Complete issue - Tellabs

Q4 2012
Advance smart networks
HELPING
VODAFONE ITALY
ADVANCE TO LTE
The European carrier has relied
on Tellabs solutions since 2010.
Now it’s trialing Tellabs products
as it prepares a move into
the future.

4
LEADING EDGE
Tarcisio Ribeiro, Tellabs vice president, Europe, Middle
East and Africa, discusses Tellabs’ commitment to
customers as they face challenges around the globe.
17
THE FRENCH BROADBAND REVOLUTION
How service provider CELESTE is expanding its fiberbased
metro network to the largest cities in France.
By M.J. Richter
6
UPLOAD
Smartphones are taking on increased importance in
users’ lives. Spending on software-defined networks
increased from $80 million in 2010 to $140 million
in 2011. And more.
By Joan Engebretson
22
SMART MOBILE BACKHAUL IS KEY TO
HET NET SUCCESS
With the flexibility to adapt to changing technologies
and services, operators can position themselves higher
in the communications value chain.
By Ian Volans
11
HELPING VODAFONE ITALY ADVANCE TO LTE
The European carrier has relied on Tellabs solutions
since 2010. Now it’s trialing Tellabs products as it
prepares a move into the future.
By Joan Engebretson
28
WHEN SMALLER IS STRONGER
The new Tellabs 120 Mini ONT saves customers CapEx,
OpEx and physical space. And you don’t have to worry
about spilling coffee on it.
By M.J. Richter
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Insight Q4 2012 2

One Tellabs Center
1415 West Diehl Road
Naperville, IL 60563 USA
Phone: +1.630.798.8800
Fax: +1.630.798.2525
www.tellabs.com
Acting President and CEO
Daniel P. Kelly
Editorial Board
George Stenitzer
Tom Lynch
Editor
Tom Lynch
Editorial Contributors
Joan Engebretson
M.J. Richter
Design
Herring Design
Statements herein may contain projections or other forward-looking statements regarding future events, products,
features, technology and resulting commercial or technological benefits and advantages. These statements are for
discussion purposes only, are subject to change and are not to be construed as instructions, product specifications,
guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned
by Tellabs Operations, Inc., or its affiliates in the United States and/or other countries: Tellabs ® , Tellabs
and T symbol ® , T symbol ® and SMARTCORE ® . Any other company or product names may be trademarks of their
respective companies. Copyright ©2012 Tellabs. All rights reserved. 74.2231E
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Insight Q4 2012 3

LEADING EDGE
Focused on our customers’ success
Tarcisio Ribeiro
Vice President, Sales,
Europe, Middle East and
Africa
All over the world, service providers face the challenge of exponential mobile data
growth. Addressing user demand puts considerable strain on networks. What’s more,
service providers need ways to maximize revenue and keep costs down.
With our innovative solutions, Tellabs helps our customers overcome these challenges.
Our products make customers’ networks smarter and simpler, so users around
the globe can get what they need, exactly when they need it.
We recently updated our mobile backhaul solution to help you move forward to LTE.
And as service providers debate the needs of small cell networks, we’re here to help
guide them to a more efficient backhaul infrastructure.
Vodafone Italy is addressing the demand challenge by preparing to deploy a highercapacity
mobile data network with LTE. Since 2010, Tellabs has provided backhaul
connectivity for Vodafone’s 2G and 3G wireless networks. Now we’re in trials to help
them make the crucial transition to LTE (page 11).
CELESTE is expanding its fiber-based metro network to reach the 25 largest cities
in France. So it needs a flexible network that can stay ahead of demand. That’s why
CELESTE turned to the Tellabs ® 7100 Nano Optical Transport System. The Tellabs
7100 Nano OTS enables the network to provide 1-Gbps connections to 2,700 existing
small/medium enterprise customers—and attract new customers as well (page 17).
Tellabs has developed an innovative optical network terminal (ONT) that will revolutionize
PONs and OLANs. The Tellabs ® 120 Mini Optical Network Terminal creates
2G: Second Generation
3G: Third Generation
LTE: Long Term Evolution
OLAN: Optical Local Area
Network
PON: Passive Optical Network
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Insight Q4 2012 4

LEADING EDGE
big savings in CapEx and OpEx, and gets rid of the clutter created by traditional desktop
ONTs (page 28).
Early this year, the number of mobile broadband subscriptions worldwide reached
1 billion. As demand for mobile communications continues to soar, our industry is at
an inflection point. Ian Volans argues that “smarter” backhaul can empower operators
to position themselves higher in the communications value chain (page 22).
Tellabs is dedicated to helping our customers win. By adding intelligence to your
network, you can exceed user expectations and improve the quality of their experiences
every day. Tellabs solutions enable you to take advantage of the tremendous opportunities
our industry offers—we’re here to help you succeed.
Sincerely,
Tarcisio Ribeiro
Vice President, Sales, Europe, Middle East and Africa
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Insight Q4 2012 5

