Making Sense of Hosted & Managed IP Telephony Services. Colin Spence COO, BT Americas

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1 Making Sense of Hosted & IP Telephony s Colin Spence COO, BT Americas

2 Making sense of hosted and managed IPT services Range of service delivery models Market needs Implications for best-in-class services BT service environment and customer examples

3 Hosted & IPT: Range of service delivery models Unmanaged Enterprise solutions Hosted solutions User housed and managed IP PBX or IP Keyswitch User housed and service provider managed Hosted IP PBX provider housed and managed on dedicated server IP Centrex provider housed and managed on shared server Buy or lease equipment Buy, lease or rent service Rent service Rent service Source: Ovum

4 Hosted & IPT: Market interest

5 When do our customers choose unmanaged (DIY) vs. managed? Unmanaged Already has a telecom support staff and infrastructure in place Desires maximum amount of privacy, visibility and control Small or no telecom staff or infrastructure Limited IPT expertise or resources Looking to downsize, outtask or outsource altogether

6 Hosted & IPT: BT Americas customer interest Large, US-based global enterprises, 2006 Unmanaged Enterprise solutions Hosted solutions User housed and managed 20% Buy or lease equipment IP PBX or IP Keyswitch Buy, lease or rent service 80% Hosted IP PBX Typically a hybrid of enterprise or hosted services for large sites, and hosted services for small sites. Rent service IP Centrex 0% Rent service

7 Which business models do our managed IPT customers prefer? Large (>5K users) Medium (<5K, >1K) Buy or lease/purchase for assets service fee on per unit basis Lease/purchase, with managed service fee included Customers who lease TDM PBXs today want to upgrade to IP-enabled or pure-ip PBXs on same basis (e.g per port) Rental model BT owns the assets and charges a fee on per unit basis The unit can be per site or per user As above Outsourced

8 Which business models do our managed IPT customers prefer? Large (>5K users) Medium (<5K, >1K) Buy or lease/purchase for assets service fee on per unit basis Lease/purchase, with managed solutions service fee included Customers who lease TDM PBXs today options want to upgrade to IP-enabled or pure-ip PBXs on same basis (e.g per port) Rental model BT owns the assets and charges a fee on per unit basis For BT America s target customers, best-in-class requires: both enterprise & dedicated hosted The unit can be per site or per user with buy, lease/purchase & rental As above Outsourced

9 BT Global /Hosted IPT s Environment TDM PBX Legacy Site(s) Customer Premises IP Voice BT Facilities Hosted IP Telephony applications IP PBX Central Site(s) Hosted IP Telephony, LAN, WAN BT Operations Center Hosted gateways to PSTN Remote Site(s)

10 BT Example Customers, US-based and/or US sites Brands Pharma Finance Manufacture Energy Large MNC Consumer Products Large MNC Pharma Medium MNC Investment Bank Large MNC Auto/Heavy equipment Medium MNC Energy s, LAN/WAN TDM & IP PBX (Cisco) NA migration underway (7 sites going to 105) 13K users (NA), LAN/WAN TDM & IP PBX (Avaya) Americas migration underway (5 sites going to 30), LAN/WAN IP PBX (Cisco) 2 US central sites, 14 US remote sites 3K users (US), LAN/WAN Hosted IP PBX (Siemens) 1 US central site 9K users (US), LAN/WAN IP PBX (Cisco) 29 sites, 17 countries 1K users (global)

11 Summary Most large global enterprise requirements can be met by enterprise and dedicated hosted IPT services Such services are suitable for enterprises with a need to downsize, outtask or outsource altogether For this market, best-in-class requires: enterprise AND dedicated hosted solutions buy, lease/purchase AND rental options a seamless IP telephony environment for the interworking of legacy TDM PBXs, premise IP PBXs and hosted IP PBXs

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