Evolution Series Status & Future. VP Product Management Nera Networks AS Eirik Nesse

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1 Evolution Series Status & Future VP Product Management Nera Networks AS Eirik Nesse Nera Capital Markets Day, Bergen, 30th May

2 Evolution Series Nera s new common platform microwave radio system Bridging Societies 2

3 Content Evolution concept Product description Segment applications 3

4 Evolution in a complete Nera Networks radio portfolio INTERLINK Long Haul Radio Capacity Evolution Series SDH/PDH/Ethernet Access Radio Systems WiMAX Systems End User Access/Backhaul Long Haul Transport 4

5 Evolution Series changes the microwave concept through its software defined radio solutions Key technical features Common platform Microwave Radio System Multi-direction Traffic Node Complex networks with simple equipment Software defined core SDH radio Scalable PDH radio High capacity Ethernet Radio Multi modulation - Spectrum efficient High performance - Dual coding Simplified operation/management Evolution Series offers several key improvement areas Scalability - the same hardware to be used in all parts of the network Easy upgrades - grow with the traffic and pay as you grow Traffic Node - several radio directions in one node, simplifies installation and reduced investment cost Improved Reliability - reduces the operational cost Future proof - Evolution towards packet based transport network Spectrum efficient - reduced spectrum fee 5

6 Technology Platform The Evolution Series is based on patented Technology Architecture simplification Less parts - less costs More reliable More performance margins (higher yield) Advanced digital signal processing Alleviate stringent and costly hardware constraints Future proof platform Migration to IP networks 6

7 Evolution is based on one Common Platform Interface Any Service IFU SDH / PDH / Ethernet Modem Common ODU/IDU Scalable 6 to 300Mb/s Radio ODU Radio unit Simplified logistics 20 Radio variants vs. 250 variants for CityLink One IFU variant vs. 10 for CityLink More Flexible Easy expansion - easy reconfiguration More Flexible Pay as you grow Capacity increase by software license only 7

8 Cost of Ownership Life cycle cost becomes is a very important aspect of the product cost Common equipment in the backhaul network Savings in training/competence required Reduced spares Deployment/Logistics savings Improved Reliability Reduced repair cost Reduced maintenance visits 8

9 Content Evolution concept Product description Architecture Traffic management Segment applications 9

10 Integrated Antenna/ODU Integrated antenna simplifies installation and reduces cost One size fits all ODU reduces the number of mechanical solution to one Wideband ODU reduces the number of ODU variants required in a network 10

11 Software Defined Radio - IFU Expandable All units are front plug-ins The basic IFU is 44mm tall, 450mm wide Simplified logistics More Flexible Easy to Service Easy to Expand 11

12 Content Evolution concept Product description Architecture Traffic management Segment applications 12

13 Traffic Node concept PDH radio tail links Microwave radio ring with embedded DXC & SNCP protection Scalable capacity Benefits Significant cost saving can be achieved by combining several radio directions in one box. Up to 8 radio directions can be handled in Evolution Series Handles PSH circuits, SDH circuits and Ethernet traffic No cabling between radio nodes Easy re-configuration and capacity upgrade by software 13

14 Content Concept Product description Segment applications 14

15 Application - Mobile Backhaul of basestation traffic All architectures - all technologies Ring based SDH inner core Ring or Star - scalable PDH Access PDH links Mb/s radio chain Evolution IFU with embedded DXC Common platform approach allows operators to exploit any network architecture and capacity based on the same radio Evolution to IP by adding interface modules Mb/s radio ring Evolution IFU with embedded ADM/DXC Ring protection Core Transport Network SDH/SONET Radio or Optical PDH radio spur link 15

16 Application - ISP/Enterprise Backhaul of basestation traffic IP based networks with QoS for triple play services Triple Play Services Evolution Series Microwave Radio Multi-Service Backhaul solutions Residantial and Institutional subscribers FWA/LMDS Network Corporate Networks PoP xdsl subscribers Ethernet only or mix of Ethernet and TDM Evolution to IP by adding interface modules DSLAM Scalable Gigabit Ethernet up to 600Mb/s for Enterprise networks Quality of Service support 16

17 Status - May 2006 EU type approval completed for major frequency bands Frequency and variants Roll-out progressing broadly according to plans First contracts on Evolution Series awarded Production started 1Q06 and Commercial deliveries will take place in 2Q06 Nera will continue to enhance the Evolution portfolio during 2006 and

18 Conclusion Nera s common platform concept changes the way microwave networks are being built The microwave radio industry is undergoing an evolution towards common platform products Nera s technology and strong focus on the microwave market puts us in the front of this evolution 18

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