UPLOAD
By Joan Engebretson
Smartphone as Swiss Army knife
Smartphones seem to be taking on increased importance in users’ lives.
More than half of smartphone users (54%) in a recent survey said they use their
phones in place of an alarm clock and 2 in 5 (39%) said they no longer use a
separate camera, instead relying on the one built into their smartphone.
The survey, conducted by U.K.-based mobile operator O2, also
found that making phone calls is now only the fifth most
popular smartphone activity.
On average, people spend just over 12 minutes per day using
their smartphones to make calls, according to the O2 research.
But they spend nearly 25 minutes per day browsing the Internet
with their smartphones and nearly 18 minutes a day using their
smartphones to check social networks. Other smartphone
activities that are now more popular than making phone
calls include listening to music and playing games.
Those activities consumed an average of about
15 minutes and 14 minutes of customers’ daily
smartphone usage, respectively. (continued)
25
MINUTES
18
MINUTES
12
MINUTES
Insight Q4 2012 6

UPLOAD
Smartphone activities
that are now more
popular than making
phone calls include
listening to music
and playing games.
As smartphone users engage in some of these activities, apps they’ve downloaded
will likely assist them.
ABI Research estimates that the average smartphone subscriber worldwide
downloads about 37 native apps per year. That’s up 6% from 2011, when the average
smartphone subscriber downloaded 35 apps.
But even though smartphones seem to be increasingly ubiquitous in consumers’
lives, their dominance in certain areas is now being threatened by the increasing
popularity of wireless media tablets.
People now are more likely to use tablets over
smartphones for 4 out of 15 common uses, including
playing games, watching TV programs and
reading books or magazines, according to a
study GfK Marketing and Communications
conducted. Users preferred
smartphones for searching the
Internet, listening to music,
filming video and 8 other
activities.
15
MINUTES
14
MINUTES
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Insight Q4 2012 7

UPLOAD
Tellabs is architecting
a data and optical
solution that uses
SDN technologies to
enable a flexible,
virtualized network
for data center
connectivity. For
more, search “SDN”
on Tellabs.com.
Strong momentum for SDN
Service providers are getting serious about software-defined networks (SDN)—a new
approach to networking that separates the control plane from individual switches or
routers with the goals of simplifying network control and enabling new services.
Spending on SDN increased from $80 million in 2010 to $140 million in 2011,
according to research firm Dell’Oro Group. And within 5 years, Dell’Oro Group expects
today’s number to increase 17-fold.
Dell’Oro Group researchers see data centers as a key contributor to SDN growth,
observing that the switch to SDN “has to happen” because data centers are beginning
to require a higher level of automation to effectively support the movement of virtual
machinery.
Research firm Infonetics also sees strong interest in SDN, noting that the majority
of service providers worldwide are considering purchases of SDN technologies. Service
providers are motivated by the desire to simplify network provisioning and add new
services in ways not previously possible, Infonetics said.
OpenFlow is the “most developed programmable network initiative,” according to
Infonetics, which noted that 80% of 21 network operators surveyed said they are
including OpenFlow in their purchase considerations.
Within 5 years,
spending on SDN
will increase
17-fold, according
to Dell’Oro Group.
SDNGROWTH
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UPLOAD
Small cell and
“het net” deployments
are a natural extension
of Tellabs’ mobile
backhaul solution and
helps us enable our
customers to optimize
their 3G and 4G
networks. For more,
search “small cells”
on Tellabs.com.
Small cells loom large for 4G/LTE
Small cells may be on their way to becoming indispensable for 4G/LTE networks.
The small cell’s appeal lies in its ability to increase network capacity to support
explosive mobile broadband demand. In a report titled “The New 4G/LTE Radio: Small
Cells & New Architectures,” Heavy Reading Research Analyst Claus Hetting offers some
data to illustrate just how big a capacity boost small cells can provide. Hetting estimates
that by extensively deploying small cells, wireless operators can see network capacity
that exceeds 1 Gb/s per square kilometer.
A small cells strategy isn’t the only contender for increasing
network capacity, however. Wi-Fi is the biggest threat to the
small cell business case, according to Hetting, who sees
vendors responding by designing equipment that
integrates small cells and Wi-Fi.
Critical to new network architectures based on
small cells is a whole lexicon of technical terms
and acronyms, notes Heavy Reading. Among
these are self-optimizing
networks (SON), systemon-a-chip
(SoC) and Open
Base Station Architecture
Initiative and Common Public
Radio Interface (OBSAI/CPRI).
4G: Fourth Generation
LTE: Long Term Evolution
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9

UPLOAD
Visit Tellabs at these upcoming events:
Light Reading Ethernet Expo
November 6-8
Hilton
New York, New York
OSP Expo 2012
November 14-15
Booth #1204
Colorado Convention Center
Denver, Colorado
LTE/EPC &
Converged Mobile Backhaul
December 3-6
Stand 1
Grange City Hotel
London, United Kingdom
“Would you mind talking to me for a while?
I forgot my cell phone.”
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Insight Q4 2012 10

