In this presentation, we will examine how to transport Ethernet traffic over TDM infrastructure, and see how RAD’s Egate and RIC products facilitate this in a highly cost-effective and efficient way.

We’ll start with the growing demand for Ethernet services, from which the need for Ethernet over TDM stems. We’ll then move on to Ethernet over copper solutions, which extend the reach of Ethernet services. This is the specific niche we’ll be exploring in-depth when we look at RAD’s Egate and RIC products, which are next on the agenda. We’ll then move on to the key applications for these products, and we’ll finish off with a technical overview of the Egate and RIC families.

Let’s begin with our look at the demand for Ethernet services.

Here are recent survey results from Heavy Reading, a leading American research firm. The graph shows the results of a poll of 200 North American enterprises and their interest in using various data services.

The overwhelming preference for Ethernet, IP VPNs and private circuits is clear. In this presentation, we are focusing on solutions based on RAD’s Egate and RIC products, which provide 2 of those 3 market demands – Ethernet services and private circuits.

The bottom section of the slide shows the top 5 services in enterprise budgets for 2005. The first, second and fifth entries (Internet, multi-point Ethernet and point-to-point Ethernet respectively) are provided by Egate and RIC solutions – the other 2 are outside the scope of this presentation. VoIP and IP sec VPNs can be transported over Ethernet, but we do not provide the services themselves.

So we see that there is high demand for Ethernet services, but there are still many enterprises that are hesitating to implement them. Let’s have a look at the deterrents.

As we can see in this graph, the biggest deterrent is the limited availability of connectivity to the service – this is a Last Mile issue. The other deterrents are attributes of the Ethernet services themselves, and cost is the least-selected factor. In summary, availability is first, quality is next and cost is last.

In this slide, we see the breakdown of the enterprise market in the US.

Let’s keep in mind that this breakdown is similar to that of the rest of the world – in proportion if not in numbers. Our main target market for Ethernet over TDM solutions is the middle section, where we see the medium-sized enterprises that use Ethernet over fiber, SONET, PDH, ADSL2+, or SHDSL infrastructure. The vast majority of these use copper lines for access, while some use fiber. In this presentation, we are focusing on solutions for medium-sized enterprises, including solutions for n x E1/T1 and E3/T3 lines. DSL is not an ideal solution on its own, as it does not offer redundancy. SHDSL is a business service, but it doesn’t have the same attributes as TDM.

The fundamental problem is the lack of access to fiber. Most enterprises have access only to copper links.

Currently, enterprises receive data services like Frame Relay over copper media. As we saw in the survey, over half lease private lines. Most of the rest receive Ethernet services from service providers. There is often an overlap, as many enterprises have both private circuits and copper data lines.

This diagram shows how RAD offers enterprises a way to benefit from Ethernet services with only copper in the Last Mile. On the right side, in the upper block, we see a customer site with a LAN connected by Fast Ethernet to RAD’s RICi-8E1. The RICi runs the Ethernet transmissions to and from the SDH or SONET network via 8 E1 links. For applications with less traffic, you can use the RICi-4E1 instead – this device runs the data over 4 E1 lines. On the other side of the transport network, an STM-1 or OC-3 link moves the data to a RAD Egate-100 device, which aggregates 63 channelized E1 lines and hands the traffic over a Gigabit Ethernet link to the packet switched network. The Egate serves as an aggregator or as a switch, directing traffic between destination RICi units as required. It also serves as a bridge between the packet switched and TDM networks.

This solution features many operational and cost benefits. It is based on familiar E1/T1 technology, while DSL is its own technological world. It also serves as the basis for point-to-point Ethernet Private Line service, as well as point-to-multipoint Ethernet Private LAN service.

This slide shows 2 main points.

First, we see that services can be provided over the TDM network or packet switched infrastructure, with no difference in the level of service. This is important because the service provider can sell the same service over different types of infrastructure. In the diagram, we can trace the transmission over the red dotted line from the RICi-E1 device at the customer premises on the upper right, where Ethernet LAN traffic is moved to the SDH or SONET network by Ethernet connection. A TDM link connects the traffic to an Egate device, which then passes it via an Ethernet link to the packet switched network. From there, the traffic reaches its destination at another customer site.

Going back to the right side, the blue dotted line at the lower customer site shows us a RICi-8E1 moving Ethernet LAN traffic to the transport network over an Ethernet private line via a multipoint connection. Note that the same Egate device handles both streams. The first main point, then, is Ethernet over packet over TDM.

Our second point is reflected in the table. Here, we see that the attributes of services provided by TDM over Ethernet private lines or LANs are far superior to those provided over a switched network virtual private line or a LAN as a shared service. In the future, packet switched networks are expected to reach almost up to the customer – this will allow provisioning of Ethernet services all the way to the edge of the network. Until that actually happens, this solution helps service providers make the most of existing E1 infrastructure.

