Met Tel Executive Summary

1. Integrated Telecommunications
Strategies and Solutions
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2. Overview: About MetTel ®
• Leading Integrated Communications Provider
– Founded in 1996 and headquartered in New York City
– Verizon’s key wholesale customer
– Proven Executive Management team
g
– Full service communications company
– Customer care centers in Salt Lake City, UT, Providence, RI and New York, NY
– State-of-the-art back-office and operating support systems
• National Reach
– Over 300,000 access lines
– Operational in 48 contiguous states & DC
• Strategic Relationships
– Long-term wholesale contracts with:
– Agreements with leading carriers including:
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3. Overview: MetTel Value ®
National R
N ti l Reach
h Competitive Pricing Options
C titi P i i O ti
• Over 300,000 access lines • Price Lock: line pricing is locked for
the duration of the contract,
• 48 contiguous states and DC regardless of the increases in RBOC
• Strategic
St t i partnerships/wholesale relationships with k
t hi / h l l l ti hi ith key rates
Tier 1 and Tier 2 Providers
• Variable: fixed percentage discount on
• 100% Coverage in Tier 1 territories variable RBOC line pricing
• Month-to-month: no term commitment;
Tier 1: Verizon, AT&T, Q est, Embarq
e e o , & , Qwest, ba q
variable pricing
i bl i i
Tier 2: Sprint, Level (3), Paetec, Covad
Integrated Communications Solutions Premier Client Care
• Centrex/POTS/Trunk/RCF • Centralized customer care structure
• PRIs/Other, DS1 • Dedicated project management team
• Internet T1 / MPLS / DSL
I t t • On-site integration support
• Long Distance • Guaranteed adherence to rollout
• Managed Solutions schedule
• VoIP • Billing review against contract terms
• Wireless • Online issue reporting and tracking
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4. Overview: Integrated Product Suite ®
• Business Li
B i Lines
• PBX Trunks
• Digital Centrex Services
One Company. • Service Options
 Toll Free Service
One Choice.  Conferencing
One Bill.  Call Management Features
 Voice Messaging
One Solution.
• DSL Services
• Internet T1 and T3 Services
• Internet Service Options
 Web Hosting
MetOne TM
•
 Email
MPLS Services
• Private Line Service
• ISDN PRI Services
• Digital PBX Service
• Frame Relay
• Consolidated Billing • Integrated T1
• Customized Service Plans
• Single Point-of-Contact • Hosted PBX Service
• Significant Savings • Business Trunking
• Virtual RCF
• Voice, Data, Broadband and
Messaging
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5. Savings with MetTel ®
 Cut your telecom spending by 15-20%
y p g y
 Optimize your telecom inventory and forecast your telecom expenses
 Increase operational efficiencies
Analysis/Implementation Stage Hard Dollar Savings
g Soft Dollar Savings
g
Formal Audit: MetTel performs a • Save 4-5% by identifying and
comprehensive audit of client’s removing unused telecom products
• Reallocate staff to revenue
telecom inventory and services
generating activities
• Letter of Authorization • Eliminate the need for TEM services,
• Copy of client’s telecom bills saving 3-4%
• Save 10-15% on rates
Proposal Review: MetTel presents a • Avoid 1.5% late fees by integrating
• Reduce invoice processing time and
competitive bid for client review invoicing with Accounts Payable
necessary resources by
• Contract Review system
consolidating thousands of telecom
• Invoice Consolidation • Cut invoice processing costs by up
bills into one invoice
to 95%
Service Migration: MetTel designs a
• Reduce internal resources required
customized migration plan • Save 10-15% by automatically
to coordinate migration processes
• Dedicated Customer Service Team; migrating telecom services as
• Delegate telecom contract tracking
Staff Augmentation existing contracts expire
responsibilities to MetTel
g
• Contract Tracking
15-20% 5-10%
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6. Invoicing: Challenges and Solutions ®
Telecom Management Challenge MetTel Solution
• Full integration with internal accounts
payable system
• Inefficient invoice processing requiring
• Customized coding by GL store number
GL, number,
manual coding and i
l di d input
t
or other client specified criteria to meet
accounting and operational requirements
• Consolidated billing platform and
• Inability to accurately forecast telecom
comprehensive reporting suite allow for
spendd
forecasting
• Inconsistent application of contracted rates • Transparent invoicing and billing review
• Late fees (1.5%) resulting from inefficient • Timely receipt of electronic invoices
invoice processing • Customized and streamlined invoice
delivery options
• Accidental service disconnects for non-
non • All-inclusive, single invoice f
facilitates
payment management of services; eliminates
errors
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7. Invoicing: Process Flow ®
• According to Gartner Research,
Research Current State:
80% of telecom bills are wrong
Provider
Provider 1 Provider 2 Provider 3 Provider 1 Provider 2 Provider 3
• Accounting departments are Invoice Invoice Invoice Invoice Invoice Invoice
overwhelmed by the volume and
complexity of invoices
Client: Region 1 Client: Region 2