HELPING
VODAFONE ITALY
ADVANCE TO LTE
The European carrier
has relied on Tellabs
solutions since 2010.
Now it’s trialing Tellabs
products as it prepares
a move into the future.
By Joan Engebretson
PHOTO: GIANLUCA GRASSANO
Insight Q4 2012 11

MOBILE
Vodafone used Tellabs
products in its LTE
trials, which the
company conducted
in 2012 in the city of
Ivrea and in 3 football
stadiums in Torino,
Milan and Naples.
As mobile users begin to demand higher-speed data connectivity, Vodafone Italy—
one of the top mobile operators in the country—is preparing to deploy highercapacity
mobile data networks with LTE.
The company recently conducted real-world trials of the technology using Tellabs ®
8600 Smart Routers and Tellabs ® 8800 Smart Routers for backhaul connectivity. The
provider found the products to be well-suited to providing network synchronization and
IP-virtual private network (IP-VPN) capabilities that the LTE network will require.
“During the demo LTE, there were really impressive results from the Tellabs products,
with good latency and fantastic peak results,” said Nadia Benabdallah, Head of
Southern Region Network Engineering for Vodafone Italy.
LTE trials
Vodafone Italy originally deployed the Tellabs ® 8660 Smart Router in 2010 to
provide backhaul connectivity for the carrier’s 2G and 3G wireless networks. Later, the
operator added the Tellabs ® 8840 Smart Router to the network.
The carrier has now deployed nearly 4,000 Tellabs products in its wireless backhaul
network—including the Tellabs ® 8605, 8609, 8630, 8660 and 8840 Smart Routers.
Vodafone also used Tellabs products in its LTE trials, which the company conducted
in 2012 in the city of Ivrea and in 3 football stadiums in Torino, Milan and Naples. The
goals were to verify LTE performances in high-density traffic sites and to test complete
coverage of a major city.
Also in 2012, the company trialed LTE deployments in hot-spot applications at
special events and at Vodafone locations, including some retail outlets.
“In the LTE architecture, from the backhauling point of view, the connection is no
longer between a radio base station and a controller,” explained Benabdallah. “The controller
is replaced by a security gateway, which in our network will be located in the core
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2G: Second Generation
3G: Third Generation
LTE: Long Term Evolution
Insight Q4 2012 12

MOBILE
“Except for some
parameter upgrades,
the network was
almost ready to
transport to LTE.”
—Nadia Benabdallah,
Head of Southern Region
Network Engineering,
Vodafone Italy
sites where the Tellabs 8840 router is also located. The security gateway will always be
interfaced on the access side by a Tellabs 8840 router.”
Benabdallah said the LTE trials involved different frequencies, different LTE
vendors and different network topologies. For example, some trials involved a fiber-tothe-node
architecture while others were based on IP-MPLS rings, with or without a
security gateway.
Tellabs products required very few changes to support the LTE trials. “Except for
some parameter upgrades, the network was almost ready to transport LTE,” Benabdallah
explained.
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IP-MPLS: Internet Protocol/
Multi-Protocol Label Switching
Insight Q4 2012 13

MOBILE
Technical requirements
Vodafone Italy anticipates that its LTE network will rely largely on a packet backhaul
network based on IP/MPLS that typically will use synchronous Ethernet access interfaces.
As Benabdallah explained, because Vodafone Italy is migrating the transport
network from legacy SDH transport toward an IP/MPLS solution, the synchronization
must evolve to the new types of distribution.
The backhaul network will require both frequency and phase synchronization. The
network achieves frequency synchronization through a variety of options, including:
• external synchronization inputs
• STM-1 SDH interfaces
• on Ethernet interfaces, through support for 2 standards that are relatively new
to backhaul networks (ITU-T standard for Synchronous Ethernet (Synch-E) and
the 1588v2 standard from the IEEE).
Certain LTE capabilities require phase synchronization, including location-based
services and certain multipoint and multicast services. And for phase synchronization,
Vodafone Italy intends to rely heavily on the boundary clock 1588 feature.
“1588v2 timing over packet is generally used to synchronize the ATM NodeBs and
TDM basestations using the Tellabs 8605 router to connect to a 1588 v2 server via a
Layer 2 access network,” explained Benabdallah.
Radio access base stations are quite demanding in synchronization for the correct
handover functionalities. The Tellabs-based solution, Benabdallah said, has been meeting
Vodafone Italy’s expectations.
A unique requirement of LTE drove Vodafone Italy’s need for IP-VPN support.
Earlier-generation wireless networks used a hub-and-spoke architecture, with each
base station connected to a central base station controller. But with LTE, each base
ATM: Asynchronous
Transfer Mode
ITU-T: International
Telecommunication Union -
Telecommunication
SDH: Synchronous Digital
Hierarchy
STM: Synchronous
Transport Module
TDM: Time Division
Multiplexing
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Insight Q4 2012 14

