EXHIBIT 10.8
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated by [*****]. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.
VIA Net Works Europe Holding B.V.
Customer Agreement
(Ref.: C450004)
(for an IRU of a Unit of Capacity)
Issue 1.1
Date: 21/07/99
--------------------------------------------------------------------------------
Page 1 of 10
DOCUMENT DETAILS
Author Xxxx Xxxxxxx (Marketing - Product Manager)
--------------------------------------------------------------------------------
Current Version Issue 1.1
--------------------------------------------------------------------------------
Date 21/07/99
--------------------------------------------------------------------------------
Document Reference i:\sweeneym\contracts\via networks\via net
works customer agreement.doc
--------------------------------------------------------------------------------
AMENDMENT RECORD
Version Date Issue/Amendment Details
Released
--------------------------------------------------------------------------------
Issue 1.1 21/07/99 Issue 1.1 incorporating final comments.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 2 of 10
IAXIS - CUSTOMER AGREEMENT FOR AN IRU OF CAPACITY
Customer Reference Number: C450004
This Agreement sets out the terms and conditions of the relationship between
iaxis Limited ("iaxis") whose address is 00 Xxxxxxx Xxxx Xxxxxx, Xxxxxx, XX0 0XX
and VIA Net Works Europe Holding B.V. (the "Customer") whose address is Xxxxx
000X-0, 0000 XX Xxxxxxxxx, Xxxxxxxxxxx with company registration number
34115551.
1. Definitions
To make sure that this Agreement is clear and unambiguous, the following
definitions are used to clarify certain words, phrases and/or expressions used
in this Agreement:
"Associated Company" means any person or entity controlled by, controlling, or
under common control with either party, as defined in Sections 736 and 736A of
the Companies Xxx 0000 (or its replacement or amendment).
"Agreement" means this Agreement together with any Order(s), Service Level
Agreement and Technical or Product Specifications, as agreed between both
parties and forming part of this Agreement.
"Capacity" means either an Open Optical Link ("OOL") or the bandwidth ordered
under this Agreement either as a part of the iaxisenroute network or as
otherwise agreed.
"Customer Equipment" means all equipment, systems, cabling and facilities
provided by the Customer, or purchased by iaxis on behalf of the Customer and
used in conjunction with the Capacity.
"Duration" shall be the duration of this Agreement and Order(s).
"iaxis Equipment" means the equipment, systems, cabling and facilities which
form part of the Capacity and which is provided by iaxis or its third party
suppliers.
"iaxisenroute network" means the European terrestrial fibre optic cable system
including the iaxis Points of Presence ("PoPs"), all iaxis Equipment and system
interface points as may be provided by iaxis.
"IRU" means an indefeasible right of use of a unit of capacity on all or a part
of the iaxisenroute network, as iaxis may be capable of granting from time to
time
"Order" means the order form supplied to the Customer on which the terms agreed
between the parties are found in respect of the Capacity under this Agreement
and any Service Level Agreements, Technical or Product Specifications, or other
attachments.
"us", "we" or "our" means iaxis
"you", or " your" means the Customer
--------------------------------------------------------------------------------
Page 3 of 10
2. SERVICE PROVISION
On signing this Order, we hereby grant you an IRU in the agreed Capacity on the
iaxisenroute network, for the Duration. We represent, warrant and covenant that
you will peaceably and quietly have enjoyment of all pertinent rights of use of
the IRU in the agreed Capacity.
3. OPERATIONAL CLAUSES
3.1 iaxis' Obligations
We will use the reasonable care and skill of a Capacity provider in providing
the Capacity to you, and will operate and maintain the Capacity to the service
levels in accordance with the Service Level Agreement ("SLA"). In fulfilling
our obligations as set forth in the SLA and the Order Form attached hereto and
this Agreement, we shall use reasonable endeavours not to provide any preference
for the repair of our or any other party's facilities and to perform such
services in a manner that does not discriminate against you.
All of our Customers are important to us and therefore if we fail to achieve the
service levels, we will pay you the compensation set out in the SLA, which SLA
dated July 21st 1999 is attached to this Agreement and is a part of this
Agreement and our relationship with you. We also agree that any compensation
schemes referred to in the SLA are not exclusive and you are free to pursue any
other remedies that may be available to you at law or in equity in respect of
any material breach by us of this Agreement.
To the extent that the same are required we have and/or will obtain and use
reasonable endeavours to maintain all regulatory licenses, consents and
approvals necessary for us to enter into this Agreement and to meet our
obligations hereunder.
We shall use all reasonable endeavours to ensure that all iaxis Equipment and
the iaxisenroute network used to provide the Capacity is "Year 2000 Compliant",
as defined herein. We shall, to the extent that we are able to do so, pass on to
you the benefit of, and supply you if requested with appropriate copies of, any
guarantees, representations and warranties provided to us by our contractors and
suppliers relative to the extent of iaxis Equipment and the iaxisenroute network
being Year 2000 Compliant. "Year 2000 Compliant" means that any function of the
iaxis Equipment and the iaxisenroute network containing or calling on a calendar
function, including, without limitation, any function indexed to the CPU clock,
and any function providing specific dates or days, or calculating spans of dates
or days, shall record, store, process, provide and, where appropriate, insert,
true and accurate dates and calculations for dates and spans prior to, including
and following January 1, 2000 and shall correctly recognize and process the date
of February 29, and any related data, during leap years and that the iaxis
Equipment and the iaxisenroute network shall continue to operate in accordance
with the service levels set forth in the SLA prior to, including and following
January 1, 2000 without error, interruption or decreased performance relating to
date/time data.
In the event that it becomes known to us that any iaxis Equipment or any part of
the iaxisenroute network is not or may fail to be Year 2000 Compliant by
December 31 1999 we hereby undertake to notify you in writing at the earliest
practicable opportunity.
We have clearly set out the promises that we make in this Agreement and
therefore all implied representations and warranties are excluded.
--------------------------------------------------------------------------------
Page 4 of 10
3.2 Customer's Obligations
3.2.1 You, our Customer, agree to:
(i) pay all amounts due to us in full and in accordance with this Agreement
without any set-off or deduction, provided, however, that you will not be
required to pay any amounts which are in good faith dispute until such
time as the dispute has been resolved;
(ii) provide us and our authorised agents with reasonable access to your
premises so that we can fulfil our obligations under this Agreement;
(iii) provide us with such space and environmental operating conditions as both
of us have agreed are necessary to allow us to keep to our obligations
under this Agreement; and
(iv) ensure, to the extent that the same are required, that you have and/or
will obtain and use all reasonable endeavours to maintain all regulatory
licenses, consents and approvals necessary for you to enter into this
Agreement and to meet your obligations hereunder.
3.2.2 You also agree not to:
---
(i) interrupt or interfere with the use of any other Capacity on the
iaxisenroute network; or
(ii) prevent the use of similar equipment by other owners or operators of the
iaxisenroute network; or
(iii) impair the privacy of any communications over such iaxisenroute network;
or
(iv) damage any equipment; or
(v) create hazards to either of us, our Associated Companies or agents, or any
other user, owner or operator of the system or the public
in your use or operation of the Capacity. Notwithstanding anything herein to
the contrary, you shall not be deemed to have breached this Section 3.2.2
provided that your use of the Capacity was for the purposes agreed with us and
subject to compliance with any specific written instructions reasonably given to
you which are consistent with the purposes of this Agreement.
3.3 Acceptance Test Procedure
Prior to handover of the Capacity, and as set out in the SLA, you may attend the
acceptance testing of the Capacity to be provided as agreed in the Order. We
will deliver the Acceptance Test results to you on their successful completion.
3.4 Payment
Payment terms will be as set out in the Order, however the following will also
apply:
(i) You will be responsible for all amounts due for the Duration.
(ii) We may charge interest on any overdue amounts at a rate of 3% over LIBOR
or its substitute or replacement in force at any given time and interest
will continue to accrue on overdue amounts, whether or not this Agreement
has been terminated.
