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COVER

SM

Carrier Ethernet Service Solutions

Version 1.1 Confi dential and Proprietary. For internal use only

VantagePoint_CES_Tech_Collateral[FNL5].indd 1 6/9/10 11:13 AM

Confidential and Proprietary. For internal use only

1ST SPREAD

When your customers have VantagePointSM Ethernet Services, they have a distinct business advantage. VantagePoint Network and suite of VantagePoint Services increase the flexibility of your customers’ networks while decreasing complexity. With VantagePoint solutions, customers can even reduce capital expenses and operating costs. VantagePoint is also scalable, so customers can upgrade and add connections easily and more quickly than with traditional network infrastructures to meet their needs as they grow. VantagePoint’s high-bandwidth network allows a seamless migration of traditional services to VantagePoint’s Ethernet infrastructure, providing a foundation for new and enhanced services.

n Provide comprehensive business solutions through a full suite of interface and bandwidth service offerings

n Reduce capital and operating expenses

n Provide protected public network transport for mobile and remote workforce

n Offer superior network resiliency with a fully meshed architecture

n Prioritize and segregate customer network traffic based on their specific requirements

n Deliver local sales, tech support, and service from seasoned professionals trained to support specific business needs

n Reach more customers and offer higher Internet speeds with FairPoint’s ADSL2+ technology

n Ensure customers the highest level of service and satisfaction with FairPoint’s VantagePoint IP/MPLS network, Ethernet, and Internet

In business, it’s all about having the advantage.

ETHERNET SERVICES OVERVIEW

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SERVICE BENEFITS

Simplicity VantagePoint reduces infrastructure and management complexity:

n Supports quick deployment of mission-critical and time-sensitive applications

n Prioritizes and segregates customer network traffic based on their specific requirements

n Deploys new features and applications without work disruption

n Reduces LAN and WAN interface complexity

n Offers IPv6 transport

Green Benefits VantagePoint is easy on the environment:

n Energy efficient

n Occupies less space

n Supports telecommuting

Superior Network Resiliency VantagePoint is a secure converged network with the largest IP/MPLS core infrastructure network in the northern New England region:

n Provides fully meshed architecture with superior resiliency

n Seamlessly integrates voice, video, and data networks through a single provider

n Allows for seamless migration of traditional services to Ethernet infrastructure

n Enhances network connectivity to geographically dispersed offices and remote workers

n Capitalizes on FairPoint’s $90 million-plus investment in the VantagePoint core network and more than 411 miles of fiber built across Maine, New Hampshire, and Vermont

New Services VantagePoint allows FairPoint to offer new and enhanced services now and in the future:

n Extends reach and introduces higher-speed broadband services with ADSL2+ technology

n Connects Dedicated Internet Access services with an Ethernet interface that connects to the VantagePoint core network at speeds up to 1 Gbps

n Provides scalable Ethernet Services Bandwidth with options up to 10 Gbps

Savings VantagePoint offers customers lower capital and operating expenses:

n Decreases the complexity of customers’ networks to reduce overall network costs

n Allows for IP/MPLS solutions that are easier and quicker to implement than traditional network solutions

n Streamlines extended network and network hardware expenses

n Relieves in-house staff by ensuring 24/7/365 technical support and network monitoring

Advantages that work to your advantage.

VantagePointSM Ethernet Services allows you to offer more solutions for seamless business communication than any other company in northern New England — making business easier for your customers. And selling easier for you.

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2ND SPREAD

SERVICE INFORMATION OVERVIEW

Meet their network bandwidth requirements. And your sales requirements.

VantagePointSM Ethernet Services helps your customers meet all of their network bandwidth needs over a single network, with a reliable infrastructure that supports a multitude of access technologies. Our suite of services delivers Ethernet transport throughout northern New England.

VantagePointSM Ethernet Services

n E-Line n E-LAN

Offer customers something more than technology. Productivity.

We can easily integrate broadband technologies, including Frame Relay, ATM, SONET, and DSL, with VantagePoint Ethernet Services. Moreover, increasing the ease of deployment of new IP-based applications utilizing existing technologies will help reduce bandwidth costs and drive productivity and profitability — advantages by any standard.

Our Ethernet Services comes with peace of mind, too. Whether customers need Ethernet private or virtual transport services, we provide integrated voice, video, and data communications over a scalable high-speed network. We do this with resiliency, providing network flexibility and decreasing network complexity. You will determine the solutions that best meet your customers’ needs based on bandwidth, access, security, and resiliency requirements prior to developing a network design.