MOBILE
As Vodafone Italy
upgrades its backhaul
network to LTE,
the service provider
expects to see a
“significant saving in
energy consumption.”
station can communicate directly with other base stations without going through a
centralized controller.
Using IP-VPNs enables Vodafone Italy to logically separate the network as needed.
This way, the routing tables per IP-VPN contain fewer entries, optimizing the complexity
and troubleshooting of the network.
Looking ahead
As Vodafone Italy looks to take LTE beyond the trial phase, the company is considering
the possibility of upgrading existing Tellabs 8840 and 8630 smart routers to
support faster interfaces.
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Insight Q4 2012 15

MOBILE
The Tellabs 8840 smart router is able to provide 10-gig Ethernet interfaces to
connect to the core devices and provide more switching capabilities.
“The Tellabs 8630 smart routers will help migrate to the 1 Gig Ethernet and 10
Gig interfaces and are future-proof, having the ability to deliver full-IP technologies,”
said Benabdallah.
As Vodafone Italy upgrades its backhaul network to support LTE, the service
provider expects to see a “significant saving in energy consumption” as a result of the
reduction in the number of platforms (such as add/drop multiplexers and ATM switches)
that are required at a single site.
One advantage that Vodafone Italy anticipates from using Tellabs products in its
LTE backhaul network is that technicians are already familiar with the Tellabs ® 8000
Intelligent Network Manager, which they have been using to support the current 2G
and 3G backhaul networks, potentially minimizing technician training requirements.
An important function of the Tellabs 8000 intelligent manager will be to help
ensure that the 1588v2 capability continues to support good transmission quality on
the transport network.
Vodafone Italy has not yet announced specific LTE deployment plans, but the
company is laying important groundwork to be prepared when that day comes. ■
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Insight Q4 2012 16

THE FRENCH
BROADBAND
REVOLUTION
How service provider CELESTE is
expanding its fiber-based metro
network to the largest cities
in France By M.J. Richter
Insight Q4 2012 17

BROADBAND
Gbps: Gigabits Per Second
IP-VPN: Internet Protocol/
Virtual Private Network
ROADM: Reconfigurable
Optical Add/Drop Multiplexer
VoIP: Voice Over Internet
Protocol
More than 2 centuries ago, popular demand for change ignited the French
Revolution. Today, business demand for bandwidth is sparking what
Nicolas Aubé, president and CEO of French ISP CELESTE, calls “a
major revolution for the French broadband market.”
He is referring to the rapid transformation of CELESTE, the company he
co-founded 11 years ago, into a nationwide competitor. Using the Tellabs ® 7100
Nano Optical Transport System, CELESTE is expanding its fiber-based Paris
metro network to the 25 largest cities in France.
Consisting of ROADM-based multi-channel nodes and Optical Line Amplifiers,
the Tellabs 7100 Nano OTS network will enable CELESTE to do more for
its customers. The network will provide 1-Gbps connections to its existing 2,700
small/medium enterprise (SME) customers—and will help attract new ones as well.
Because the new 880-Gbps network gives French SMEs fast, easy access to competitively
priced, high-bandwidth services, Aubé says it sets CELESTE apart from its
large telco competitors.
“We are a small group, with 50 employees, but our offer now is very famous, and
we can change the [broadband] market for companies in France,” Aubé says.
When completed by early 2014, the network will stretch more than 4,000 kilometers
around France, connecting major economic centers such as Lille, Nantes, Bordeaux,
Toulouse, Marseille, Lyon and Strasbourg.
Staying ahead of demand requires a flexible network
CELESTE’s analyses of its customers revealed their collective consumption of data
grows by 50% each year. To keep up with that growth in traffic, the company wanted a
networking solution that it could roll out fast and could support its portfolio of Internet
access, IP-VPN, VoIP and hosting services.
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“We can change
the broadband
market for
companies in
France.”
—Nicolas Aubé,
President and CEO,
CELESTE
Insight Q4 2012 18

BROADBAND
When planning the network expansion, CELESTE engineers originally decided to
go with “a simple Optical Add-Drop Multiplexing (OADM) solution,” such as the one on
which the company bases its Paris metro network. However, when Tellabs presented the
Tellabs 7100 Nano OTS ROADM-based solution, the CELESTE team immediately
understood the advantages of the system’s built-in flexibility and scalability.
“CELESTE needed a partner that could deliver quickly the high-quality infrastructure
necessary to support its aggressive deployment targets,” says Tarcisio Ribeiro,
Tellabs vice president and general manager, Europe, Middle East and Africa. “We
designed the Tellabs 7100 Nano OTS not only with fast deployment in mind, but also
to provide the kind of flexibility and scalability that operators like CELESTE need.
“The Tellabs 7100 Nano OTS will make it easy for CELESTE to introduce new services
quickly to enterprises across France,” he said, “and its scalability will enable the
CELESTE network to accommodate the growing volumes of traffic.”
Those characteristics were the decisive factors in CELESTE’s choice of the Tellabs
7100 Nano OTS, Aubé said. He noted the company’s Paris network is a traditional
OADM network, which is “kind of difficult to change.”
Aubé said, “When we change the OADM network, when we add some nodes, we
have to change the design for the whole network. That’s not easy to do—and not cheap
either.”
Because CELESTE will need about 2 years to deploy the new 4,000-kilometer network,
the company wanted to make sure it does not run into the same kind of difficulties
it has experienced with its Paris infrastructure.
“We anticipate some changes in the [new network] design,” Aubé says. “We want
to do some add-ons, to be able to go to other cities. The ROADM design makes it very
easy to change the network, both during the deployment and afterward.”
“The Tellabs 7100
Nano OTS will
make it easy for
CELESTE to introduce
new services
quickly to enterprises
across
France.”
—Tarcisio Ribeiro,
Vice President,
Sales, Europe,
Middle East and
Africa, Tellabs
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Insight Q4 2012 19

