1. Network Virtualisation – A Service Provider’s Perspective Presented by: Steve Legge, Chief Operating Officer 8 May 2007

2. The Evolution of SOUL Australian broadcasters required a broadband network for Digital TV (DTV) Buy or Build? Optus or Telstra were the only bandwidth resale options … (both expensive) NBN therefore elected to build excess broadband capacity at minimal marginal CapEx and OpEx A separate entity was created as a licensed carrier to facilitate the sale of excess capacity, adopting the Soul Pattinson name Convergence of broadcast television and telecommunications content and distribution successfully implemented across the network The business and network expanded along eastern seaboard of Australia

3. Who is SOUL? The largest operator of ‘greenfield’ MPLS based IP networks in Australia The only national PSTN interconnected IP network in Australia Voice, video and data over a single, national IP network Fibre network throughout intercapital and regional Australia In excess of 300 points of presence (PoPs)

4. Who is SOUL? Network has full QoS feature support with Service Level Guarantees to support lower latency, packet loss and jitter 100% Powered by Cisco Systems – Single vendor platform Infrastructure is SOUL owned and operated, and independent of Telstra In excess of 900 employees in offices throughout Australia Consumer Call Centres in Perth and Sydney

5. Network Design The network was initially designed for DTV Transmission Provides higher availability than standard Telco networks, as the network core cannot suffer any downtime Increased redundancy in all layers Architecturally different to other telco networks as design is optimised for content delivery, not just traditional services This increases the access to regional areas due to distributed core design Diverse fibre paths also operate across the country for redundancy Capability exists to rapidly increase regional reach (new POI deployments)

7. New Demands on the WAN Business Imperatives IT Applications WAN Implications Collaborative apps B2B applications Web services IP telephony Video applications Storage / back-ups Content distribution Distributed data centers Teleworkers Reduce cost Increase productivity Improve Responsiveness Build resilience Focus on core competencies Any-to-any Scalable bandwidth Convergence QoS Security Availability Remote access Web integration Manageability

8. More Complex Communities of Interest IP Telephony drives PVC growth Full mesh for media bearers Separate voice and data PVC’s Larger PVCs for desktop video Shared services require PVC’s back to data centres Ultimately a cost that you bear Direct Via Service Provider Network Performance Source : Ovum, 2003 Degree of Meshing Hub and SpokeFull Mesh QoS IP VPN Frame Relay Frame Relay vs QoS IP VPN Costs A compromise between performance, customer satisfaction & budget Application Demands

9. More Complex Connectivity Demands Support an expanding range of devices and technologies Aggregate users and content from anywhere without bottlenecks Maintain accessibility, security and control over all connections Seamless, consistent experience to anywhere in the IP cloud GPRS3G UMTSWLANEthernetATM / FRDSL / Cable  Internet  Intranet & Extranet  Applications & Collaboration  Content & Information — Communication & Messaging Accessible from any device, portable across devices Seamlessly accessible from any access technology Dial

10. Benefits of MPLS VPN MPLS IP VPN ATMFR Scalability Low-high speed access Any technology SecurityEquivalent to ATM/FR Flexibility Any-to-any connectivity Easy add/remove users and sites IP address freedom Performance Guarantees CoS for voice, video & data IP SLAs for predictable latency, throughput, availability, packet loss & jitter Coverage and Reach OnNet for performance, function and SLA OffNet for global coverage and remote users / devices Price and Cost efficiency Lower price per bit of IP One access line, multiple services

11. A More Extensive Feature Set Routing Simplicity 4-8 CoS Levels Integration with CSS Portal End-to-End Prioritisation Network- Based Firewalls IPSec &SSL Remote Access End-to-End SLAs P2P & Application Bandwidth Control Multicast Application Acceleration Unified IP Comms Core Features / Functions Ancillary Features / Functions Access Technology Agnostic Any-to-any Connectivity Simplified Network Integration CoS / QoS Clean Internet Access Network Admission Control (VPNAC)

12. A Closer Look Full Service Networking PE VPN B CE VPN A CE Layer 3 Routing protocols available on PE-CE – Static, RIP, OSPF, EIGRP, eBGP IP Services like NAT, DHCP can be configured on per-VPN basis on the PE router Traffic Engineering for SLA, bandwidth protection and restoration Layer 3 access via DSL, Cable, Ethernet, ATM/FR, Dial, 3G QoS mechanisms like Queuing and Policing are configured at CE and PE routers Traffic separated by unique route distinguishers Layer 2 Circuits available – Ethernet, ATM, Frame Relay, PPP, HDLC VPN A CE VPN B CE IP / MPLS Core routers have no knowledge of customer network Layer 3 Routing protocols available on PE-CE – Static, RIP, OSPF, EIGRP, eBGP IP Services like NAT, DHCP can be configured on per-VPN basis on the PE router Layer 3 access via DSL, Cable, Ethernet, ATM/FR, Dial, 3G QoS mechanisms like Queuing and Policing are configured at CE and PE routers Traffic separated by unique route distinguishers Layer 2 Circuits available – Ethernet, ATM, Frame Relay, PPP, HDLC Core routers have no knowledge of customer network

13. InternetPSTN A Closer Look Shared Services PE VPN B CE VPN A CE VPN A CE VPN B CE ERP Collaboration Video Hosted Content Internet Gateway VoIP Gateway IP / MPLS

14. A Closer Look Remote Access InternetPSTN PE VPN B CE VPN A CE VPN A CE VPN B CE ERP Collaboration Video Hosted Content Internet Gateway VoIP Gateway IP / MPLS SSL IPSec

15. IP VPNs = Improved Performance Operational Performance Enable a range of applications from voice to video, content, and storage Increased productivity Improved communication effectiveness Focus on core competencies Closer ties to partners and suppliers Lower communications & improved productivity for remote users Technical Performance End-to-end QoS for data, voice, and video Affordable, any-to-any connectivity and enhanced network availability Any access speed and technology Security and privacy equivalent to or better than Frame Relay and ATM Support private IP addressing plans Favorable price/performance ratio of IP networks

16. The Next Generation Leased Line Driven by business & market needs Enterprises AND Service Providers More complex communities of interest More complex connectivity demands Appetites for Value-Added Services Migration from ATM/FR is NOT just about cost 1.Scalability 2.Reach 3.Security 4.Application convergence 5.Enabling evolution Source : Business Communications Review / InfoTech

17. Why Choose SOUL? “SOUL-owned” competitive infrastructure, providing an alternative to traditional Telco incumbents New and improved broadband products and services to metro and regional communities Commitment to our Customers and their business Commitment to solution delivery Premium purpose built network designed to support real time applications

18. In Summary SOUL - one network Greenfield National MPLS – IP Network True convergence – Broadcast video, carrier voice and private data across one MPLS network Consider convergence across the business Network, Service, Application Broadband IS and WILL BE the delivery enabler Economics of multiple services SPs must continue to enforce a place in the value chain