 m    200 m    500 m     1 km     5 km       15 km+
                                             Range

                                                        ™
      MRV Space FSO Program




• Space-to-Ground FSO Link
• 2000 km Link Distance
• 1 Gbps Transmission Rate


                      ™
             Technology from Space FSO Fosters TereScope


 Satellite
lasercom
 terminal

         1.0 Gbps
    2000 km range

  Ground
lasercom
 terminal




                                ™
                 MRV has over 7000 Worldwide FSO
                 Installations
                                                                       USA
                                                                       Canada
                                                                       Mexico
                                                                       Brazil
                                                                       Argentina
                                                                       Uruguay
                                                                       Japan
                                                                       Taiwan     S.
                                                                       Korea
                                                                       Philippine
 Sales offices                                                         Singapore
                                                                       India
  R&D and                                                              South Africa
 Manufacturing
                                                                       Nigeria
                                                                       Australia
Slovenia Croatia Latvia Czechoslovakia Gibraltar Luxemburg Netherlands Norway Greece
Germany England Switzerland Sweden Portugal Spain Italy Turkey Israel Saudi Arabia



                                                ™
Fiber-coupled OpticAir Program

          • Fiber-coupled FSO system designed
          and manufactured by Optical Access

          • Reported first 2.5 Gbps FSO
          transmission (Szajowski, et al., 1998)

          • Equipment used for
            - 10 Gbps FSO (4 x 2.5 Gbps WDM)
               (Nykolak, et al., 1999)

           - 40 Gbps FSO (16 x 2.5 Gbps WDM)
              (Nykolak, et al., 2000)




                    ™
         FSO is Layer 1, just like a piece of fiber

Since FSO terminals act as simple repeaters, they are
protocol independent. The following protocols have
been wirelessly transmitted by FSO:

   •   Ethernet, Fast Ethernet, Gigabit Ethernet
   •   ATM (OC-3 and OC-12)
   •   ESCON
   •   Fibre Channel
   •   OC-48 (2.5 Gbps) and OC-192 (10 Gbps - WDM)




                                 ™
           Fast Ethernet Example


                                  TerraLink 1000X                          TerraLink 1000X
                                                             Laser link
                                                             125 Mbps



                                            3COM                              3COM
                                          SuperStack                        SuperStack
                                            Switch                            Switch




                                              Work Station
                           Work Station                          Work Station     Work Station
     Utility company
     San Diego, CA                 Work Station                           Work Station
Fast Ethernet (125 Mbps)
     3COM switches
      Range 100 m

                                          ™
         ESCON Example

                                            RANGE: 2.2 Kilometers (1.4 Miles)

                        TerraLink 8-155                                    TerraLink 8-155
                                               200 Mbps ESCON Channel

                                                  125 Mbps FDDI Link



                          IBM ES/9000                                       IBM ES/9000
                           Mainframe                                         Mainframe




      Finance               FDDI Ring                                           FDDI Ring




Riyadh, Saudi Arabia   Bank Head Office                             Bank Data Recovery Center

ESCON (200 Mbps)
  IBM Mainframes
   Range 2200 m



                                        ™
         ATM Example

        Expanding into a Remote New Building




Healthcare Application
    Escondido, CA
      155 Mbps
Fore Systems switches
   Distance: 500 m
                              ™
      Residential Access Issues
                              10
                             Mbps
                                                   10
                                                  Mbps

                              10
                             Mbps           10
                                           Mbps

      125 Mbps to
       1.25 Gbps


      Leased T-1 lines
         1.5 Mbps                   Multi-Tenant Units


POP


                         ™
       Competitive or Complementary


• Free-space optics will complement the
  current copper/fiber/microwave/LMDS
  communication infrastructure by

  – reducing monthly recurrent costs
  – adding significantly to the total overall bandwidth
  – shorting time to market by providing this
    bandwidth immediately




                               ™
           Complementing Fiber


Ring Closure
                              Fiber Back-up



                                              Internet


                                      Off-ring spur




                          ™
           Complementing 802.11b or LMDS




                               Point-to-Multipoint
Internet




                           ™
          Effects of Weather on Free-space Optics

• Fiber: Losses are predictable in fiber
• Atmosphere: Losses are variable and difficult to predict, since
  they depend on the weather


                        Free-space Optics

                      Clear: lose .5 dB/km
                       Haze: lose 3 dB/km
                      Fog: 30 to 300 dB/km




                         Fiber Optic cable
                  Multimode: lose 2 to 3 dB/km
                 Singlemode: lose .5 to .2 dB/km



                                        ™
      Can 99.999% be achieved for longer ranges?