(iii) All amounts due to us will be exclusive of VAT or other appropriate tax
with respect to such amounts, which shall not include taxes due with
respect to our income, which tax if lawfully due, you will pay to us in
addition to the sums due for the Capacity.
--------------------------------------------------------------------------------
Page 5 of 10
3.5 Assignment
We may assign or sub-contract this Agreement to any of our Associated Companies
or anyone else upon notifying you in writing. However, if we do this, we will
remain liable to you for our obligations under this Agreement.
You may make (A) a collateral assignment of your rights hereunder to one or more
of your or your affiliates' lenders, and (B) a lease of any excess Capacity not
required by you, provided that no lessee shall be a third party beneficiary of
this Agreement or have any rights or claims against us for any reason whatsoever
PROVIDED THAT
(i) You do not lease, re-sell, assign or attempt to re-sell or assign more
than was granted or rented to you under this Agreement;
(ii) You remain liable to us for the performance of your obligations to us
under this Agreement; and
(iii) You do not lease, re-sell or assign any Capacity greater than a single
STM-1.
Provided that the above requirements of clauses (i), (ii) and (iii) are met, and
you have obtained our prior written approval which shall not be unreasonably
withheld you may make (C) an assignment to any present or future affiliated
company or to an entity controlled by, under the same control as, or
controlling, you; and (D) an assignment incidental to the transfer of all or
substantially all of your business or a substantial portion of your business
(which shall include, without limitation, a transfer of assets).
3.6 Notices
Any notice required by this Agreement must be made in writing and delivered to
the other party (either by hand, by first class registered mail, or by facsimile
with a hard copy by first class registered mail) at the following addresses:
The Customer:
VIA Net Works Europe Holding B.V.
c/o VIA XXX.XXXXX, Inc.
00000 Xxxxxx Xxxxx Xxxx, Xxxxx 000
Xxxxxx, XX 00000 XXX
Fax: 000-000-0000
Marked for the attention of Xxxx X. Xxxxxx, Esq., V.P., General Counsel and
Secretary:
The Service Provider:
iaxis Limited
00 Xxxxxxx Xxxx Xxxxxx
Xxxxxx
XX0X 0XX
Fax x00 000 000 0000
Marked for the attention of Xxx XxXxxx, Chief Operating Officer
--------------------------------------------------------------------------------
Page 6 of 10
In the event either party changes its address, the other should be notified
immediately in writing.
Any notice or demand is deemed to have been received at the time of delivery, if
delivered by hand, 7 days after posting, if sent by first class registered post,
or on the date of transmission if sent by facsimile, if followed by postal
notice.
4. LEGAL CLAUSES
4.1 Entire Contract
This Agreement shall be the whole agreement between both of us and will
supersede any previous agreement that may exist between us in respect of the
subject matter of this Agreement. Any changes that we wish to make to this
Agreement shall only be valid if agreed in writing by both of us.
4.2 Relationship
Neither of us is the agent, partner, or representative of the other.
4.3 Termination
If either of us is in material breach of this Agreement (i.e. a breach not
reasonably capable of remedy), the other can terminate this Agreement with
immediate effect upon written notice.
4.3.1 If the breach is capable of remedy, then the same shall be remedied within
a reasonable time, having regard to the nature of the breach. Compliance
with a notice to remedy shall not exceed 14 days of receipt of a written
notice to remedy, failing which the notifying party may at its option
terminate this Agreement immediately upon written notice to the other.
In addition to the above, if either of us:
(i) becomes insolvent (according to the definition contained in section 123 of
the Insolvency Xxx 0000 or its replacement), or
(ii) makes, or seeks to make, any arrangement with its creditors, or otherwise
seeks protection from its creditors under any law in any jurisdiction, or
(iii) allows or suffers a liquidator, receiver, administrator, trustee, or any
other custodian to be appointed to manage the business or take possession
of any part of that party's property and assets, or
(iv) proceedings have been commenced for dissolution, liquidation, or winding
up whether voluntary or otherwise, or
(v) ceases to continue trading
the other party may choose to terminate this Agreement immediately upon
written notice to the other.
--------------------------------------------------------------------------------
Page 7 of 10
4.3.2 In addition to Termination, we have the option to suspend this Agreement
by disconnecting you or otherwise (and your equipment) from the
iaxisenroute network, if:
(i) you fail to pay any amount due, or
(ii) you have materially damaged (or in our reasonable opinion are likely to
materially damage) the iaxisenroute network, or
(iii) you are otherwise in breach of the terms of this Agreement;
provided, however, that we shall first provide you with written notice of
such failure, damage or potential damage or breach, and you shall comply
with the time limit stated in the notice (which shall be reasonable
having regard to the nature of the breach, and further which shall be not
less than 14 days except under circumstances in which in our reasonable
opinion you are likely to materially damage the iaxisenroute network) in
which to remedy such failure, damage or potential damage or breach.
4.4 Consequences of Termination
If we terminate this Agreement you will disconnect and remove your Equipment
from the iaxisenroute network. If the termination is due to your fault, we may
carry out this work at your expense and you agree to pay us for this.
If there are any amounts due to us under this Agreement, then the termination of
this Agreement will not enable you to refuse to pay those amounts to us.
4.5 Force Majeure
4.5.1 Neither party will be liable to the other for any failure to perform its
obligations under this Agreement if anything happens beyond its
reasonable control, which includes but is not limited to an Act of God,
inclement weather, act or omission of government or other competent
authority, military operations, war, riot, insurrection, or other civil
disturbance. Failure of a subcontractor to either of the parties to
fulfil its obligations to such party shall not be deemed to be an event
beyond the reasonable control of such party for purposes of this
Agreement.
4.5.2 If as a result of any such circumstances we are unable to perform this
Agreement and the Capacity is unavailable for use by you for a period
longer than sixty (60) days, you shall be entitled, upon written notice
to us, to terminate this Agreement and receive a pro-rata refund of any
amounts paid with respect to the IRU in the Capacity based upon the
remaining term of the Duration plus a pro-rata portion of any maintenance
paid for the term then in effect plus any amount paid for any future
maintenance term.
--------------------------------------------------------------------------------
Page 8 of 10
4.6 Liability
Neither party limits its liability for causing death or personal injury due to
its negligence or intentional misconduct.
The maximum liability either party has to the other under this Agreement for any
direct loss, other than payments properly due under this Agreement, is limited
to (Pounds)1,000,000 (one million pounds sterling) for any one event or series
of connected events, subject to a maximum of (Pounds)5,000,000 (five million
pounds sterling), in any twelve month period.
Neither party will be liable to the other for any indirect or consequential
loss or damage, which includes loss of bargain, loss of business, loss of
contract, loss of future profit, loss of opportunity, loss of savings, loss of
sales, or loss of turnover including negligence however caused.
Our relationship is with you and therefore you also agree to indemnify us from
any claims from a third party who has a relationship with you where you supply
services over the iaxisenroute network.
4.7 Waiver and Severability
No delay, tolerance, or indulgence by either party shall constitute a waiver of
its rights and in the event that any part of this Agreement is found to be void,
invalid or unenforceable, it will not affect the remainder of the Agreement.
4.8 Maintenance
We will give you at least 5 days notice of our intention to carry out any
scheduled maintenance that might affect you or the provision of the Capacity to
you. Sometimes we need to carry out emergency maintenance and if we do, we will
give you as much notice as is reasonably possible in the circumstances.
4.9 Internal Escalation
Should a dispute arise between the parties, both parties will attempt to resolve
the dispute in accordance with the following procedure:
Any dispute which cannot be resolved within 14 days of first arising may be
escalated to a line manager (or equivalent) in writing, and if it is not
resolved within a further 7 days, may be escalated by notice in writing to
senior management:
i) Our line manager is the Director of Operations
Your line manager is the ISP Systems Engineer
ii) Our senior management is the Chief Operating Officer and/or Chief
Executive Officer. Your senior management is the President and/or Chief
Executive Officer.