BROADBAND
CELESTE leases fiber capacity for its intercity backbone. But the company is running
its own fiber from its main loop to the customer premises in each of the 25 cities
connected to the expanded network.
Big cost savings in a small footprint
By deploying Tellabs 7100 Nano OTS packet optical technology as the basis for its
network expansion, CELESTE is significantly reducing its total cost of ownership.
Tellabs customers have reported that the Tellabs 7100 Nano OTS reduces their
capital expenses by up to 65% and their operating expenses by as much as 85%.
“Tellabs 7100 series’ flexibility and efficient use of power and space help cut cost,”
said Brian Nagle, Tellabs director, product management. “It also makes adding services
very simple and fast.”
The Tellabs 7100 Nano OTS combines advanced optical networking technology
with a full-featured services layer in a package about half the size of alternative ROADM
solutions. Providing the same integrated networking and Ethernet switching in a smaller
footprint makes the Tellabs 7100 Nano OTS a more affordable network-edge solution.
“Tellabs 7100
series’ flexibility
and efficient use of
power and space
help cut costs.”
—Brian Nagle,
Director, Product
Management,
Tellabs
Add bandwidth without disrupting service
As a node for reconfigurable or fixed add/drop multiplexing of up to 88 wavelengths,
the Tellabs 7100 Nano OTS gives CELESTE maximum flexibility to transmit any wavelengths
to any port.
That flexibility delivers even more long-term benefits compared with traditional,
fixed-filter (non-ROADM) technology. At any given location, a fixed-filter system can
add and drop only specific channels or bands of wavelengths.
Consequently, network engineers have to plan far in advance for changes in traffic
patterns. Inserting new filters into the network to boost capacity causes service disruptions.
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Insight Q4 2012 20

BROADBAND
The Tellabs 7100 Nano
OTS enables service
providers to add bandwidth
and roll out new
services with minimal
planning.
As traffic volumes increase, engineers must power-balance the
system, which requires a lot of time and labor.
By contrast, the Tellabs 7100 Nano OTS with integrated
ROADMs enables service providers like CELESTE to add bandwidth
and roll out new services with minimal planning, and
without disrupting existing services on the network.
This architecture also enables service providers to automate
constant optical power balancing on a site-by-site basis.
This way they save significant costs in terms of time and labor.
The broadband revolution rolls on
Aubé said that CELESTE already has 6 cities up and running
on the new network: Paris, Saclay, Orléans, Tours, Poitiers
and Bordeaux. Customers include new ones, as well as SMEs
that CELESTE has migrated from its previous services (which
had been based on other operators’ facilities). The next cities
slated to come online for CELESTE will be Toulouse, Marseille
and Montpellier.
He adds that CELESTE markets its services well in advance of its entry into each
market, explaining the benefits of very high bandwidth fiber service to its customers.
“Our 1-Gbps connection for SMEs is a unique offer in France,” Aubé said.
By making it possible to provide additional bandwidth quickly and efficiently, where
and when customers need it, the Tellabs 7100 Nano OTS positions CELESTE to
respond very quickly to enterprise customers’ requirements. And by making symmetrical
1-Gbps service affordable for the SME market, the Tellabs solution also positions
CELESTE to compete very effectively with its much larger rivals. ■
Bordeaux
Tours
Poitiers
Paris
Saclay
Orléans
F R A N C E
Toulouse
Montpellier
Marseille
CELESTE already has 6 cities
up and running on the new
network. The next cities slated
to come on line are Toulouse,
Marseille and Montpellier.
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Insight Q4 2012 21

