ITExpo 2009Sean RiversDirector of Product Engineering

An introduction to SIPWhen telephony moves from an infrastructure to an application, the cost savings and flexibility are clear.

When voice was infrastructure

BANDWIDTH CONFIDENTIAL

1213

Caller Denver, CO

Central Office Denver, CO

TANDEM Denver, CO

Long Distance Network

TANDEM Cary, NC

Central Office Cary, NC

Business Phone System Cary, NC

(919)555-1212

(919)555-1212 (919)555-1212

1214Hunt

• Single Service Architecture

• Limited Redundancy and Failover Options

• Many Companies Involved in Delivering Calls

• No Mobility and Limited Flexibility

• Many Competing Standards

• Analog or Digital

The cost of Analog Voice

BANDWIDTH CONFIDENTIAL

8 Analog lines (8*30)…………………………………….…... $240.00

4000 min LD (4000*.05) ……………………………………… $200.00

Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00

Total ………………………………..….. $865.00

Also Remember to Add:

Hunting and other Features (8*5)………………………… $40.00

FCC & Other Regulatory Fees (9.95*8)…………………. $79.60

True Total ………………………………….. $984.60

• 20 person Office

• 8 concurrent calls(lines)

• Minimum of 500Kb Internet Access

• 4000 Min. LD

$49per employee

$985per month

$11,820per year

The cost of Digital Voice

BANDWIDTH CONFIDENTIAL

• 20 person Office

• 8 concurrent calls(lines)

• Minimum of 500Kb Internet Access

• 4000 Min. LD

Buy a PRI…………………...………………………………….…... $550.00

4000 min LD (4000*.04) ……………………………………… $160.00

Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00

Total ………………………………..….. $1135.00

Also Remember to Add:

CallerID………………………………………………………………… $50.00

FCC & Other Regulatory Fees (9.95*8)…………………. $40.00

True Total ………………………………….. $1225.00

$61per employee

$1225per month

$14,700per year

With SIP, voice is an IP Application

BANDWIDTH CONFIDENTIAL

(919)555-1212

Caller Denver, CO

Central Office Denver, CO

TANDEM Denver, CO

Long Distance Network

Business Phone System Cary, NC

(919)555-1212 (919)555-1212

The InternetThe Internet

Mobile Device

SoftPhone

Application

Anywhere, USA

or

• Sets up and Tears Down Calls

• Travels over private and public IP Networks

• Easy to Troubleshoot

• Many Failover and Recovery Options

• CallerID, DID, DNIS Included and many

• Signaling Separated from Audio

• Dynamic Allocation of Bandwidth

SIP vs. SIP Trunks

BANDWIDTH CONFIDENTIAL

• 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

The (lower) cost of SIP Trunking

BANDWIDTH CONFIDENTIAL

• 20 person Office

• 8 concurrent calls(lines)

• Minimum of 500Kb Internet Access

• 4000 Min. LD

Bandwidth.com BoxSet vol.1……………...…..….…... $549.00

Additional 3 Trunks……………...………………….…..…... $75.00

Long Distance ……………………………………………..…… Unlimited

T-1 (1.5Mb Internet Access) …………………....………… Included

Total ………………………………..….. $624.00

True Total …………………………….…….. $624.00

$31per employee

$624per month

$7,488per year

37%Save up to

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 quality-of-service and redundancy that enterprises are used

to.

*Robert Half Technology (Top 10 Tech Investments, April 13th, 2009)

You used to have 2 networks.

InternetNetworkW / T1

T1 RouterRequires IT Technician

VoiceNetworkW / PRI

PBXRequires Telecom Technician

Telcom Manager

Inefficient

Up to

50%unused

With VoIP,you have 1.(Convergence)

Most Efficient

Up to

10%unused

• Save headcount• More redundancy options• More flexibility• Lower management costs

Multiple locations = Multiplied Costs

1 PBX1 T11 PRI (23 Lines)

1 PBX1 T18 Lines

1 PBX1 T16 Lines

DSL/Cable2 Lines

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

PSTNINTERNET

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-PBX & Phones (Open Source)

Long Distance (9000 min)

PRI

T-1

$14,262.00

$360.00

$550.00

$425.00

$1,335.00$14,262.00Miami Office Total

ITEM NRC MRC

• 30 Users• Receptionist• Small Call Center (Sales & Support)• DIDs for Local Users

Traditional Design

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-PBX & Phones (Open Source)

Long Distance (6000 min)

8 Analog Lines

T-1

$10,762.00

$240.00

$240.00

$425.00

$905.00$10,762.00New York Office Total

ITEM NRC MRC

• 20 Users• Receptionist• DIDs for Local Users

Traditional Design

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-PBX & Phones (Open Source)

Long Distance (6000 min)

6 Analog Lines

T-1

$6,691.00

$180.00

$180.00

$425.00

$785.00$6,691.00Los Angeles Office Total

ITEM NRC MRC

• 15 Users• Receptionist• DIDs for Local Users

Traditional Design

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

2 Line Analog Phone

Long Distance (300 min)

