© 2007 Verizon. All Rights Reserved. PTE12079 03/07

global capability. personal accountability.

Verizon BusinessVerizon BusinessMarlin ForbesVice PresidentDefense and International Services

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Verizon CommunicationsVerizon CommunicationsThree Key Business UnitsThree Key Business Units

• Communications services for consumer and small business• Building one of the most advanced broadband networks• Handling 1+B* calls a day with 99.99% reliability • Serving 30M U.S. households

• Mobile services for U.S. consumer and business• Nation’s most reliable wireless network • Highest in customer loyalty• Nearly 55M customers

• Global Solutions for large business and government• Created by merger of Verizon and MCI in January 2006• Most connected IP Backbone• Serving 94% of Fortune 500

*Average number of calls handled each business day.

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Telecom Industry TrendsTelecom Industry Trends

• IP Everywhere

• Migration to Private IP

• Broadband Everywhere

• Convergence of Voice, Data and Imagery

• Application Layer embedded in network

• Optical Networking

• Seamless Networks

• Migration to IPv6

Strategic Network ProgramsStrategic Network Programs

• Upgrade Backbone to Ultra Long Haul fiber

• Access Moves to Converged Packet Architecture

• Voice Network Migration to IP

• Fully meshed networks with enhanced survivability

Global Industry TrendsGlobal Industry TrendsGlobal Industry TrendsGlobal Industry Trends

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Global IP NetworkGlobal IP Network

Delivering Around the Globe

• 6 continents• 150+ countries• 2,700 + cities

• Expansive coverage of Internet data centers• Fully meshed transatlantic IP network

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EuropeEurope

• Services in 23 countries

• Metro loops in nine countries, 44 cities

• National networks in eight countries

• Transatlantic connectivity

• One of only two U.S./ European carriers in 160 Gbps SEA-ME-WE-4 consortium

• Private IP available in nearly 50 countries in Europe

Existing NodePlanned Expansion During 2006

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Asia PacificAsia Pacific

• Metro networks in Singapore, Tokyo, Osaka, Melbourne, and Sydney

• National networks in Japan and Australia

• Facilities based licenses in Hong Kong, Australia, Japan, and Singapore

• Investments in 22 major submarine cable systems serving the region

• Migrated to Self-Healing Rings

• Singapore to Paris latency reduced to 180ms with SEA-ME-WE-4

Hong Kong

Sydney

Auckland

TokyoOsaka

Seoul

Singapore

Taipei

Guam

Existing Node

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IndiaIndia

• Partner solutions are in place with VSNL, Reliance, and Bharti

• Added Direct Private IP and IP connectivity with Europe and Asia to improve latency

Banglalore

Mumbai

New Delhi

Chennai

Cox’s Bazaar

Existing Node

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ChinaChina

• Established agreements with many major Chinese carriers to extend coverage

• Working with five major Asian carriers to develop Trans-Pacific Express (TPE) Cable – expected completion in 2008

• IP peering with Chinese carriers for reduced latency Guangzhou

Shanghai

Beijing

Existing Node

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Global Reach and Investment Global Reach and Investment Americas RegionsAmericas Regions

Americas

• Network in 10 Countries• Facilities Based Licenses in 3 Counties• 18 Major Submarine Cable Routes• 7 Data Centers

United States: Long Distance

• 48,000+ Route Miles• 31 Submarine Cable Routes• 125+ Voice Switches• 2100+ Data Switches• 200+ Data Centers

Pueblo

Rouses Pt.

Albany

New York

SyracuseRochester

Buffalo

Poughkeepsie

ScrantonCleveland

Detroit

Flint

Midland

GrandRapids

Kalamazoo

Chicago

Indianapolis

Mil.

Minneapolis

Fargo

Sioux Falls

Billings

Sweetwater

Spokane

Blaine

Seattle

Boise

Portland

Eugene

Evanston

ChicoReno

SanFrancisco

Salinas

Las Vegas

LA

San Diego

DominguezHills

Palmdale

Rialto

Phoenix

Tucson

Albuquerque

Santa Fe

Co. Sprgs.

Denver

Salt LakeCity

Cheyenne

Eau Claire

Sioux City

Omaha

Lincoln

Alden

Topeka

Davenport

Cedar Rapids

Wichita

Tulsa

Joplin Springfield

Okla. City

Eugene

KansasCity

El PasoLubbock

Amarillo

MidlandAbilene

WichitaFalls

Dallas

Austin

McAllen

Harlingen

Corpus Christi

San Antonio

Houston

JacksonLittleRock

Shreveport

LakeCharles

Lafayette

BatonRouge

New Orleans

Mobile

Montgomery

Tallahassee

Gainesville

Tampa

Orlando

Miami

Ft LauderdaleBoca RatonWest Palm Beach

Cocoa Beach

Jacksonville

Albany

Macon

Atlanta

Huntsville

Birmingham

Memphis

NashvilleKnoxville

LouisvilleSt.Louis

Cincinnati

ColumbusPittsburgh

Washington

Raleigh

Baltimore

Newark

Hartford

Columbia

Richmond

Savannah

Charlotte

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Expanding the Reach of Expanding the Reach of Global IP NetworkGlobal IP Network