Major Market Drivers for Carrier Ethernet Services

The following are important issues for your customers. Be sure to address these when talking about the strengths of VantagePoint Ethernet Services.

n Surging bandwidth requirements for voice, video, network storage, distance learning, medical imaging, video conferencing, CAD/CAM applications as well as hosted applications such as data backup, Oracle-line, and SAP-lite

n More Ethernet terminations per building

n Pressure to reduce expenditures and increase service revenues

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Non-technical Explanation



NON-TECHNICAL EXPLANATION

Ethernet is the preferred choice for reliable, flexible network communications — the new gold standard for business communication. VantagePointSM Ethernet Services gives your customers cost-effective high-speed access to the Internet and other business (enterprise) locations by connecting multiple locations, users, and applications through one seamless high-performance network — eliminating bottlenecks and the traditional limitations of distance.

VantagePoint Ethernet Services offers a highly flexible architecture that allows enterprises to increase or decrease bandwidth and manage costs by paying only for the bandwidth they need. Companies can easily add bandwidth in small increments and gain interoperability with traditional widearea networking technologies such as Frame Relay, ATM, or TDM. As a mature technology, Ethernet also allows enterprises to tap into the existing skills of their IT staff without the need to train or hire new expertise.

FairPoint Ethernet Services: A non-technical explanation.

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DETAILS

GEoGRAPhIC DISPERSIoN (NuMBER of LoCATIoNS)

Two Two Multiple Multiple

PRICING STRuCTuRE Port and Access Port and Access Port and Access Port and Access

CoNTRACT TERMS EVC (at least 1) EVC (at least 1) EVC (at least 1) EVC (at least 1)

PERfoRMANCE

CLASS of SERVICE Ethernet Ethernet Ethernet Ethernet

PERfoRMANCE ASSuRANCES

Committed Information Rate (CIR) with an associated Committed Burst Size (CBS), Excess Information Rate (EIR) with an associated Excess Burst Size (EBS) delay, delay variation, and loss

PERfoRMANCE SERVICE LEVEL AGREEMENTS

Availability, Round Trip Delay (Latency), Packet Loss, Mean Time to Repair, Jitter

RELIABILITy Up to 99.999% Up to 99.999% Up to 99.999% Up to 99.999%

TEChNICAL oVERVIEwEthernet Private Line (EPL)

Ethernet Virtual Private Line (EVPL)

Ethernet Private LAN (EP-LAN)

Ethernet Virtual Private LAN (EVP-LAN)

BRoADBAND SPEED 1 Mbps – 10 Gbps 1 Mbps – 10 Gbps 1 Mbps – 10 Gbps 1 Mbps – 10 Gbps

CoNNECTIoN Point-to-Point Point-to-Point Multipoint-to-Multipoint Multipoint-to-Multipoint

SERVICE MuLTIPLExING No Yes No Yes

uNI CoNNECTIoNS Two Two Three or more Three or more

SyMMETRICAL BANDwIDTh oPTIoN

Yes Yes Yes Yes

Because it’s based on standard Ethernet protocols and interfaces, VantagePointSM Ethernet Services is IP-compatible and integrates easily with enterprise applications and network devices. It also provides a scalable foundation for advanced applications that can be challenging to deploy over TDM or Frame Relay networks.

VantagePoint Ethernet Services offers greater control for prioritizing and segregating traffic with scalable and reliable delivery services managed from a 24/7/365 data services center — providing the highest level of service and customer satisfaction.

Easy integration is no longer an oxymoron.

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VantagePoint Ethernet Services Overview




Integrating Existing and New Technologies

Benefits for Business

n Scalable bandwidth

n Converged voice, video, and data services

n Reduction and consolidation of IT expenses• Replaces cost-prohibitive private lines and network hardware • Lowest total cost of ownership service• Easy to use

n Protected public network transport• Public networks providing private IP connectivity• Protected mobile and dispersed workforce

n Superior network resiliency• Meshed architecture• Seamless convergence• Redundant connections through private peering, public peering, and dedicated transit connections on the backbone

n Application aware transport• Granular traffic control• End-to-end Quality of Service• Traffic engineering

n Service Level Agreements• Service Availability• Latency• Packet Loss• Jitter• Class of Service• Service Repair Intervals

In with the new. Works with the old.Access Methods VantagePointSM makes it easy to integrate new technologies with your existing ones. Our Ethernet Services are available with a variety of access methods including Fiber to the Prem-ises, Fiber, Ethernet over Copper, Frame Relay, NxT1, DS3 SONET OC3, and SONET OC12.

