1. January 23-26, 2007 Ft. Lauderdale, Florida Successfully Selling and Implementing Hosted VoIP Services for Business Clients Tales from the Trenches Patrick Matthews Sr. Global Strategic Manager Alcatel-Lucent

2. January 23-26, 2007 Ft. Lauderdale, Florida Agenda  Market Overview  Top Lessons Learned/Best Practices  Review and Conclusion  Questions 2

3. January 23-26, 2007 Ft. Lauderdale, Florida Why Carriers Are Interested in Hosted VoIP from a 3 rd Party  Capture high-margin voice revenues immediately –Decrease time to market  Path to future services growth –Avoid obsolescence via access to content rich ecosystem  Single partner for VoIP platform and ecosystem –On-going interoperability, roadmap enhancements, and reliability  Minimize CAPEX and keep OPEX controlled –Pay as you grow w/minimal impact to existing operations 3

4. January 23-26, 2007 Ft. Lauderdale, Florida  Growth of Hosted VoIP services is ramping, but more slowly than expected: –Number of Drivers Also….. –Number of Inhibitors Current State of the Hosted VoIP Market Source: In-Stat, Yankee, Alcatel-Lucent, 2005 Today: Forecast is ~$4B less by 2009 4

5. January 23-26, 2007 Ft. Lauderdale, Florida Lesson #1: Sales and Marketing  Guiding Principles of Sales and Marketing –Educate –Calculate –Generate –Consult-”ate” Source: Savatar, 2006 How Familiar Are You with VoIP? 5

6. January 23-26, 2007 Ft. Lauderdale, Florida Lesson #1: Sales and Marketing Cont’d  Educate –Invest in educating the market on Hosted VoIP –Leverage trials for your and your customers benefit  Calculate – Develop an economic value proposition –Don’t sell on features or complex bundles, start with basic VoIP –Know your competition and position relative to the competitor’s pricing/features  Generate – Leads –Don’t assume you build it, and they will come –Make customers want you to leverage their success stories  Consultative Selling –Arm and incent your sales channel so they spend time with the right customers –Look beyond your direct channels 6

7. January 23-26, 2007 Ft. Lauderdale, Florida Lesson #2: Clearly Define Offer and Requirements Upfront  Define and launch your core offer based upon: –Understanding of your target market and channel requirements –Agreed upon roles of the partners in your ecosystem  Standardize your offering to clearly define: –Features/functionality & limitations –Services & Support –Requirements –Control/Demarcation –Documentation & training  Have a few defined standard offers, but don’t have too many –Don’t include value-add/up-scope services into core offering  Communicate future enhancements and offers via roadmap 7

8. January 23-26, 2007 Ft. Lauderdale, Florida Lesson #3: Operations and Support  Test and tighten the end-to-end processes within entire offer ecosystem  Implement QoS offer as part of standardized offering  Leverage expertise for ongoing OSS/BSS management –Eliminate manual intervention for provisioning, configuration, and billing  Institute change management processes with the business clients  Invest in lab facilities for proactively trouble shooting and product enhancements  Request feedback on your overall solution

9. January 23-26, 2007 Ft. Lauderdale, Florida Lesson #4: Don’t Forget the Basics on the Implementation  Engage all the stakeholders upfront  Insist on LAN / WAN assessments and station reviews  Treat security as integral to, rather than separate from, the voice solution  Clearly defined methods and procedures, back out plan, and transition schedule with firm dates  Educate your customers on their new solution 9

10. January 23-26, 2007 Ft. Lauderdale, Florida Review and Conclusion  The Hosted VoIP market will continue to gain momentum and grow  View offer as an end to end solution, but keep in mind “one size” does not fit  Leverage Lessons Learned/Best Practices:  Sales and Marketing  Offer and Requirements Upfront  Operations and Support  Basics on Implementation 10

11. January 23-26, 2007 Ft. Lauderdale, Florida Thank You! Patrick Matthews Alcatel-Lucent pjm@lucent.com