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1 Next-Generation Optical Transport Networks enabled by Large-Scale Photonic Integration Serge Melle Vice-President, Network Architecture

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1

Next-Generation Optical Transport Networks enabled by Large-Scale Photonic Integration

Serge MelleVice-President, Network Architecture

Page 2 Infinera Confidential and Proprietary

A short history …Legacy optical transport

• O-E-O’s at each repeater site enabled PM’s & add/drop anywhere• Capacity growth required parallel fibers and opto-electronics • Created unsustainable economics

Page 3 Infinera Confidential and Proprietary

A short history …Legacy optical transport

• Regens displaced by optical amplifier and WDM technology to eliminate OEO cost and enable cost-effective capacity scaling

• O-E-O’s at each repeater site enabled PM’s & add/drop anywhere• Capacity growth required parallel fibers and opto-electronics • Created unsustainable economics

Page 4 Infinera Confidential and Proprietary

WDM Networks Today

Add/drop in network incurs high O-E-O network cost…

…driving search to further eliminate or minimize O-E-O’s

Extending WDM reach and reducing add/drop reduces O-E-O cost…

…leading to increasingly analog “All-Optical” networks

$$ $$ $$1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

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$$ $$O-E-OO-E-OO-E-OO-E-O

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1 0 1 10 0 1 01 1 0 11 0 1 1

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Typical Legacy WDM

Page 5 Infinera Confidential and Proprietary

analog transmission of λ’s

“All-Optical” Networks

1 0 1 10 0 1 01 1 0 11 0 1 1

O-E-OO-E-OO-E-OO-E-O

1 0 1 10 0 1 01 1 0 11 0 1 1

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Issues of Analog “All-Optical” Networks

analog transmission of λ’s

“All-Optical” Networks

Chromatic Dispersion Dispersion Slope PMD2nd order PMD SPM SBS XPM FWMMulti-Path Interference Gain Ripple Gain Tilt

ASE Accumulation Laser Chirp Modulation InstabilityWavelength banding Channel Flatness Optical PMsDynamic optical add/drop OSNR Measurement

Return power Gain transient control channel equalization Raman gain Raman self-pumping

• Forces network operators to compromise between WDM network cost and number of users served

• High level of system and engineering complexity– Complex analog optical engineering & compensation of impairments

• Complex network architectures and operations– No digital statistics, complex fault identification, wavelength planning

Page 6 Infinera Confidential and Proprietary

Benefits of O-E-O Conversion

• Maximize “On-Net” locations

• Reduce service costs• Improve Service SLA’s• Full access to user data

Enhance Services & Increase Access Simplify Network

Operations• Protection/Restoration• Full Digital statistics• Easier & Faster Fault

Identification

Improve SystemPerformance

• Leverage Silicon economics• Bandwidth Management• Improve BER w/FEC• Elec. Dispersion Compensation• Increase reach w/Modulation

But…what are the benefits of accessingdigital network data?

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Optical (Analog) Electrical (Digital) Optical (Analog)

E-OO-E

Page 7 Infinera Confidential and Proprietary

WDM Cost StructureFu

nctio

nalit

y

# of Channels

Today’s WDM cost structure for OEO access remains prohibitively expensive

Page 8 Infinera Confidential and Proprietary

WDM Cost StructureFu

nctio

nalit

y

# of Channels

• Cost of conventional OEO: $10,000 per λ– Laser, λ-locker, modulator, mux, demux,

photodiode

• Why so expensive?– Packaging

• Cost dominated by fiber coupling• Discrete components add loss• Conventional 80 channel system >560

couplings– Too many technologies

• InP, LiNbO3, GaAs, Silica, Polymers, MEMS, Fiber-based…

Laser Chip

Page 9 Infinera Confidential and Proprietary

Fundamental Innovation

• How can benefits of digital access be realized?• Reduce OEO cost by factor of 10 times• Large-Scale Photonic Integration

100Gb/s DWDM on a chip

Enables Ultra Low-Cost O-E-O’s

Page 10 Infinera Confidential and Proprietary

Introducing a New Cost Structure…R

elat

ive

Cos

t per

10G

1995 1998 2001 2004

1

10

100

Existing discrete components

Large-ScalePhotonic Integration

• 31 to 1 reduction in fiber couplings• 16 to 1 reduction in optical packages• 10:1 reduction in O-E-O cost per λ

