Internet Telephony SIP Trunking Cary Tengler, Director of Partner Programs o e
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1 Internet Telephony SIP Trunking Cary Tengler, Director of Partner Programs o e cary.tengler@level3.com
2 Level 3 Profile A premier provider of services over one of the world s most advanced, IP-optimized networks Established: 1998 Headquarters: Broomfield, CO 2006 Annual Revenue: ~$3.2 Billion Employees: Four Groups Wholesale Markets Content Markets Business Markets European Markets Customers: MySpace, Yahoo!, YouTube, BT, Internet2, The Hershey Company, Comcast Network: One of the largest global Internet backbones Services: Complete portfolio of voice, data, video and Internet services Broomfield Headquarters 2006 Level 3 Communications, Inc. All Rights Reserved. 2
3 Level 3 The Right Network Designed to maximize coverage, performance, flexibility and scalability More Long-Haul and Metro Route Options than Other Providers > 77,000 intercity route miles available in North America and Europe > 21,000 metropolitan route miles High-Capacity, Nationwide Backbone Overbuilt backbone with new DWDM, IP and private-line switching layers in 2005 Long-haul capacity grew 50% this year and will double every two years IP backbone capacity tripled between 3Q05 and 1Q06 Expanding Voice Footprint Connectivity to every long distance tandem office in the U.S., as well as a large and growing number of end offices Ability to terminate calls anywhere in the world over the Level 3 Network 2006 Level 3 Communications, Inc. All Rights Reserved. 3
4 Level 3 Local Network Coverage Seattle Portland Boise Boston Minneapolis Milwaukee Detroit Salt Lake City Chicago Philadelphia New York City Denver San Francisco Indianapolis Cincinnati Kansas City Washington, DC LasVegas Raleigh Los Angeles Albuquerque Memphis Atlanta Phoenix San Diego Tucson Dallas Jacksonville New Orleans Legend VoIP coverage areas E enabled VoIP coverage areas 2006 Level 3 Communications, Inc. All Rights Reserved. San Antonio Houston Tampa Miami 4
5 Level 3 The Right Services Level 3 s product portfolio has grown organically and through acquisitions will see an increased focus on sales through partners based on distribution strategy, operational readiness and partner demand Level 3 Communications, Inc. All Rights Reserved. 5
6 Ecosystem Approach to the VoIP Marketplace Master Reseller Master Reseller Level 3 Level 3 / TAP Partners TAP Partners Master Reseller Ecosystem map Courtesy of Khali Henderson, Comptel/XChange Magazine 2006 Level 3 Communications, Inc. All Rights Reserved. 6
7 Economic Considerations for SPs It is Possible to Make Money in a Commoditized Market Using Voice 1. Continue to Drive Lower Unit Costs 2. Drive Incremental High Margin Revenue by Delivering Cutting Edge Applications 3. Deliver Superior Customer Experience 2006 Level 3 Communications, Inc. All Rights Reserved. 7
8 Driving Lower Unit Costs Is a Must Benefit from Scalable SIP-Based Networks, Avoid Expensive Infrastructure and Overhead Legacy Approach: 1. Distributed servers 2. Multiple, potentially underutilized PRIs 3. High cost leased facilities and network operations New Approach: 1. Centralized server platform 2. Shared and scaled architecture yields lower cost of ownership and ease of use 2006 Level 3 Communications, Inc. All Rights Reserved. 8
9 Deliver Incremental High Margin Revenue VoIP Early Entrants Offered Lower Cost Primary Line Replacement Making Money Requires More than LEC Parity Our Customers Drive Revenue Growth and Competitive Differentiation by Developing Add-On Enhanced Voice Applications Level 3 Provides VoIP Network Building Blocks to Enable Our Customers Creativity at the Application Layer 2006 Level 3 Communications, Inc. All Rights Reserved. 9
10 Level 3 Supports Cutting-Edge Apps In Addition to the Traditional VoIP Applications, Level 3 Supports Many Other Cutting-Edge Apps IVR Hosting Social Networking Unified Messaging Self Service IVR Contact Center Conferencing e-commerce $ 2006 Level 3 Communications, Inc. All Rights Reserved. 10
11 Conclusion - There s Money to Be Made! Leverage a Scalable Network Provider to Lower Costs Take advantage of partner ecosystems Choose the Proper Network Foundation to Build Upon Deliver Unique Applications to Drive Revenue Growth Don t Lose Sight of Providing Exceptional Customer Service 2006 Level 3 Communications, Inc. All Rights Reserved. 11
12 Questions 2006 Level 3 Communications, Inc. All Rights Reserved. 12
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