An introduction to SIP When telephony moves from

An introduction to SIP When telephony moves from an infrastructure to an application, the cost savings and flexibility are clear. ITExpo 2009 Sean Rivers Director of Product Engineering

BANDWIDTH CONFIDENTIAL When voice was infrastructure • Single Service Architecture • Limited Redundancy and Failover Options • Many Companies Involved in Delivering Calls • Many Competing Standards • Analog or Digital (919)555 -1212 No Mobility and Limited Flexibility • (919)555 -1212 Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO Long Distance Network TANDEM Cary, NC (919)555 -1212 Hunt Central Office Cary, NC 1213 1214 Business Phone System Cary, NC

BANDWIDTH CONFIDENTIAL The cost of Analog Voice 8 Analog lines (8*30)…………………. …. . . $240. 00 • 20 person Office 4000 min LD (4000*. 05) …………………… $200. 00 • 8 concurrent calls (lines) Buy a T-1 (1. 5 Mb Internet Access) ……………. . ………… $425. 00 • Minimum of 500 Kb Internet Access • 4000 Min. LD Total ………………. . $865. 00 Also Remember to Add: Hunting and other Features (8*5)…………… $40. 00 $11, 820 FCC & Other Regulatory Fees (9. 95*8)…………………. $79. 60 per year True Total …………………. . $984. 60 $985 $49 per month per employee

BANDWIDTH CONFIDENTIAL The cost of Digital Voice Buy a PRI…………………. . . …………………. …. . . $550. 00 • 20 person Office 4000 min LD (4000*. 04) …………………… $160. 00 • 8 concurrent calls (lines) Buy a T-1 (1. 5 Mb Internet Access) ……………. . ………… $425. 00 • Minimum of 500 Kb Internet Access • 4000 Min. LD Total ………………. . $1135. 00 Also Remember to Add: Caller. ID………………………………… $50. 00 $14, 700 FCC & Other Regulatory Fees (9. 95*8)…………………. $40. 00 per year True Total …………………. . $1225. 00 $1225 $61 per employee per month

BANDWIDTH CONFIDENTIAL With SIP, voice is an IP Application • • Sets up and Tears Down Calls Signaling Separated from Audio • Travels over private and public IP Networks • Caller. ID, DNIS Included and many Dynamic Allocation of Bandwidth Central Office Denver, CO Many Failover and Recovery Options • Caller Denver, CO (919)555 -1212 TANDEM Denver, CO Easy to Troubleshoot • (919)555 -1212 • Long Distance Network Mobile Device The Internet Soft. Phone (919)555 -1212 Application Anywhere, USA or Business Phone System Cary, NC

BANDWIDTH CONFIDENTIAL SIP vs. SIP Trunks • SIP (Session Internet Protocol) is a protocol for: • Defining how sessions like voice, video, and IM communicate. • Message is sent as text via UDP on Port 5060 • SIP Trunks are product “packages”, that include: • One Concurrent Talk Path • Features, such as: 911/e 911 Service, Directory Listing Service, 411 Service, Local Calling, Inward Dialing, Long Distance • Sold in Unlimited or Metered

BANDWIDTH CONFIDENTIAL The (lower) cost of SIP Trunking Bandwidth. com Box. Set vol. 1……………. . . …. …. . . $549. 00 Additional 3 Trunks……………. . . …………………. …. . . $75. 00 Long Distance ………………………. . …… Unlimited T-1 (1. 5 Mb Internet Access) …………………. . ………… Included • 20 person Office • 8 concurrent calls (lines) • Minimum of 500 Kb Internet Access • 4000 Min. LD Total ………………. . $624. 00 $7, 488 Save up to True Total ………………. ……. . $624. 00 37% $624 $31 per month per employee per year

*Robert Half Technology (Top 10 Tech Investments, April 13 th, 2009) But wait… there’s more. 1. Vo. IP was the 4 th most frequently cited area for IT investment in the next 12 months, with the benefits of: • Lower monthly phone bills (40% or more off of traditional service) • Potential for unified messaging (integrate telephony with business apps & improve employee productivity) • Greater network flexibility (consolidate across locations, spin-up new users quickly, reallocate bandwidth) 2. Those benefits, however, must be realized without giving up the quality-of -service and redundancy that enterprises are used to.

