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Altamar study of the Qwest Q3 network 2002 and 2004 demand one & two responses plus follow-up to the 11/29 meeting Proprietary and Confidential Jan. 22, 2002 Meeting Objectives • Review 11/29 meeting outcome • Share results for 2002 and 2004 demand one & two solutions • Design approach • Trade-offs • Economics • Migration economics from 2002 to 2004 • Feedback from Qwest • Address requests from 11/29 Agenda 1. 2. 3. 4. Review 11/29 meeting outcome Our approach to the 2002 and 2004 demands Economic summary Demand solutions 1. Assumptions and design rules 2. 2002 Network design 1. Network level and link detail 2. Cost distribution 3. 2004 Network design for demand one and two a. Network level and link detail b. Cost distribution 5. Economics of migration from 2002 to 2004 6. Comments from Qwest 7. Address specific requests from 11/29 meeting 11/29 Meeting Review • Presented preliminary solution for demand one – Optimized use of switching granularity integrated with a range of amplifiers provides a least cost, agile network – Scalable STS48 switch with STS1 grooming – Reconfigurable OADM used for through traffic – LR, ULR and Raman deployed for least cost • Titanium economics – Equipment cost $537.4M Link + Node sites – EFI – Software $ 15.1M $ 10.3M Site eng, install, test & turn-up NMS/EMS and Northbound • Qwest Feedback – Economics are “order of magnitude” better than current practice – Continue the dialogue with 2002 demand set and follow-up items Our approach • To include what we did differently this time • Lowest-cost network design requires optimized use of technologies – Appropriate mix of transparency and connectivity – Appropriate distribution of switching granularity • Wavelength, OC48, STS1 – Appropriate transponder selection per link • 10G LR, 10G ULR, 40G – Appropriate link design • Dispersion maps, equalization, amp technology • Lowest-cost network not the same as lowest cost network element details Millions $ Economic summary 900 800 700 600 500 400 300 200 100 0 $776,232,847 $537,360,886 Common Equipment OADMs Optical Shelves Switch Shelves Transponder Shelves $242.241,036 1 2002 2 2004/1 Demand 3 2004/2 Altamar study of the Qwest Q3 network Demand 2002 Demand 2004.1 Demand 2004.2 2001 Altamar Networks. All rights reserved Transmission ranges for 100km spans True Wave Classic Long range 700 km 1300 km Ultra long range 1200 km 2100 km Long range 800 km 1400 km Ultra long range 1600 km 2500 km E-LEAF OADM assumption: subtract 100 km for each OADM (Network comparison of TWC & E-LEAF in supporting slides) Grooming & routing OC48 OC48c OC48 OC192 Sub OC-48 grooming W P SONET OC-48 grooming OC-48 grooming OC-48 intermediate grooming & routing OC-192 V-ring traffic OC-192 mesh traffic (Network comparison of V-ring & 1+1 in supporting slides) Methodology • • • • • • Grooming and routing OADM location & orientation Least cost transmission solution Network dimensioning Cost Analysis V-rings map 2002 Demand 2002: $242,241,035 Routing 938 Demands 2001 Altamar Networks. All rights reserved Demand 2002 OADM Transparency Map Common o-e-o switches Common o-e-o & OADMs Demand 2002 OADM Link Map 4*3R 29 Amps 0 4*3R 31 Amps 10 3 4 17 14 7 2 15 7 10 11 1 0 0 0 1 4 9 6 6 0 1 3 9 3 4 1 3 0 4 6 4 4 0 6 7 6 11 9 4 6 6 6 5 11 9 Raman Links 2 4 4 EDFA Links 0 8 4 4 5 4 4 5 4 1 2 Nodal View of Transponders Nodes - Transponder (Tp) Count 450 400 Short Reach Tp Ultra Long Reach Tp Long Reach Tp 300 250 200 150 100 Nodes WNPG WASI WHPL TULT TLHS TPKA TKWL STTL TAMR STLU SNVA SNCL SNFC SNAN SLKD RLGI RCRD PHLA PHNA OKLD NYCM NWOR NSVM MPLT MSQN MIAS LSVL LWCT LSAN KSCA LOSO IPLS JCVL ELPS HSTS DNVR DLLS CLEV CHRL CHCG BSTP BRBN ATLN BLTM 0 MMPH 50 ALBY Count of Tp 350 Long Reach Tp:Total=1732 Mean=37 Ultra Long Reach Tp:Total=1290 Mean=28 Short Reach Tp:Total=2006 Mean=43 2002 price distribution Price ($) of Whole Network $300,000,000 $250,000,000 $14,350,102 $17,121,488 $12,871,172 $17,121,488 $150,000,000 $116,394,274 $47,121,029 $50,000,000 $69,273,245 $0 $10,778,849 $9,455,533 $9,455,533 $74,140,790 $84,919,639 Total $1,478,929 Nodes $100,000,000 Line Sites Price $ $200,000,000 Common Equipment OADMs Optical Shelves Switch Shelves Transponder Shelves ATLN detail Transponder & switch cards OC-192 LR Transponder Card OC-192 ULR Transponder Card OC-192 SR Transponder Card OC-48 SR Transponder Card Switch Parallel Optics Card Optical shelf cards Mux/demux cards C-band EDFA L-band EDFA Raman C+L Card DCM cards Loading Card OS controller cards OADM 8 8 0 1 24 4 18 0 Rack & common