The procedure in this paragraph does not prevent either party from having
recourse to the courts if the circumstances necessitate it.
--------------------------------------------------------------------------------
Page 9 of 10
4.10 Governing law
This Agreement shall be interpreted in accordance with the English law and both
parties agree to have it dealt with in the exclusive jurisdiction of the English
Courts.
Signed for and on behalf of the VIA Signed for and on behalf of
Net Works iaxis
/s/ J. De Bosdari
----------------------------------- -------------------------------
By: By: J. De Bosdari
Title: Title: Business Development
Director
Date: Date: 27/7/1999
By: VIA XXX.XXXXX, Inc., its
Managing Director
By: /s/ Xxxx Xxxxxx
---------------
Xxxx Xxxxxx, its Vice President & General Counsel
July 21, 1999
--------------------------------------------------------------------------------
Page 10 of 10
VIA Net Works Europe Holding B.V.
Order Form - IRU
(Ref.: C450004/OF1)
Issue 1.1
Date: 21/07/99
--------------------------------------------------------------------------------
Page 1 of 5
DOCUMENT DETAILS
Author Xxxx Xxxxxxx (Marketing - Product Manager)
--------------------------------------------------------------------------------
Current Version Issue 1.1
--------------------------------------------------------------------------------
Date 21/07/99
--------------------------------------------------------------------------------
Document Reference i:\sweeneym\contracts\via networks\via net
works order form - iru.doc
--------------------------------------------------------------------------------
AMENDMENT RECORD
Version Date Issue/Amendment Details
Released
--------------------------------------------------------------------------------
Issue 1.1 21/07/99 Issue 1.1 incorporating final comments.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 2 of 5
*****Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.*****
--------------------------------------------------------------------------------
Customer Name VIA Net Works Europe Holding B.V.
Registered Office Xxxxxxx Xxxxx 000X-0, 0000 XX Xxxxxxxxx, Xxx
Xxxxxxxxxxx, registration number 34115551
Invoice Address 00000 Xxxxxx Xxxxx Xxxx,
Xxxxx 000, Xxxxxx, XX 00000, XXX
Contact Information Contact: Xx X.X. Xxxxxx (II)
Tel. 000 000-000-0000
Fax. 000 000-000-0000
--------------------------------------------------------------------------------
Service Provider iaxis Limited (Registered number 3545698)
Registered Office Address 00 Xxxxxxx Xxxx Xxxxxx, Xxxxxx, XX0X 0XX
Business Address 00 Xxxxxxx Xxxx Xxxxxx, Xxxxxx, XX0X 0XX
Customer Point of Contact Contact: Xxxxxxx Xxxxxx
Tel + 00 000-000-0000 Fax + 00 000-000-0000
--------------------------------------------------------------------------------
Product Initial configuration is 3 * STM-1s (protected
SDH) point to point links configured as a ring
connecting the cities of London, Amsterdam,
and Dusseldorf, and expandable on customer's
schedule (subject to iaxis agreement on Phase
I - III implementation schedule) to 7 * STM-1s
(protected SDH) point to point links
configured as a ring connecting seven cities.
--------------------------------------------------------------------------------
Bandwidth Initial configuration is 3 * STM-1s (i.e. 3 *
155 Mbps circuits) expandable on customer's
schedule (subject to iaxis agreement on
Phase I - III implementation schedule) to 7 *
STM-1s (i.e. 7 * 155 Mbps circuits).
--------------------------------------------------------------------------------
Payment Option IRU
--------------------------------------------------------------------------------
Term 20 years
--------------------------------------------------------------------------------
Ready for Service (RFS) Date 5th August 1999 for first three circuits.
--------------------------------------------------------------------------------
Initial Charge Initial charge of [*****] payable 7 (seven)
calendar days after signing of Customer
Agreement and associated Order Form(s).
Residual payment of [*****] payable on 1st
December 1999.
Total payment includes all 7 STM-1s (protected
SDH) point to point links configured as a ring
connecting 7 cities.
--------------------------------------------------------------------------------
Page 3 of 5
*****Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.*****
--------------------------------------------------------------------------------
Recurring Charge [*****] per annum will be invoiced and
(O&M Costs) payable quarterly in advance for the
Duration from the RFS date.
First payment of [*****] due on RFS date.
--------------------------------------------------------------------------------
Recurring Interval Quarterly in advance for the Duration.
--------------------------------------------------------------------------------
Customer Agreement Number and Date Customer Agreement ref. C450004 dated
21/07/99
--------------------------------------------------------------------------------
Service Level Agreement (SLA) Service Level Agreement ref. C450004/SLA1
Reference and Date dated 21/07/99
--------------------------------------------------------------------------------
Technical Specification Not applicable
(if applicable)
--------------------------------------------------------------------------------
This Order Form ("Order") forms the basis of an Agreement between iaxis and VIA
Net Works Europe Holding B.V. which is effective from the date of signature by
both parties.
The Agreement consists of:
1. this Order;
2. the Customer Agreement C450004 prepared on 21/07/99;
3. the Service Level Agreement C450004/SLA1 prepared on 21/07/99;
4. the Product and/or Technical Specifications [references]; and
5. any attachments.
If there is any discrepancy between this Order and the Customer Agreement, this
Order will take precedence.
If there are to be any attachments or amendments, they should be listed here:
1. Attachments
2. Customer Agreement amendments (incorporated into Customer Agreement ref.
C450004)
3. Service Level Agreement amendments (incorporated into Service Level
Agreement ref. C450004/SLA1)
4. Technical Specification amendments (not applicable)
--------------------------------------------------------------------------------
Page 4 of 5
Upon signing this Order iaxis will sell to you and you will take, for the
Duration, an Indefeasible Right of Use (IRU) of a unit of Capacity on all or
part of the iaxisenroute network or System, as described in this Order, subject
to the terms of the Customer Agreement (the "Agreement") referred to herein.
iaxis will ensure your quiet enjoyment of the IRU subject to your compliance
with the terms of the Agreement.
Signed for and on behalf of VIA Net Works: Signed for and on behalf of iaxis:
/s/ J. De Bosdari
------------------------------------------ ----------------------------------
By: By: J. De Bosdari
Title: Title: Business Development
Director
Date: Date: 27/7/1999
By: VIA XXX.XXXXX, Inc., its
Managing Director
By: /s/ Xxxx Xxxxxx
---------------
Xxxx Xxxxxx, its Vice President & General Counsel
July 21, 1999
--------------------------------------------------------------------------------
Page 5 of 5
--------------------------------------------------------------------------------
VIA Net Works Europe Holding B.V.
Service Level Agreement
(Ref.: C450004/SLA1)
Issue 1.1
Date: 21/07/99
--------------------------------------------------------------------------------
Page 1 of 30
--------------------------------------------------------------------------------
DOCUMENT DETAILS
--------------------------------------------------------------------------------
Author Xxxx Xxxxxxx (Marketing - Product Manager)
--------------------------------------------------------------------------------
Current Version Issue 1.1
--------------------------------------------------------------------------------
Date 21/07/99
--------------------------------------------------------------------------------
Document Reference i:\sweeneym\contracts\via networks\via net
works sla.doc
--------------------------------------------------------------------------------
AMENDMENT RECORD
--------------------------------------------------------------------------------
Version Date Issue/Amendment Details
Released
--------------------------------------------------------------------------------
Issue 1.1 21/07/99 Issue 1.0 incorporating final comments.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 2 of 30
--------------------------------------------------------------------------------
Contents
1.0 iaxisenroute European Points of Presence (PoPs)......... 5
1.1 Service Locations..................................... 5
1.2 iaxisenroute Pan-European Network..................... 5
2.0 Network Operations & Fault Management................... 7
2.1 Overview.............................................. 7
2.2 Fault Reporting and Service Levels.................... 7
2.3 Fault Handling........................................ 8
2.4 Services Provided..................................... 8
3.0 Key Performance Indicators.............................. 9
3.1 Network Availability - Optical Circuits............... 9
3.2 Service Availability - Protected SDH Circuits......... 9
3.3 Service Availability - Unprotected SDH Circuits....... 9
3.4 NOC Response Times.................................... 10
3.5 Repair Times:......................................... 10
3.5.1 Fibre Faults...................................... 10
3.5.2 CIENA and Nortel equipment:....................... 10
3.5.3 Building Environmental Alarms..................... 10
3.5.4 Fault Classification.............................. 11
4.0 Procedures.............................................. 12
4.1 Fault Management Procedure............................ 12
4.2 Escalation Procedure.................................. 14
4.3 Change Management Procedure........................... 16
4.4 Service Interruption Procedure........................ 18
4.5 Management Reporting.................................. 20
4.6 Planned Maintenance................................... 20
4.7 Customer Visits....................................... 20
5.0 Service Levels and Compensation Schemes................. 21
5.1 Services Covered...................................... 21
5.2 Ready For Services (RFS) Dates........................ 21
5.3 Services Restoration Time (SRT)....................... 21
5.3.1 IRUs.............................................. 21
5.3.2 Rentals........................................... 22
5.4 Service Availability.................................. 22
5.4.1 SDH Service Availability.......................... 22
5.4.2 Optical & Unprotected SDH Circuit Service 23
Availability......................................
