An introduction to SIP

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1 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

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

3 BANDWIDTH CONFIDENTIAL The cost of Analog Voice 8 Analog lines (8*30).... $ min LD (4000*.05) $ Buy a T 1 (1.5Mb Internet Access).. $ Total.... $ Also Remember to Add: Hunting and other Features (8*5) $40.00 FCC & Other Regulatory Fees (9.95*8). $ person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD $11,820 per year True Total.. $ $985 per month $49 per employee

4 BANDWIDTH CONFIDENTIAL The cost of Digital Voice Buy a PRI $ min LD (4000*.04) $ Buy a T 1 (1.5Mb Internet Access).. $ Total.... $ Also Remember to Add: CallerID $50.00 FCC & Other Regulatory Fees (9.95*8). $ person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD $14,700 per year True Total.. $ $1225 per month $61 per employee

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

6 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/e911 Service, Directory Listing Service, 411 Service, Local Calling, Inward Dialing, Long Distance Sold in Unlimited or Metered

7 BANDWIDTH CONFIDENTIAL The (lower) cost of SIP Trunking Bandwidth.com BoxSet vol $ Additional 3 Trunks $75.00 Long Distance.. Unlimited T 1 (1.5Mb Internet Access)... Included 20 person Office 8 concurrent calls (lines) Minimum of 500Kb Internet Access 4000 Min. LD Total.... $ True Total... $ Save up to 37% $7,488 per year $624 per month $31 per employee

8 *Robert Half Technology (Top 10 Tech Investments, April 13th, 2009) But wait there s more. 1. VoIP was the 4th 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 qualityof-service and redundancy that enterprises are used to.

9 You used to have 2 networks. Internet Network W / T1 Voice Network W / PRI T1 Router Requires IT Technician Telcom Manager PBX Requires Telecom Technician Up to 50% unused Inefficient

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

11 Multiple locations = Multiplied Costs FL NY CA OH HOME 1 PBX 1 T1 1 PRI (23 Lines) 1 PBX 1 T1 8 Lines 1 PBX 1 T1 6 Lines DSL/Cable 2 Lines INTERNET PSTN

12 Traditional Design FL NY CA OH HOME 30 Users Receptionist Small Call Center (Sales & Support) DIDs for Local Users ITEM NRC MRC IP-PBX & Phones (Open Source) Long Distance (9000 min) PRI T-1 Miami Office Total $14, $14, $ $ $ $1,335.00

13 Traditional Design FL NY CA OH HOME 20 Users Receptionist DIDs for Local Users ITEM NRC MRC IP-PBX & Phones (Open Source) Long Distance (6000 min) 8 Analog Lines T-1 New York Office Total $10, $10, $ $ $ $905.00

14 Traditional Design FL NY CA OH HOME 15 Users Receptionist DIDs for Local Users ITEM NRC MRC IP-PBX & Phones (Open Source) Long Distance (6000 min) 6 Analog Lines T-1 Los Angeles Office Total $6, $6, $ $ $ $785.00

15 Traditional Design FL NY CA OH HOME 1 User DID for Local User ITEM NRC MRC 2 Line Analog Phone Long Distance (300 min) 2 Analog Lines DSL / Cable Cleveland Home Office Total $ $ $12.00 $60.00 $45.00 $117.00

16 Traditional Design FL NY CA OH HOME Total for All Sites ITEM NRC MRC Miami HQ Office New York Office Los Angeles Office Cleveland Home Office Office Total If Equipment is Leased $14, $10, $6, $ $31, $0.00 $1, $ $ $ $3, $3,938.10

17 Centralization with SIP FL NY CA OH HOME 1 PBX 1 NxT1 (3.0/mb) 30 Trunks 1 T1 20 Trunks 1 T1 15 Trunks DSL/Cable 1 Trunk PSTN INTERNET

18 Centralization with SIP FL NY CA OH HOME 30 Users Receptionist DIDs for Local Users Used 30 Lines/Trunks for Entire Company ITEM NRC MRC IP-PBX & Phones (Open Source) $16, BoxSet Vol. 3 Includes NxT1, 10 Trunks Additional Trunks (20) $ $ Long Distance (Unlimited Local & LD) Miami Office Total $16, $1,499.00

19 Centralization with SIP FL NY CA OH HOME 20 Users DIDs for Local Users ITEM NRC MRC IP-Phones (20 Phones) T1 New York Office Total $5, $5, $ $425.00

20 Centralization with SIP FL NY CA OH HOME 15 Users DIDs for Local Users ITEM NRC MRC IP-Phones (15 Phones) T1 Los Angeles Office Total $4, $4, $ $425.00

21 Centralization with SIP FL NY CA OH HOME 1 User DID for Local User ITEM NRC MRC 1 Phone $ DSL $45.00 Cleveland Home Office Total $ $45.00

22 Centralization with SIP FL NY CA OH HOME Total for All Sites ITEM NRC MRC Miami HQ Office New York Office Los Angeles Office Cleveland Home Office Cleveland Home Office Total If Equipment is Leased $16, $5, $4, $ $26, $0.00 $1, $ $ $45.00 $2, $3,004.33

23 Centralization with SIP Comparing Traditional versus SIP ITEM CAPITAL EXPENSE MONTHLY SAVINGS WITH LEASED EQUIPMENT Traditional $31, $3, $3, SIP $26, $2, $3, Savings $5, $ $ Savings % 18% 25% 24% Buy? - Expect ROI within 3 Years Lease? - Savings near $34K by 36th month

24 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

25 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

26 Who is Bandwidth.com?

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

28 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

29 BoxSet Business Bundles Pre-tested VoIP & 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 BoxSets 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

30 Wholesale & Enterprise Wholesale Products Wholesale Voice Termination (WVT): Available today Wholesale Voice Origination (WVO): Planned for early Q4 09 Wholesale Voice 2-way (WV2W), 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

31 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.

32 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 Example Customers 180% Growth in Customers (~1500 customers on 1/1/06 to >5000 customers as of 7/31/2009)

33 BandwidthCLEC Next-generation network. Nationwide (US) CLEC footprint Purpose-built for VoIP, 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 VoIP network. Mitch is an inventor on the Voice over data telecommunications network architecture (SoftSwitch) patent.

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

35 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.

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

37 The Bandwidth.com experience. MyBandwidth.com Customer Portal Online web portals enable customers/vars to price and order telecom services, monitor installation, and easily manage billing & their services 24x7x365 Customer Support Bandwidth.com s US customer support center supports customers with: 24x7x365 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.

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

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

Bandwidth.com. Bandwidth.com is a complete provider of data and voice, nationwide. ITExpo 2009 Jeff Uphues VP of Sales

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