Always Connected: Strategies for Fixed Mobile ConvergenceM d t Bill E J Vi P id t S i t Wh l l S l tiModerator: Bill Esrey, Jr., Vice President – Sprint Wholesale Solutions

Bill Esrey, Jr. Vice President – Sprint Wholesale Solutions

© 2009 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Wireless Service is a Key Productivity Tool for Wireless Service is a Key Productivity Tool for Businesses, and Employers are Investing in itBusinesses, and Employers are Investing in it

Role of Wireless in Small BusinessEmployees in more than half of all small businesses use a mobile device of some kind for work. Half of those mobile devices are selected and paid for by the employer, with p y p ymost of the rest reimbursed.

Payment for Employee Devices

Small businesses are optimistic about growth p gin 2010, and tend to view wireless service as a key productivity resource.

Compass Intelligence. “Small but Plenty and Mighty: Understanding the Basics of Small Companies and Wireless Usage.” December 2009.H i I t ti W bi “M bilit M B i Th Wi l R d t P it ” A il 2009

© 2009 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Harris Interactive Webinar. “Mobility Means Business: The Wireless Road to Prosperity.” April 2009.Enterprise Council on Small Business. “Choosing a Telecommunications provider: A Small Business Perspective.” March 2010.U.S. Census Bureau, 20073

The Struggle for Mobile IntegrationThe Struggle for Mobile Integration VoIP

Business Customers2 phones and 2 networks creates problems Wire-

Seamless Function &

Reachability

2 phones and 2 networks creates problems

Duplication of IT & network related costs

Employees aren’t reachable – despite proliferation of communications mediums

less

Loss of productivity & inability to communicate effectively outside the office

Wireline Service ProvidersWireline Service ProvidersNeed a wireless offering but want to be more than a “me too” wireless provider

Want to deliver a seamless user experience for voice services – regardless of

mobile or wireline

Build a compelling bundle that will create “stickiness” and “complement, protect,

& grow” existing revenue streams

© 2009 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

& grow existing revenue streams

4

Curtis HartmannCurtis HartmannDirector Product ManagementDirector Product ManagementDirector, Product ManagementDirector, Product Management

5

Integrating Mobiles with all Carrier VoIP Models

Premises Fixed & Mobile

Mobile Only Hosted Fixed & Mobile

PBX/IP PBXFront OfficeCentrex on IP

phone PBX/IP PBXFront Office phone

BroadWorks Enabled Service Provider

PBX feat res onC t f t C t f t

6

PBX features on mobile

“Mid-Large Enterprise”

Centrex features on mobile

“Micro-business”

Centrex features on mobile

“SME”

Who is BroadSoft?

Industry-leading IP communications company for carriers• 11 years old with 350+ employees in 21 countries• Public Company (NASDAQ: BSFT)• Products: BroadWorks Application Server, PacketSmart

Innovator• 100% focused on IP comms – 1,200 person/yrs of investment• Single app server for consumer business mobile IMS NGN

Industry-Leading Ecosystem• End-to-end solution with leading equipment partners

• Single app server for consumer, business, mobile, IMS, NGN• Open extensibility (BroadSoft Xtended)

• Over 450 devices in interoperability program• Over 3,700 BroadSoft Xtended developers

Trusted Partner• Collaborative technology and go-to-market approach

Adopted Globally

Collaborative technology and go-to-market approach• Certified vendor status• TL 9000 quality certification - Carrier grade reliability

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• 15 of top 25 Service Providers • Over 425 customers in 65 countries• Broad experience with: CLEC, ILEC, PTT, OLO, MNO, MVNO

How BroadSoft enables FMC for Wireline Operators

SIP Interoperabililty(MNO, PBX, IAD, IP Phone)

Built-in FMC featuresIndustry’s most deployed AS

for IPC & SIP trunking

Mobile Handset ClientsMNO Partner

C ll b ti GTM t

8

Collaborative GTM support

The Last Communications Company A Small Business Will Ever Need.SM

Vincent ZappaSenior Director, Mobile

Cbeyond Business OverviewCbeyond Business Overview

Managed Services Providert S ll B i

Integrated suite of applications and services delivered to~53,000 small business customers in 14 major U.S. cities

Consultative selling built on culture of referrals~55 direct sales reps per marketDirect Selling Approach

to Small Businesses 53,000 small business customers in 14 major U.S. citiesSmall business market not adequately served by incumbents

p pSales model resonates well with entrepreneurs

g pp

All IP PlatformIP network affords application flexibility and advanced featuresLower cost structure relative to traditional networks

Proven, Replicable Model

Integration of wireline, mobile and IT services

Positive market-level operating cash flow typically within 2 yrsPositive free cash flow* typically within three yearsP di t bl d i th ith h k tPredictable revenue and margin growth with each market launched

CbeyondCbeyond’’s mission is to deliver s mission is to deliver ““big businessbig business”” IT and communications tools to IT and communications tools to

10*Adjusted EBITDA less Capital Expenditures

small business at prices they can afford and we can deliver profitably.small business at prices they can afford and we can deliver profitably.