5.5 Cancellation of Service by Customer................... 23
5.5.1 IRUs.............................................. 23
5.5.2 Rentals........................................... 24
5.6 Conditions of Service Level Agreement................. 24
5.6.1 IRUs.............................................. 24
5.6.2 Rentals........................................... 24
--------------------------------------------------------------------------------
Page 3 of 30
--------------------------------------------------------------------------------
6.0 Acceptance Tests........................................ 25
6.1 ITU-T Recommendations................................. 25
6.2 iaxis Acceptance Test................................. 25
7.0 Open Optical Links (OOLs)............................... 26
7.1 Technical Data........................................ 26
8.0 SDH Service - Technical Overview........................ 27
8.1 Managed SDH Service................................... 27
8.2 iaxisenroute SDH Network.............................. 27
8.3 Main Advantages of the iaxisenroute SDH Network....... 27
8.4 Conformance to Standards.............................. 27
8.5 Functionality......................................... 28
8.6 Protection Approach................................... 28
8.7 Network Management Capability......................... 29
8.8 Main iaxisenroute Network SDH Components.............. 29
8.8.1 Nortel TN-16X..................................... 29
8.8.2 Nortel TN-4X/E.................................... 30
8.8.3 Nortel TN-1X...................................... 30
9.0 Operation & Maintenance Costs........................... 31
--------------------------------------------------------------------------------
Page 4 of 30
------------------------------------------------------------------------
1.0 iaxisenroute European Points of Presence (PoPs)
1.1 Service Locations
To date iaxisenroute has Points of Presence (PoPs) capable of providing fully
managed (SDH), dedicated, point-to-point, bandwidth services at the following
European locations:
------------------------------------------------------------------------
Xxxxx 0 Xxxxx 0 Xxxxx 0
------------------------------------------------------------------------
. London . Hamburg . Madrid
. Paris . Bremen . Barcelona
. Strasbourg/Kehl . Hanover . Bordeaux
. Frankfurt . Leipzig . Marseille
. Dusseldorf . Nurnberg . Toulouse
. Amsterdam . Berlin . plus others still to be
. Rotterdam . Munich determined
. Antwerp . Stuttgart
. Brussels . Zurich
. Geneva
. Xxxxx
. Milan
. Copenhagen
--------------------------------------------------------------------------------
Notes
1. Open Optical Link (OOL) breakout capability is currently available at all
Phase 1 PoPs except for the Strasbourg/Kehl PoP which will be available in
October 1999.
2. Additional breakout points may be provided at Customer's request (at
additional cost).
1.2 iaxisenroute Pan-European Network
iaxis will use its best endeavours to deploy the iaxisenroute network throughout
Europe in three distinct phases (or rings). Phase 1 will be lit by June 1st;
Phase 2 should be lit by September 31st; and Phase 3 should be lit by December
31st 1999.
The iaxisenroute fibre ring comprises 1 fibre pair and employs advanced Ciena
DWDM technology to increase bandwidth capacity. The Ciena equipment provides
initially for up to 40 distinct wavelengths at a capacity of 2.5 Gigabits per
wavelength (a total of 100 Gigabits). Based on Ciena technology currently under
development and expected to be available in July 2000, iaxis should be able to
expand the iaxisenroute network capacity to 96 wavelengths, and by December 2000
to 192 wavelengths each with 10 Gigabits of capacity, which will bring the total
capacity to two Terabits. iaxis can achieve this increase in capacity on its
existing pair of fibre optic cables without laying or leasing additional fibre
optic cables or incurring significant costs and network downtime. iaxis is the
first telecommunications company in Europe to utilise Ciena's 96-wavelength
system technology.
--------------------------------------------------------------------------------
Page 5 of 30
2.0 Network Operations & Fault Management
2.1 Overview
iaxis will manage the network 24 hours a day * 7 days a week * 52 weeks a year
from its Network Operations Centre (NOC). A full-time NOC team manages the
network to ensure stated service levels are achieved. The NOC shall proactively
monitor services and automatically flag service-affecting faults. Customer shall
be notified and fault reports shall be made available to the Customer whenever
service-affecting faults occur.
The NOC is a secure facility offering a Single Point of Contact (SPOC) for all
iaxis Customer calls and is the interface between Customer and iaxisenroute
Network Operations. A single telephone number in the NOC will be provided where
all calls are processed.
iaxis will provide a single point of contact (SPOC) for use by Customer to
address payment issues and provide billing support.
Customer will have remote access capability to allow direct monitoring of
network performance.
2.2 Fault Reporting and Service Levels
All faults will be reported to iaxis Network Operations personnel on a number
located in the iaxis NOC. Faults may also be automatically detected by one of
the network management tools available to the Network Operations Centre
engineers. On receipt of a fault report or automatic detection of a fault, NOC
engineers shall initiate primary diagnostics with the intent of clearing the
fault remotely. If this is not possible, first-line maintenance personnel shall
be despatched to site to clear the fault. Iaxis shall also inform Customer of
the fault and shall continue to provide updates and advisory information
necessary to keep Customer fully informed of progress towards fault resolution
and restoration of service.
All faults shall be recorded on the iaxis Fault Management System (FMS). The FMS
shall record all faults, date and time stamp them, and maintain a true and
accurate record of the progress of the fault resolution through to clearance.
The FMS shall permit tracing of all faults from initiation through to clearance.
Faults shall be recorded in sufficient detail to allow detailed post-fault
analysis and ensure that a record of the fault and actions taken is available
for future reference.
iaxis enters into a detailed Service Level Agreement (SLA) with each of its
fibre and equipment suppliers as well as each of its Customers. The FMS
configuration shall permit automatic checking of all faults against prevailing
SLAs to ascertain whether or not criteria have been met. All SLAs shall be
agreed prior to the service being handed over to ensure that the performance
criteria are both realistic and achievable.
Customers shall be able to view on-line their own service faults via a password
and username accessed web screen. This functionality will be further expanded
(date still to be finalised) to enable Customers to view progress associated
with service provisioning.
--------------------------------------------------------------------------------
Page 6 of 30
2.3 Fault Handling
All fault handling shall be managed in accordance with the procedure as outlined
in Section 3.1. All faults are shall be managed in accordance with the service
levels detailed below.