equipment 0 130 10 10 28 Bays Transponder Shelf/Backplane Switch Shelf/Backplane OS Shelf/Backplane Switch/Controller Card Optical Telemetry Card Common equipment OADM 0% 9% Optical shelves 24% Switch shelves 8% 7 10 3 7 38 4 % SHOWS PRICE PROPORTION OF $7.02M Transponder shelves 58% MPLT – CHCG Link Transponder & switch cards OC-192 LR Transponder Card OC-192 ULR Transponder Card OC-192 SR Transponder Card OC-48 SR Transponder Card Switch Parallel Optics Card 0 0 0 0 0 Rack & common equipment Bays Transponder Shelf/Backplane Switch Shelf/Backplane OS Shelf/Backplane Switch/Controller Card Optical Telemetry Card Optical shelf cards Mux/demux cards C-band EDFA L-band EDFA Raman C+L Card DCM cards Loading Card OS controller cards OADM 0 15 0 30 60 0 60 0 15 0 0 30 0 0 % SHOWS PRICE PROPORTION OF $3.71m Transponder shelf Switch shelf Optical shelf Common equipment OADM 15 * Amps 0 * Regenerators ULR with Raman Xm choice 2004 Demand 1 = $537,360,886 Routing 3506 Demands Demand 2 = $776,232,847 Routing 3477 Demands 2001 Altamar Networks. All rights reserved 2004 OADM Transparency Map D1 & D2 Common o-e-o switches OADMs for Demand 1 only Common o-e-o & OADMs OADMs for Demand 2 only Link map EDFA Links Raman Links $600 $600 $500 $500 $400 $400 Price ($) Price ($) Millions Total Cost Breakdown by Shelves $300 $300 $200 $200 $100 $100 $0 $0 Line Sites Nodes Demand 1 Common Equipment OADMs Optical Shelves Switch Shelves Transponder Shelves Line Sites Nodes Demand 2 Demand 1 Total: 4,413,062 Demand 2 Wavelength km Total: 6,934,280 Migration 2002 to 2004 Demand 1 Cost Delta: $346,728,831 2001 Altamar Networks. All rights reserved Migration Overview Change in Equipment Cards Common Equipment OADMs 6% 9% Price Breakdown Transponder Shelves 45% 12,000 Optical Shelves 35% 10,000 # of Cards 8,000 Switch Shelves 5% 2002 Card Requirement 2004 Card Requirement 6,000 4,000 2,000 0 Transponder Shelf Switch Shelf Optical Shelf Titanium Equipment Common Equipment -100 Additional OADMs in 2004 Nodes STTL WNPG WHPL WASI TULT TPKA TLHS TKWL TAMR 600 STLU SNVA SNFC SNCL SNAN SLKD RLGI RCRD PHNA PHLA OKLD NYCM NWOR NSVM MSQN MPLT MMPH MIAS LWCT LSVL LSAN LOSO KSCA JCVL IPLS HSTS ELPS DNVR DLLS CLEV CHRL CHCG BSTP BRBN BLTM ATLN ALBY Number of Transponders A closer look at the transponder delta by node 700 Long Reach Tp Ultra Long Reach Tp 500 400 300 200 100 0 2002 Link Map 2002 = 15 Raman Links 2004 D1 = 34 Raman Links 2004 Link Map D1 2002 = 15 Raman Links 2004 D1 = 34 Raman Links Migration 2002 to 2004 Demand 2 Cost Delta: $533,991,812 2001 Altamar Networks. All rights reserved Migration Overview Common Equipment OADMs 6% 10% Price Breakdown Transponder Shelves 42% Change in Equipment Cards 16,000 Optical Shelves 37% 14,000 Switch Shelves 5% 12,000 # of Cards 10,000 2002 Card Requirement 2004 Card Requirement 8,000 6,000 4,000 2,000 0 Transponder Shelf Switch Shelf Optical Shelf Titanium Equipment Common Equipment -100 Additional OADMs in 2004 STTL WNPG WHPL WASI TULT TPKA TLHS TKWL TAMR 700 STLU SNVA SNFC SNCL SNAN SLKD RLGI RCRD PHNA PHLA OKLD NYCM NWOR NSVM MSQN MPLT MMPH MIAS LWCT LSVL LSAN LOSO KSCA JCVL IPLS HSTS ELPS DNVR DLLS CLEV CHRL CHCG BSTP BRBN BLTM ATLN ALBY Number of Transponders A closer look at the transponder delta by node 800 Long Reach Tp Ultra Long Reach Tp 600 500 400 300 200 100 0 Nodes OADM not required in 2004 2002 Link Map 2002 = 15 Raman Links 2004 D1 = 34 Raman Links 2004 Link Map D2 2002 = 15 Raman Links 2004 D1 = 34 Raman Links Qwest Comments • Status of the Q3 Effort? • Comments on Altamar’s Work – Design – Fit to Need – Economics • What is the next step in Altamars’ evaluation • We believe there are at least 22 vendors being considered – What criteria will be used to select the finalists – When will the final group be identified Specific items from 11/29 • Line site to OADM cost and service affects • Transparency of DCC and B1/B2 • Product roadmap • Vivek link results later • DWDM line costs later • SONET switch grooming later • Service Capabilities SONET based service interfaces – Protected and unprotected end to end services with short reach 1310nm optics • OC-48c • OC-192 • OC-192c – Service interfaces are optionally 1+1 protected – Services are optionally protected in the transport network by Virtual 4F BLSRs over a physical mesh (50ms protection) – Grooming can occur at STS-48 and STS-1 – SONET framing supports classic TDM transport as well as POS based router traffic • Other planned service interfaces – – – – OC-192 VSR-1 for lower cost connections Gigabit Ethernet 10 Gigabit Ethernet Others as required