• Companies tend to perpetuate
Client
errors by paying on trend within Manual Coding by Manual Coding by
GL GL
10% of previous invoices
Accounts
Payable System
• MetTel’s centralized invoicing is
fully integrated with client’s MetTel Process:
account payable system
t bl t
• Detailed, user-friendly reporting MetTel
Invoice via
MetTel
and custom-built invoices provide Do Not Remit
EDI file (GL
Do Not Remit
coded)
the customer with a thorough E-Invoice E-Invoice
understanding of t l
d t di f telecom spend d
• Enhanced internal control over a
major P&L expense provides
Client: Region 1 Client: Region 2
greater comfort to the CFO for Accounts
Payable System
related 302 certification
Client
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8. Reporting: Overview ®
• Comprehensive suite of canned reports
• Ability to build custom reports based on client specifications
• Compatibility with Microsoft Excel
Real Time Inventory List: detailed listing of all services
Variance Report: trending data for user defined variables
Optimization
Report Suite
Usage Report: analysis of regional and long distance usage
Migration Implementation Report: live status of the integration
process
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9. Scoping & Migration: Process Overview ®
• MetTel’s holistic approach to implementing integrated telecommunications solutions
allows clients to realize ongoing savings
• MetTel performs an audit of client’s telecom inventory prior to contracting the services,
p
providing a value-added service
g
• Dedicated project management team works with each client to identify the appropriate
solution and migration plan
Consolidation Phased Billing
Analysis Implementation Review
• Comprehensive audit of • Dedicated Project • Formal bill review
existing inventory: Management Team against contract terms
– Identify unused and rates
• Customized migration
resources plan based on client’s • Transparent pricing
– Assess need for specifications structure
adding/removing
products and features • Guaranteed adherence • Guaranteed contracted
to optimize to rollout schedule rates
performance
• On-site integration
– Achieve cost efficiency support and t i i
t d training
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10. Customer Care: Service Assurance ®
Repair/Billing
• A single-point-of-contact within our Dedicated Care Team to ensure the prompt resolution of service
matters
• A ticket created for tracking and reporting p p
g p g purposes for each request or issue
q
• Online access to open tickets directly in MetTel’s system
• Each ticket evaluated and directed to the appropriate department for resolution
• Status updates to client until the issue is resolved
• 24 / 7 / 365 network monitoring of T1’s and other advanced services
Moves / Adds / Changes / Deletions
• Dedicated Toll-Free access to single point of contact for all states
• Customized work process
• MetTel handles technician dispatch responsibility including inside wire
• MetTel monitors installation process
• Online access to monitor all MACDs
• Multi-level escalation list
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11. Industry Focus ®
• MetTel has extensive experience providing telecommunications services to companies across
industries:
− Retail
− Health Care
− Governments/Municipalities
− Financial Services
• A customized telecom solution allows clients to achieve economical and operational efficiencies
• MetTel offers services in 48 contiguous states, eliminating the need for multiple carriers
• Single service delivery platform facilitates consolidated billing and reporting
Recent Highlights:
MetTel Deliverable Value to Client
• Significantly reduced overhead and
g y
• R ll d out SIP T ki f a national
Rolled t Trunking for ti l
equipment required to operate patient
nursing home chain
telephone services
• Implemented a switch diversity solution • Ensured a disaster recovery network
• Provided staff augmentation services to a • Assumed day-to-day telecom
retail client management responsibilities
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12. Pricing: Contract Terms ®
• Different pricing options allow the client to select the most appropriate contract terms
• All pricing frameworks ensure significant savings over RBOC rates
Price Lock Variable Pricing Month-to-Month
Month to Month
Price lock for the Fixed percentage No term commitment
duration of the savings off RBOC
contract rates
RBOC rate increases Rates fluctuate based Variable pricing based
do not impact client on RBOC changes on RBOC increases
rates
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13. Pricing: Sample Structure ®
• RBOC pricing for POTS lines and Sample Spending on POTS lines:
local usage has increased Average Spend for 1000 POTS lines in NY, MA and PA
consistently over the last two (July '05 - June '08)
years
MetTel $154,280 $154,280 $154,280
• MetTel’s pricing structure Variable Rate
provides consistent savings Provider
$154,568 $163,888 $173,488
• Sophisticated reporting Verizon $193,210
$193 210 $204,860
$204 860 $216,860
$216 860
capabilities allow companies to
Year 1
Year 2
$- $200,000 $400,000 $600,000 $800,000
analyze and optimize usage Year 3
Total Monthly Spend for 1000 POTS lines in NY, MA and PA
