1 Nashville 3 March Michael Tague

2 Why Become a CLEC? Savings Opportunity A Future

3 PRI Savings $70/mo for PRIs LATA wide calling Fewer POPs required (Queuing efficiency) Eliminates lots of circuits More local calling areas

4 T1 Savings 70% less than typical retail loops E.g. Indiana, SBC Local loop: $38 Distant: $50 + $1.65/mile E.g. Tennessee, BellSouth Local loop: $51 Distant loop: $129 + $0.36/mile

5 Backend Loop Savings DS3s replaced by cross-connects: $30. To Backbone providers To ATM network for DSL Telco Collocation A bit stiff to go into: $10,000 Great place to be: $ /mo Power Environmentals

6 Did I mention Savings? Typical ISP: 40% of Rev on Telecom CLEC ISP: 20%. Where does the other 20% go: Vacation House Boat, cars, plane New products, invest in business

7 Opportunities Serve New Markets: Dial-up: $0.29/month/subscriber LATA Wide: new towns, new local numbers Distant T1s: $ miles BS in Tennessee $83 – 50 miles SBC in Indiana Low cost T1s for high quality VoIP Low cost VoIP Termination: $70 PRIs Interface, # ports, 911, operator services

8 A Future HDSL loops to replace T1s $9.64 (in TN) DSLAMs – own the DSL network Colo: $10k, Remote: $2k Fiber, access to poles & conduits

9 Telephone Service Purchase a Phone Switch See Coppercom Presentation! Provide CLASS 5 services PRIs, POTS, Call Waiting, Voice Mail, Centrex VoIP Only a Consideration

10 Misconceptions It takes two years to start-up as a CLEC Must purchase expensive phone switch $250,000 - $750,000 A CLEC requires unique technical skills Nightmare of paperwork and bureaucracy Well, not everything is a misconception!

11 American CLEC Help Your ISP become a CLEC Operational in six-eight months No expensive phone switching equipment We do it all: incorporation, interconnection, state PSC approval, applications, filings, agreements, codes, IDs, collocation, circuit turn-up, ordering, documentation, phone numbers, conversion. Pay us out of savings after completion. We give you a CLEC, not a headache

12 Process We come and meet you We go over existing network layout and circuit costs We prepare detailed proposal You decide in your own time