1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. North American Hosted IP Telephony and VoIP Access Service Hosted IP Telephony’s Diverse Functionalities Create New Opportunities for Service Providers Telecommunications Group Platform and service enhancements based on specific customer needs and increasing customer acceptance of VoIP technologies are driving the growth of hosted IP telephony services in North America

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications in the hosted IP telephony (IPT) and VoIP access services Market sizing and competitive analysis Market forecasts and opportunity analysis Quarterly assessments End user analysis within each report

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trend Combining managed and unmanaged solutions Decoupling access from services Buckets of minutes evolving into unlimited usage or per-minute rates A greater variety of IP phones are becoming available Hosted IP telephony (IPT) and VoIP access services are a part of a larger trend of migration to converged, IP-based networks and services Hosted IPT platforms offer a continuously improving functionality and features Softphones offer end users an increased level of convenience and efficiency Mobility features and capabilities enhance the value of hosted IPT Wireless VoIP offers new opportunities for hosted IPT providers SIP is becoming the standard of choice

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: North America 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  Find out how they compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities New Entrants  Analyze challenges associated with the industry  Calculate time scales for strategy implementation  Position yourself to capitalize on the market’s unmet needs Investment Community  Analyze long-term strategies of participants  Determine which participants will outperform the competition  Assess attractiveness of investing in IPT and VoIP markets

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Bell Canada BellSouth Calltower Cbeyond Communications Covad (GoBeam) DSLi DSL.net Enventis Telecom ICG Communications Kancharla Level3 Communications Key Market Participants M5 MCI New Global Telecom Onvoy PingTone Centile Qwest SBC Telus Verizon Vonage

7. © 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