Communications Test and Measurement December 2005

Agenda ƒ Communications Test & Measurement Introduction ƒ Market and Opportunity ƒ JDSU’s Unique Position ƒ Q&A

2

© 2005 JDSU. All rights reserved.

JDSU Communications Test & Measurement At a Glance ƒ Decades of experience delivering test solutions to the world’s largest network operators and equipment manufacturers ƒ Comprehensive line of instruments, systems, and services with market leadership positions – #1 with telecom and cable network operators – Each of our larger businesses is #1 or #2 in its market – Comprehensive services and solutions capability

ƒ Unique breadth of technologies for Broadband and IP networks – Physical media – optical, copper, coax – Transmission technologies – all major types – IP Services – video, voice and data

ƒ Global sales coverage and deep customer relationships

3

© 2005 JDSU. All rights reserved.

3

Market and Opportunity

4

© 2005 JDSU. All rights reserved.

Market Dynamics: The Fight for the End User A fight to be the all-in-one provider of advanced voice, data and video services to consumers and business is driving new growth in the communications test market

FTTX VoIP

International VoIP Gigabit Ethernet 5

© 2005 JDSU. All rights reserved.

DSL

Cable

Why is Test and Measurement Important? Equipping customers to efficiently and rapidly deliver voice, data and video services over next generation broadband networks: • speeding deployment • improving quality • reducing costs Access • • • • •

FTTx Copper xDSL PON Metro Ethernet

Data/IP • • • •

6

Gigabit Ethernet ATM Frame Relay IP-VPNs

© 2005 JDSU. All rights reserved.

Core

• lowering churn

• SDH/SONET - DWDM, 2.5, 10, and 40 Gigabit

Cable • • • •

Cable Modems Video on Demand VoIP Digital TV

Broadband Service Challenges -- Lifecycle Management

Plant Installation

Provisioning

Service Assurance

Fiber & Copper Characterization Insertion Loss Measurement Optical Return Loss Measurements

Optical Power Measurements xDSL Data Performance Voice, Video & Data Verification

Efficient Fault Isolation End-to-End Service Verification Trouble Identification & Analysis

ƒ Multi-layer testing during installation and provisioning phases is needed in order to reduce return-trip rates ƒ End-to-end service assurance is needed in order to effectively target trouble and intelligently deploy repair and maintenance resources 7

© 2005 JDSU. All rights reserved.

Broadband Service Challenges – Testing Across the Network

Video Hub Office

Regional Networks

Metro Networks

Access Networks

Video Headend

Customer Premise

Metro

Internet

Ethernet

Core

Residential Gateway IP Phones

PSTN test point

ƒ Fault isolation requires multiple test points ƒ Different testing methods and equipment are needed at different points in the network ƒ End-to-end service assurance requires integration and analysis of test point data 8

© 2005 JDSU. All rights reserved.

Where’s the Growth? Global Broadband Access & VoIP Subscribers

ƒ Broadband Access

200 180

– FTTx, HFC, Wireless

160

ƒ IP Triple Play Services – IP and Network Infrastructure

Millions

140 120 100 80 60 40 20

ƒ Wireless ƒ Network Expansion – India – China – Latin America Sources: Infonetics August, Oct. and Nov. 2005 MRG Research Group Sep. 2005 9

© 2005 JDSU. All rights reserved.

0 2004

2005

2006 VoIP

Cable

2007

2008

DSL

Equipment, CAGR 2004-2008 50% 40% 30% 20% 10% 0%

Metro Ethernet

PONs

IP Routers

IP PBX Systems

IPTV Systems

JDSU’s Unique Position

10

© 2005 JDSU. All rights reserved.

Comprehensive T&M Portfolio for Telecom and Cable Networks ƒ INSTRUMENTS Telecom and cable instruments for accelerated deployment of broadband networks and services

ƒ SYSTEMS Systems or combinations of instruments and software that improve quality, reduce churn and lower operating expenses

ƒ SERVICES Product support, system management, training, and other services that enhance the value of JDSU’s solutions

11

© 2005 JDSU. All rights reserved.

