1. PRODATA PARTNERS LTD Consulting and Research in Ethernet & Related Markets www.prodata-partners.com

2. Worldwide Carrier Ethernet market is growing Ethernet now capable of providing connectivity for over 97% of networked devices on LANs worldwide. Ethernet services can be provided over a variety of infrastructure, from Sonet/SDH to IP/MPLS, and from ATM to WDM and OTN (optical transport network) equipment. Ethernet shown to reduce broadband Capex & Opex, as well as to protect and enhance operators' existing infrastructure investment. Ethernet Market Overview

3. Ethernet now supports a range of speeds from 10Mbps to 10 Gbps, but prices are highly competitive. Service providers are expanding portfolio of Ethernet services to enhance profitability, control costs, and roll out wider service offerings with improved service assurance. Ethernet service suites being extended to include e.g.:- Ethernet-to-frame relay/cell relay interworking Ethernet private line services Ethernet access to IP networks/Internet services Ethernet is also increasing in popularity for metro services, owing to low bit cost & operational simplicity. Current Ethernet Trends – Service Providers (1) Growth in sales of Power over Ethernet (PoE) ports Next generation optical solutions also offer opportunity for improved integration & differentiated Ethernet services. Ethernet also being developed and used to deliver broadband services with enhanced efficiency. Multicast-based services being delivered via Ethernet aggregation networks:- Requires multimedia multicast transport solutions

4. Cisco continues to dominate Ethernet market Other key vendors include:- HP 3Com Foundry Large businesses looking actively at direct purchases of retail metro area Ethernet services from service providers. Current Ethernet Trends – Service Providers (2) In UK, for example, London metro Ethernet network Exponential-e extended to 50 other locations in England and Scotland:- Gigabit-Ethernet network designed to provide businesses with WAN capabilities easy to integrate with existing corporate Ethernet networks, cheaper than leased line services Expanded network now stretches as far as Glasgow, Southampton, Bristol and Leeds Exponential-e claims it can now reach around 85% of corporate customers with metro Ethernet

5. ICT end user departments are often used to Ethernet protocols and features Deployed as a LAN technology since early 1980s Enterprises using Ethernet to satisfy demand for high bandwidth services, which can:- Support converged voice and data services Underpin electronic trading & IP applications Offer robust service guarantees Provide seamless interworking with existing private data services Satisfy demand for ever-increasing amounts of bandwidth Interconnect more LANs/sites Offer scaleability Current Ethernet Trends – End Users Ethernet, alongside e.g. Frame Relay, provides enhanced access options to Layer 2 VPNs for enterprise/sites requiring high capacity access & simple bandwidth selection. Increasing requirement for enterprises to control service quality, via Ethernet diagnostic operations & maintenance features. Increasing enterprise interest in new VPN service options e.g. VPLS, VLL, IP VPNs. Opportunities for service providers to upsell to enterprises for higher quality Ethernet offerings, e.g. using tiered SLAs.

6. Prodata Ethernet-Related Experience – Project Areas Voice Services Wide area networking Inbound services Managed services Private circuits IP Networking/Telephony Applications CRM Knowledge management Supply chain management Outsourcing/BPO E-Business/Content Wireless/Mobile Operator Licence Models Market Pricing Churn Prevention Mobile Data/Fixed-Mobile Other Networking Equipment Software Applications Data Services Frame Relay ATM MPLS Broadband Internet, Intranets Local Area Networking Optical/Storage Area Networking Business Continuity/Security Applications B2E / Enterprise-Based Solutions

7. Prodata Market Forecasting & Modelling We undertake extensive market modelling and forecasting work for clients in the telecommunications market worldwide Desk research Macro- economic factors Dynamic market models Primary research Client data Results orientated advice:-  Identify areas of opportunity & threat  Forecast revenues and cost  Understand the impact of industry trends  Target sales and marketing activity  Test pricing strategies  Benchmark operations against industry standards  Inform investment decisions

8. We work with over 35 consultants based in more than 20 countries worldwide A virtual team is put together based on the mix of deliverables and individual expertise required for each project All our consultants have had extensive hands-on telecoms/ICT experience prior to working in marketing, research and consultancy with Prodata Prodata Telecommunications Consultancy Team

9. Sarah Ball – Director  BSc (LSE), MBA (Cranfield), member of MRS & IOD  20 years’ experience in market research & telecoms marketing  Previously Associate Director with Harris Research globally  Senior roles with PwC communications consulting division  Market Segmentation methods for High-Tech Companies specialist PhD area of research (Canfield School of Management)  Managed major market segmentation, customer profiling, market strategy, market entry, product strategy & telecoms user experience projects for major telecoms clients  Specialist in global market research project management  Other key areas – broadband, WAN, IP & web-based technologies  Skills – Global Project management, and all aspects of research and business customer insight Prodata Telecommunications Consultancy Team

10. www.prodata-partners.com Contact us DIRECTORS : Sarah Ball Email :sarah.ball@prodata-partners.comsarah.ball@prodata-partners.com