ITExpo 2009 Sean Rivers Director of Product Engineering An introduction to SIP When telephony moves from an infrastructure to an application, the cost savings and flexibility are clear.

When voice was infrastructure BANDWIDTH CONFIDENTIAL 1213 Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network TANDEM Cary, NC Central Office Cary, NC Business Phone System Cary, NC ( 919) Hunt Single Service Architecture Limited Redundancy and Failover Options Many Companies Involved in Delivering Calls No Mobility and Limited Flexibility Many Competing Standards Analog or Digital

The cost of Analog Voice BANDWIDTH CONFIDENTIAL 8 Analog lines (8*30)…………………………………….…... $ min LD (4000*.05) ……………………………………… $ Buy a T-1 (1.5Mb Internet Access) ……………..………… $ Total ………………………………..….. $ Also Remember to Add: Hunting and other Features (8*5)………………………… $40.00 FCC & Other Regulatory Fees (9.95*8)…………………. $79.60 True Total ………………………………….. $ person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD $49 per employee $985 per month $11,820 per year

The cost of Digital Voice BANDWIDTH CONFIDENTIAL 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD Buy a PRI…………………...………………………………….…... $ min LD (4000*.04) ……………………………………… $ Buy a T-1 (1.5Mb Internet Access) ……………..………… $ Total ………………………………..….. $ Also Remember to Add: CallerID………………………………………………………………… $50.00 FCC & Other Regulatory Fees (9.95*8)…………………. $40.00 True Total ………………………………….. $ $61 per employee $1225 per month $14,700 per year

With SIP, voice is an IP Application BANDWIDTH CONFIDENTIAL ( 919) Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network Business Phone System Cary, NC (919) The Internet Mobile Device SoftPhone Application Anywhere, USA or Sets up and Tears Down Calls Travels over private and public IP Networks Easy to Troubleshoot Many Failover and Recovery Options CallerID, DID, DNIS Included and many Signaling Separated from Audio Dynamic Allocation of Bandwidth

SIP vs. SIP Trunks BANDWIDTH CONFIDENTIAL SIP (Session Internet Protocol) is a protocol for: Defining how sessions like voice, video, and IM communicate. Message is sent as text via UDP on Port 5060 SIP Trunks are product “packages”, that include: One Concurrent Talk Path Features, such as: 911/e911 Service, Directory Listing Service, 411 Service, Local Calling, Inward Dialing, Long Distance Sold in Unlimited or Metered

The (lower) cost of SIP Trunking BANDWIDTH CONFIDENTIAL 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD Bandwidth.com BoxSet vol.1……………...…..….…... $ Additional 3 Trunks……………...………………….…..…... $75.00 Long Distance ……………………………………………..…… Unlimited T-1 (1.5Mb Internet Access) …………………....………… Included Total ………………………………..….. $ True Total …………………………….…….. $ $31 per employee $624 per month $7,488 per year 37% Save up to

But wait… there’s more. 1.VoIP was the 4th most frequently cited area for IT investment in the next 12 months, with the benefits of: Lower monthly phone bills (40% or more off of traditional service) Potential for unified messaging (integrate telephony with business apps & improve employee productivity) Greater network flexibility (consolidate across locations, spin-up new users quickly, reallocate bandwidth) 2.Those benefits, however, must be realized without giving up the quality- of-service and redundancy that enterprises are used to. *Robert Half Technology (Top 10 Tech Investments, April 13th, 2009)

You used to have 2 networks. Internet Network W / T1 T1 Router Requires IT Technician Voice Network W / PRI PBX Requires Telecom Technician Telcom Manager Inefficient Up to 50% unused

With VoIP, you have 1. (Convergence) Most Efficient Up to 10% unused Save headcount More redundancy options More flexibility Lower management costs

Multiple locations = Multiplied Costs 1 PBX 1 T1 1 PRI (23 Lines) 1 PBX 1 T1 8 Lines 1 PBX 1 T1 6 Lines DSL/Cable 2 Lines FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE PSTN INTERNET

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-PBX & Phones (Open Source) Long Distance (9000 min) PRI T-1 $14, $ $ $ $1,335.00$14,262.00Miami Office Total ITEMNRCMRC 30 Users Receptionist Small Call Center (Sales & Support) DIDs for Local Users Traditional Design