n Ethernet over Copper: Uses existing copper infrastructure with equipment that gives traditional copper lines Ethernet capability by using central office aggregation equipment and customer premises equipment for Ethernet handoff to the customer site

n Fiber: Use when facilities exist or when business case supports the development of fiber access to customer site. Most flexible and scalable service delivery method. Offered at a premium and will be a Cisco-powered solution

n Ethernet over SONET: Access with existing Ethernet Private Line access service. Typically required for applications that already have SONET access and equipment in place

n Traditional TDM access: Connects to legacy ATM network to allow existing network infrastructure to be used to provide services via Enhanced Ethernet Private Line Services. A cross-connect from the existing TDM network to the VantagePoint network will bridge the networks to allow the capability to map PVS into the IP/MPLS core. This allows the legacy network elements to become IP/MPLS-capable and allows for easier migration of customers who want to evolve into a holistic IP/MPLS network infrastructure. Compelling to customers who would like the existing infrastructure to be “IP/MPLS” capable

Moving business faster.

The VantagePointSM IP/MPLS network supports today’s tech-nology as well as the VantagePoint Ethernet-based Services. One provider to support all of your communication needs.

DESCRIPTIoN

Interconnects separated LAN networks across one E-LAN network

Dedicated WAN

SERVICE

E-LAN

E-LINE

whAT IT REPLACES

Frame Relay and TDM private lines

TDM-based access


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4TH SPREAD

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Technical Explanation



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TECHNICAL EXPLANATION

VantagePointSM Ethernet Services provides standardized ubiquitous Ethernet service defined by five attributes that distinguish it from LAN-based Ethernet. The five attributes, as defined by Metro Ethernet Forum, are:

n Standardizationn Scalabilityn Reliability n Quality of Servicen Service Management

The bandwidth profile has five traffic parameters and can be applied at the User Network Interface (UNI), the demarcation point between provider and subscriber, or to an Ethernet Virtual Circuit (EVC). When there are multiple services associated with a UNI, there is a corresponding bandwidth profile associated with each of these services. This means you can design and pay only for the bandwidth needed and the bandwidth profile can typically be changed without having to add new physical interfaces.

Fundamental to both Carrier Ethernet and LAN Ethernet is the fact that data is transported via an Ethernet packet. This means that an Ethernet packet originating from a device within the LAN will continue to traverse across one or more Service Provider networks seamlessly and terminate at a device in a remote LAN.

The how, what, and why of better network performance.



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TECHNICAL EXPLANATION

Ethernet Service BenefitsVantagePointSM Ethernet Services offers highly customizable solutions for all business customers based upon specific service options and configurations.

n Wide range of speeds with extensive bandwidth configurations• 1, 3, 5, and 10 Mbps• 1 Mbps – 100 Mbps• 10 Mbps – 100 Mbps

n Mode• UNI supports full duplex plus whether or not the UNI will be configured for auto-negotiation – Full duplex – transmission in both directions simultaneously (default mode)

n Ethernet Virtual Circuit (EVC) – association of two or more UNIs; a given UNI can support more than one EVC via the service multiplexing attribute • Point-to-Point EVC – two UNIs are associated with each other • Multipoint EVC – three or more UNIs are associated with one another

n Performance Parameters• Availability• Round-Trip Delay• Jitter• Packet Loss

n Class of Service (CoS)/IP-ToS• Best Effort• Standard (Future Release)• Real Time (Future Release)• Priority (Future Release)

n Bandwidth Profiles

n Service Packet Delivery

n Service Multiplexing

n Bundling

n Security Filters

n Customer Reports

It’s not a solution until it’s your customer’s solution.



POINT-TO-POINT & MULTIPOINT SERVICES

Ethernet Bundled Service Profiles(Example)

50 Mbps Ethernet UNI with Accessn 10 Mbps EVC1 Default Class (e.g., Internet & Email) n 10 Mbps EVC2 Standard (e.g., Data Backup Services) n 10 Mbps EVC3 Priority (e.g., Financial Transactions) n 20 Mbps EVC4 Real Time (e.g., Video & Voice Services)

Big or small, the point is communications excellence.

Point-to-Point and Multipoint Services Ethernet private and virtual connectivity services using the E-Line and E-LAN service types are simple connectivity services that are defined based on whether they are port or Virtual Local Area Network (VLAN) based services. The port-based service, where all-to-one bundling is employed, is essentially providing a private service with dedicated bandwidth, while the VLAN-based service allows service multiplexing at a UNI to enable a virtual service in which bandwidth is shared among multiple Ethernet Virtual Circuits (EVCs).

EVC3

Priority “Transactions”

EVC2

10 Mbps Standard“Data backup”

EVC4

20 Mbps Real Time“Voice & video”

EVC1

10 Mbps Default Class“Internet & email”

PHYSICAL TRANSPORT 100 MBPS ETHERNET UNI(port & access) e.g. Fiber, etc.

