IVA Start Up Competition Gil Biran Founder and COO

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IVA Start Up Competition Gil BiranFounder and
COO
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The Pseudo-Wire Company About Axerra

• Founded in 1999 to address packet service trends
• Emergence of Ethernet
• Migration of services to packet networks
• Veteran management team
• Shlomo Dovrat Chairman
• Gadi Tamari CEO (Radvision, Excel)
• Gil Biran Founder and COO (RAD)
• Asher Avital CFO (RAD)
• Joe Ashton - VP Sales Americas (Cisco, Paragon)
• Denis Bambury VP Sales EMEA (Cisco)
• Gil Itkin VP Sales APAC (Xacct, RAD)
• Steve Byars VP Marketing (Current Analysis,
  Bell Labs)
• Alik Shimelmits VP RD (ECI Telecom)
• Aharon Strosberg VP Operations (RAD)
• Financing by strong investors 43.75M in 3
  round of financing
• Seed 1.5M, Sep 1999, RAD group
• A Round 16M, Aug 2000, HVP, MS
• B Round 10M, Sep 2002, TLcom
• C Round 16.25M, August 2005, Carmel

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The PainWhy is Pseudo-Wire a Big Opportunity?

• Carriers today recognize that
• Current profits are based on wealth of existing
  services
• Most current investments are in new packet
  infrastructure which promise dramatically lower
  costs
• Growth opportunities are in new services
• Unfortunately
• Vast majority of existing services are furnished
  through existing non-packet networks and are not
  available in IP
• Significantly expensive to maintain (and grow)
• Todays access network not ready for new services
• This pain is not going to be resolved soon
• The migration to all IP services will take
  decades
• This dilemma is common to all carriers
• Mobile/wireless, Cable MSO, IXCs, Metro, CLECs

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The Solution Pseudo-Wires Meeting the
Challenge

• The next generation of multiservice Heavy
  Findings Top Ten
• Emulates circuits and services over packet
  networks
• Supports IP Legacy Voice Data servicesin
  native format
• Enables optimized aggregation transport of IP
  services
• Based on emerging standards
• IETF PWE3 working group
• ITU, MFA, and MEF
• The single technology that sustains legacy
  profits and enables new services

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Applications A Single Technology that Addresses
the Needs of Multiple Service Providers
Multi-Service Pseudo-Wire Access
Metro Ethernet Cable Operators
IXC, ILEC, CLEC, ISP
2G
Mobile Operators
Carrier Ethernet
3G
xDSL/HFC
Multi-Service Aggregation over Packet Access
Service Delivery over Packet Access
Mobile Backhaul over Packet Access
AXN Family of Pseudo-Wire Gateways and Access
Devices
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The Killer App. Mobile Wireless Backhaul over
Packet Access

• The Problem
• Today Mobile operators use mostly expensive
  leased lines, PDH Radios and SONET/SDH to carry
  traffic from the cells to their network (Mobile
  Backhaul)
• 2.5G, 2.75G and 3G deployments (Especially with
  HSDPA) requires significantly more bandwidth
  resulting in prohibitive recurring costs for
  Mobile Backhaul
• Leased Line, PDH Radios and SONET/SDH doesnt
  provide the Packet Awareness that is mandatory
  for Mobile Backhaul of data applications
• Lower costs Packet based networks (Ethernet) can
  not be used as cell-site equipment uses TDM and
  ATM protocols
• The Solution
• Use Pseudo-Wire to carry Mobile Backhaul traffic
  over any type of Packet Access networks
• Proven compatibility with TDM, ATM, IP equipment
  for support of any type of Mobile networks (GSM
  and CDMA, 2G and 3G)
• Use Carrier Ethernet, xDSL, EPON/GPON, WiMax and
  HFC for Mobile Backhaul
• The Benefits
• Dramatic reduction in operating expenses
  (50-90!)
• Improved returns for 2G and 3G network

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The Killer App. Mobile Wireless Backhaul over
Packet Access
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The Pseudo-Wire Market Market Timing is Right -
Opportunity is Huge

• Mobile/wireless operators are ready
• 3G is happening now, HSDPA and EV-DO just started
• Leased lines are not a scalable solution for 3G
  backhaul
• Availability of Ethernet services is growing
• Carrier Ethernet providers and cable MSOs wants
  to enjoy the very large opportunity
• Leased line services revenue is still 22B per
  year and growing
• Big portion of it is coming from Mobile Backhaul
• Strong Echo System between Mobile operators and
  carrier Ethernet providers
• Residential Services and Ethernet Services are
  not enough to grow the revenue and maintain good
  margins
• Installed base of over 2.5M Mobile Cells that
  requires more cost effective backhaul solution is
  a huge potential market

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Axerra Technology Advantages Comprehensive
Pseudo-Wire Solution Set
PoP/CO
CLE
Virtual PoP

• Axerra put a huge investment in the Pseudo-Wire
  technology
• 250 man years of engineers with 10 years of
  experience on average
• Technology is protected by Six patents (Five
  pending, One in process)
• Early exposure to the market needs as result of
  the Ericsson relations
• Axerra has real technology advantage
• The only solution that scales from BTS/NodeB
  (cell site) to BSC/RNC (CO)
• The only solution that works with any type of
  mobile network
• The only solution supporting the robust UMTS
  clocking requirements

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Axerra CompetitionCompetitor Landscape
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The Pseudo-Wire Company Axerra Recent Milestones
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The Pseudo-Wire Company Axerra Ready for
Take-off

• Technology leader in fast emerging market
• Strong momentum with world class OEM and SI
  partners
• Exceptional RD team
• Right combination of experience and Innovation
  with proven ability to deliver innovative
  solutions with carrier reliability
• Five patents pending for protocol and hardware
  innovations
• Strong core sales teams in USA, EMEA, and APAC
• Veteran sales and marketing team
• Experienced at selling and supporting carrier
  multi-service
• Well connected with top-tier service providers
• First-class contract manufacturer with
  Sanmina-SCI
• ISO-certified, with operations on 5 continents
• Full Turn Key solution
• Ability to ramp-up

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The Pseudo-Wire Company
gil_at_axerra.com