GUEST COLUMN
Ian Volans
Demand for mobile communications continues to soar. The International Telecommunication
Union (ITU) reported the number of mobile broadband
subscriptions grew 40% during 2011. That increase brought the total to more
than 1 billion subscriptions by the beginning of 2012.
This phenomenal growth has brought the mobile industry to an inflection point. As
consumers, we were once satisfied with an occasional voice call or text message. Today
we expect to have all that the Web can offer—social networks, email, apps, games,
music, videos and news—at our fingertips.
As a result, operators find themselves being squeezed
On one hand, competitive realities dictate that carriers continue to invest in the
mobile broadband capabilities and ubiquitous network coverage. All the while,
consumers and businesses consume ever-increasing amounts of data.
On the other hand, low-cost, Internet-based alternatives to traditional telephony
services are disrupting telecom markets and challenging operators’ established
business models. Although mobile networks facilitate the use of alternative online services,
the operators do not necessarily share in the revenues they generate.
In this new environment, more players are sharing total mobile service revenues
than before. Consequently, operators’ capital and operating expenditure are rising while
their share of revenues dilutes.
Fortunately, operators still hold a trump card: they are custodians of the spectrum
necessary to provide the wireless connectivity that subscribers demand. By re-thinking
how they provide radio coverage, implement backhaul and administer their legacy and new
mobile technologies, operators can overcome the dual challenges they are currently facing.
By re-thinking
how they provide
radio coverage,
implement backhaul
and administer their
legacy and new
mobile technologies,
operators can overcome
the challenges
they are currently
facing.
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Insight Q4 2012 23

GUEST COLUMN
“Smarter” backhaul with inherent flexibility to adapt to changing technologies and
services can empower operators to position themselves higher in the communications
value chain.
Most of today's
mobile networks
are heterogeneous
networks, or
“het nets,” that
incorporate 2G,
3G and LTE
technologies.
Smart backhaul maximizes ROI
Operators tend not to retire a legacy network technology until its maintenance costs
exceed the revenues it generates. As a result, most of today’s mobile networks are
heterogeneous networks, or “het nets,” that incorporate 2G, 3G and, in a growing number
of cases, LTE technologies.
Smart backhaul solutions can help operators maximize the returns on their
investments in their het net assets. The key is to ensure that all traffic passes through
the networks as efficiently as possible. By providing the headroom to support subscribers’
use of OTT services, smart backhaul strengthens operators’ abilities to attract
and retain subscribers and retain their network advantage.
For a het net operator, the minimum requirement for a smart backhaul solution is
that it should be able to support simultaneously the transport of both legacy 2G/3G
TDM traffic and high-volume, IP/Ethernet-based 3G/LTE traffic. As operators increase
radio access network (RAN) capacity by deploying successive versions of high-speed
packet access (HSPA) technology, or an LTE overlay, the business case for IP/Ethernet
backhaul grows stronger.
However, many operators are also evaluating small cells. This approach can
provide fill-in coverage to localized “not-spots” or add capacity in traffic hotspots.
Deployed beneath macro-cell coverage, small cells add a further layer of complexity to
het nets that also requires a smart backhaul solution.
Planning ahead, the capability to integrate packet-based synchronization will
be essential for those operators expecting to migrate to all-IP transport later. Phase
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2G: Second Generation
3G: Third Generation
LTE: Long Term Evolution
OTT: Over The Top
TDM: Time Division Multiplexing
Insight Q4 2012 24

GUEST COLUMN
synchronization also needs to be on the smart backhaul solution’s development roadmap
for networks that will incorporate TD-LTE or LTE-Advanced in the future.
Physical backhaul: fiber or microwave
Operators deliver backhaul over a variety of physical layers. For many operators,
2 approaches now dominate: fiber and microwave.
Fiber can accommodate the spikes in bandwidth demand caused by the exponential
growth of tablet and smartphone usage. In urban areas with good access to points-ofpresence,
fiber backhaul has been growing rapidly as operators seek to take advantage
of its substantially lower cost-per-bit.
Microwave offers a degree of flexibility that will ensure it retains an important role
in the Ethernet backhaul mix. Microwave is also important in more rural areas where
economic access to fiber is not so readily available.
Many small cell use cases depend on being able to locate the small cell precisely
in the coverage or capacity trouble spot. Microwave’s flexibility is likely to make the
technology particularly relevant to many future small cell deployments.
A smart backhaul solution clearly needs to be able to accommodate all the
physical backhaul connections in operators’ networks.
Microwave offers a
degree of flexibility
that will ensure it
retains an important
role in the Ethernet
backhaul mix.
Smarter network management tools
Smart backhaul can significantly contribute to operational efficiency by providing
tools that:
a) hide the complexity of the heterogeneous network; and
b) provide a homogeneous approach to implementing and managing
various backhaul options.
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TD-LTE: Time Division
Long Term Evolution
Insight Q4 2012 25

GUEST COLUMN
To be able to exercise effective control over their networks, operators
must be able to see backhaul availability to each and every site at all times.
Without full network visibility and control, operators will find it difficult to
compete in the marketplace.
Network management systems must also support and simplify the
installation of new network elements. If an operator needs to deploy thousands
of small cells, it is vital to minimize the risk of human error during
installation and maintenance.
Content awareness capabilities will underpin network management
tools, which help operators test new business models. They can experiment based on
data segmentation, monetization, quality of service and class of service. Tools that help
get new services to market first can also enhance the operator’s competitive position.
Smart backhaul for long-term profitability
Throughout the last 2 decades, operators have expanded the capacity and
capabilities of their networks by overlaying newer mobile technologies on previousgeneration
systems. Now, major technological changes occurring within the industry
provide an opportunity to pause and reflect.
All operators need to implement is a backhaul strategy that can support their legacy
systems. But they also must accommodate subscribers’ service choices over what may
be a lengthy transition to newer, more advanced, radio technologies. A truly smart backhaul
solution can take the transition from 3G to 4G in stride.
Many markets are currently experiencing a difficult economic environment. These
conditions, combined with the high costs associated with securing new spectrum and
rolling out LTE, highlight the potential benefits of network sharing through infrastructure
joint ventures.
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A truly smart backhaul
solution can take the
transition from 3G to
4G in stride.
Insight Q4 2012 26