Page 11 Infinera Confidential and Proprietary

A New Direction

Underlying Assumption:“OEOs are Expensive”

Action: Eliminate OEOs and replace with analog

functions

End Game: All Optical

(and Analog)Networking

New Reality: Photonic Integration

Action:Embrace OEOs and

the benefits ofdigital functions

End Game:Digital Optical Networking

Page 12 Infinera Confidential and Proprietary

Evolving from today’s Analog WDM Network

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1 0 1 10 0 1 0

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Customer Add/Drop and full digital access to data at OEO locations only

Optical transmission between OEO’s requires increasingly complex analog transmission

Page 13 Infinera Confidential and Proprietary

Implementing Digital Optical Networks

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Cost-effectively enable increased network access and more “On-Net” locations

Simplify link engineering and operational complexity

Lower Cost of Add/Drop and network access at existing sites

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

Page 14 Infinera Confidential and Proprietary

Implementing Digital Optical Networks

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

1 0 1 10 0 1 01 1 0 11 0 1 1

IncreaseIncreaseAccessAccess

ReduceReduceCapExCapEx

ReduceReduceOpExOpEx

ReduceReduceComplexityComplexity

Page 15 Infinera Confidential and Proprietary

Infinera Summary

• Optical Transport Systems– Serve Long-Haul, Regional and

Metro core applications

• Key technology:“Photonic Integrated Circuits”

• Enables Digital Optical Networks– Dramatic cost reductions– Service flexibility: Add/drop any

service anywhere– Simplify network architecture– Simplify engineering and operations

Page 16 Infinera Confidential and Proprietary

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

10 40 100 200 300 400

Network Capacity (Gb/s)

Rel

ativ

e C

osts

(10G

= 1

)

Infinera Network economics“Sparse” and “Dense” Networks

Sparse Network– Add/Drop in 22 cities– Maximize cost efficiency for

high-capacity LD circuits

Dense Network– Add/Drop at 98 cities– Maximize revenue

0%

100%

200%

300%

400%

500%

600%

10 40 100 200 300 400

Network Capacity (Gb/s)

Rel

ativ

e C

osts

(10G

= 1

)

Page 17 Infinera Confidential and Proprietary

Lower CapEx:Incremental Cost for New Channels

Incremental CapEx costs for single new 10G end-end circuit:– 225km – 68% savings68% savings– 480km – 78% savings78% savings– 940km – 81% savings81% savings– 1410km – 84% savings84% savings

Traditional DWDM: Many, and costly, transponders required at every back-to-back WDM terminal

Infinera Digital Optical Network:Ultra-low cost OEO for pass-through, client optics only at end points

O-E-O O-E-O O-E-O O-E-O$$ $$ $$ $$ $$ $$

O-E-OO-E-O

Minimize servicecosts to connect

new users

Page 18 Infinera Confidential and Proprietary

Increase User Access

OffOff--NetNetBackhaulBackhaul

OffOff--NetNetBackhaulBackhaul

Option 3: LegacyOption 3: Legacy• Convert OLA site to

WDM terminal• High CapEx cost• Disruptive to existing

users

Option 4: Option 4: InfineraInfinera• Deploy Infinera low-cost

“add/drop anywhere”• Maximize user access• Ease of adding new

users to network

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O-E-O

O-E-O

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O-E-O

O-E-O

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Option 1: LegacyOption 1: Legacy• Forgo serving location• Minimize user access• Reduces ROI and

network value to users

Option 2: LegacyOption 2: Legacy• Lease “Off-Net” back-

haul tail circuit• Ongoing monthly costs• More complicated

planning & provisioning

Users Users

Maximize network reach and value to users

Page 19 Infinera Confidential and Proprietary

Summary

A Digital Optical Network….– Brings network to more users– Simplifies network architecture– Lowers CapEx – new builds & incremental

channel adds– Lowers OpEx – simplifies all aspects of

operations, design & engineering– Re-defines optical transport

20

Thank you