2.4 Services Provided
The NOC management team shall provide the following services:
. 24 hours per day x 7 days per week x 365 days per annum network management
. notification to customer of updates and current information as required
. alarm handling and management
. fault co-ordination and restoration of services
. network change management
. network and service interruption co-ordination and management
. network build provisioning and changes
. customer service provisioning and changes
. network and service reporting
. host Customer visits to the NOC
. preventive monitoring and maintenance
. preventive field maintenance and control
--------------------------------------------------------------------------------
Page 7 of 30
3.0 Key Performance Indicators
3.1 Network Availability - Optical Circuits
Targets Open Optical Links (OOL)
Equipment Fibre
----------------------------------------------------------------------
Availability % 99.95% 98.46%/1/
----------------------------------------------------------------------
Mean Time Between Failure (Years) 23.24 0.13
----------------------------------------------------------------------
Maximum Time To Repair (Hours) 4 18
----------------------------------------------------------------------
BER 10/-15/ N/A
----------------------------------------------------------------------
3.2 Service Availability - Protected SDH Circuits
Targets Single Tributary Card Duplicated Tributary Cards
Availability % 99.95% 99.99%/2/
-------------------------------------------------------------------------------------------
Mean Time Between Failure (Years) 24.99 24.99
-------------------------------------------------------------------------------------------
Maximum Time To Repair (Hours) 4 4
-------------------------------------------------------------------------------------------
BER 10/-15/ 10/-15/
-------------------------------------------------------------------------------------------
3.3 Service Availability - Unprotected SDH Circuits
Targets Unprotected SDH Circuits
SDH Equipment Point to Point Unprotected
Circuit
-------------------------------------------------------------------------------------------
Availability % 99.95% 98.46%/3/
-------------------------------------------------------------------------------------------
Mean Time Between Failure (Years) 24.99 0.13
-------------------------------------------------------------------------------------------
Maximum Time To Repair (Hours) 4 18
-------------------------------------------------------------------------------------------
BER 10/-15/ N/A
-------------------------------------------------------------------------------------------
Notes
1. (OOLs): A fibre availability of 98.46% is based on a network length of 3000
Km, 1 break per 400 Km per year, and an 18 hour fix time.
2. The basic level of service provided is a fully redundant (SDH) service.
3. Unprotected SDH point to point circuits provide the same level of network
availability as Open Optical Links.
4. Planned outages are not included in these performance figures.
--------------------------------------------------------------------------------
Page 8 of 30
3.4 NOC Response Times
Time to Answer Call Percentage of Calls Answered
-------------------------------------------------------------------------------
Calls answered within 10 seconds 95%
-------------------------------------------------------------------------------
Call back returned within 5 minutes 100%
-------------------------------------------------------------------------------
3.5 Repair Times:
Diagnosis and repair times shall be measured from the earliest time a fault is
detected in the iaxis NOC, either as a result of Customer reporting a fault or
of the NOC personnel or systems detecting the fault directly.
3.5.1 Fibre Faults
Target Repair Time - 18 hours
3.5.2 CIENA and Nortel equipment:
Fault Classification Diagnosis Time (from Fault Target Repair Time (Time to
detection) Restore Service)
-----------------------------------------------------------------------------------------------------------
Critical Fault 30 minutes 4 hours
-----------------------------------------------------------------------------------------------------------
Major Fault 30 minutes 8 hours
-----------------------------------------------------------------------------------------------------------
Minor Fault 2 hours Next working day
-----------------------------------------------------------------------------------------------------------
3.5.3 Building Environmental Alarms
Target Repair Times will be as per relevant support contract. Alarms will be
provided to ensure that environmental conditions such as temperature and
relative humidity are maintained.
---------------------------------------------------------------------------------------------------------
Environmental Conditions Range
---------------------------------------------------------------------------------------------------------
Normal temperature 0 - 40 degrees Celsius
---------------------------------------------------------------------------------------------------------
Short-term operating temperature -5 to +45 degrees Celsius
---------------------------------------------------------------------------------------------------------
Relative humidity 20 - 55% or 3.6Kpa water vapour pressure, whichever
is less, over normal operating temperature range,
no condensation
---------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 9 of 30
3.5.4 Fault Classification
1. A critical fault is service-affecting.
2. A major fault involves a loss of network or service diversity.
3. A minor fault is a configuration discrepancy, not service or diversity
affecting.
--------------------------------------------------------------------------------
Page 10 of 30
4.0 Procedures
4.1 Fault Management Procedure
All reported or suspected faults are managed as detailed below. A fault
management flowchart outlining the fault management procedure is presented in
Figure 1.
. Fault detected by Netcool or reported by Customer
. Fault located based on Netcool information and network management tools
. Log fault on FMS
. Inform iaxis Network Operations manager
. First-line primary diagnostics using network management tools
. If fault can be cleared remotely, clear, otherwise call out first-line
maintenance / field personnel / maintainers.
. If first-line maintenance fails, call out second-line support to clear fault.
. Fault escalation according to escalation procedure, if required.
. Following clearance, confirm on the fault management system and advise
Customer
. Clear on FMS, add reporting information:
. Fault start time
. Time to respond
. Time to site (if applicable)
. Clearance time
. Escalation procedure carried out (if applicable)
. Corrective and preventive action taken
--------------------------------------------------------------------------------
Page 11 of 30
[FLOW CHART]
Fault Management Procedure
Fault detected by Netcool or
reported by Customer
Fault located based on
Netcool-provided
information
Log fault on FMS
Inform iaxis Network
Operations manager (via
mobile telephone)
First-line primary diagnostics
using Network Management
System
Can fault be cleared Yes
remotely? Clear fault remotely
No
Call our relevant maintainers
as per Operational Contact
List
Regular updating of Network
Management System and iaxis
Operations Manager
Clear fault locally, escalate (if
required) as per Escalation
Procedure
Following clearance, confirm
clear on network management
system and with Customer
Update FMS, incorporating
management reporting
information:
. Fault start time
. Time to respond
. Time to site (if applicable)
. Clearance time
. Escalation proc carried out
. Corrective and preventive
action taken
Figure 1: Fault Management Procedure
--------------------------------------------------------------------------------
Page 12 of 30
4.2 Escalation Procedure
The flow diagram in Figure 2 outlines the Escalation Procedure that the iaxis
NOC uses whenever a fault needs to be escalated to a higher level within the
organisation. In finalising the operational interfaces between the Customer and
iaxis, it is accepted that the Escalation Procedure may need to be refined.
Escalation path is as follows:
--------------------------------------------------------------------------------
Escalation Level Contact Name (Position) Contact Number
--------------------------------------------------------------------------------
1 iaxis NOC Supervisor Tel: x00 000 000 0000
--------------------------------------------------------------------------------
2 (Network Operations Manager) Tel: x00 000 000 0000
Mobile: x00 000 000 0000
--------------------------------------------------------------------------------
3 (Technical Director) Tel: x00 000 000 0000
Mobile: x00 000 000 0000
--------------------------------------------------------------------------------
4 (Chief Operating Officer) Tel: x00 000 000 0000
Mobile: x00 000 000 000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 13 of 30
Escalation Procedure
[FLOW CHART]
Escalation
required
after 1 hour
LEVEL 1
Escalation
YES NO
After 2 hours LEVEL 2
Service Escalation
restored
YES NO
After 4 hours LEVEL 3
Service Escalation
restored
Customer YES YES After 6 hours
service affected Solution
Found?
NO NO
Liase with
customer LEVEL 4
Escalation
Implement Solution
solution agreed
Figure 2: Escalation Procedure
--------------------------------------------------------------------------------
Page 14 of 30
4.3 Change Management Procedure
The flow diagram in Figure 3 outlines the Change Management Procedure that the
iaxis NOC use whenever a change request is received.
. Customer issues circuit/network change request
. iaxis Network Operations standardise format
. Network Operations pass to NOC for network impact analysis
. NOC report findings back to Network Operations and await go-ahead
. If go-ahead not received, change archived as incomplete
. If go-ahead is given, NOC will implement circuit change using the network
management tools, within the agreed timescales
. NOC inform Network Operations when change is completed
. Network Operations update Network Information System (NIS)
. Network Operations archive change as complete
. Network Operations inform originator as to status of change
Please note that changes requested by a customer may impact the commercial
agreement.