• Private IP Services continue to expand: – 356 edge switches

deployed in 128 cities for direct access

– Ethernet Access available in US and 21 countries in Europe and Asia Pacific

– Expansion plans for an additional 100+ edge switches in 12+ new cities in 2007 Private IP available in 116 countries

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Global Reach and Investment Global Reach and Investment Pan-European RegionsPan-European Regions

• Network in 23 Countries

• Facilities Based Licenses in 9 Countries

• Metro Loops in 9 Countries, 41 Cities

• 31 Submarine Cable Routes

• Trans-Atlantic Cable Mesh Network Completed

• 54 Data Centers

Wet

Bude, UK

CrystalLake, NJ

111 8th Ave

Paris

60 Hudson

LondonUK2

LondonUK5

Cable System 1a

Cable System 1b

Cable System 2b

Cable System 3b

Terrestrial Terrestrial

Cable System 2a

Cable System 3a

2006 Atlantic Mesh Backbone

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Taiwan EarthquakeTaiwan EarthquakeVerizon PerformanceVerizon Performance

• Taiwan Earthquake – 12/26/06– Earthquake of magnitude 7.2– Unprecedented 20 cuts on 8 cables– Isolation of Taiwan from the Public IP

and Data networks

• PIP Continued to Operate at Full Capacity

• Public IP & Data Restored as much as 24 hours Earlier than other Carriers– Restoration with backhaul &

SMW-4 within the first night– Leveraged Partnerships to obtain

additional capacity

Epicenter

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Trans Pacific Express (TPE) Cable SystemTrans Pacific Express (TPE) Cable System

• First Multi-Terabit Optical Submarine Cable System Directly Linking the U.S. Mainland and China

• VzB is only U.S. Carrier of 6 Consortium Members

• First Cable System with Direct 10 Gbps Wavelength Access to China

• Adds Diversity, Speeds Provisioning, Reduces Latency

• Planned Completion: 3Q08– Initial Capacity: up to 1.28 Tbps– Design Capacity: up to 5.12 Tbps

• Provides direct connectivity toBeijing, Shanghai, Taipei, Seoul,Hong Kong (via China), andIndia (via China)

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Ultra-Long Haul (ULH) & Dual Rail ArchitectureUltra-Long Haul (ULH) & Dual Rail Architecture

Reduces Network Elements by up to 70%

Lowers DS3 Per Mile Cost by up to 70%

Enables Wavelength Services

Dual Rail ULH Architecture

Provides a Higher Level of Resiliency and Performance

Improves Latency

Lessens Customer Impact during Maintenance

Metro Ring

ULH Rails Interconnected with OADM Technology

Metro Ring

RegeneratorRegeneratorULH

TechnologyULH

Technology

Current TechnologyCurrent Technology

RegeneratorRegenerator

ULH Technology

ULH Technology

Current Technology

Current Technology

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Converged Packet AccessConverged Packet Access

Today: Multiple Access Circuits With CPA: Ethernet Aggregation

Long Distance

Internet

Local

Customer Premise

Private IP

Frame RelayATM

Customer Premise

PBX

• Enables Logical / Automated Service Provisioning

• Enables Scaleable Bandwidth on Demand

• Reduces Traditional TDM Bandwidth Requirements up to 60%

• Expanding from 30 to over 60 sites

Converged

IP Core

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Customer PortalCustomer PortalProviding Information on DemandProviding Information on Demand

• Verizon BusinessCustomer Center:– Global view– Support in 6 languages– More than 55 applications– Dashboard with

key statistics

• eBonding: – Links your back office

with ours– Scalable for large transactions

Online tools that enable you to monitor performance around the globe

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Security Intelligence PortalSecurity Intelligence PortalAvailable on Verizon Business Corporate WebsiteAvailable on Verizon Business Corporate Website

• Analyst Diary– Daily summary of observed security

events and information from Verizon Business Analyst team

• Activity Dashboard– Dashboard representation of

security information observed from various data sources

• Event Calendar– Trending calendar allowing a

user to view dashboard trending from previous days

• Data Key– TCP and UDP port and protocol legend

• Publications– Various relevant security

publications from Verizon Business’ security experts

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Deriving IntelligenceDeriving IntelligenceCapturing, Collecting, and Analyzing Capturing, Collecting, and Analyzing Internal and External Data SourcesInternal and External Data Sources

Managed Services Managed Services Operation CenterOperation CenterNOC, SOC, InternetNOC, SOC, Internet

Global Customer Security Event Management; managing network and security devices and technologies deployed at various demarcation levels within an enterprise, and supported on multiple provider networks worldwide.

IP Backbone IP Backbone OperationsOperationsVerizon Business Internet Verizon Business Internet and Public Internetand Public Internet

Global IP backbone operations and managed services support; worldwide IP traffic visibility on Verizon Business backbone and across public peering relationships with other network providers, including technology vendor relationships for networking hardware and software.