Our Target Market – The Small Business EntrepreneurOur Target Market The Small Business Entrepreneur

Cbeyond’s Approach to Sales & Marketing

Enterprise

Sa es & a et gDirect Sales Force: 80%Indirect Partners: 20%250+

• Regimented, consultative sales force

Cbeyond’sCustomer Profile~$708 monthly ARPU

8 voice lines

~20K

• ~55 sales reps per city• Door to door prospecting• Face to face,

consultative selling• Vertical marketing• +30% of sales from

8 voice lines

14 employees

7.6 applications

3 year contract

5 to 249employees SMB

(Small and MediumBusinesses)

1.5 million(Top 25 U.S.

cities)

SOHO

<5

+30% of sales from referrals

• Community involvementNo telecom/IT dept.

70% previously usedthe ILEC for voice

3.5 M

Cbeyond serves entrepreneurs who value customer service andCbeyond serves entrepreneurs who value customer service andproductivity enhancing applications over priceproductivity enhancing applications over price

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productivity enhancing applications over price.productivity enhancing applications over price.

FMC Product StrategiesFMC Product Strategies

FMC will help Cbeyond to: 1) differentiate its services, 2) enable new revenues, and 3) reduce costs through improved operating efficiencies.

Mobile Extension OnlyLayers Cbeyond IP Centrex “like” services onto mobile“Configurable” single number solution

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reduce costs through improved operating efficiencies.

Single number can remain “company asset”SIM Ring / SEQ Ring / User defined call rules, etc.Call treatment managed entirely by CbeyondEnablement of entire Cbeyond Mobile subscriber base

Same as above including single number supportAdds support for PBX phones (fixed DID)Unified voicemail, active call transfer Cbeyond Virtual Receptionist integration

Mobile-to-PBX Phone22

Most importantly Most importantly –– our customers can have a unified experience across our customers can have a unified experience across communication mediums. communication mediums.

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Always Connected Fixed MobileAlways Connected Fixed Mobile Convergence

i h Z l l hLaith ZalzalahDirector – Wireless Solutions

About Mitel

A leading provider of communications Mitel NetSolutions Complete localA leading provider of communications solutions for large multi-site enterprises, mid-sized corporations and small offices.

Operate from over 80 locations in over

Mitel NetSolutions - Complete local, long distance, Internet access and complex data network and wireless offerings

Operate from over 80 locations in over 90 countries.

Partner network of over 1,600 value-added resellers.

Solutions Include:– Local services – PSTN

and SIP services

– WAN technologies - MPLS VPLS OpticalUsing IP telephony as the enabler for business communications applications

WAN technologies MPLS, VPLS, Optical Ethernet

– Nationwide voice and data wireless services

Our portfolio of solutions are highly scalable, secure, easily managed, and provide 360 degrees of convergence to our customers.

slide 14Mitel | Confidential

Simply Connected – No Limits

Single number reach– One number, one mailbox, multiple devices

Consistent dialing plan and feature set for both mobile and office desk phone

Ability to move calls seamlessly and transparently between mobile y y p yand desk phones

Extending UC features/applications to mobile devicesH ld t f f t– Hold, transfer, conference, etc.

– Corporate Directory

– Presence

– Collaboration and Instant Messaging

Communications With No Boundaries

slide 15Mitel | Confidential

Stefan BewleyDirector, Altman Vilandrie & Company

Mobile Challenges for Fixed Line CarriersWhile the strategic imperative is clear, the successful introduction of mobile services to your commercial customer base is challengingyour commercial customer base is challenging

Key Mobile Challenges for Fixed Line Carriers

Sales Channel Alignment(Who?)

Corporate liable purchasingExisting sales contact (e.g., IT vs. Office Manager)

Product Differentiation(What?)

“Me-too” mobile productEnhancements to core product

Operational Expertise(How?)

New operations: devices, fulfillmentExisting operations: care, billing, tier 2 support

Return on Investment(Why?)

Standalone economicsUpside benefits to core business

September 24, 2010Confidential – Do Not Reproduce 17

AV&Co. OverviewAV&Co. is a strategy consulting firm that focuses exclusively on the communications, media smart grid and related technology and investor sectorsmedia, smart grid, and related technology and investor sectors

AV&Co. Communications and Media Client Ecosystem

Company OverviewEcosystem

Background

• Founded in 2002

• 50 Consulting ProfessionalsCommunications

Companies 50 Consulting Professionals

• Headquartered in Boston

Value Proposition

S i li t i th C i ti

Companies

Utility & Smart Grid • Specialists in the Communications,

Smart Grid, Media and Technology Sectors

• Fact-based, analytical approach to problem solvingTechnology

& Media

Smart Grid Companies

• Deep economics and financial capabilities

• Investment firm expertise and perspective

& Media Companies

Investors

September 24, 2010Confidential – Do Not Reproduce 18

Always Connected -St t i f Fi d M bil CStrategies for Fixed Mobile Convergence