--------------------------------------------------------------------------------
Page 15 of 30
Change Management Procedure
Customer issues
circuit/network change
request
Network Operations
standardise format
Network Operations pass
to NOC for network impact
analysis
NOC report findings back to
Network Operations and
await go-ahead
Go-ahead given by Network Operations
Network No archive change as
Operations? incomplete
Yes
NOC implement change on
Network Management
System, within agreed
timescale
NOC inform Network Operations
when completed
Network Operations update
NMS
Network Operations archive
change as complete
Operations inform
originator of status of
change
Figure 3: Change Management Procedure
--------------------------------------------------------------------------------
Page 16 of 30
4.4 Service Interruption Procedure
The flow diagram in Figure 4 outlines the Service Interruption Procedure that
iaxis NOC follows whenever a planned service interruption occurs.
. Network outage requested by iaxis
. Network Operations pass to NOC for network and Customer impact analysis
. NOC report findings back to Network Operations
. If authority to proceed not received, outage rescheduled, postponed or
abandoned
. Customer notifications sent out, warning of service interruption
. If authority to proceed not received from Customer, outage rescheduled,
postponed or abandoned
. NOC produce outage record
. Outage carried out in accordance with planned work procedure
. If outage did not proceed as planned, Network Operations carry out post-
failure investigation
. After outage, Network Operations produce report, review and recommendations
. In the event of planned works being imminent, when an unplanned outage on
another part of the network occurs, the planned works shall be postponed
until the fault has been cleared.
--------------------------------------------------------------------------------
Page 17 of 30
Service Interruption Procedure
[FLOWCHART]
Figure 4: Service Interruption
--------------------------------------------------------------------------------
Page 18 of 30
4.5 Management Reporting
The iaxis NOC will provide the following reports, to be delivered via e-mail or
other media as required by Customer, to Customer's NOC, and to other recipients
designated in writing by Customer:
. Fault report detailing Customer or network faults - analysis within 24 hours
. Ad-hoc Customer service reports, including:
. Service availability
. Service interruptions and downtime
. Service delivery against requirements
. Total number of faults
. Fault resolution against SLA
4.6 Planned Maintenance
iaxis shall maintain its buildings and equipment. Accordingly iaxis shall
provide its Customers with a comprehensive maintenance schedule which covers all
aspects of iaxis planned maintenance activities. It will include, among other
things, planned maintenance for active equipment, fibre, buildings and building
services. The network may be maintained by a number of parties under the
control of the iaxis Network Operations Manager who shall have overall
responsibility for the operational network.
iaxis shall perform preventive maintenance on all equipment contributing to the
iaxis network in accordance with manufacturers' specifications.
Planned maintenance activities will only be undertaken after prior consultation
with the Customer has taken place, and when the timing, frequency and duration
of the planned outage(s) has been mutually agreed. In situations where emergency
maintenance (e.g. for potentially service affecting faults) is required, prior
permission may not be sought from the Customer.
Downtime as a result of planned maintenance outages will not be included in the
Service Availability calculations and consequently will not incur compensation
payments from iaxis.
4.7 Customer Visits
Customer shall have the right to visit the iaxis NOC to observe NOC operations,
procedures, capabilities and equipment. Should Customers wish to visit the
iaxis NOC iaxis will agree mutually convenient times and make appropriate
arrangements for Customer visits in advance.
--------------------------------------------------------------------------------
Page 19 of 30
5.0 Service Levels and Compensation Schemes
iaxis is committed to providing high quality point-to-point and managed
bandwidth services to our Customers. This section details the service levels and
compensation schemes that apply to iaxis service provision.
5.1 Services Covered
All Open Optical Links and managed bandwidth services between the iaxis PoPs.
5.2 Ready For Services (RFS) Dates
iaxis target Ready For Service (RFS) dates are:
. 7 days for DS3 and STM-1 circuits
. 10 days for STM-4 and OOL circuits
. 15 days for STM-16 circuits.
When an order is placed with iaxis the RFS date shall be confirmed in writing.
If iaxis fails to meet this date and cannot demonstrate that the delay was
caused by circumstances beyond its reasonable control, the Customer shall be
entitled to compensation for late delivery.
For IRUs compensation will be in the form of a credit of 1% of the annual
Operating & Maintenance (O&M) charge for each working day or part thereof beyond
the agreed RFS date (up to a max. of 50 days).
For rentals compensation will be in the form of a credit of 1% of the annual
rental charge for each working day or part thereof beyond the agreed RFS date
(up to a maximum of 5 days).
5.3 Services Restoration Time (SRT)
The fault resolution process will be initiated immediately a fault has been
auto-detected by the FMS or has been reported to the NOC by the Customer.
In the event that iaxis fails to repair service-affecting faults of either fibre
or equipment within the Target Repair Time (TRT), measured from the agreed fault
start time, the Customer shall be entitled to compensation as detailed in the
table below. The Target Repair Time (TRT) referred to below is defined as the
time from the agreed fault start time to the time that the service is restored.
5.3.1 IRUs
Hours past Target Repair Time Percentage of the Operating & Maintenance Annual
Charge as Compensation (Cumulative)
--------------------------------------------------------------------------------
0 - 4 hours 0%
--------------------------------------------------------------------------------
between 4 - 6 hours 1%
--------------------------------------------------------------------------------
between 6 - 8 hours 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 20 of 30
--------------------------------------------------------------------------------
More than 8 hours up to 48 hours 1% for each successive four hours
--------------------------------------------------------------------------------
5.3.2 Rentals
Hours past Target Repair Time Percentage of the Annual Rental Charge as
Compensation
--------------------------------------------------------------------------------
Up to 4 hours 0%
--------------------------------------------------------------------------------
between 4 - 6 hours 0.25%
--------------------------------------------------------------------------------
between 6 - 8 hours 0.5%
--------------------------------------------------------------------------------
More than 8 hours up to 48 hours 0.25% for each successive four hours
--------------------------------------------------------------------------------
Compensation will not be payable for failure to repair non-service affecting
faults within the Target Repair Times for Minor Faults.
5.4 Service Availability
iaxis shall provide end-to-end circuit availability for all managed bandwidth
products in each 3 month period following the RFS date to the levels set forth
in this section. Where the availability of the service falls below the specified
levels the Customer shall be entitled to compensation in accordance with the
table below.
5.4.1 SDH Service Availability
Service Level Availability for IRU Rental
SDH Service Percentage of the Operating & Percentage of the Quarterly Rental
Maintenance Quarterly Charge as Charge as Compensation
Compensation
------------------------------------------------------------------------------------------------------------
Better than 99.99% 0% 0%
------------------------------------------------------------------------------------------------------------
Between 99.99 - 99.5% 3% 1.5%
------------------------------------------------------------------------------------------------------------
Between 99.5 - 99.0% 5% 2.5%
------------------------------------------------------------------------------------------------------------
Below 99.0% 7.5% 4.0%
------------------------------------------------------------------------------------------------------------
5.4.2 Optical & Unprotected SDH Circuit Service Availability
Service Level Availability for IRU Rental
Open Optical Links and Percentage of the Operating & Percentage of the Quarterly Rental
Unprotected SDH Circuits Maintenance Quarterly Charge as Charge as Compensation
Compensation
------------------------------------------------------------------------------------------------------------
Better than 98.46% 0% 0%
------------------------------------------------------------------------------------------------------------
Between 98.46- 98.0% 3% 1.5%
------------------------------------------------------------------------------------------------------------
Between 98.0 - 97.0% 5% 2.5%
------------------------------------------------------------------------------------------------------------
Below 97.0% 7.5% 4.0%
------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 21 of 30
Circuit Availability will be calculated on a quarterly basis from the
anniversary of the RFS date. The total time of Service Availability (SA) is
calculated as follows:
SA = (Ts * 100)/MST %
Where:
Ts = Total time for which service is available across all circuits during
the previous 3 month period
MST = Maximum Service Time, the total amount of time (maximum circuit
minutes) which the service could have been available across all
circuits i.e. the number of circuit minutes for 100% availability in
a given 3 month period.
5.5 Cancellation of Service by Customer
If a service is cancelled prior to the RFS date, iaxis reserves the right make a
Cancellation Charge to cover costs incurred as a result of the cancellation. The
level of these charges is laid out in the table below.