This table returns us to the barriers to implementing Ethernet services. As we see in the third column, Ethernet over copper solutions overcome all of these barriers.

Let’s have a look at how Ethernet services are provisioned using these types of solutions.

On the left side of the diagram, we see customers connected to Ethernet services by a packet switched network. On the right, we have customers connected to Ethernet services by SDH or SONET. From the customers’ point of view, the level of service is exactly the same.

Here’s how the provisioning works. The customer site in the upper right uses a RICi-E1 to connect to the transport network. To establish a point-to-point Ethernet private line, the provider assigns the VLAN 10 line to a specific E1 link. By doing the same on the opposite end of the network, a customer domain is established, through which the two sites are connected. More of these links are possible by VLAN stacking or queuing within the VLAN 10 link. This creates an envelope through which transparent LAN services are provided.

Now let’s look at the lower 2 lines on the right. The upper line represents the connection between a RAD RICi-8E1 and the transport network, and the lower one represents the connection between a RAD FCD-IP access unit, which has an integrated router, and the same network. At the site with the RICi product, we assign all 8 E1 connections to the VLAN 20 line. We perform a similar definition at the FCD site, as well as on the Ethernet device at the other end of the network. This creates a dedicated VLAN 20 connection that connects these sites across the entire network. We also add a VLAN 20 tag at the switch. We can assign the VLAN 20 streams to the ports on the RICi-E1, where the device interfaces with the local Ethernet LAN. The actual VLAN tagging is done at the Egate on the other side of the transport network. The Egate only switches a given envelope of VLAN traffic to its destination site.

Each Egate device supports up to 126 customers, some of which can be connected over fractional E1 links. The next generation of this product will support 512 customers. On the management side, our RADview Lite element management system manages the Egate-100 and the RICi products.

Let’s take a moment to address management of the VLAN envelopes. The VLAN 100 connects all customers and the management site through both the TDM and packet switched networks. This link contains both customer traffic and management data. The management data does not continue with the datastream past the RAD customer premises equipment – this is important for service provider security and it leaves the customer traffic uninterrupted.

Traffic priority is determined by Ethernet protocol. The RICi products use 802.1P and IP precedence. When traffic is mapped to the RICi, higher-priority traffic is directed to the E1 links.

We’ll now look at the service delivery concept for solutions based on the Egate and RICi. As we saw before, Ethernet service is defined by mapping a VLAN and one or more TDM interfaces.

You can connect all enterprise customers by configuring the necessary E1 links and viewing all hosts by their IP addresses. With its integrated bridge, the Egate forwards relevant traffic to the various customers according to their MAC addresses. There is no global differentiation between customers in the same domain. For example, a broadcast will be transmitted to all locations in the VLAN domain linked by the Egate.

In this slide, we have a list of the customer-side equipment that RAD offers for this type of solution. We see the various models of the managed RICi and FCD devices that handle E1 traffic and work opposite the Egate, as well as higher bitrate unmanaged RIC and managed RICi products.

The FCD products all have integrated bridges. The RICi products operate opposite one another, transferring the customer VLAN traffic transparently and blocking the management data from entering the customer LAN, as illustrated by the red line in the diagram.

The Egate provides switching as opposed to routing. The concept illustrated here is actually an alternative to routing. It uses Layer 2 Ethernet instead of IP. As we saw in the first slide, Ethernet VPNs are equivalent to IP VPNs. IP VPNs are better suited to small organizations without large MIS departments, who do not have the resources to deal with the complexity of routers. Ethernet VPNs are better suited to larger customers with large MIS departments, as they tend to prefer to configure and control their own equipment and connections.

Note that these products transport Ethernet, Fast Ethernet, and Gigabit Ethernet over a wide variety of uplinks, including fractional E1/T1, fully populated E1/T1, STM-1/OC-3, and STM-4/OC-12.

Now that we’ve seen the technical advantages of carrying Ethernet traffic over TDM infrastructure, let’s move on to the business benefits.

The Egate and RIC products are new breed devices that replace and out-perform existing devices. The Egate replaces cross connects and switches in the edge network, as it integrates aggregation and switching functions into one box for a fraction of the cost. It saves on both initial CAPEX and long term OPEX, as they combine the management of the TDM and Ethernet based devices into one. RIC products replace the switch and CSU/DSU for demarcation, with similar cost-saving benefits. Newer RIC models will feature several Ethernet ports and internal integrated switching.

These characteristics make RAD’s Ethernet-over TDM solutions ideal for a number of markets, including enterprises, utilities and mobile operators.

Let’s have a closer look at the RIC product line.

This slide shows the main features and benefits of the RIC family.

Here we see the market niches into which the Egate and RIC products fit. In this diagram, we see a number of Ethernet connectivity possibilities using copper or fiber. This scenario is typical of alternative providers that have their own infrastructure, yet also serve customers that use infrastructure belonging to other carriers.

