1. 1 Proprietary & Confidential December 9, 2008 Bandwidth.com Saving You Money Through Voice & Data

2. 2 Proprietary & Confidential Agenda 1.Who is Bandwidth.com The Company The Network 2.The Traditional Voice Infrastructure Analog- Digital PRI 3.The Voice Application (SIP) Service Savings Single Site Convergence Multi-site Convergence 4.Bandwidth.com BoxSet

3. 3 Proprietary & Confidential Bandwidth.com  Founded in 1999, headquartered in Research Triangle Park, NC  First broad-line data provider  Offered businesses ability to compare 20 different carriers with online pricing API connections with all Tier 1 providers  Created 1 st Installation tracking portal for small and medium business customers  Launched VoIP in 2004 99.3% Customer Retention #1#1 fastest growing privately held company in North Carolina # 16 Annual award given for a company’s achievements in creating a positive work environment that attracts and retains employees through a combination of benefits, working conditions and company culture. fastest growing privately held telecom company in the Country #1#1 fastest growing privately held company in the Country 250% Annualized Revenue Growth Profitable/Debt Free Bandwidth.com is a complete provider of telecommunications services to Small and Medium Sized Businesses in all 50 States 180+ employees dedicated to voice and data sales and support

4. 4 Proprietary & Confidential Bandwidth.com’s Network

5. 5 Proprietary & Confidential 1213 Voice as an Infrastructure Service (Analog) Numbers Routed Statically Single Service Architecture Summary: Limited Redundancy and Failover Options Many Companies Involved in Delivering Calls Hunting Needed to Send Multiple Calls Analog Lines One Phone Number Per Talk Path No Mobility or Flexibility Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network TANDEM Cary, NC Central Office Cary, NC Business Phone System Cary, NC ( 919)555-1212 1214 Hunt

6. 6 Proprietary & Confidential 8 Analog lines (8*30)…………………………………….…... $240.00 4000 min LD (4000*.05) ……………………………………… $200.00 Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00 Total ………………………………..….. $865.00 Also Remember to Add: Hunting and other Features (8*5)………………………… $40.00 FCC & Other Regulatory Fees (9.95*8)…………………. $79.60 True Total ………………………………….. $984.60 Analog Service - Financial The Situation: 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD The Cost $49 per employee $985 per month $11,820 per year

7. 7 Proprietary & Confidential Voice as an Infrastructure Service (Digital) Numbers Routed Dynamically to a Trunk Single Service Architecture Summary: Limited Redundancy and Failover Options Many Companies Involved in Delivering Calls Trunks Can Now take Calls From Multiple Numbers Digital Trunks Sold as a Bundled Offering No Mobility and Limited Flexibility Many Competing Standards Caller ID Issues Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network TANDEM Cary, NC Business Phone System Cary, NC ( 919)555-1212

8. 8 Proprietary & Confidential Buy a PRI…………………...………………………………….…... $550.00 4000 min LD (4000*.04) ……………………………………… $160.00 Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00 Total ………………………………..….. $1135.00 Also Remember to Add: CallerID………………………………………………………………… $50.00 FCC & Other Regulatory Fees (9.95*8)…………………. $40.00 True Total ………………………………….. $1225.00 Digital Service - Financial The Situation: 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD The Cost $61 per employee $1225 per month $14,700 per year

9. 9 Proprietary & Confidential ( 919)555-1212 The Voice Application Sets up and Tears Down Calls No Bundling Needed Summary: Travels over private and public IP Networks Easy to Troubleshoot Many Failover and Recovery Options SIP Voice May be Compressed CallerID, DID, DNIS Included and many Signaling Separated from Audio Dynamic Allocation of Bandwidth Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network Bandwidth.com Dallas, TX Business Phone System Cary, NC (919)555-1212 The Internet

10. 10 Proprietary & Confidential What is SIP? Session Initiation Protocol (SIP) – Protocol that defines how sessions like voice, video, and IM communicate. – Message is sent as text via UDP on Port 5060

11. 11 Proprietary & Confidential What is a SIP Trunk One Concurrent Talk Path 911/e911 Service Directory Listing Service 411 Service Local Calling Inward Dialing Long Distance

12. 12 Proprietary & Confidential BoxSet vol.2……………...………………………………….…... $549.00 Additional 3 Trunks……………...………………….…..…... $75.00 Long Distance ……………………………………………..…… Unlimited T-1 (1.5Mb Internet Access) …………………....………… Included Total ………………………………..….. $624.00 True Total …………………………….…….. $624.00 SIP Trunking Service - Financial The Situation: 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD The Cost $31 per employee $624 per month $7,488 per year 37% Save up to

13. 13 Proprietary & Confidential That is Not ALL the Savings!!!!

14. 14 Proprietary & Confidential Single Site w/out Convergence Internet Network W / T1 T1 Router Requires IT Technician Voice Network W / PRI PBX Requires Telecom Technician Voice & Data Separate Complex Summary: Inefficient Up to 50% unused IT Manager Telcom Manager

15. 15 Proprietary & Confidential Single Site Converged Internet Network W / T1 Voice Network PBX IT Manager Summary: Voice & Data Together on the LAN and the Wan Simplified design Most Efficient Up to 10% unused T1 Router Switch &

16. 16 Proprietary & Confidential Multiple Single Sites Converged IT Manager Summary: Centralized PBX Centralized Management Service Continuity

17. 17 Proprietary & Confidential Bandwidth.com BoxSet (Bundles)

18. 18 Proprietary & Confidential Bandwidth.com BoxSet (Bundles)

19. 19 Proprietary & Confidential Summary Save Money on Service (up to 37% on service alone) Save Capital Expense Through Convergence Save on Labor by Centralization Save Time Save Resources Choose Bandwidth.com