GUEST COLUMN
If each of the participating operators is to retain the ability to offer differentiated
services, then a smart backhaul solution is a prerequisite for such a strategy. The
capabilities of the backhaul network, shaped at least in part by the network management
system, will determine whether each partner can allocate bandwidth correctly and maintain
control of its own spectrum.
Operators around the world will continue to run het nets for some time to come.
But by applying a homogeneous and smart backhaul strategy, they can adapt more
quickly to the constantly changing mobile ecosystem and thereby strengthen their longterm
profitability. ■
For more on smarter backhaul, read this new white paper.
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Insight Q4 2012 27

WHEN SMALLER
IS STRONGER
The new Tellabs 120 Mini ONT saves
customers CapEx, OpEx and physical
space. And you don’t have to worry
about spilling coffee on it.
By M.J. Richter
ITmanagers in both enterprise organizations and federalgovernment
agencies have become big fans of passive
Optical LAN technology. Not only does it give them faster
network speeds and greater capacity than their legacy
copper-based active Ethernet LANs, it also reduces costs by consuming
less energy and taking up less physical space.
Users also like fiber-based Optical LANs’ speed and bandwidth.
Some, however, are less than enthusiastic about the optical
network terminals (ONTs) that sit on their desks and the associated
cabling strung around their workstations. They don’t like the
clutter—they are afraid of accidentally disconnecting their ONTs
Insight Q4 2012 28

OPTICAL
Tellabs ® 120 Mini
Optical Network
Terminal gets rid of
all the workstation
clutter created by
traditional desktop
ONTs.
or damaging them with spilled beverages. In addition, users say the desktop ONTs and
cabling “just don’t look good” in the work environment.
Tellabs has developed a next-generation ONT that will revolutionize PONs and
OLANs. Installed out of sight and out of reach, the Tellabs ® 120 Mini Optical Network
Terminal gets rid of all the workstation clutter created by traditional desktop ONTs.
LAN: Local Area Network
OLAN: Optical Local Area
Network
ONT: Optical Network Terminal
PON: Passive Optical Network
A familiar look and feel but with the power of fiber optics
The Tellabs 120 Mini ONT is “a revolutionary step,” says Tom Ruvarac, Tellabs
director, product management. “It enables enterprises and government agencies to deploy
and use Optical LANs just like they deploy and use copper Ethernet LANs.”
The first release of the Tellabs 120 Mini ONT includes an in-wall model, the Tellabs
120W, and a model that fits into cubicle raceways, the Tellabs 120C. The in-wall,
single-gang version features a built-in faceplate, so installers simply insert it into the
wall and use a standard mud ring to mount it.
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Insight Q4 2012 29

OPTICAL
The cubicle version of the Tellabs 120 Mini ONT fits into the raceway, which runs
the length of the cubicle wall.
“Installers can deploy it in the cubicle wherever users need connectivity,” Ruvarac
says. “So, beneath the flip-up lid on the desk, underneath the desk itself or in the floor
raceway. The Tellabs 120C Mini ONT was specifically designed for fast, easy deployment
in the standard modular furniture systems found in most offices.”
With all the Tellabs 120 Mini ONT electronics inside the wall
or inside the cubicle raceway, users “get something that looks
and feels just like the copper-based active Ethernet LAN technology
they’re familiar with,” Ruvarac says. “But they also get
the same great benefits of fiber that desktop ONTs deliver.”
These benefits include GPON connectivity via standard
gigabit Ethernet ports, including Power over Ethernet (PoE), and
high-speed data, voice and video integrated within a single fiber
infrastructure. This Optical LAN architecture can support the
corporate resources of a high-performance building, including
unified communications, wireless access points (WAP), building
security, building surveillance and building automation.
Remote powering eliminates cord clutter
Users of first-generation desktop ONTs also do not like the clutter in their work
areas that comes with having to plug the ONT power supply into a local power outlet,
run a cord to the ONT and have a fiber jumper as well.
Tellabs designed the Tellabs 120 Mini ONT to use a remote power and battery backup
system. Installers plug both single-mode fiber and a copper pair into the back of the
Tellabs 120 Mini ONT, and the copper carries DC power from the communications closet.
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GPON: Gigabit Passive Optical
Network
Insight Q4 2012 30