The customer on the upper left has a copper-based Ethernet connection to a next generation ADM, which in turn interfaces with the SDH or SONET network. In this scenario, the customer must be located within 100 meters of the ADM.

Below this example, we see fiber connectivity from a switch directly to a packet transport network.

When fiber is not available, E1 links can be used instead. On the right side of the diagram, we see a RICi device moving traffic between E1 lines to the customer LAN and the SDH or SONET ring over TDM infrastructure. Customer traffic dropped from the ring is processed by an Egate device and moved toward the destination over the packet switched network.

In this slide, we see the clear advantage of the Egate over other solutions.

In typical applications, you would use an Egate instead of either of two options: a converter rack, a switch and a multiplexer working in tandem, or a router with a channelized interface working in bridge mode. As we see in the table, the Egate has decisive price and operational advantages over both of these options, being approximately 1/5 to 1/6 the cost. Of note is the cost of adding redundancy to a router – this doubles its price tag. Also, the footprint of the 3-box converter rack is 11 times larger than that of the Egate.

The Egate has another competitive advantage in that it is strong in N x 64kbps and N x E1 transmission, where competing solutions are weak. Competing solutions offering similar capacity tend to command at least twice the price of the Egate.

Let’s have a look at our killer application – Gigabit Ethernet IP DSLAM backhauling, which uses the RIC-155GE. This is a solution that RAD has deployed on a large scale with great success for Telefonica’s alternative carrier operation in Germany and Jazztel in Spain.

This solution suits providers that want to run DSL services over an IP  DSLAM with a Gigabit Ethernet uplink, where the available transport network is SDH or SONET. On the right side of this diagram, we see how the IP DSLAM sends Gigabit Ethernet traffic to the RIC-155GE, which converts it to STM-1 or OC-3 format and forwards it to an ADM. The RIC-155GE unit on the other side converts the traffic back into Gigabit Ethernet format and hands it off to the packet switched network for delivery to other DSLAMs and the network management system.

In this slide, we see an example of how the Egate and RICi operate in cellular networks.

As we see on the right side of the diagram, the RICi-8E1/T1 can be used to convert traffic from an IP base station with a 10/100 BaseT interface for transmission over multiple E1 links into the SDH or SONET network. On the other side of the network, an Egate converts the incoming STM-1 or OC-3 stream into Gigabit Ethernet format and pushes it toward its destination via the packet network.

Using the RICi and Egate here is an alternative to using a router, which is at least 6 times more expensive and far more complicated to operate. In any case, Layer 2 is easier to work with as far as managing subnets and adding sites.

We’ll now look at an application for enterprises that want to use private LANs. Here we see remote sites connected to the headquarters by leased SDH or SONET lines, where a RICi-E1/T1 unit at each remote site converts the Fast Ethernet traffic from the local LAN to E1 or T1 format and hands it off to the leased SDH or SONET lines. The Egate at the enterprise or ISP headquarters converts the traffic back to Ethernet format and moves it to the carrier packet switched network.

Let’s move on to an application where RAD’s FCD, RICi and Egate devices enable fully channelized transmission of customer Ethernet and E1 traffic.

On the right, we see how the FCD and RICi products aggregate local Ethernet and Fractional E1 traffic and move it over Fractional E1 connections to the DACS.

The Egate-20 on the other side of the transmission network is fully channelized, so it can handle up to 248 different locations. It converts the 8 incoming E1 streams back into Ethernet format and hands it off to the packet switched network.

This solution is an alternative to digital cross connects with Ethernet cards or a channelized router, both of which are much more expensive.

Here, we see a new solution for Gigabit Ethernet over STM-4 or OC-12. The RIC-622GE and RIC-155GE devices on the right convert Gigabit Ethernet traffic to STM-4/OC-12 or STM-1/OC-3 streams for transmission over an SDH or SONET transport network. The RIC-622GE on the left converts the traffic back into Gigabit Ethernet format for the packet network.

Let’s take a closer look at the Egate-100. This slide shows its main attributes. Highlights include its support of copper or fiber links, its support of up to 126 customers, the ability of the bridge to learn a high number of MAC addresses, its ability to locate, filter, switch, and prioritize VLAN and IP traffic, and its full manageability.

Here’s a closer look at the Egate-20. This slide shows its main attributes.

We’ll finish our presentation by summarizing the Egate value proposition.

With RAD’s solutions, you can provide your customers with complete central and CLE solutions for Ethernet services over TDM infrastructure, using E1/T1 and fractional E1/T1 links. RAD’s solutions save up to 70% on CAPEX compared to the alternatives, and they reduce OPEX while adding carrier class resiliency. In the future, the same platform will aggregate Layer 3 services by implementing encapsulation standards like Cisco’s HDLC and PPP – this will allow the Egate to work opposite routers. Finally, they protect your investment by migrating to new GFP standards for Ethernet over PDH.

For further information, you are welcome to consult with your local RAD representative.