Solution: Free-space optics with an RF back-up



                           ™
            OS304 as switchover device


                             Fiber



                                         FSO
   Copper
            or            Copper
                 Fiber




                                         RF
Client Switch/Router

                            ™
FSO/RF Installation Examples




                 ™
FSO/RF Installation Examples




                 ™
          TereScope - Optical Wireless

• The Most Comprehensive Free Space Optics
  Solutions in The Industry

  – From short distance to high
  – From low bandwidth to ultra-high bandwidth
  – Best price/performance




                               ™
            GigE FSO (short range)


TS700G
  – Up to 400 m
  – $8900 for link
  – Build-in SNMP




                           ™
         Fast Ethernet FSO (short range)

TS700/100
  – Up to 400 m
  – $3900 for link
  – POE option


TS 700/155
  – Up to 400 m
  – $3900 for link




                          ™
         New Power over CAT5 FSO products (all FastE)




                 Indoor   Outdoor
LAN Switch

                                      TS700/100 (400 m)
                                      TS800/100 (800 m)
                                    TS2000/100 (1200 m)
AC                                  TS4000/100 (1600 m)
Power        Power Injector


                                      ™
        What drives demand for wireless bandwidth in
        the Enterprise ?

                      100Mbps
                      10 Mbps
                       10
                      1.0 Gbps


                 1995 – 10 Mbps
                 2000 – 100 Mbps
                 2005 – 1 Gbps
                 2008 – 10 Gbps



What switches are affordable for the Enterprise
(specifically the backbone connections between switches)

                                 ™
           TereScope 10GigE

• World’s first 10 GE
  wireless point-to-point
  system
• True 10 Gbps full-
  duplex
• EDFA used to
  increase link budget
• XFP interface
  (included)
• SNMP management
• Class 1M eye safety



                              ™
        History of FSO: The Photophone (1880)

                                                        Selenium




    "It's the greatest invention I have ever made;
    greater than the telephone!”
                            - Alexander Graham Bell 1880

• tests over 200 meters were successful
• Since sunlight was used as the source, only worked during
sunny daytime hours – now we use lasers…much better!
• 10 Gig FSO now available

                                    ™
           List of Qualifying Questions for FSO


• Do you have any problems with high-speed data
  connections between buildings?
   – Either lack of fiber, or expensive monthly leasing
     of data circuits, or slow RF wireless?

• Do your buildings have line-of-sight from the rooftop
  or windows?

• Would you like a wireless solution that can provide
  up to Gigabit Ethernet speeds between your
  buildings?



                                 ™
        Installation Examples




Fast Ethernet, 370 m         Fast Ethernet, 100 m
  Vancouver, BC                Los Angeles, CA



                         ™
             Installation Examples




Fast Ethernet, 690 m         Fast Ethernet, 575 m,
   Ann Arbor, MI              San Francisco, CA




                               ™
            Installation Examples




                           Fast Ethernet, 132 m and 193 m
  Fast Ethernet, 2090 m
                                   San Mateo, CA
Cambridge-to-Boston, MA




                              ™
        Installation Examples




Fast Ethernet, 35 m
  New York City              Fast Ethernet, 185 m
                               Alexandria, VA



                         ™
Installation Examples




       Fast Ethernet, 3km
        Los Angeles, CA

                    ™
         Installation Examples




Gigabit Ethernet, 200 m    Gigabit Ethernet, 350 m
        Belgium                    Greece




                          ™
Installation Examples




      Fast Ethernet, 180 m
        Los Angeles, CA



                      ™
Thanks




     ™

				
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