1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Wholesale U.S. Telecom Spending: International Carriers Volatility of the U.S. Market Challenges International Carriers Telecommunication Services Group “As global carriers continue to seek stable partnerships to procure wholesale service and provide end-to-end connectivity for their customers, U.S. wholesale carriers that can prove their financial stability are likely to experience immense growth. ”

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends Financial weakness of several U.S. carriers renders the wholesale market very unstable. Several U.S. carriers conduct business under Chapter 11 bankruptcy filings without a significant altering of their business model. The wholesale market continues to grow with regards to capacity utilization and volume growth, but remains a buyer’s market. The healthy growth in demand for wholesale services has been outpaced by intense pricing pressure. The market for traditional wholesale voice and data is large, but new IP services are experiencing high double-digit percentage growth. Bandwidth consumption has increased, driven by decline in prices and higher adoption by enterprises, DSL operators and content providers such as Yahoo, Google etc.

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Insights into recent market developments Drivers, restraints, challenges, and strategic recommendations Analyst insights on key international carrier telecommunication requirements in the U.S. market Market sizing Market forecasts

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: the United States Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

5. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants (U.S. Wholesale Service Providers)  Find out the key telecommunication requirements of international carriers  Assess global carriers’ drivers and restraints on wholesale telecommunication service spending  Find out the challenges facing international carriers as they compete in the U.S. market  Determine and exploit new market share opportunities with global carriers Current Market Participants (International Carriers)  Find out how U.S. carriers are distinguishing among themselves to win over your business  Assess the current U.S. wholesale market trends and market activity to partner with suitable carriers

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who will Benefit (Cont’d) New Entrants (International Carriers)  Analyze challenges and hazards associated with the U.S. wholesale industry  Assess the mode of entry into the U.S. market and provide services which deliver profit  Position yourself to capitalize on the new markets/applications Investment Community  Analyze the strategies of international carriers  Determine which participants will outperform the competition

7. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included  Detailed U.S. wholesale market overview  Competitive structure and market activity in the U.S. wholesale market space  International carriers’ spending trends on wholesale telecommunication services

8. © Copyright 2004 Frost & Sullivan. All Rights Reserved. AT&T Corp. France Telecom North America iBasis, Inc. Level 3 Communications, Inc. Looking Glass Networks, Inc. MCI, Inc. NTT Communications Corp. OnFiber Communications, Inc. Qwest Key Market Participants Reach Global Services Ltd. SAVVIS Communications SingTel T-Systems International Telefonica Data USA TELUS Verizon WilTel Communications XO Communications, Inc.

9. © Copyright 2004 Frost & Sullivan. All Rights Reserved.  Call toll free 877 GO FROST (877.463.7876)  Fax toll free 888.690.3329  E-mail myfrost@frost.com  Visit www.frost.com For More Information