ZT Technology Solutions ZT Multivendor Maintenance (MVM)Solution October 16, 2014

Agenda Customer challenges Market trends Promise of Multivendor Maintenance Business value ZT solution Measuring the successful win-win deal Business and technology dynamics Next Steps

Customer Challenges Transformation Opex Reductions How do I lower my legacy network support costs? How do I migrate from older legacy networks to next generation networks? My workforce is retiring and I can’t find expertise to support my legacy networks. Transformation I’m not ready to outsource my network ops but I want the benefits outsourcing can deliver. I need to consolidate because it costs too much to run under utilized elements How long will the equipment continue to be supported? Should I leave my revenue producing customers on this old network or migrate? Opex Reductions Next Generation Networks Convergence

Next–gen network spend Shifting OPEX & CAPEX priorities Market Trends Networks are evolving to meet increase data traffic demands. Voice, Data, and Video. Wireline revenues are under pressure from shrinking customer base as more customers choose to go wireless. Costs are increasing for network maintenance. Network equipment is reaching EOL making on going support difficult. Available Opex budget has to stretch to support legacy networks while deploying Next Generation Networks. Carrier networks becoming increasingly complex as consolidation occurs in the industry. 100% 0% Legacy network spend De-commission Maintain EOL Repair Optimize CAPEX Next–gen network spend Build out Growth Upgrade Shifting OPEX & CAPEX priorities A multi-vendor maintenance services solution can simplify the maintenance complexities inherent in today’s evolving networks Savings in maintenance costs produce a significant reduction in total OPEX

Promise of Multivendor Maintenance Multi-Vendor Maintenance service is a “single point of contact” delivery model that streamlines and integrates traditional OEM maintenance related activities to deliver a faster, more efficient, consistent, and cost effective level of service. Multi-Vendor Maintenance (MVM) is when a single supplier provides a service with a single point of contact integrating all end to end OEM product maintenance activities This includes: Being the single point of contact for maintenance requests Providing Remote Technical Support services Providing on site Field Maintenance services Providing Repair and Exchange services Being responsible for meeting the SLAs across all vendors’ equipment Providing integrated reporting Multivendor Maintenance should be considered a key element in any network transformation strategy as well as a solution to support older end of life equipment.

Declining wireline customer base. Little or no CAPEX budget. Business Value Legacy aging networks. Declining wireline customer base. Shrinking Skill Set. Little or no CAPEX budget. Complexity How can we afford to replace legacy networks? How long will the equipment continue to be supported? Many end customers are forgoing wireline services in favor of wireless. Service Provider workforce retiring, downsizing, or reassigned. How do we migrate from older legacy networks to next generation networks? Consolidate support with MVM. Provide support through EOL and beyond. Full suite of maintenance services: with service appropriate KPI’s Single point of contact improves performance metrics MVM can help identify opportunities to consolidate platforms & support consolidation process. Platform consolidation reduces OPEX. Retired elements can be reused to reduce spares inventory or sold. (CAPEX/OPEX reduced/generate cash) Client Inventory Management Service improves visibility into retired assets MVM can augment or replace lost skill sets for Tier 2/3 support. MVM can free up resources to be used on other projects or assignments MVM can reduce OPEX costs 15% - 20% by reducing spend on OEM maintenance contracts and freeing resources for other projects. Extending legacy network life can stretch OPEX budget MVM Single Point of Contact reduces complexity. Integrated performance reporting streamlines supplier management into a single KPI report card. MVM frees up resources to address migration or other strategic initiatives. MVM provides a bridge for support services to get from legacy to NGN. MVM part of a suite of solutions that support a planned network transformation. MVM can extend the life of legacy networks while planning network evolution

The ZT Multivendor Maintenance Solution Technical support center Remote technical support 24x7x365 coverage Trouble ticket response Hardware and software support Trouble call Help center Repair and exchange service 24x7x365 coverage Order execution Same day/next day delivery Material planning and defective part retrieval Spare parts dispatch Field Maintenance Welcome center 24x7x365 coverage Entitlement verification Technical support center assigned if required Part/tech dispatch Field support MV skilled technicians 24x7 call receipt/dispatch Customer site The call + the technician + the part = service delivery Problem resolved

The ZT Multivendor Maintenance Solution Remote Technical Support Repair and Exchange Services Field Maintenance Services Tracking, KPI’s and Reporting Single interface for all maintenance needs for multi-technology/ multi- vendor products Access to expert technical engineers 24x7x365 Access to a common problem/solution knowledge management Consistent service level agreements for all OEM products Single monthly performance metric report for all services 24x7 same day 4 hour and next day delivery options Fast, reliable spare part delivery, synchronized w/local field maintenance support Management of spare part inventory throughout robust hub and local warehouse locations meeting required SLAs Comprehensive forward and reverse repair logistics processes Spares requirements assessment – mix, location and quantity Inventory provisioning Parts planning and repair pipeline management Same day, 24x7 or 8x5 coverage, with 4-hour response options Next business day, 8x5 coverage Customizable response and alternative hours of coverage Dedicated specialists for full time on-site support Rapid dispatch options to support short interval maintenance Scheduled on-site preventive maintenance One–ticket tracking system with standardized logging and history recording Integrated trouble reporting with overall network view Consistent streamlined KPIs make performance monitoring easier

ZT’s Multi-Vendor Maintenance Solution… Offers a faster, more efficient, integrated, and cost–effective level of service than is traditionally delivered today Results in reduced internal staff requirements, and more consistent level of service, all leading to a lower total cost of ownership and higher overall quality of service Enables the customer to re-focus efforts and resources on next– generation network growth, applications, and end-user offerings It isn’t about doing it the same way that it has always been done… Multi-vendor Maintenance is a proven, transformational service

Measuring Successful Win-Win Deal Business imperatives End-user needs Proven Multi-vendor Maintenance benefits Single point of contact and accountability Significant OPEX/CAPEX savings Reduced inventory needs Reduced internal staff requirements Fewer labs Lower training costs Increased visibility of end-to-end performance More efficient & accurate tracking of KPI & SLA performance Minimize complexity “Deliver services as promised” Lower operational & capital expenses “Competitive prices” Drive revenue growth “New voice and data services” Improve network availability “Services available: anywhere, anytime”

Business and Technology Dynamics Streamlined single point of contact and escalation model Streamlined SLAs across the board Consolidated performance tracking process and reporting tool Integrated global Technical Centers of Excellence Integrated global knowledge management system Global standardized processes and tools Best-in-class, certified program management leadership FMO… Inefficient multiple points of contacts into, and across OEMs Lack of consistent SLAs and KPIs across OEMs Time consuming, often incomplete performance tracking reports Local, often inefficient technical delivery models Local and regionally managed knowledge management systems Local and custom-developed processes and tools Inconsistent program management support and expertise PMO… Multivendor Maintenance doesn’t just reduce monthly maintenance costs. Additional savings can be realized through reduced internal costs to manage multiple contracts, report network performance, and vendor management. Improved operational efficiency also reduces total Opex

The ZT team is here to help… Next Steps Assess the network and current services Best candidates for Multivendor Maintenance are OEM’s and technologies that are relatively stable and require little to no ongoing software support. Identify current SLAs by product and current costs. Identify products in and out of warranty. Identify all locations that need spares support or onsite services. Identify all product FRUs that need to be supported. Service history for all products being considered. Determine the mix of products to be considered for Multivendor maintenance. The more products that can be included at the inception the better the savings opportunities. The ZT team is here to help…