1. Delivering VoIP – A Better Model Bundling with Carrier Partners for Single Service Solutions Lisa Graham General Manager, Wholesale Services

3. Rocky year for some VoIP providers “ The biggest problem facing Vonage is its inability to keep up with its competitors. Many broadband providers like Comcast, Time Warner, and Cox offer a digital telephone service and the convenience of bundling services such as Internet access, cable TV, and phone services.” -Travis Hudson, PC World, December 18, 2007 “ Skype is in no way capable of providing enterprise-grade services . Where is the 24/7 enterprise customer service? Management portal? Integration with corporate telephony gear? Non-proprietary security? Service-level agreements (SLA)? Skype hasn't built its service for enterprises, so business users shouldn't be upset when it doesn't meet expectations.” -Robin Gareiss, Network World, August 21, 2007 “ The consumer markets have seen fierce competition emerging from cable industry or “over-the-top” providers (represented by well-publicized names such as Skype or Vonage). In the large enterprise space, major industry consolidations have raised the levels of competition dramatically . So, the telephone companies have been distracted and have not been aggressively selling IP telephony to small businesses.” -David Yedwab, Telephony Online, March 26, 2007 What is the real issue here?

4. The missing link? Current model A better model Quality of service Broadband options Packet delivery Customer support Single-service solution Best effort, minimal control over quality of service Consumer-grade DSL/Cable designed for data or channelized T1 Voice and data packets are mixed Customer support usually designed for data, not voice services ‘ BYOB’ Voice traffic prioritized throughout the network Business-class dedicated DSL or T1 built to support voice Minimized packet loss, maximized network utilization, reduced jitter Dedicated customer support that is voice and data aware Bundled single-service solution

5. For the techies in the audience How Voice Optimized Access Works DSLAM ATM Switch B-RAS Customer Premises Soft switch NID ATM Switch Partner Voice Network Elements Media Gateway VoIP Data VoIP Line Internet voice data Physical Connection IAD Optional: Router in place of IAD with IP Phone or IP-PBX attached Level 3 or Partner Network Elements PSTN Covad Network ABR VBR-RT

6. The industry is responding VOA growth surpassed overall VoIP growth* *Sources: Gartner, Forecast: Enterprise Network Services, United States, 2005-2011 June 2007 and Covad company data VoIP Growth – 77% VOA Growth – 197% 2006 2007

7. Premier network of strategic partners CommX Bandwidth.com NetStar Communications, Inc. Glowpoint, Inc. LightWave Communications Primus Telecommunications airBand Communications Vocalnet, Inc. Thinking Phones Networks Broadweave Data New Global Telecom DynaLink Communications, Inc. Network Billing Systems Preferred Long Distance Silicon Connections Reallinx, Inc.

12. Questions Lisa Graham General Manager, Wholesale Services [email_address]