1. Doug Wilson Engineering Associates, Inc. dwilson@engineeringassociates.com

2.  “Business” Broadband is the Opprotunity  Emphasis-Opportunities Tier 3 Telcos  Results of Discussions over two years A. Observations of “Others” Activities B. Respect Confidentiality  Generate New Revenue exiting skill sets & infrastructure w/o betting the Farm

3. Primary Focus  Tools to win race to be Broadband Provider for your customers & community  Ethernet Provider for: ◦ Local Businesses ◦ Local and County Governments  Company Ramifications  Liberally Plagiarized ◦ Service Provider Web Sites ◦ Vendors  Calix/BIT- Frank Weiner  Others- CISCO, etc.

4. The Story of Ethernet

5. You know, I’m not sure if this Ethernet will ever be used in an IOC market…..

6. Ethernet IOC market opportunities one year later…..

7.  Existing Physical Infrastructure  Organizational Infrastructure ◦ Technical Skills ◦ TDM/ Ethernet Skills ◦ Marketing Skills  Business/Government Needs ◦ Broadband Connectivity Needs Exploding -CISCO says 46%/Yr. ◦ Internet Concerns of Businesses Security-Bandwidth ◦ Data Connectivity Becoming Mission Critical ◦ Wireless Backhaul Opportunities Exploding

8.  Need Trusted Provider/Partner ◦ Local Presence ◦ Financial Integrity ◦ Single Source  US Wholesale Ethernet Service revenues of $595 million in 2009 with estimates of $1.5 billion in 2014 - Frost & Sullivan

9.  Existing TDM/ Sonet Networks  Some Core Ethernet?  xDSL/FTTP?  Technology Cycle Accelerating ◦ Historically 3/5 years ◦ Recently 1 ½ years  Price Decreases- Ethernet Carrier Grade Data Products  “Business Services” less price sensitive than residential services & less competition

10. SONET NETWORK DS1 DS3 ‘limited” IP OCx DS1 DS3 ‘limited” IP OCx  Existing TDM platform  Very Reliable & Secure  Best option for ‘Specials”  Limited for IP bandwidth  High cost optics  Expansion expensive  Not Efficient  Supports Ethernet POTS xDSL FTTH DS1 BLC TRANSPORT

11. ETHERNET NETWORK IP - 10/100 Mb IP - 1Gb ‘limited’ DS1  Ethernt/IP platform  Can Be Very reliable  Poor option for ‘Specials”  Provides very high IP bandwidth  Very low cost optics  Expansion inexpensive  Very Efficient  It’s here POTS xDSL FTTH ‘limited’ DS1 IP - 10/100 Mb IP - 1Gb ‘limited’ DS1 BLC TRANSPORT

12.  New Inter Net Based Applications Developing  Internet Not Secure or Reliable  Initial Bandwidth requirements  How to handle Growth?  Point-Point & Point- Multipoint requirements  In Area & Out of Area- Networking  Goal/Support – Connection to “Enterprise Systems”

13.  Virtual Configuration  VLAN/VPN Control creates “circuit”  Flexible & Reconfigurable  Easy Update/Modify  Relatively Economical  Not Disruptive Technology for Infrastructure or staff

14.  Existing Infrastructure ◦ SONET? ◦ FTTP/xDSL? ◦ Fiber  Existing Organization  Local Presence  Establishes Broadband Relationships

15.  Define Opportunity- Customers ◦ Identify Potential Customers ◦ Define Their Requirements  Learn “Dataese”  Identify Network & Operating Systems Upgrades- Don’t Over Analyze-  Negotiate Inter Connection Arrangements – If Necessary  Develop Marketing & Pricing Plan  MARKET  Implement & Perform- Monitor  Publicize & Repeat