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-PBX & Phones (Open Source) Long Distance (6000 min) 8 Analog Lines T-1 $10, $ $ $905.00$10,762.00New York Office Total ITEMNRCMRC 20 Users Receptionist DIDs for Local Users Traditional Design

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-PBX & Phones (Open Source) Long Distance (6000 min) 6 Analog Lines T-1 $6, $ $ $785.00$6,691.00Los Angeles Office Total ITEMNRCMRC 15 Users Receptionist DIDs for Local Users Traditional Design

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE 2 Line Analog Phone Long Distance (300 min) 2 Analog Lines DSL / Cable $ $12.00 $60.00 $45.00 $117.00$129.00Cleveland Home Office Total ITEMNRCMRC 1 User DID for Local User Traditional Design

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE Miami HQ Office New York Office Los Angeles Office Cleveland Home Office $14, $ $ $ $3,142.00$31, Office Total ITEMNRCMRC $1, $10, $6, $ $3,938.10$0.00If Equipment is Leased Total for All Sites Traditional Design

1 PBX 1 NxT1 (3.0/mb) 30 Trunks 1 T1 20 Trunks 1 T1 15 Trunks DSL/Cable 1 Trunk FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE INTERNET PSTN Centralization with SIP

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-PBX & Phones (Open Source) BoxSet Vol. 3 Includes NxT1, 10 Trunks Additional Trunks (20) Long Distance (Unlimited Local & LD) $16, $ $ $1,499.00$16,430.00Miami Office Total ITEMNRCMRC 30 Users Receptionist DIDs for Local Users Used 30 Lines/Trunks for Entire Company Centralization with SIP

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-Phones (20 Phones) T1 $5, $ $5,404.00New York Office Total ITEMNRCMRC 20 Users DIDs for Local Users Centralization with SIP

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE IP-Phones (15 Phones) T1 $4, $ $4,185.00Los Angeles Office Total ITEMNRCMRC 15 Users DIDs for Local Users Centralization with SIP

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE 1 Phone $ $45.00$194.00Cleveland Home Office Total ITEMNRCMRC 1 User DID for Local User DSL $45.00 Centralization with SIP

FL OFFICE CA OFFICE NY OFFICE OH HOME OFFICE Miami HQ Office New York Office Los Angeles Office Cleveland Home Office $16, $ $45.00 $2,394.00$26,213.00Cleveland Home Office Total ITEMNRCMRC $1, $5, $4, $ $3,004.33$0.00If Equipment is Leased Total for All Sites Centralization with SIP

Traditional SIP Savings Savings % $3, $3, $ % CAPITAL EXPENSE MONTHLY SAVINGS WITH LEASED EQUIPMENT $3, $2, $ % Comparing Traditional versus SIP ITEM $31, $26, $5, % Buy? Lease? - Expect ROI within 3 Years - Savings near $34K by 36th month Centralization with SIP

The Benefits of Centralization Scales Easily Reduced Travel and Maintenance No Compounding Buying Cycle Reduce Disparate Systems Reduce CAPEX More Efficient Trunk Sizing Quick Deployments Single Provider Large Savings (Compounded) INTERNET PSTN

Cost & Time Savings of SIP Cost Savings open up options: Time Savings allow for: MPLS Alternate PBX for Redundancy Alternate Access Video Deployment Network Upgrades New Projects Hardware Refreshes Optimization

Who is Bandwidth.com?

Nationwide Business Communications… Solved. Bandwidth.com is a complete provider of data and voice, nationwide.