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E-LINE SERVICES

More bandwidth. More flexibility.

E-Line Services E-Line services are traditionally dedicated point-to-point high bandwidth, high capacity services used for voice or data. The Ethernet connection between locations is symmetrical and can be compared to a Frame Relay permanent virtual circuit, but with a greater range of bandwidth and four class of service options.

Ethernet Private Line

n Point-to-point Ethernet Private Line (EPL) – between two UNIs (locations), high degree of transparency. EPL does not support service multiplexing. A dedicated UNI (physical interface) is used for this service. Due to a high degree of transparency, there’s no need for coordination between the customer and FairPoint

n Ethernet Virtual Private Line (EVPL) – services similar to EPL but support service multiplexing at the UNI. Due to multiplexing some multiple EVCs are supported

n Any-to-any connectivity (VPLS)

n Quality of service (QoS)• Multiple classes of service (5)

n Ethernet Virtual Circuits (EVCs)• Priority queuing• 802.1Q virtual LANs

n Ethernet Virtual Local Area Networks (VLANs)

Give them an advantage of their own.

Ethernet Virtual Private Line Services

This service provides scalable IP/MPLS-based Ethernet services with security. The service is based on Layer 2 protocols.

n Scalable bandwidth options:• 1, 3, 5, & 10 Mbps• 10 Mbps – 100 Mbps• 100 Mbps – 1 Gbps

n VPNs allow customers to securely transport data across a public network

n Secure transport of data

n Traffic engineering provides value-added service level agreements

n Easy integration with existing infrastructure

n Private dedicated connection addresses security requirements

n High availability and performance supported by QoS and SLAs

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E-LAN SERVICES

E-LAN Services Location doesn’t matter. What does is having everyone in your organization on the same page. VantagePointSM E-LAN provides Ethernet connectivity among geographically separated customer locations, creating a VLAN that spans those locations. E-LAN is much simpler and less expensive to implement on VantagePoint than on Frame Relay or ATM networks. Your customers will also have the flexibility to provision more bandwidth easily with a variety of quality of service (QoS) capabilities and service level agreements.

Give your customers a competitive advantage. Anywhere.

Ethernet Private LAN Servicesn Multipoint-to-multipoint (E-LAN) – connects two or more

UNIs, and service packets sent from one can be received at one or more of the other UNIs. Each UNI is connected to a multipoint EVC.

n Ethernet Private LAN (EP-LAN) – enables wide area LAN with full transparency of service packets

n Multipoint-to-multipoint

n Ethernet Virtual Private LAN (EVP-LAN) – enables wide area LAN with service multiplexing

n Intra-company connectivity

n No coordination with provider required to add new VLANs

n Scalable bandwidth options (only EVP-LAN)• 1 Mbps – 1 Gbps

n Interconnection of the LAN and WAN

n Faster service turn-up in comparison to ATM and Frame Relay

n Minimized equipment requirements

n Ease of network growth

n Simplified interoffice communications and the ability to create a virtual corporation from several functionally dedicated LANs

Multipoint-to-Multipoint EVCs

E-LAN Service Type

CE

UNI

CE

UNI

CE

UNI

CE

UNI

E-LAN Service Type The E-LAN service may include a different bandwidth profile <CIR, CBS, EIR, EBS, CM> configured at each of the UNIs. The E-LAN service type is used to create a broad range of services such as Private LAN and Virtual Private LAN service. A multipoint-to-multipoint E-LAN is illustrated to the right.

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SALES ChECkLIST

Sales PositioningSales must understand underlying drivers (technical, operational, and financial) for why a customer is considering replacing or building their IP-based network. Customers need their communications company to provide more speed, flexibility, service level agreements, and scalability. Customers now need more than a big pipe and are seeking an intelligent information network. Drivers for upgrading include:n Employee productivity n Data Protectionn Business Resiliency n Bandwidth on demandn Dedicated Internet Accessn Lessen burden on in-house IT by providing single point of

contact for all data and internet servicesn Improve disaster recovery by relocating data back up to

secure sites remove from the main operating site

Target Companies

n Financial institutions, government departments and other organizations with multiple sites in a metro area that need to communication across virtual LANs to provide fast, protected links between offices

n Financial organizations and other technology intensive companies using data mirroring techniques for business continuity and disaster recovery

n Broadcasters that need digital video streaming to share large amounts of information and work collaboratively across different sites

n University campuses that need high speed internet access for research, email and intranets for uploading course materials or lectures

n Schools and Libraries need the always on features and the fixed monthly service price

n Security companies that can use remote digital video surveillance for added product offerings and monitoring

n Small and Medium businesses that want to cut costs, im-prove productivity and ensure data is securely protected plus share network resources (printers, servers, fax machines)