2 Analog Lines

DSL / Cable

$129.00

$12.00

$60.00

$45.00

$117.00$129.00Cleveland Home Office Total

ITEM NRC MRC

• 1 User• DID for Local User

Traditional Design

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

Miami HQ Office

New York Office

Los Angeles Office

Cleveland Home Office

$14,262.00

$905.00

$785.00

$117.00

$3,142.00$31,844.00Office Total

ITEM NRC MRC

$1,335.00

$10,762.00

$6,691.00

$129.00

$3,938.10$0.00If Equipment is Leased

Total for All Sites

Traditional Design

1 PBX1 NxT1 (3.0/mb)30 Trunks

1 T120 Trunks

1 T115 Trunks

DSL/Cable1 Trunk

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

INTERNET

PSTN

Centralization with SIP

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-PBX & Phones (Open Source)

BoxSet Vol. 3 Includes NxT1, 10 Trunks

Additional Trunks (20)

Long Distance (Unlimited Local & LD)

$16,430.00

$999.00

$500.00

$1,499.00$16,430.00Miami Office Total

ITEM NRC MRC

• 30 Users• Receptionist• DIDs for Local Users• Used 30 Lines/Trunks for Entire Company

Centralization with SIP

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-Phones (20 Phones)

T1

$5,404.00

$425.00

$425.00$5,404.00New York Office Total

ITEM NRC MRC

• 20 Users• DIDs for Local Users

Centralization with SIP

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

IP-Phones (15 Phones)

T1

$4,185.00

$425.00

$425.00$4,185.00Los Angeles Office Total

ITEM NRC MRC

• 15 Users• DIDs for Local Users

Centralization with SIP

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

1 Phone $194.00

$45.00$194.00Cleveland Home Office Total

ITEM NRC MRC

• 1 User• DID for Local User

DSL $45.00

Centralization with SIP

FLOFFICE

CAOFFICE

NYOFFICE

OHHOME OFFICE

Miami HQ Office

New York Office

Los Angeles Office

Cleveland Home Office

$16,430.00

$425.00

$425.00

$45.00

$2,394.00$26,213.00Cleveland Home Office Total

ITEM NRC MRC

$1,499.00

$5,404.00

$4,185.00

$194.00

$3,004.33$0.00If Equipment is Leased

Total for All Sites

Centralization with SIP

Traditional

SIP

Savings

Savings %

$3,142.00

$3,004.33

$933.78

24%

CAPITALEXPENSE

MONTHLYSAVINGS

WITH LEASEDEQUIPMENT

$3,938.10

$2,349.00

$793.00

25%

Comparing Traditional versus SIP

ITEM

$31,844.00

$26,213.00

$5,631.00

18%

Buy? Lease?- Expect ROI within 3 Years- Savings near $34K by

36th month

Centralization with SIP

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)

INTERNET

PSTN

Cost & Time Savings of SIP

Cost Savingsopen up options:

Time Savingsallow for:

• MPLS• Alternate PBX for Redundancy• Alternate Access• Video Deployment• Network Upgrades

• New Projects• Hardware Refreshes• Optimization

Who is Bandwidth.com?

Nationwide Business Communications… Solved.

Bandwidth.com is a complete provider of data and voice, nationwide.

SIP Trunking

Fast Facts• Save 40% or more over traditional phone service

Fast ROI, because it works with your existing phone system

• Unlimited or metered plansFlexible options to match your business's calling patterns

• Get local numbers in virtually any marketBandwidth.com is a nationwide CLEC, offering local service in over 300 markets and growing

• Plug-and-play with your PBXBandwidth.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 & MonitoringAccountable, US-based support with an in-house team of telecom engineers

Flexible & reliable SIP services for business

BoxSet Business Bundles

Fast Facts• Save 40% or more over traditional phone service

Fast ROI, because it works with your existing phone system

• Unlimited local & long-distanceWith one toll-free line included in each box set

• Get local numbers in virtually any marketBandwidth.com is a nationwide CLEC, offering local service in over 300 markets and growing

• Plug-and-playBoxSets 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 businessAccountable, US-based support with one number to call for both Voice & Data

Pre-tested VoIP & Internet bundles that work out-of-the-box

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

1. A pattern of partnership2. 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.

BANDWIDTH CONFIDENTIAL

Growth & Stability• The #1 fastest growing telecom company in the US for 3 years running (Inc. 500)

• The 4th 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

180% Growth in Customers (~1500 customers on 1/1/06 to >5000

customers as of 7/31/2009)

Example Customers

BandwidthCLECNext-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.

Nationwide coverage.

Dark Blue: CompleteLight Blue: In processInformation accurate as of 06/2009

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.

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.

BANDWIDTH CONFIDENTIAL

The Bandwidth.com experience.MyBandwidth.com Customer Portal 24x7x365 Customer Support

Online web portals enable customers/VARs to price and order telecom services, monitor installation, and easily manage billing & their services

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.

Customer Case Study:GTL makes the switch to VoIPChallenge: 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.

If you are looking to buy from Bandwidth.com directly, call:

(888) 292-8277

If you want to become a Bandwidth.com Authorized Partner, call:

(800) 808-5150

Direct Sales Partner Sales

Thanks!