SIP Trunking Fast Facts Save 40% or more over traditional phone service Fast ROI, because it works with your existing phone system Unlimited or metered plans Flexible options to match your business's calling patterns Get local numbers in virtually any market Bandwidth.com is a nationwide CLEC, offering local service in over 300 markets and growing Plug-and-play with your PBX Bandwidth.com SIP Trunking can integrate with your existing phone system (analog, digital or SIP-based PBX), and is tested with over 30 top PBX vendors 24/7/365 Support & Monitoring Accountable, US-based support with an in-house team of telecom engineers Flexible & reliable SIP services for business

BoxSet Business Bundles Fast Facts Save 40% or more over traditional phone service Fast ROI, because it works with your existing phone system Unlimited local & long-distance With one toll-free line included in each box set Get local numbers in virtually any market Bandwidth.com is a nationwide CLEC, offering local service in over 300 markets and growing Plug-and-play BoxSets are plug-and-play, and include any hardware needed to easily integrate into your current phone system (analog, digital, or SIP-based PBX) 24/7/365 Support & Monitoring, built for business Accountable, US-based support with one number to call for both Voice & Data Pre-tested VoIP & Internet bundles that work out-of-the-box

Wholesale & Enterprise Wholesale Products Wholesale Voice Termination (WVT): Available today Wholesale Voice Origination (WVO): Planned for early Q4’09 Wholesale Voice 2-way (WV2W), with 911/411: Planned for late ’09 Wholesale Voice Toll-Free (WVTF): Planned for late ‘09 Direct Voice Link (DVL), private connection: Planned for early ‘10 Enterprise Metered or Unlimited SIP Trunks available today Refreshed Metered SIP Trunks with Tiered LD due for late ‘09

1.A pattern of partnership 2.Almost 10 years ago, founders David Morken & Henry Kaestner established a partnership based on loyalty, honesty, mutual respect and a desire to win. Today, that pattern of partnership is what makes Bandwidth.com the chosen voice & data partner of some of the most ambitious companies in the world. BANDWIDTH CONFIDENTIAL

Growth & Stability The #1 fastest growing telecom company in the US for 3 years running (Inc. 500) The 4 th fastest growing privately held company in the US (‘02 to ‘07) Triangle Business Journal Fast 50 (‘07, ‘08), Deloitte Technology Fast 500 (2007) Profitable, cash-flow positive, and no long-term debt 180% Growth in Customers (~1500 customers on 1/1/06 to >5000 customers as of 7/31/2009) Example Customers

BandwidthCLEC Next-generation network. Nationwide (US) CLEC footprint Purpose-built for VoIP, with latest technology 2.4 billion minutes (run-rate) today; estimated 4 billion minutes in 2009 Debt-free build-out; no legacy traffic Separate Signaling and Audio Facilities for reliability and route flexibility Full geographic redundancy with many routing options Jonathan “Mitch” Mitchell, CEO of the Bandwidth.com CLEC, is responsible for overseeing all aspects of the company’s national VoIP network. Mitch is an inventor on the “Voice over data telecommunications network architecture (SoftSwitch)” patent.

Nationwide coverage. Dark Blue: Complete Light Blue: In process Information accurate as of 06/2009

Built for quality & redundancy. T.R. Missner, CTO, brings over 20 years of network and software engineering experience to Bandwidth.com including over 10 years working with Voice over IP.

Innovation & open source. Bandwidth.com is the corporate benefactor of the FreePBX open source project. Through its investments in open source telephony, Bandwidth.com helps drive innovation in both technology and costs that benefits its customers. For example, Phonebooth, Bandwidth.com’s low-cost hosted VoIP platform, is built on multiple open source technologies. BANDWIDTH CONFIDENTIAL

The Bandwidth.com experience. MyBandwidth.com Customer Portal 24x7x365 Customer Support Online web portals enable customers/VARs to price and order telecom services, monitor installation, and easily manage billing & their services Bandwidth.com’s US customer support center supports customers with:  24x7x365 US-based support  A live person will pick up your call within 3 rings  Level 1-3 support  Deep telecommunications experience, ready to help solve business problems Joe Campbell, V.P. of Operations, brings vision and mission to operational efficiency across all of operations, which sets Bandwidth.com apart from its competitors. Joe is a 14-year veteran of the Telecommunication industry.

Customer Case Study: GTL makes the switch to VoIP Challenge: Convert all MCI TDM locations to VoIP… and do it fast GTL picked Bandwidth.com over AT&T to convert 233 sites from TDM to VoIP in 12 weeks. The project was so successful that Bandwidth.com now manages voice & data for all 608 locations in the US.

If you are looking to buy from Bandwidth.com directly, call: (888) If you want to become a Bandwidth.com Authorized Partner, call: (800) Direct SalesPartner Sales Thanks!