1. AT&T Proprietary Use pursuant to Company instructions Creating a Global Presence with Ease Teddy Chu Director, Business Development

2. 2 AT&T Proprietary Use pursuant to Company instructions Agenda  VoIP Market Trend  VoIP Service Provider’s challenges  Role of Clearinghouse  Clearinghouse Business Model and Service  Benefits of Clearinghouse  Key considering factors when choosing a clearinghouse

3. 3 AT&T Proprietary Use pursuant to Company instructions Voice over IP Market Trend  VoIP accounted for 5.6 billions MOUs in 2001, about 4.8% of the total traffic.  VoIP will account for approximately 75% of world voice services by 2007. (Frost & Sullivan, 3/2002)  Established PSTN carriers are increasingly using VoIP technology and adding VoIP products to their list of offerings.

4. 4 AT&T Proprietary Use pursuant to Company instructions Challenges faced by a VoIP service provider  Limited termination points  Multiple bilateral interconnection agreements  Incorporates expenses such as negotiation, legal, billing, credit risk fee, auditing, maintenance.  Financial risks  Origination – may require to submit multiple bank guarantee  Termination – collection problems  Limited choice of routes  Liaison with multiple engineering supports in case of service problem  Interoperability with other service providers

5. 5 AT&T Proprietary Use pursuant to Company instructions Role of a Clearinghouse Clearinghouse  Single financial relationship  Reduced administrative cost  Global footprint  Access to new applications

6. 6 AT&T Proprietary Use pursuant to Company instructions Clearinghouse acts as Broker Member C Member AMember B Member D ISPCarrier ITSP Broker Global Clearinghouse VoIP Minutes

7. 7 AT&T Proprietary Use pursuant to Company instructions Clearinghouse Financial Model Termination RateWholesale RateRetail Rate Termination Cost Customer Margin Terminating Side Termination Cost Customer Margin Termination Cost Clearing Fee* Clearinghouse Termination Cost Clearing Fee Termination Cost Customer Margin Originating Side * Percentage based

8. 8 AT&T Proprietary Use pursuant to Company instructions Standard Clearinghouse Services  Facilitate exchange of VoIP traffic  Perform financial settlement between its customers  Guarantee payment to all members  Support multiple platforms  Route management:  All the voice traffic will be routed by the clearinghouse  Choose your desired route based on the QoS/ rate information provided

9. 9 AT&T Proprietary Use pursuant to Company instructions Benefits of Joining a Clearinghouse  Immediate access to a global termination network  Single financial relationship  Guarantee payment  Low administration costs  Wide selection of routes  Swiftly deploy IP communications services  Access to new IP-based applications  Single point of contact to report problems and dispute

10. 10 AT&T Proprietary Use pursuant to Company instructions Key Considering Factors when choosing a clearinghouse  Quality  Reporting  Reliability  Interoperability

11. 11 AT&T Proprietary Use pursuant to Company instructions Key considering factors when choosing a Clearinghouse?  High voice quality  Provide prompt payment and accurate invoice  Financial stable and trustworthy

12. 12 AT&T Proprietary Use pursuant to Company instructions Key considering factors when choosing a Clearinghouse?  Provide QoS information of the routes which terminates your traffic, for example, ASR reporting

13. 13 AT&T Proprietary Use pursuant to Company instructions Key considering factors when choosing a Clearinghouse?  Provide comprehensive traffic report to enable you to understand your traffic pattern and better manage your business.

14. 14 AT&T Proprietary Use pursuant to Company instructions Key considering factors when choosing a Clearinghouse?  Support multiple platforms  Support traffic exchange and call settlement between different VoIP platforms and protocols.  More choices on rate selection  Spur traffic growth

15. AT&T Proprietary Use pursuant to Company instructions Thank you! Please visit our website: www.att.com/globalclearinghouse