Sales Strategies / Discussion Topics

n Ability to converge data, voice, and video networksn Growing bandwidth needs based on business applications

and server demands such as graphic design, real estate web showings, finance

n How data is shared, stored, and utilized at large enterprises, data centers, businesses with large amounts of shared data or video applications

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Common objections/Responsesn Carrier Ethernet is too expensive: As the technology has

improved and become more mainstream, the cost has decreased and it competes with alternative solutions

n Ethernet is not reliable: A variety of SLAs and four classes of service options are available to meet business requirements for service uptime, performance latency, jitter, packet loss, security and mean time to repair

n DSL is fine for business: Carrier Ethernet offers high bandwidth, reliability and is backed by service level agreements

n We currently have Frame Relay / ATM service, why switch: Carrier Ethernet services have been deployed to be compatible with Frame Relay, ATM, and leased lines and allow for extending and evolving existing Frame, ATM and IP services

Sales Processn Capacity Checkn Quotingn Contract Processn Order Entry and Managementn Service Activation n Billing and Paymentn Service Management

Qualifying Questionsn High-Level Questions • Are you considering using FairPoint VantagePointSM

services in your WAN network? • For which applications? • Why are you considering FairPoint service?

• What other services are you evaluating or currently using to support these applications?

n Service Requirements and Decision Criteria Questions• What are the requirements and challenges that the

WAN service must address? • What are your evaluation criteria in choosing the ideal

WAN technology/service? n Addressability Questions • How many locations need to be connected? • Where are these locations? • How much bandwidth is required at these locations? • What types of providers would you consider for IP VPN

services? Why these particular providers?



Competitive Information

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CLECS PRoS CoNS VANTAGEPoINTSM SELLING STRATEGIES

oNE CoMMuNICATIoNS • Second in market share to FairPoint in NNE

• Strong local presence in NH

• Full range of MPLS and Ethernet services

• Provides customer premises equipment (CPE) versus a true Ethernet

• Limited in ME and VT

• Losing market share in ME

• Uses telecom agents (Caleidoscope and Teligence)

• Service declines

• Recent investments to longevity of technology in all three states

• Dedicated business resources

• Large coverage area

• Speak directly with a FairPoint representative, not an agent

PAETEC • Strong customer service and sales team

• Widespread MPLS network

• Larger provider

• Beginning to branch out more in ME and VT

• Strong presence in NH

• Focuses on mid-size accounts

• Large fiber span

G4 • Strong sales team

• Strong product set

• Small provider

• Network not as technically robust as promised

• Service issues

• Low-cost provider, sometimes over committal

• FairPoint is a large local provider

• Dedicated business resources

• Expansive knowledge

LEVEL 3 • Direct sales force

• Agency agreement with Caleidoscope for marketing to SMB segment

• Main focus is enterprise segment

• National telecom provider

• Promote FairPoint’s local presence and commitment to northern New England

• Solid resources

GwI • Second largest fiber network in Maine

• Facilities-based CLEC

• Already deployed ADSL2+

• Strong service reputation with aggressive sales focus

• Solid product set

• Target larger customers

• Promote dedicated business resources

• Large fiber access throughout NNE, not just ME

NATIoNAL PRoVIDERS

AT&T / VERIzoN • Expansive product set

• Pricing

• Large national company

• Easy to get lost

• Demonstrate local resources dedicated to NNE

• Highlight the investment in the future and that FairPoint is a local company

CABLE PRoVIDERS

TIME wARNER / CoMCAST • Highly successful TV marketing

• Large coverage area

• Frequent, highly aggressive campaigns

• National companies without local, dedicated sales force or support

• Reinforce FairPoint’s strong contract price (not an introductory offer that increases a few months out)

• FairPoint is a local business investing in the future of NNE

• Promote fiber builds



Dedicated Technical SupportOur Internet services come with 24/7/365 dedicated technical support exclusively for business customers. When customers call 1.800.314.9209, they can expect their call to be expedited to knowledgeable technicians, who will work with them to keep their services running smoothly.

n 24-Hour Help Desk

n Trouble Ticket System

n Fault Isolation and Problem Identification

n Network Operations and Service

Call 1.866.984.3001 or email us at [email protected]

Customer Service: 1.866.984.3001. Services subject to change. Subject to applicable Service Level Agreement. Speed and uninterrupted service not guaranteed. © 2010 FairPoint Communications, Inc. All rights reserved. BSN-90511B-NNE-SME-CES-Tech 6/2010

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