Timely Trends of Ethernet Technology. Announcing AboveNet s Expanded Metro Ethernet Services

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1 Timely Trends of Ethernet Technology Announcing AboveNet s Expanded Metro Ethernet Services

2 Today s Moderator: MaryBeth Nance Executive Director, Business Development & Marketing MaryBeth Nance is Executive Director of Business Development, Marketing and Communications for AboveNet, Inc. She has been with the company since 2005 and a telecommunications industry veteran. While at AboveNet, Ms. Nance has developed and brought to fruition several key initiatives resulting in a 300% increase in WDM sales as well as launching an Agent program which contributes more than 10% of AboveNet s new sales. Prior to joining AboveNet, Ms. Nance held management positions in Sales and Business Development at several start ups within the telecommunications industry. 2

3 In this webinar we will address: The Driving Demands of Ethernet A More Bandwidth for Less Cost Equation The Applications AboveNet Now Introduces an Expanded Suite of Metro Ethernet Service offerings: Cost effective, high bandwidth point-to-point connectivity Metro core and private network solutions to meet your specific needs Delivered over dedicated fiber to your location Supporting 100mbps, 1GbE and now 10 GbE requirements 3

4 Trends in the Industry Ethernet services more than doubled to $5.9 billion between 2004 and 2005, according to an April 2006 report by Infonetics Research. The firm expects revenue to hit $22.5 billion by Roughly 75% of that revenue will come from retail services such as Ethernet private line and wide area network access, and transparent local area network services. Other Ethernet Market Drivers Ethernet Services are transitioning existing T1 s and DS3 with customers A More Bandwidth for Less Cost Equation 4

5 Today s Speaker: Rajiv Datta, Senior Vice President and Chief Technology Officer Rajiv Datta joined AboveNet in 1998 and is responsible for overseeing all aspects of the Company s Engineering, IT and Product Development. With more than 12 years experience in the industry, Mr. Datta has been a key contributor to AboveNet s strategic direction from both a business and technology perspective. Mr. Datta has accomplished many difficult tasks including re-engineering AboveNet s IP network, and delivering multi-million dollar recurring revenue streams. Mr. Datta is currently driving product rollouts, while overseeing a nationwide next-generation long haul network upgrade as well as core router upgrades, which will form the foundation of a significant capability investment for the company. Prior to joining AboveNet, Mr. Datta was the Senior Development Engineer for Alcatel Telecommunications Cable. Mr. Datta holds a Masters in Engineering from Rutgers College of Engineering and is a member of Tau Beta Pi, the National Engineering Honors Society 5

6 AboveNet 6

7 Metro Fiber Top 15 markets 2 million fiber miles Deep WDM & Ethernet expertise Nationwide Long Haul Asset Strength Huge bandwidth capability between metro markets Next generation ULH system upgrade complete Express network with minimum regen locations Global IP Backbone Tier 1 IP network with global reach Among the richest peering fabrics Next generation core and edge architecture Building Connectivity Connectivity to every major datacenter, carrier hotel & CO Largest enterprise & web-centric locations on-net Ability to access over 3000 locations with fiber 7

8 Services Focus High bandwidth Metro services: 1Gbps+ WAN services: 100mbps+ Ethernet & WDM focus: don t do T-1s High performance Fiber quality focus with direct routing Minimum equipment interfaces Next generation technology & capability Scalability & Flexibility Dedicated fiber provides unlimited scalability Customized, private solutions to meet specific needs Network solutions optimized for high bandwidth users 8

9 World Class Customers Enterprise Financial services industry Media and content companies Legal & Healthcare verticals Web-centric Web properties that are household names Internet search & social networking players Cable and access-driven IP customers Wholesale Carriers Web-centric Top Enterprise Mid Enterprise S&M Business Residential Carriers Major US telecoms that have backbone & customer-specific needs International telecom companies with limited US facilities Many competitive offerings are using our network as the foundation 9

10 AboveNet Services Overview Metro Services Fiber Services Wave Services Ethernet Services WAN Services IP Services VPN Services Long Haul Services Collaborative Networks jabnet 10

11 Metro Ethernet Services

12 Ethernet is taking over Frame relay ATM IP VPN Leased line Ethernet North American enterprise data market, US Enterprise Data Market Ovum RHK, Aug

13 What are the drivers for Ethernet adoption? Simplicity & familiarity Part of the LAN environment for many years A single network interface can support multiple services Reduced network complexity from WAN to LAN conversion Scalability & flexibility Can add capacity easily, typically without physical work Bandwidth granularity is not based on TDM steps Multiple services over a larger pipe provides application-level flexibility Cost effective Lower cost per bit relative to TDM alternatives a) T1= $450 MRC; 10mbps e-line = $1300 MRC b) More bandwidth at the same price Use the same access & transport for multiple services = savings 13

