2. The State of VoIP Peering: VoIP Peering Summit Internet Telephony Conference & Expo Hunter Newby Chief Strategy Officer tel x p: 212.480.3300 www.telx.com

3. 1. History Repeats Itself Trends in Communication 2. The Physical Layer Internet 3. VoIP vs. VoPI 4. US Communications Real Estate The PSTN vs. The Internet Proximity Drives Peering 5. Enterprises Extend to the Core for L2 VoIP 6. The Formation of Enterprise Peering 7. Rapid Growth of Ethernet Transport 8. The Voice Internet 9. Bi-Lateral vs. Multi-Lateral TDM, ISP, & VoIP 10. ENUM Registries: What & Who? Today’s Top 10…

4. History Repeats Itself… 1835- 1840s 1876- 1880s 1924- 1930s 1971- 1990s 2000 +1995+      

5. Internet ISPs MAE ISPs Remember how the Public Internet began… NAP

6. Internet VoPI VoIP VoIP …Public Vs. Private

7. Location, Location, Location… The SIX, Seattle, WA Equinix IBX, San Jose, CA MAE West, San Jose, CA PAIX, Palo Alto, CA Equinix IBX, Chicago Ameritech NAP, Chicago MAE East, Vienna, VA Equinix IBX, Ashburn, VA PAIX, 111 8th Ave, NYC Telehouse America, 25 Broadway, NYC NAP of the Americas, Miami Major U.S. Peering Sites

8. Location, Location, Location… Major U.S. Core Sites The Westin Building, Seattle, WA One Wilshire Blvd, LA 600 S. Federal St, Chicago, IL60 Hudson St, NYC 56 Marietta St, Atlanta, GA 36 NE 2 nd, Miami, FL TECOTA, Miami, FL 2323 Bryan, Dallas, TX

9. Difference between Core Interconnection Sites & Other Colocation Spaces: Interconnect Facilities = Access at the Transport Layer to Services Space Available Networks Present Need/Cost for Local Loops Space Cost High Interconnect Value Core Adjacent Direct Pure Colo

10. Then… Now… New Corporate WANs

11. The Common Node enables: Enterprise Peering

12. tel x Meet Me Area Monthly Cross Connects

13. Enterprise & Service Providers’ Spending Plans for 2005: Enterprise UsersService Providers 1 Ethernet Private LANVoIP 2 Ethernet Private Line 3 IPsec VPNsLayer 3 IP VPNs 4 Ethernet Private LineEthernet Private LAN 5 SSL VPNsManaged Security 6 IPsec VNPs 7 Layer 3 IP VPNsUnified Messaging 8 Video Over IPSSL VPNs 9 Ethernet Access to Frame RelayVideo over IP 10 Mobility Source: Heavy Reading

14. Use of Ethernet Services from a Service Provider Source: Heavy Reading

15. How Voice Internets Will Be Built… End UserEnterpriseCarrier Build your own VoIP Network   Hybrid: own gear, outsource ASR, CDR   Cable MSO   VoIP ASP   Hosted IP PBX  Softswitch Partition  

16. Bi-Lateral Vs. Multi-Lateral TDM Minutes ISP VoIP

17.  Bi-Laterals: TDM wholesale voice minutes transactions  implies a commercial relationship – typically wholesale termination between 2 parties  No such thing as Multi-Lateral in TDM  since there is no “peering fabric” and every TDM minute has a $ Value  Off-sets: closest thing to “peering” in TDM minutes  an agreement where bi-lateral debts negate one another  occurs at Layer 2 in the non-analogous OSI model Bi-Lateral Vs. Multi-Lateral: TDM Minutes

18.  ISP Peering: interconnecting at Layer 2  Bi-Lateral Peering: directly between 2 parties who agree to connect  typically a “free” exchange of IP traffic  occurs on a Public Peering Fabric or via a Private Peering Interconnect (Loop, Cross Connect)  Multi-Lateral Peering: Multiple parties all agree to send and receive traffic with each other via a Peering Fabric  typically a “free” exchange of IP traffic  some instances include “paid peering” costs less than IP transit costs more than “free” Bi-Lateral Vs. Multi-Lateral: ISP

19.  VoIP Peering: The interconnection of two, or more networks  Several definitions at Layers 2, 3, 5 and 7  Layer 2 Peering: through a common Ethernet switch  most similar to traditional ISP peering  distributed peering is possible  Layer 3 Peering: VoIP interconnections through the public Internet  gateways interconnecting through the cloud  usually wholesalers avoiding TDM transport  Layer 5 ENUM: can occur through both the Internet and an Ethernet Fabric  ENUM – Bi-Lateral and, or Multi-Lateral  Layer 7 SIP: can occur through both the Internet and an Ethernet Fabric  SIP Peering - Bi-Lateral Bi-Lateral Vs. Multi-Lateral: VoIP

20. ENUM Registries/Data Stores Currently Available VeriSign E164.org The VPF

21. Carrier / Enterprise B Carrier / Enterprise A VeriSign: VeriSign Directory Customer Provided L2 or L3 (IP VPN) Link; Handles media streams. Customer Provided L2 or L3 (IP VPN) Link; Handles signaling & routing

22. Carrier Public Internet Public Internet e164.org: E164.org Directory Users send queries via public IP to e164.org, which replies back with routing info. End User Enterprise Signaling & Media Streams are exchanged between e164.org users directly over public IP.

23. Carrier / Enterprise 1 Carrier / Enterprise 1 The Voice Peering Fabric: VPF ENUM Registry 1.User initiates call 2.Query sent to ENUM Registry 3.Routing info returned 4.If “true,” call established through the VPF 5.If “false,” call sent to user’s select VOIP Carrier (through VPF) or PSTN Off-Net Via VPF or PSTN Off-Net Via VPF or PSTN Carrier / Enterprise 2 Carrier / Enterprise 2 The Voice Peering Fabric (VPF) Originating Phone Terminating Phone 1.1. 2.2. 3.3. 4.4. 4.4. 4.4.

24. Who’s Using ENUM Now?  Enterprises  Universities  Carriers (CLECs)  Carriers representing End-Users (VoBB) Other Number Mapping Services  DUNDi All in an effort to reduce monthly spend on metered telephone calls.

25. The State of VoIP Peering: VoIP Peering Summit Internet Telephony Conference & Expo Hunter Newby Chief Strategy Officer tel x p: 212.480.3300 www.telx.com Thank you.