$19,000 (July '05 - June '08)
$18,000
Sample Schedule: $17,000
$16,000
$15,000
,
Variable Rate Provider
V i bl R t P id
Provider Verizon (20% off Verizon) MetTel $14,000 Verizon
Year 1 $193,210 $154,568 $154,280 $13,000
Year 2 $204,860 $163,888 $154,280 $12,000
$11,000 MetTel
Year 3 $216,860 $173,488 $154,280
$10,000
Total $ 614,930 $491,944 $ 462,840
Net Savings - $122,986
$122 986 $ 152 090
152,090
Variable
% Savings - 20% 25% Rate
Provider
Note: MetTel’s rates are based on a 36 month contract
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14. Telecom Issues and Challenges ®
Expense Management Operational Constraints
• Average Fortune 500 company reports that • A typical mid-market company processes over
telecommunications costs account for 3.6% of 3,000 telecom bills per year; the average
revenue, making it a top three line item Fortune 500 company manages 15,000
expense telecom invoices per year
• Telecommunications expenses consume about • Nearly 80% of telecom bills are incorrect and
one-third of the average IT budget up to 14% of telecom charges are in error
• With the consistent increases on business lines • 90% of companies do not have visibility into
rates over the last two years, U.S. spending on their wireless spending
telecommunications has grown by 11% from
$924B in 2006 to $1,025B in 2007 • With the growing trend of converging telecom
and IT departments, CIOs have inherited the
• Average Fortune 500 company spends $110- responsibility for managing telecom contracts
$140M on telecom annually, while a mid-market
firm spends $25-$40M per year
• Companies have limited resources with
telecommunications expertise
• Approximately 70-75% of the
telecommunications budgets are allocated to
landline service • The cost of processing an invoice in a mid-size
company can be as high as $9-$15
$9 $15
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15. Is Your Telecom Working for You? ®
How would you rate the effectiveness of your telecom solutions?
• Can you forecast your telecom expense for the next month? Next year?
• Do you know what services consume most of your telecom budget?
• How many telecom invoices does your company process per month? What’s the cost
per invoice and the turn-around time on payment?
• How many telecommunications providers do you procure your services from?
Customer Telecom Telecom Forecasting/ Invoicing Telecom
Size/Complexity Providers Product Set Reporting Process Costs
Capabilities
Micro-Business Single Basic Limited Manual Low
Multi-Location Multiple Extensive Limited Manual, High
Mid-Size Complex
Company
Multinational Multiple Extensive Third-party Automated High
Conglomerate systems
MetTel Clients Single
g Extensive Robust Automated,, Substantial
Consolidated savings over
ILEC rates
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16. Selected Client List ®
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17. Client Testimonials ®
A leading specialty retailer of children’s merchandise with more than 1,200 stores in North America as well as e-commerce and
catalogue operations. The Children’s Place wanted to organize and consolidate telecom services purchased in 48 states from
over a dozen carriers. The company wanted an innovative carrier with national reach to provide streamlined trouble reporting
and follow up services, a process for ordering services for new locations and customized digital billing and EDI upload capability
for each subsidiary.
MetTel was called upon to develop an inventory of all services including Business Lines, Centrex, Trunks and ISDN BRI.
With a dedicated project manager and provisioning team coordinating every order MetTel migrated over 4 500 lines in 48 states
order, 4,500
within a month. The Children’s Place now receives one monthly electronic statement from MetTel replacing more than 1,250
invoices from 14 carriers.
U.S. provider delivering healthcare products and services. SunBridge Healthcare Corporation operates 216 skilled nursing,
long-term care, assisted living and mental health facilities in 25 states with approximately 23,520 operating beds. Other Sun
affiliates provide rehabilitation therapy, medical staffing and related services. Sun Healthcare Group wanted to consolidate
telecom services across 500 locations from over two dozen carriers in 40 states. The company needed a carrier with national
reach to provide digital billing which could be uploaded into Sun’s ERP Accounting System, utilizing appropriate GL coding.
MetTel’s objective was to significantly reduce actual telecommunications hard costs as well as backroom expenses.
MetTel designed and implemented a customized migration plan, providing more than 3,000 lines across 40 states and 250
Internet T1’s with custom designed circuits, allowing redundant DS3 Internet access in separate facilities. MetTel established a
g , g p
customized website for Sun Healthcare Group which details the services and expenses for each facility by GL code. Each
facility manager can monitor their own telecom costs while headquarters personnel can view detail and company-wide level.
MetTel is also implementing a SIP Trunk solution, which will provide service to more than 23,000 patient beds.
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