Bandwidth com Saving You Money Through Voice

Bandwidth. com Saving You Money Through Voice & Data 1 December 9, 2008 Proprietary & Confidential

Agenda 1. Who is Bandwidth. com • The Company • The Network 2. The Traditional Voice Infrastructure • Analog • Digital PRI 3. The Voice Application (SIP) • Service Savings • Single Site Convergence • Multi-site Convergence 4. Bandwidth. com Box. Set 2 Proprietary & Confidential

Bandwidth. com is a complete provider of telecommunications services to Small and Medium Sized Businesses in all 50 States Founded in 1999, headquartered in Research Triangle Park, NC 250% Annualized Revenue Growth First broad-line data provider Offered businesses ability to compare 20 different carriers with online pricing Created 1 st Installation tracking portal for small and medium business customers Launched Vo. IP in 2004 API connections with all Tier 1 providers Profitable/Debt Free 99. 3% Customer Retention 180+ employees dedicated to voice and data sales and support 1 fastest growing privately held telecom company in the Country 1 fastest growing privately held company in North Carolina 16 fastest growing privately held company in the Country # # # 3 Proprietary & Confidential Annual award given for a company’s achievements in creating a positive work environment that attracts and retains employees through a combination of benefits, working conditions and company culture.

Bandwidth. com’s Network 4 Proprietary & Confidential

Voice as an Infrastructure Service (Analog) Analog Lines Summary: • Numbers Routed Statically • Single Service Architecture • Limited Redundancy and Failover Options Many Companies Involved in Delivering Calls • • Central Office Denver, CO One Phone Number Per Talk Path • Caller Denver, CO (919)555 -1212 TANDEM Denver, CO Hunting Needed to Send Multiple Calls • (919)555 -1212 No Mobility or Flexibility Long Distance Network TANDEM Cary, NC (919)555 -1212 Hunt Central Office Cary, NC 5 Proprietary & Confidential 1213 1214 Business Phone System Cary, NC

Analog Service - Financial The Situation: The Cost • 20 person Office 8 Analog lines (8*30)…………………. …. . . $240. 00 • 8 concurrent calls (lines) 4000 min LD (4000*. 05) …………………… $200. 00 • Minimum of 500 Kb Internet Access Buy a T-1 (1. 5 Mb Internet Access) ……………. . ………… $425. 00 • 4000 Min. LD Total ………………. . $865. 00 $11, 820 per year Also Remember to Add: Hunting and other Features (8*5)…………… $40. 00 FCC & Other Regulatory Fees (9. 95*8)…………………. $79. 60 $985 $49 per month True Total …………………. . $984. 60 per employee 6 Proprietary & Confidential

Voice as an Infrastructure Service (Digital) Digital Trunks Summary: Numbers Routed Dynamically to a Trunk Single Service Architecture • • Limited Redundancy and Failover Options Many Companies Involved in Delivering Calls • • (919)555 -1212 Caller Denver, CO (919)555 -1212 Central Office Denver, CO TANDEM Denver, CO Trunks Can Now take Calls From Multiple Numbers • • Sold as a Bundled Offering • Long Distance Network No Mobility and Limited Flexibility • Many Competing Standards • TANDEM Cary, NC Caller ID Issues 7 (919)555 -1212 Business Phone System Cary, NC Proprietary & Confidential

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

The Voice Application SIP Summary: Sets up and Tears Down Calls • • No Bundling Needed • Travels over private and public IP Networks • (919)555 -1212 Signaling Separated from Audio • (919)555 -1212 Easy to Troubleshoot Many Failover and Recovery Options • Voice May be Compressed • • Caller. ID, DNIS Included and many • Caller Denver, CO Central Office Denver, CO Long Distance Network Bandwidth. com Dallas, TX (919)555 -1212 Dynamic Allocation of Bandwidth 9 TANDEM Denver, CO The Internet Business Phone System Cary, NC Proprietary & Confidential

What is SIP? • Session Initiation Protocol (SIP) – Protocol that defines how sessions like voice, video, and IM communicate. – Message is sent as text via UDP on Port 5060 10 Proprietary & Confidential

What is a SIP Trunk • • 11 One Concurrent Talk Path 911/e 911 Service Directory Listing Service 411 Service Local Calling Inward Dialing Long Distance Proprietary & Confidential

SIP Trunking Service - Financial The Situation: The Cost • 20 person Office Box. Set vol. 2……………. . . …………………. …. . . $549. 00 • 8 concurrent calls (lines) Additional 3 Trunks……………. . . …………………. …. . . $75. 00 • Minimum of 500 Kb Internet Access Long Distance ………………………. . …… Unlimited • 4000 Min. LD T-1 (1. 5 Mb Internet Access) …………………. . ………… Included $7, 488 Save up to 37% Total ………………. . $624. 00 per year True Total ………………. ……. . $624. 00 $624 $31 per month per employee 12 Proprietary & Confidential

That is Not ALL the Savings!!!! 13 Proprietary & Confidential

Single Site w/out Convergence Summary: • • Voice Network Internet Network Voice & Data Separate Complex W / PRI W / T 1 Up to 50% unused T 1 Router PBX Requires IT Technician Requires Telecom Technician IT Manager Inefficient 14 Proprietary & Confidential Telcom Manager

Single Site Converged Summary: • • Internet Network Voice & Data Together on the LAN and the Wan W / T 1 & Voice Network Simplified design T 1 Router Switch PBX Switch IT Manager Up to 10% unused Most Efficient 15 Proprietary & Confidential

Multiple Single Sites Converged Summary: • Centralized PBX • Centralized Management • Service Continuity IT Manager 16 Proprietary & Confidential

Bandwidth. com Box. Set (Bundles) 17 Proprietary & Confidential

Bandwidth. com Box. Set (Bundles) 18 Proprietary & Confidential

Summary • Save Money on Service (up to 37% on service alone) • Save Capital Expense Through Convergence • Save on Labor by Centralization • Save Time • Save Resources • Choose Bandwidth. com 19 Proprietary & Confidential