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Optical Transceivers EDGE Technologies, Ltd – Feb, 2013

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AGENDA

EDGE Technologies introduction How CAPEX costs are reduced 3rd party transceiver myth

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EDGE Technologies Introduction

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EDGE Technologies

Exclusive distributor of #4 TOP Telecom vendor – ZTE Corporation Established in 2010

During 3 years of operation more than 30+ contracts

Sucessfuly implemented Datacom, GPON, Transmission projects

Launched ZTE Smartphone product line in Latvia, Lithuania

We are working to

«Accelerate Your success»

Delivering Optical Transceivers to major operators in Europe

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EDGE Optical Transceivers - High Quality 3rd Party Optics Available

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Technical Support Customer Service Portal

Belorussia / Uzbekistan GTAC

Local Technicans – 3 Local / 2 Chinese

R & D China

Technical Support FAQ:

How to register problem? - www.edgetech.lv/support - support@edgetech.lv - Hotline: +371 27746349

Where to access documentation/software? - www.edgetech.lv/support

How long will take warranty replacement? - 1-2 working days

How long will take resolution of problem? - Minor – Up to 5 CD - Average – Up to 1 CD - Critical – 3h

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EDGE Technologies Our Customers

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Product Compatibility

We deliver to our customers multi-vendor compatible optical transceivers, that means, by making order customer can choose optical transceiver compatibility by selecting vendor and model name.

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Full Transceiver Product Portfolio

We have wide product portfolio starting from simple 100M FE transceivers ending with 10G and 40G models avaliable as: Single fiber, Double fiber, CWDM and DWDM types. For more details please have a look at our website-> Optical Transceivers section.

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How CAPEX costs are reduced

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How CAPEX costs are reduced?

Product Cisco original

price EUR EDGE Technologies

price EUR Savings 1.25G-SFP-T 154,00 21,00 7 times 1.25G-SFP-10D 231,00 13,00 17 times SFP-10G-LR 1 540,00 99,00 15 times XFP-10GB-LR 1 540,00 120,00 13 times X2-10GB-LR 1 540,00 250,00 6 times

In table above it’s possible to see that by using EDGE Technologies optical transceivers it’s possible to have a huge savings in equipment CAPEX area.

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Example – How CAPEX costs are reduced?

Cisco 3750E-24TD 24xGE RJ-45 + 2*10GE (X2)

Description Price with original Transceivers EUR

Price with EDGE Transceivers EUR

Cisco 3750E-24TD switch price 5 193,65 5 193,65 2pcs X2-10GB-LR 3 080,00 500,00 Total cost 8 273,65 5 693,65 Total TCO savings in EUR 2 580,00 Total TCO savings in percentage 31%

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Myths about 3rd party Transceivers

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Myth1 - It is not legal to use 3rd party transceivers

It is opposite! Customer could sue vendor if he is mislead and manipulated to buy overpriced product from vendor. In legal terms, this type of ploy is referred as a "tie-in sales provision." Such provisions are illegal. This is specifically prohibited by Europe Directive on Consumer Rights and in US by Magnuson-Moss Warranty act.

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Myth2 - I will lose equipment warranty For example – Cisco Warranty says like this: Warning: When Cisco determines that a fault or defect can be traced to the use of third-party transceivers installed by a customer or reseller, then, at Cisco’s discretion, Cisco may withhold support under warranty or a Cisco support program. In the course of providing support for a Cisco networking product Cisco may require that the end user install Cisco transceivers if Cisco determines that removing third-party parts will assist Cisco in diagnosing the cause of a support issue.

This means that vendor can ask to replace third-party part if it is determined that part is faulty (same what would happen in case of original part), but part MUST BE FAULTY and vendor must prove it. If there is a working 3rd party optical module in the port, service level on any part of the chassis or OS can’t be reduced.

Explanation:

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Myth3 - Price difference is huge, there must be quality issue Explanation: For optical transceiver manufacturing cost - it is almost the same for all the vendors, either it’s Cisco, ZTE, HP or EDGE Technologies. None of these vendors manufacture optical transceivers on their own. Our manufacturing lines mirror vendor manufacturing lines - our products are manufactured in same factories. Each Optical transceiver product consist of 2 parts: 1) Hardware part - this has been standartized by MSA (Multi Source Agreement) and all transceivers avaliable are according to this standard 2) Software part - some vendors use standard software suggested by MSA, others use special self design coding and put extreme profit margins on top of the product. During several years of experience we have developed our own coding database and our highly skilled engineers are able to develop unique, independent vendor compatible code, to match any vendor software requirements This article explains Cisco transceiver business details and why there is such price difference: http://www.lightreading.com/document.asp?doc_id=102950#msgs

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Myth4 - Serial numbers will repeat

Explanation: EDGE Technologies enginers during delivery process make sure that each delivered product has unique one of a kind serial number.

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Myth5 – After software update product will fail

Explanation: As EDGE Technologies delivered transceiver software is programmed according to specific vendor as requested during delivery process. If new protection mechanisms are introduced after software update, then as well original vendor existing delivered transceivers will fail.

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Zero risk – Our Experience

Here are some of the biggest operators with whom we cooperate and deliver our optical transceiver solutions:

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