5.5.1 IRUs
New iaxis PoP or Breakout Point1 Existing iaxis PoP or Breakout
Point1
------------------------------------------------------------------------------------------------------------
Number of working days before Percentage of annual O&M Charge Percentage of annual O&M Charge
RFS date when cancellation payable as Cancellation Charge payable as Cancellation Charge
takes place
------------------------------------------------------------------------------------------------------------
0 - 5 100% 100%
-------------------------------------------------------------------------------------------------------------
6 - 10 80% 75%
-------------------------------------------------------------------------------------------------------------
11 - 20 70% 50%
-------------------------------------------------------------------------------------------------------------
21 - 30 50% 25%
-------------------------------------------------------------------------------------------------------------
31 - 40 25% 0%
-------------------------------------------------------------------------------------------------------------
More than 40 0% 0%
-------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Page 22 of 30
5.5.2 Rentals
New iaxis PoP or Breakout Point/1/ Existing iaxis PoP or Breakout
Point/1/
-----------------------------------------------------------------------------------------------------------
Number of working days before Number of Months Rental payable as Number of Months Rental payable as
RFS date when cancellation Cancellation Charge Cancellation Charge
takes place
-----------------------------------------------------------------------------------------------------------
0 - 10 3 months 2 months
-----------------------------------------------------------------------------------------------------------
10 - 20 2 months 1 month
-----------------------------------------------------------------------------------------------------------
20 - 30 1 month 0 months
-----------------------------------------------------------------------------------------------------------
More than 40 0 months 0 months
-----------------------------------------------------------------------------------------------------------
Note
1. A new iaxis PoP or Breakout Point is one where iaxis has no previous
presence; an existing iaxis PoP or Breakout Point is one where iaxis is
already present at the effective date.
5.6 Conditions of Service Level Agreement
When compensation is due to the Customer for failure to meet the Service
Restoration Time or Service Availability Targets in respect of any fault, then
whichever is the greater will apply.
Compensation for failure to meet Service Restoration Time will be calculated on
an annual basis commencing from the RFS date. Claims will be settled by the
issue of a credit note that may be used to offset future charges. At the end of
the minimum Contract Period the Customer may request an outstanding credit note
to be settled by the issue of a cheque to reduce the account to zero (provided
the customer account with iaxis is in credit).
5.6.1 IRUs
iaxis' aggregate liability under this Service Level Agreement in any 12 month
period for each circuit purchased as an IRU is limited to 50% of the annual
Operating & Maintenance charge in respect of failure to achieve the agreed RFS
date; 13% of the annual Operating & Maintenance charge for that period in
respect of failure to meet Service Restoration Times; and 7.5% of the annual
Operating & Maintenance charge for that period in respect of failure to meet
Service Availability targets.
5.6.2 Rentals
iaxis aggregate liability under this Service Level Agreement in any 12 month
period for each rental of a circuit is limited to 5% of the annual rental charge
in respect of failure to achieve the agreed RFS date; 3.25% of the annual rental
charge for that period in respect of failure to meet Service Restoration Times;
and 4.0% of the annual rental charge for that period in respect of failure to
meet Service Availability targets.
--------------------------------------------------------------------------------
Page 23 of 30
6.0 Acceptance Tests
6.1 ITU-T Recommendations
Prior to the RFS date for Capacity and upgrades, iaxis will conduct a 5-day
acceptance test. Acceptance testing shall be carried out on all xxxxxxxx (X0,
X0, XX0, XXX-0, XXX-0, XXX-00 and OOLs) as per the following ITU-T
recommendations:
. ITU-T Recommendation M2110 Bringing-into-service of International PDH paths,
sections and transmission systems and SDH paths and multiplex sections.
. ITU-T Recommendation M2100 Performance limits for bringing-into-service and
maintenance of international PDH paths, sections and transmission systems.
. ITU-T Recommendation M2101 Performance limits for bringing-into-service and
maintenance of international SDH paths and multiplex sections.
6.2 iaxis Acceptance Test
21 days prior to acceptance testing iaxis will provide Customer with a detailed
system and equipment specification including technical configuration,
performance data, and a detailed Acceptance Test Schedule for the Capacity and
equipment to be tested. The Customer shall be allowed to witness the tests.
Acceptance Test Schedule will detail the following:
. nature of the tests to be carried out
. order in which the tests will be carried out
. duration of each test
. pass/fail criteria for each test
. who is responsible for carrying out the test
. how the test will be witnessed by Customer's technical staff
. who is responsible for approving and signing-off the tests
. circumstances under which retesting is required
For each Capacity the following Circuit Acceptance Test testing will be applied.
Circuit Type Description of Test
--------------------------------------------------------------------------------
DS3 24 hour end-to-end BER test
--------------------------------------------------------------------------------
STM-1, STM-4, STM-16, and Open Optical Links 72 hour end-to-end BER test
--------------------------------------------------------------------------------
On successful completion of the circuit acceptance test iaxis will formally
handover the circuit (service) together with the acceptance test results. The
Customer will have 5 days to accept the circuit. Once Capacity has been formally
accepted and the acceptance test results signed-off Capacity billing will
commence.
--------------------------------------------------------------------------------
Page 24 of 30
7.0 Open Optical Links (OOLs)
7.1 Technical Data
An Open Optical Link (OOL) is a transmission channel of 2.5 Gbit/s between two
Points of Presence (PoP). This channel conforms to the technical standards set
out below as defined in ITU-T Standards. The facility includes all regeneration
of signals required between the two Points of Presence to maintain transmission
integrity. This is provided using dense wave division multiplexing (DWDM)
equipment on a pair of optical fibres.
Capacity (Ciena Terminals):
. January 1999 = 40 x 2.5 Gbit/s
. July 2000 = 96 x 10 Gbit/s
. December 2000 = 192 x 10 Gbit/s
Format: OC-48/STM16, OC-48c/STM16c
Channel Plan: 50 Ghz
System BER: (less than)10/15/
Connector Type: FC/PC
Channel Interface:
622 Mbit/s:
Format: Short Reach = 1.5K or Intermediate reach = 15Km, OC-12/STM4 1-4 & S.4.1
Input Signal Level: -18 to -3 dBm
Output Signal Level: -5dBm +/-0.5 dB
Input Wavelength: 1250 to 1600 nm
2.5Gbit/s:
Format: Short Reach = 1.5Km or Intermediate reach = 15Km, OC-48/STM16 1-16 |&
S.16.1
Input Signal Level: -18 to -3 dBm
Output Signal Level: 5dBm +/-0.5 dB
Input Wavelength: 1250 to 1600 nm
Output Wavelength: 1300 nm
10 Gbit/s:
Format: Short Reach = 1.5Km or Intermediate reach = 15Km, OC-192 STM64
Input Signal Level: -18 to -3 dBm
Output Signal Level: 5dBm +/-0.5 dB
Input Wavelength: 1250 to 1600 nm
Output Wavelength: 1300 nm
Channel Performance Monitoring: Channel bit errors via B1 in Sonnet/SDH
overhead (only available in 2.5 Gbps and 10 Gbps). Optical Power at all
repeaters and terminals.
Page 25 of 30
8.0 SDH Service - Technical Overview
8.1 Managed SDH Service
iaxis shall provide the Customer with SDH circuits as described in this Section.
Circuits shall be presented to Customer at the System Interface Points, which
shall be located in the iaxis Points of Presence set forth in the Agreement
unless otherwise jointly agreed to in writing by iaxis and Customer. Circuit
hand-off and presentation shall conform to applicable industry standards, to the
technical specifications set forth in this Agreement, and to Customer's
requirements as detailed in writing by Customer as part of the circuit
provisioning process.
8.2 iaxisenroute SDH Network
The iaxisenroute network is the terrestrial fibre optic cable system (initially
operating at per wavelength digital transmission capacity of 2.5 Gbit/s),
initially with the configuration set forth in this Agreement, and all plant and
equipment between and including all the System Interface Points, including all
SDH and OOL equipment, as such shall be modified and upgraded from time to time.