Telecom Instruments Fiber Optics • Fiber/DWDM/FTTx Installation • Fault Location • Component Design & Manufacturing

SmartClass Handheld

MAP Platform

Metro & CO • Network Installation • Service Quality Verification • SONET/SDH Testing • Gigabit Ethernet Testing

Optical Transport • Design/Lab Test • System Verification • Early Technology Field Deployment

ONT-506

ONT-512

Access • Copper Line Qualification • xDSL Service Activation • Ethernet Service Testing • Test/Process Automation • Voice over IP • IPTV HST-3000

FST-2802 12

© 2005 JDSU. All rights reserved.

MTS-8000

Telecom Service Assurance Systems Technologies • Fiber • Copper • xDSL • Ethernet • Private Line

NetComplete

Triple Play Services • VoIP • High-Speed Data • IPTV

QT-xxx

Carrier Class Operating Support Systems • Test Management • Test Process Automation • Network Monitoring and Performance Mgmt • Data Correlation and Expert Rules Engines 13

© 2005 JDSU. All rights reserved.

Optical Network Management System (ONMS)

Cable Instruments Digital and IP Video

Network Maintenance

• MPEG Stream Analysis • Fixed, Lab & Portable

• HFC Sweep / Spectrum Analyzer • QAM Analyzer • Analog and Digital Level

Home Wiring and Installations • Signal Level • Leakage • Distance to Fault • Ingress Scan

14

© 2005 JDSU. All rights reserved.

Advanced Services • VoIP • Cable Modem Service • Analog and Digital TV

Cable Service Assurance Systems Forward Path Monitor • Analog and Digital TV • Cable Modem Signal • Automated Monitoring • Field Troubleshooting

Return Path Monitoring • Voice over IP node certification • Multi-node Spectrum Analyzer • Historical Data Trending • Automated Monitoring

Field Productivity Solutions • Work Process Automation • Test Result Management • Workforce Productivity

15

© 2005 JDSU. All rights reserved.

World Class Technology Segment / Technologies

Instruments

Systems

Core and Metro Optical Transmission Fiber Media DWDM & CWDM SONET/SDH OTN, Next Generation SONET

√ √ √ √

√ √ √

√ √ √ √ √ √ √

(In Process) (In Process) √ √ √ √ √

√ √ √ √ √



Telecom Access FTTx Copper Plant DSL Gigabit Ethernet and Ethernet ATM and Frame Relay IP / VoIP / IPTV DS3/DS1/DS0, Legacy Services (POTs, ISDN, DDS…)

Cable Networks Analog Video, Digital Video and Video on Demand High Speed Data (DOCSIS) VoIP MPEG RF Plant

√ √ √

• JDSU T&M Patents: 175+ granted, 110+ patent applications • R&D Centers in North America and Europe with a Core Competency in Collaborative Development 16

© 2005 JDSU. All rights reserved.

Global Sales Coverage

North America Adelphia AT&T Core AT&T Wireless Bell South Cingular Cisco Comcast Cox Lucent MCI Nortel Qwest SBC Sprint Time Warner Verizon

EMEA Alcatel British Telecom Deutsche Telecom France Telecom NTL Siemens AG Telefonica

Asia Pacific Latin America Telefonica Telemar Telmex

JDSU CommTest Sales Offices JDSU CommTest Direct Presence JDSU CommTest Reps, Distributors, Alternate Channels

17

China Telecom China Netcom Huawei Technologies Korea Telecom Reliance Telecom

© 2005 JDSU. All rights reserved.

• • •

Direct in 31 countries Represented in 164 countries Direct Sales and Support Staff w/ industryleading technical competency

Customers ƒ Over 4,000 customers Worldwide Service Providers, System Manufacturers and Enterprises

18

© 2005 JDSU. All rights reserved.

#1 or #2 in Addressed Segments ƒ Leading position in every broadband test and management market/technology JDSU

Frost & Sullivan Ranked #1 or #2

Access



Metro



Fiber Optic Field Service



Optical Transport



Cable Networks



Broadband Service Assurance Systems Source: Internal JDSU

19

© 2005 JDSU. All rights reserved.