Internal IT Internal IT OperationsOperationsVerizon Business Verizon Business Enterprise IT OperationsEnterprise IT Operations

Global enterprise IT operations; visibility to all IT security areas resulting from the support of Verizon Business office locations, infrastructure assets, and employees that are deployed worldwide.

Third PartyThird PartyOpen source, Open source, Network and Network and Technology ProvidersTechnology Providers

Global relevant outside sources; news and media, government, industry affiliation, peering agreements and relationships, technology vendors and partners.

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19 Source: Deloitte 2006 Global Security

Network Security EnvironmentNetwork Security Environment

Virus/wormsPhishing/pharming

Spyware/malwareSocial engineering

Brand hijackingHacking

Denial of serviceZombie networks

Other form of external breachWebsite defacement

Web application breachWireless network breach

Online extortion

0 10 20 30 40 50 60 70

External Breaches Over the Past 12 Months

Virus/wormsInsider fraud

Leakage of customer dataInternal network breach

Wireless network breachOther form of internal breach

Have not been breached0 10 20 30 40

Internal Breaches Over the Past 12 Months

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Global Information Sources Global Information Sources Providing Massive Amounts of Data in Providing Massive Amounts of Data in Near Real TimeNear Real Time

Scope Information Source Description Derivative Information Remarks

USA USA

Near real time capture of flow traffic between hosts

Identification of infected source address, unique distribution host address or port, remote access port, Distributed Denial of Service attack profiles

Over 4 million records captured per minute

GlobalGlobalNetwork wide activity snapshot Identification of origin of a security

incident, historical analysis of emerging threats or outbreaks

Over 422 million records captured per hour

GlobalGlobal

Routing security events captured from Verizon Business’s IP backbone infrastructure assets

Identification of malicious, mis-configured

or otherwise misdirected hosts on the public Internet

Approximately 30,000 records captured per hour

GlobalGlobal Honeynet – Simulated enterprise environment

Identification of exploit methods and malware propagation methods

Up to 5 million network segments or hosts monitored

GlobalGlobal

Operating System and Link characterization of TCP sessions

Identification of OS identity trends in the infectious, malicious attacking or distribution hosts

One observance per minute typical; up to 5 million network segments or hosts monitored

GlobalGlobalPassive network statistics collection

Capture, trend and characterization of payload emerging from network trends for scope verification

Event-driven

GlobalGlobal Intrusion Detection Systems Identification of Zero-day attacks and other malicious activity

Up to 2 million event records observed per day

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Global Information Sources Global Information Sources Providing Massive Amounts of Data in Providing Massive Amounts of Data in Near Real Time Near Real Time (cont’d)(cont’d)

Scope Information Source Description Derivative Information Remarks

GlobalGlobal

Traces – Payload capture Identification of zero-day attacks and other malicious activity; cross reference capabilities against port and protocol trending indicators

Up to 1.5 million records per day

GlobalGlobal Verizon Internal IT Operations Network, computer, server, endpoint, and application security events

Event-driven

GlobalGlobal DNS Alerts Domain Name Services variations and abnormalities

Event-driven

GlobalGlobal

Managed Services Event Information

Identification of unique or common exploits affecting various networking and security demarcations, devices and technologies deployed on various networks

Event-driven

GlobalGlobal

IP Backbone operations Identification of network traffic and network device events impacting or interesting to IT security; including abuse tickets reported on Verizon Business’ Internet backbone

Event-driven

GlobalGlobal

External sources: News, Government, Security group, Network providers, technology vendors and providers

Identification of public or third-party security event or information; situational awareness, unique, or common threat identification, product and platform threats and vulnerabilities

Event-driven

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Secure Information PortalSecure Information Portal

• How to provide:

» Assured authenticationAssured authentication» File and data securityFile and data security» Capability for sending sensitive dataCapability for sending sensitive data» Security for mobile devices (PDA’s)Security for mobile devices (PDA’s)

• How to allow: Secure Intra/Inter Agency or Coalition/Allied Collaboration

• How to ensure: Data Integrity and Non-Repudiation

Non-repudiation is the concept of ensuring that a contract, especially one agreed to via the Internet, cannot later be denied by one of the parties involved.

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Value PropositionValue Proposition

– Authentication of choice– Leverage existing infrastructure – Enable information exchange– Supports ad hoc secure collaboration

Hosted Federated AuthenticationHosted Federated Authentication

CONUS

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Collaboration PortalCollaboration Portal

• Text Collaboration (Chat & IM): Provides ability for users to initiate and participate in low bandwidth text chat sessions

• Web Conferencing– Audio over IP: – Video over IP– Whiteboarding & Annotation: Ability to import objects – Application Sharing/Broadcasting– Presence and Awareness: Ability to identify users – Cross Domain Participation: Ad hoc conferencing

• Session Management: Management, customization, and control

• Accessible through web portal

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The New Reality The New Reality

• Voice/Data/Video is IP

• Security concerns driving Private IP migration

• IP Convergence offers opportunity to address issues

• Network is now providing critical IT tools

• COOP planning easier with “mesh” and smart portals

• Global threat requires significant flexibility in IT delivery

• OPTEMPO and sophisticated threat forcing all options