8.3 Main Advantages of the iaxisenroute SDH Network
. Simplified multiplexing/demultiplexing techniques compared to PDH.
. Access to lower speed tributaries without the need to multiplex/demultiplex
the entire high-speed signal. This facilitates efficient drop and insert of
channels and cross connect applications.
. Embedded network management channels that provide enhanced Operations,
Administration and Maintenance (OAM) capabilities enabling the network to
be more efficiently controlled.
. Facilitates easy growth to higher multiplexing levels.
. Enables the transport of digital signals at the hierarchy bit rates
specified in ITU-T Recommendation G.702 and at broadband channel bit rates.
This permits SDH equipment to be introduced directly into existing networks
and also facilitates the introduction of a wide range of additional
services.
. Defines an optical interface that allows mid span fibre meets between
equipment from different suppliers.
8.4 Conformance to Standards
The iaxisenroute network shall conform to ITU-T Recommendation G.707 - Network
Node Interface for the Synchronous Digital Hierarchy, and other published
standards and recommendations including (but not limited to) XXX-X X.000, X.000,
X.000, X.000, X.000, X.000, G.803, G.826, G.957, and G.958, which detail the
international standards covering synchronous digital multiplexing and
transmission systems
Page 26 of 30
8.5 Functionality
ITU-T Recommendation G.702, and others, define the line rates permitted in and
supported by SDH networks. The iaxisenroute network will offer equipment and
configurations capable of supporting the following data rates:
------------------------------------------------------------------
Synchronous Transport Module Line Rate (Mbps)
------------------------------------------------------------------
STM-1 155 Mbps
------------------------------------------------------------------
STM-4 622 Mbps
------------------------------------------------------------------
STM-16 2.5 Gbps
------------------------------------------------------------------
Although the ITU-T has defined the STM-1 data rate as the basic building block
of all SDH networks, allowances were made for any of the current transmission
rates to be mapped into an STM-1. This is done by using Virtual Containers,
which can be combined into standard formats in order to form the payload of the
STM-1 signal. Different containers can be mixed, allowing for different rates to
be carried simultaneously with the same structure.
Therefore, iaxisenroute network will supply STM-1 and STM-4 signals as well as
support mapping of E1 signals into VC-12s, and E3 and DS-3 signals into VC-3s
allowing for a complete range of traffic signals which can be both added to
and/or dropped from the iaxisenroute network.
8.6 Protection Approach
The ITU-T, when defining the content of SDH allowed for an overhead that would
carry management information. This is broken down into the following:
. Path Overhead - including trace, labelling, error monitoring and status
information for PDH Signals
. Regenerator Section Overhead - including framing, error monitoring, trace
and data communications information, and
. Multiplexer Section Overhead - including error monitoring, automatic
protection switching, data communications and synchronisation status
information
Practical uses of the overhead extend to flexible management of the iaxisenroute
network. Automatic protection switching data, otherwise known as K-bytes, K1 and
K2, carries information on faults throughout the network. Where a fault such as
a broken fibre occurs in the network the K-bytes carries messages throughout the
network instructing the network elements to take appropriate action to minimise
traffic disruptions.
iaxisenroute network shall employ a protection mechanism called 2-Fibre
Multiplexer Section Protection Ring (2F MSPRing) throughout the network. This is
a very efficient protection strategy defined in the ITU-T recommendation G.841,
which allows eight of the STM-1s in an STM-16 channel to be used for protection.
Where a protection switch occurs the traffic that would otherwise be lost is
transported around the ring using these protection channels. The tributaries are
protected by adopting a 1+1 protection scheme consisting of two identical
channels per tributary - one working and one protecting - both of which may
carry traffic.
Page 27 of 30
By utilising the 2F MSPRing protection strategy combined with 1+1 protection
switching at the tributary level throughout the iaxisenroute network, iaxis will
deliver a service availability of 99.99%.
8.7 Network Management Capability
The Data Communications Channel (DCC) in the overhead is used to carry
miscellaneous information throughout the network as well as being the main route
for management information from the Network Operations Centre (NOC) to the
Network Elements (NE).
The iaxis NOC is situated in London with the NEs being distributed throughout
Europe. iaxis uses an E1 to connect the Integrated Network Manager (INM) to a
gateway NE at Telecity. The DCC then carries information throughout the network.
Through the DCC the Network Operator can remotely configure the network, check
for alarms and download new software from a single site. For example, should the
network SDH equipment require a software upgrade, the download can be initiated
from the INM to every NE in the iaxisenroute network without having to visit any
remote site. This management feature allows for flexible reconfiguration and
surveillance of the network.
It is also possible to reconfigure the network remotely from the iaxis NOC.
Physical connections to the ports (where the connections originate and
terminate) can often be made in advance of the actual provisioning of a circuit.
Accurate forecasting of network circuit requirements can significantly reduce
the period between the actual ordering of circuits and their being provisioned.
8.8 Main iaxisenroute Network SDH Components
8.8.1 Nortel TN-16X
The Nortel TN-16X equipment on the iaxisenroute network is configured as an Add-
Drop Multiplexer. This is equipped with plug-in units divided into core,
aggregate and tributary units together with Network Element software to support
Rings, Hubs, Point-to-Point and Add-Drop chain configurations.
--------------------------------------------------------------------------------
Tributary Quantity Allowed
--------------------------------------------------------------------------------
STM-1 Electrical Tributary Up to 4 per quadrant
Total of 16 per TN-16X
--------------------------------------------------------------------------------
STM-1 Electrical/PDH 140Mbit/s Tributary
--------------------------------------------------------------------------------
STM-1 Optical Tributary - Unprotected or 1+1 Protected
--------------------------------------------------------------------------------
STM-4 Optical Tributary - Unprotected or 1+1 Protected Up to 4 per quadrant
Total of 16 per TN-16X
--------------------------------------------------------------------------------
Aggregate Quantity Allowed
--------------------------------------------------------------------------------
STM-16 Optical Aggregate - 2F MSPRing Protected 2
--------------------------------------------------------------------------------
Page 28 of 30
8.8.2 Nortel TN-4X/E
The Nortel TN-4X/E uses a 550 mm high subrack that can fit in a standard ETSI
rack. The TN-4X/E provides multiplexing and cross-connectivity between tributary
and aggregate ports as follows:
--------------------------------------------------------------------------------
Tributary Quantity Allowed
--------------------------------------------------------------------------------
32-Port E1 Electrical Tributary Up to 8
--------------------------------------------------------------------------------
Dual Port STM-1 Electrical/PDH 140Mbit/s Tributary Up to 8
--------------------------------------------------------------------------------
Dual Port STM-1 Optical Tributary Up to 8
--------------------------------------------------------------------------------
Aggregate Quantity Allowed
--------------------------------------------------------------------------------
STM-4 Optical Aggregate - SNCP Protected Up to 2
--------------------------------------------------------------------------------
8.8.3 Nortel TN-1X
The TN-1X uses a 525 mm high subrack that can fit in a standard ETSI rack. The
TN-1X will provide multiplexing and cross-connection between tributary and
aggregate ports as follows:
Tributary Quantity Allowed
--------------------------------------------------------------------------------
16-Port E1 Electrical Tributary Up to 4
--------------------------------------------------------------------------------
34M/45M Electrical Port Up to 3
--------------------------------------------------------------------------------
Aggregate Quantity Allowed
-------------------------------------------------------------------------------
STM-1 Optical Aggregate - Dedicated Protection Ring Up to 2
-------------------------------------------------------------------------------
Page 29 of 30
9.0 Operation & Maintenance Costs
Operation and Maintenance (O&M) costs in respect of the network management
services set forth in the Customer Agreement ref. C450004 dated 21/07/99 will be
limited to a maximum of $180,000 per annum for the Duration.
O&M costs will invoiced and payable quarterly in advance for the Duration from
the RFS date.
Page 30 of 30
