Comparing Alternative Approaches for Ethernet-Optical Transport Networks
There are three approaches that vendors are advocating for an NGN transport infrastructure optimized to handle Ethernet services.
IP over WDM
(Intelligent Packet over Optical Transport)

- Transport layer comprises OADMs from the access networks, and some optical switches in the core
- Keeps the optical layer as "dumb fat pipes" and extends MPLS to the edge
- No real separation of services and transport layer
- Generates proliferation of ports on layer 2/3 routers as traffic traverses to service layers for switching
- Added complexity
Carrier Ethernet Overlay
(Intelligent Ethernet over Optical Transport)

- Transport layer comprises OADMs from the access networks, and some optical switches in the core
- This model aims to deal with scalability issues by putting an end-to-end layer 2 layer between service and transport layers
- Adds complexity by forcing fixed correlation between service nodes and the transport network
- Blurs boundary between service and transport layers
Carrier Ethernet Transport
(Integrated Optical & Ethernet Tunnel Networking)

- The transport layer incorporates flexibility by using switches instead of OADMs to become a switched architecture
- Manages wavelengths, sub-wavelengths and Ethernet tunnels
- Adds "just enough" layer 2 functionality to the optical layer to provide end-to-end Ethernet connection without burdening the optical layer with standard layer 2 functionality and cost
- Clear delineation of service layer and transport layer, thus delivering scalability and flexibility
- Keeps traffic in the optical domain, sending traffic to the service layer only when necessary
- Switching in optical layer enables deterministic, end-to-end connections that can support SLAs
- Reduces metro head-end Gig E port consumption and reduces requirement for separate aggregation system between packet and optical layers
- Very comfortable model for transport organizations, as paths are set-up through the network like you would with SDH or ATM
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