You used to have 2 networks. Voice Network W / PRI Internet Network W / T 1 Router PBX Requires IT Technician Requires Telecom Technician Telcom Manager Up to 50% unused Inefficient

With Vo. IP, you have 1. (Convergence) • • Save headcount More redundancy options More flexibility Lower management costs Up to 10% unused Most Efficient

Multiple locations = Multiplied Costs FL NY OFFICE 1 PBX 1 T 1 1 PRI (23 Lines) INTERNET 1 PBX 1 T 1 8 Lines CA OFFICE 1 PBX 1 T 1 6 Lines OH HOME OFFICE DSL/Cable 2 Lines PSTN

Traditional Design FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE • 30 Users • Receptionist • Small Center (Sales & Support) • DIDs for Local Users ITEM NRC IP-PBX & Phones (Open Source) MRC $14, 262. 00 Long Distance (9000 min) $360. 00 PRI $550. 00 T-1 $425. 00 Miami Office Total $14, 262. 00 $1, 335. 00

Traditional Design FL OFFICE NY CA OFFICE OH OFFICE HOME OFFICE • 20 Users • Receptionist • DIDs for Local Users ITEM NRC IP-PBX & Phones (Open Source) MRC $10, 762. 00 Long Distance (6000 min) $240. 00 8 Analog Lines $240. 00 T-1 $425. 00 New York Office Total $10, 762. 00 $905. 00

Traditional Design FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE • 15 Users • Receptionist • DIDs for Local Users ITEM NRC IP-PBX & Phones (Open Source) MRC $6, 691. 00 Long Distance (6000 min) $180. 00 6 Analog Lines $180. 00 T-1 $425. 00 Los Angeles Office Total $6, 691. 00 $785. 00

Traditional Design FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE • 1 User • DID for Local User ITEM NRC 2 Line Analog Phone MRC $129. 00 Long Distance (300 min) $12. 00 2 Analog Lines $60. 00 DSL / Cable $45. 00 Cleveland Home Office Total $129. 00 $117. 00

Traditional Design FL NY OFFICE CA OH OFFICE HOME OFFICE Total for All Sites ITEM NRC Miami HQ Office $14, 262. 00 $1, 335. 00 New York Office $10, 762. 00 $905. 00 Los Angeles Office $6, 691. 00 $785. 00 Cleveland Home Office $129. 00 $117. 00 $31, 844. 00 $3, 142. 00 $0. 00 $3, 938. 10 Office Total If Equipment is Leased MRC

Centralization with SIP FL OFFICE 1 PBX 1 Nx. T 1 (3. 0/mb) 30 Trunks NY CA OFFICE 1 T 1 20 Trunks 1 T 1 15 Trunks PSTN INTERNET OH HOME OFFICE DSL/Cable 1 Trunk

Centralization with SIP FL OFFICE NY CA OFFICE OH OFFICE HOME OFFICE • 30 Users • Receptionist • DIDs for Local Users • Used 30 Lines/Trunks for Entire Company ITEM NRC IP-PBX & Phones (Open Source) $16, 430. 00 Box. Set Vol. 3 MRC $999. 00 Includes Nx. T 1, 10 Trunks $500. 00 Additional Trunks (20) Long Distance (Unlimited Local & LD) Miami Office Total $16, 430. 00 $1, 499. 00

Centralization with SIP FL OFFICE NY CA OFFICE OH OFFICE HOME OFFICE • 20 Users • DIDs for Local Users ITEM NRC IP-Phones (20 Phones) $5, 404. 00 $425. 00 T 1 New York Office Total MRC $5, 404. 00 $425. 00

Centralization with SIP FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE • 15 Users • DIDs for Local Users ITEM NRC IP-Phones (15 Phones) $4, 185. 00 $425. 00 T 1 Los Angeles Office Total MRC $4, 185. 00 $425. 00

Centralization with SIP FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE • 1 User • DID for Local User ITEM NRC 1 Phone $194. 00 $45. 00 DSL Cleveland Home Office Total MRC $194. 00 $45. 00

Centralization with SIP FL OFFICE NY OFFICE CA OH OFFICE HOME OFFICE Total for All Sites ITEM NRC Miami HQ Office $16, 430. 00 $1, 499. 00 New York Office $5, 404. 00 $425. 00 Los Angeles Office $4, 185. 00 $425. 00 Cleveland Home Office $194. 00 $45. 00 Cleveland Home Office Total $26, 213. 00 $2, 394. 00 If Equipment is Leased $0. 00 $3, 004. 33

Centralization with SIP Comparing Traditional versus SIP ITEM CAPITAL EXPENSE MONTHLY SAVINGS WITH LEASED EQUIPMENT Traditional $31, 844. 00 $3, 142. 00 $3, 938. 10 SIP $26, 213. 00 $2, 349. 00 $3, 004. 33 Savings $5, 631. 00 $793. 00 $933. 78 Savings % 18% 25% 24% Buy? - Expect ROI within 3 Years Savings near Lease? - 36 th month $34 K by

The Benefits of Centralization • • • Scales Easily Reduced Travel and Maintenance No Compounding Buying Cycle Reduce Disparate Systems Reduce CAPEX More Efficient Trunk Sizing Quick Deployments Single Provider Large Savings (Compounded) PSTN INTERNET

Cost & Time Savings of SIP Cost Savings open up options: • • • MPLS Alternate PBX for Redundancy Alternate Access Video Deployment Network Upgrades Time Savings allow for: New Projects • Hardware Refreshes • Optimization •

Who is Bandwidth. com?

Nationwide Business Communications… Solved. Bandwidth. com is a complete provider of data and voice, nationwide.

