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Broadband and Solutions Summit

Gary BoltonVice President

Global MarketingAugust 2016

THE THIRD WAVEand the future of the Internet

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At one point, 50% of the CD’s produced worldwide had an AOL logo on it.

We were logging in new subscribers at the rate of one every six seconds

- Jan BrandtAOL’s former Chief Marketing Officer

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The First Wave1985 - 1999

Building the technology and infrastructure

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Access Information and to one

another

The Second Wave

2000-2015

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The Third Wave2015- …

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The Internet is fully integrated into every aspect of our lives- The Internet of Everything -

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THE THIRD WAVE

1STBuilding the technology & infrastructure

3RDFull integration for web-scale2ND

Access to information and to one another

LEADERSHIP IN ACCESS Over 130,000 MSANs deployed Global Leader in hardened OSPs #1 in IP Business Gateways (NA) Leader in Carrier Ethernet (EoX) World’s largest Vectoring deployment

1985-1999 2000-2015 TODAY-

Pioneered NGPON2 tunable optics Led standardization of XGS PON Pioneered G-class optics Over 65 G.fast trials on 6 continents Over 350 Gigabit Communities

ACCESS INNOVATION LEADER SD-ACCESS LEADER Only G.fast natively integrated with open source SDN controller Only vendor to demonstrate XGS PON, NGPON2, 10G EPON in

CORD architecture Only to integrate complete FTTx portfolio into 3rd party SDN

controller Most interoperable vCPE

ADTRANLEADERSHIP IN SOFTWARE DEFINED ACCESS

1st to achieve GA field deployments of natively SDN controlled access network solutions

Strong Customer Base Technology Breakthroughs Open, Programmable, Scalable

ENABLING COMMUNITIES CONNECTING LIVES

The Transformative Effects of Gigabit service delivery with

Automation and Scale

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1.1% increase in GDP

Enabling Communities Connecting LivesEconomic Development

Enabling Communities Connecting LivesReal Estate

3.1% increase in home values

Flexible Learning Environment

Enabling Communities Connecting LivesEducation

Telemedicine

Enabling Communities Connecting LivesRural Healthcare

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…the Internet and all the other tools …created a means for every consumer to customize exactly the price, experience, and service he or she wanted.

― Thomas Friedman

User-Defined WorldInfinite Bandwidth

Web Scale

Centralized Automated Networks

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MOTIVATION FOR OPEN, PROGRAMMABLE NETWORKS

Create user-driven networks that allow customers to self enable services on demand Customers expect the Uber experience

No lenghty delays and site visits

Rapid innovation Reduces time-to-market for products and services Reduces operational costs through automation and

analytics Open architectures promote best-in-class technology

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Lack of end-to-end programmabiity

Lack of modern, open APIs to ease programmability

App-based management model difficult to implement

New network services require hardware upgrade, limiting the effectiveness of self-service model

Challenges to Meeting Goals

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Applying Data Center Architectures to Access Utilize SDN to create highly automated and

programmable networks Apply NFV to create agile, software-centric

networks Disaggregate monolithic, proprietary systems Implement open networking architectures

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Building Modern, Web-scale Ecosystems

Continuous Delivery

Service Reusability

Scale on Demand

Open Ecosystem

Agile Delivery

Rapid Innovation Ecosystem ValueStakeholders

Service Providers

Consumers

Modular and Open Systems

Faster Time to Market

Lower Operating

Costs

Rapid Innovation

Increased Customer

Satisfaction

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Open, Programmable, Scalable

Eliminating the High Cost of Network Overhead

Enabling the Rapid Creation of Differentiated Services

Assuring Subscriber Quality of Experience

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Modularopensystemarchitecture forintelligentcloud

Mosaic – a piece of art created by forming smaller components together to create a bigger picture

Why the name Mosaic?

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ADTRAN MosaicTM

ADTRAN Mosaic Cloud Platform Open microservices architecture Network management and SDN control

ADTRAN MosaicOS Modular, component-based, agnostic Optimized for SD-Access programmability,

virtualization, and multi-vendor app integration

Programmable Network Functions Multi-vendor networking solutions Natively integrated into open SDN-controller Span from cloud to subscriber edge

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The Access Mosaic

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ADTRAN MosaicTM

Accelerating the Path to SD-Access

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THE THIRD WAVEKey Takeaways “The Network” is now integral to every

aspect of our lives Transforming education, healthcare, …

Virtually limitless demands for bandwidth Service velocity and flexibility Drive to the self-directed consumer

Rapid InnovationOpen, Programmable, Scalable

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ADTRAN IS BRINGING THE WORLD TOGETHER

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