OPTICAL
“The Tellabs 120 Mini
ONT taps into a big
trend toward full-fiber
distribution through
the LAN, through the
desktop. The ability
that will unleash as
far as people having
faster service, better
service and more
reliable service is
sensational.”
— Mark McDonnell,
Senior Analyst, Telecom,
Media & Technology,
BBY Ltd.
“The remote powering enables an enterprise or an agency that’s upgrading from
active Ethernet to Optical LAN to reuse the power and battery backup system
originally installed in the communications closet for the legacy copper-based LAN,”
Ruvarac says.
Installers also can repurpose the existing CATx cabling. They can use it to transmit
power to the Tellabs 120 Mini ONT while the single-mode fiber transmits data. They
can do the same with the battery backup system that supported the Ethernet switches,
reusing it to supply power to the new ONTs.
Within new facilities, installers can deploy the remote power and battery backup
system either by running single-mode fiber and CATx cabling separately or by using the
new hybrid fiber/copper medium. In this new method, the fiber carries the PON signal,
and the 24-gauge copper wire carries the power.
For the power supply itself, installers can use off-the-shelf power systems or
deploy the new Tellabs ® 500 Series Optical Distribution Hub between the optical line
terminal (OLT) and the ONTs.
“The Tellabs ® 553 Optical Distribution Hub is the first model in the Tellabs 500
series, and it has an integrated 1x32 PON splitter, which supports 32 copper interfaces
and 32 single-mode fiber interfaces,” Ruvarac says. “When connected to a main power
source and battery backup system, the Tellabs 553 ODH powers remotely up to
32 Tellabs 120 Mini ONTs. Future models in the Tellabs 500 series will introduce 2:N
splitter configurations for PON redundancy and high-power PoE, in both splitter-only
and power-only versions.”
Simpler installation further reduces Optical LAN costs
Just as the Tellabs 120 Mini ONT provides the familiar active Ethernet LAN-type
connectivity, it calls for the same familiar active Ethernet LAN-type deployment method-
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Insight Q4 2012 31

OPTICAL
ology. Installers place the terminating points of the equipment inside the wall and/or
cubicle raceway and run the cabling back to the communications closet and on into the
data room. The only deployment difference is that active Ethernet uses copper cabling,
while Optical LANs use fiber with all the inherent benefits of a passive infrastructure.
Enterprises and federal agencies that have deployed the Tellabs Optical LAN solution
already are reducing their CapEx by up to 70% and their OpEx by up to 80%, compared
with their legacy active Ethernet LANs. Yet Ruvarac says the Tellabs 120 Mini
ONT drives their CapEx/OpEx costs even lower than those of alternative passive Optical
LAN solutions.
“By eliminating the need to mount ONTs in the desktop environment, the Tellabs
120 Mini ONT eliminates the need for ONT mounting brackets and fiber jumpers,” he
explains. “Less material and labor mean lower installation costs, so the Tellabs 120
Mini ONT provides still more savings over active Ethernet LAN solutions because it
reduces the total cost of ownership even more.”
He says the new ONT also speeds up the installation process. In fact, the installation
sequence for the Tellabs 120 Mini ONT now matches standard construction schedule
logistics.
The Tellabs 120 Mini ONT simplifies the enterprise or agency’s network evolution,
especially as 10G-PON emerges, along with more innovations in Optical LAN technology.
“Enterprise and agency IT departments can upgrade their Optical LANs just by
replacing the wall outlet and OLT PON service module,” Ruvarac says. “They won’t have
to upgrade the fiber infrastructure itself or modify the work environment in any way.”
A mini ONT saves even more physical space
The Tellabs Optical LAN solution takes up about 90% less physical space than
active Ethernet LANs do because it requires far fewer rack units. By eliminating some
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Insight Q4 2012 32

OPTICAL
or all active Ethernet communications closets, the Tellabs
solution recovers still more physical space. The space savings
directly impacts building design as well, as architects
can lower A/C, ventilation, power generation and power
backup requirements because of the lack of energyconsuming
and thermal-generating equipment in data
centers and communications closets.
The Tellabs 120 Mini ONT not only frees up more
workspace for users but also conserves space by eliminating
all Ethernet-access electronics from the communications
closet and cubicle environments.
The Tellabs Optical
LAN solution takes
up about 90% less
physical space than
active Ethernet LANs
do because it requires
far fewer rack units.
A next-generation ONT with next-generation security
The Tellabs 120 Mini ONT is physically more secure than the ONTs in alternative
passive Optical LAN solutions. Because it resides behind walls and within cubicle raceways,
it is far less vulnerable to damage, theft and vandalism.
The Tellabs 120 Mini ONT also offers enterprises and agencies top-notch data
security, Ruvarac says. “With no exposed fiber, it’s very, very difficult for anyone to gain
access to the fiber for malicious purposes. On the other hand, with no exposed fiber,
associated electronics or cabling, the Tellabs 120 Mini ONT makes it easier than ever
before for users to gain access to all the benefits of Optical LANs.”
Want to hear more about the Tellabs 120 Mini ONT? Check out how industry
analysts have responded at Tellabs.com. ■
Subscribe to Insight: www.tellabs.com/insight
Insight Q4 2012 33

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Insight Q4 2012 34