SIP Trunking Flexible & reliable SIP services for business Fast Facts • Save 40% or more over traditional phone service Fast ROI, because it works with your existing phone system • Unlimited or metered plans Flexible options to match your business's calling patterns • Get local numbers in virtually any market Bandwidth. com is a nationwide CLEC, offering local service in over 300 markets and growing • Plug-and-play with your PBX Bandwidth. com SIP Trunking can integrate with your existing phone system (analog, digital or SIP-based PBX), and is tested with over 30 top PBX vendors • 24/7/365 Support & Monitoring Accountable, US-based support with an in-house team of telecom engineers

Box. Set Business Bundles Pre-tested Vo. IP & Internet bundles that work out-of-the-box Fast Facts • Save 40% or more over traditional phone service Fast ROI, because it works with your existing phone system • Unlimited local & long-distance With one toll-free line included in each box set • Get local numbers in virtually any market Bandwidth. com is a nationwide CLEC, offering local service in over 300 markets and growing • Plug-and-play Box. Sets are plug-and-play, and include any hardware needed to easily integrate into your current phone system (analog, digital, or SIP-based PBX) • 24/7/365 Support & Monitoring, built for business Accountable, US-based support with one number to call for both Voice & Data

Wholesale & Enterprise • Wholesale Products • Wholesale Voice Termination (WVT): Available today • Wholesale Voice Origination (WVO): Planned for early Q 4’ 09 • Wholesale Voice 2 -way (WV 2 W), with 911/411: Planned for late ’ 09 • Wholesale Voice Toll-Free (WVTF): Planned for late ‘ 09 • Direct Voice Link (DVL), private connection: Planned for early ‘ 10 • Enterprise • Metered or Unlimited SIP Trunks available today • Refreshed Metered SIP Trunks with Tiered LD due for late ‘ 09

BANDWIDTH CONFIDENTIAL 1. A pattern of partnership 2. Almost 10 years ago, founders David Morken & Henry Kaestner established a partnership based on loyalty, honesty, mutual respect and a desire to win. Today, that pattern of partnership is what makes Bandwidth. com the chosen voice & data partner of some of the most ambitious companies in the world.

Growth & Stability • The #1 fastest growing telecom company in the US for 3 years running (Inc. 500) • The 4 th fastest growing privately held company in the US (‘ 02 to ‘ 07) • Triangle Business Journal Fast 50 (‘ 07, ‘ 08), Deloitte Technology Fast 500 (2007) • Profitable, cash-flow positive, and no long-term debt 4500 4000 3500 3000 2500 2000 1500 1000 500 0 180% Growth in Customers (~1500 customers on 1/1/06 to >5000 customers as of 7/31/2009) Example Customers

Bandwidth. CLEC Next-generation network. • Nationwide (US) CLEC footprint • Purpose-built for Vo. IP, with latest technology • 2. 4 billion minutes (run-rate) today; estimated 4 billion minutes in 2009 • Debt-free build-out; no legacy traffic • Separate Signaling and Audio Facilities for reliability and route flexibility • Full geographic redundancy with many routing options Jonathan “Mitch” Mitchell, CEO of the Bandwidth. com CLEC, is responsible for overseeing all aspects of the company’s national Vo. IP network. Mitch is an inventor on the “Voice over data telecommunications network architecture (Soft. Switch)” patent.

Nationwide coverage. Dark Blue: Complete Light Blue: In process Information accurate as of 06/2009

Built for quality & redundancy. T. R. Missner, CTO, brings over 20 years of network and software engineering experience to Bandwidth. com including over 10 years working with Voice over IP.

BANDWIDTH CONFIDENTIAL Innovation & open source. Bandwidth. com is the corporate benefactor of the Free. PBX open source project. Through its investments in open source telephony, Bandwidth. com helps drive innovation in both technology and costs that benefits customers. For example, Phonebooth, Bandwidth. com’s low-cost hosted Vo. IP platform, is built on multiple open source technologies.

The Bandwidth. com experience. My. Bandwidth. com Customer Portal 24 x 7 x 365 Customer Support Online web portals enable customers/VARs to price and order telecom services, monitor installation, and easily manage billing & their services Bandwidth. com’s US customer support center supports customers with: § 24 x 7 x 365 US-based support § A live person will pick up your call within 3 rings § Level 1 -3 support § Deep telecommunications experience, ready to help solve business problems Joe Campbell, V. P. of Operations, brings vision and mission to operational efficiency across all of operations, which sets Bandwidth. com apart from its competitors. Joe is a 14 -year veteran of the Telecommunication industry.

Customer Case Study: GTL makes the switch to Vo. IP Challenge: Convert all MCI TDM locations to Vo. IP… and do it fast GTL picked Bandwidth. com over AT&T to convert 233 sites from TDM to Vo. IP in 12 weeks. The project was so successful that Bandwidth. com now manages voice & data for all 608 locations in the US.

Thanks! Direct Sales If you are looking to buy from Bandwidth. com directly, call: Partner Sales If you want to become a Bandwidth. com Authorized Partner, call: (800) 808 -5150 (888) 292 -8277