Prime Data

Market Rank Handheld DSL Testing

#1

Overall BERT

#2

Optical Installation and Maintenance Testing

#2

Overall Optical Transport

#2

√ Source: • Frost and Sullivan World Fiber Optic Test Equipment (FOTE) Markets 2005 • Frost and Sullivan World XDSL Test Equipment Markets 2005 • Frost and Sullivan World Cable Testers BERTs and ATM Test Equipment Markets 2005 • Frost & Sullivan Opportunity – Fiber Channel & Optical Transport 2004

Market Rank SDH/Sonet

#1

Fiber

#1

DSL / ISDN

#1

Cable/HFC

#1

T1/E1 and T3/E3

#1

ATM/IP/Router

#3

Source: Prime Data September 2005

HST-3000 Comprehensive “Last-Mile” Triple Play Test Solution Industry Leading Solution Enabling Triple Play - IP Voice, Video, & Data Service Roll Out in the Access Network “Last Mile” by Providing: • All-in-one, scalable platform addressing physical (copper) thru application layer testing • Industry leading VoIP & IP TV test applications • Automated test features that simplify jobs and improve work-process efficiency

Triple Play !!! Test the Service

IP Voice, Video & Data Testing

VDSL2 or ADSL2+ Over Copper

Test the Circuit

Test the Copper

Improve the Process

20

© 2005 JDSU. All rights reserved.

ADSL2/2+ & VDSL2 Testing

Complete Suite of Physical Layer Copper Testing Including: DVOM, TDR, RFL, Wideband Loss & Noise, Opens, Shorts, Noise, Balance, Spectral Noise, Return Loss…..

Automated Testing, Serial, Ethernet, USB Connectivity

DSAM: Cable Network Triple Play Test Solution DSAM is a 3 time industry award winning installation and service testing meter for cable network field technicians providing: • All-in-one, scalable platform addressing physical (HFC) thru application layer testing • Industry leading VoIP test applications (only cable instrument to place/receive VoIP call) • Automated test features that simply jobs and improve work-process efficiency

Triple Play !!! Test the Service

Test the Connection

Test the HFC

Improve the Process

21

© 2005 JDSU. All rights reserved.

VoIP, Video & High Speed Data Tests

DOCSIS and PacketCable

Complete Suite of Physical Layer Coax Testing Including: Signal level, QAM analysis, ingress testing, spectrum analysis

Supported by TechComplete Automation and Reporting System to increase work force productivity

End To End Service Assurance Solution Industry Leading Solution for End to End IP Video Service Assurance solution by providing: –Service and Network Performance monitoring in a single system •Monitors the actual customer service experience through the network •Monitors the IP transport network highlighting issues that could affect the service

–End to End view in a single screen •Eliminates multiple Silo solutions •Eliminates Swivel chair approach

–Performance Trending •Proactively Identify potential problem areas before customers

Monitor the Service

NetComplete

Customer Experience •Voice •Video •Data

“Look Down” Monitor The Network

IP Core Network

Access Line

Media Gateway

QT-200

CPE, Access, and Core Network assurance

TDM

QT-600 QT-1100

Fault Isolate

Video Headend

Automated Correlation/Association of data to isolate problems in the network

“Look Through” Video Improve the HeadendProcess

22

© 2005 JDSU. All rights reserved.

Single Screen view of the End to End service

Summary ƒ JDSU is an established leader in the communications T&M market – #1 or #2 in our key market segments – Largest provider of test solutions to telecom and cable network operators

ƒ Our strengths include: – The industry’s broadest portfolio of instruments, systems and software for broadband network testing – Strong relationships with the world’s leading network operators and equipment manufacturers – The industry’s most technically skilled direct global sales organization

ƒ These strengths position us well to capitalize on the key growth driver in our industry…the telecom vs. cable race to cost-effectively and reliably deliver a “triple play” package of IP-based broadband voice, data and video services 23

© 2005 JDSU. All rights reserved.

Communications Test and Measurement Questions?