14 Metro requirements are leading the way Metro E-Line Metro E-LAN Intercity E-Line Intercity E-LAN U.S. enterprise Ethernet services revenues, by service type US Enterprise Data Market Ovum RHK, Aug

15 What are the applications? LAN-to-LAN connectivity The mainstay of IT network requirements Traffic growth of 70% per year typical Internet Access Viewed as critical part of corporate infrastructure Used for self-managed VPN connectivity as well VoIP between company locations Cost savings with no per minute charges Video applications emerging Datacenter & application consolidation Major driver in IT driven by cost and compliance Virtualization drives the need for larger transport links Storage area networking and Disaster Recovery Storage-over-IP & storage-over-ethernet gaining maturity Off hours utilization of transport or dedicated data mirroring traditional emerging 15

16 The market demands higher bandwidth >1G >100M-1G >50M-100M >10M-50M 1M-10M Ethernet and IP MPLS Services Infonetics, May

17 Metro Wave services Abovenet = Ethernet service provider Majority of services provisioned on our private WDM network offering has been Ethernet Demand for 10GbE wavelengths in the past 12 months has been spectacular IP & LH services IP connectivity via Ethernet only: FastE, GbE, 10GbE Majority of demand for LH is GbE and 10GbE 65% of sold circuits SAN Ethernet Metro Ethernet service Huge demand growth since its introduction in

18 Metro Ethernet Services Portfolio Metro Wave Custom Enhanced Standard Basic Metro Ethernet Private Dedicated Standard Standard 18

19 Standard Metro Ethernet Point-to-point Ethernet connectivity across the AboveNet metro core network with best efforts service level 19

20 Standard Metro Ethernet: Key Features High quality bandwidth delivery Ethernet tunnel across an uncongested metro core network Delivered via dedicated fiber tails from core network to customer location Competitive positioning with cost saving features No space & power needed at the customer location fiber handoff Lowest entry price point for high bandwidth services Service specifics Unprotected point-to-point service 100mbps &1GbE bandwidth levels offered IP add-on available at incremental charge Best efforts SLA 20

21 Dedicated Metro Ethernet Point-to-point Ethernet connectivity across the AboveNet metro core network with dedicated, guaranteed bandwidth availability 21

22 Dedicated Metro Ethernet: Key Features Dedicated bandwidth with guaranteed availability Either bridged or tunneled across the core with no link oversubscription Delivered via dedicated fiber tails from core network to customer location Competitive positioning with cost saving features No space & power needed at the customer location fiber handoff Compelling, disruptive pricing for the highest bandwidth services available Service specifics Unprotected point-to-point service 1GbE & 10GbE bandwidth levels offered IP add-on available at incremental charge Guaranteed bandwidth availability 22

23 Private Metro Ethernet Point-to-point Ethernet connectivity across a completely private managed network with dedicated fiber and equipment 23

24 Private Metro Ethernet: Key Features A completely private network with no shared elements Security no one else is on your private network Scalability infrastructure in place to grow with your needs Operational not impacted by shared ring operational activities Control all equipment delivering your service is at your premises Performance minimum equipment interfaces & active components Competitive positioning Lowest cost private network offering available Service specifics Point to point unprotected service Space & power needed at customer location for dedicated equipment 1GbE now; 10GbE coming soon Fully managed service with OOB telemetry 24

25 Product Comparison Speeds offered 100mbps 1GbE 10GbE Add IP Network privacy Bandwidth Space & power Private X X* N private dedicated Y Dedicated X X Y shared dedicated N Standard X X Y shared best effort N * Coming soon 25

26 Availability Seattle London United Kingdom Boston San Francisco Bay Area San Jose Chicago New York Philadelphia Washington DC Los Angeles Phoenix Atlanta Dallas Houston Metro Ethernet Dedicated & Standard Service Hubs 26

27 Fiber-powered networking AboveNet differentiators Unique fiber delivery model provides significant customer benefits An infrastructure that will serve your changing needs for the future Take advantage of a private network you can control Customer choice Standard lowest cost solution Dedicated guaranteed bandwidth Private private network with no shared components Competitive offerings Compelling 10GbE offering not based on a wave solution Significant cost savings in space & power at datacenters Lowest entry point for a completely private network Focus on high bandwidth users 100 mbps, 1 GbE, 10 GbE we don t do T-1s Not a converged backbone to serve every customer segment Network infrastructure optimized for high end customers 27

28 Thank You Q & A For a copy of today s webinar 28

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