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ITExpo 2009 Sean Rivers Director of Product Engineering

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. BANDWIDTH CONFIDENTIAL. When voice was infrastructure. Single Service Architecture. (919)555-1212.

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ITExpo 2009 Sean Rivers Director of Product Engineering

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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 RiversDirector of Product Engineering

  2. BANDWIDTH CONFIDENTIAL When voice was infrastructure • Single Service Architecture (919)555-1212 (919)555-1212 • Limited Redundancy and Failover Options Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO • Many Companies Involved in Delivering Calls • No Mobility and Limited Flexibility Long Distance Network • Many Competing Standards TANDEM Cary, NC • Analog or Digital (919)555-1212 1213 Hunt 1214 Business Phone System Cary, NC Central Office Cary, NC

  3. BANDWIDTH CONFIDENTIAL The cost of Analog Voice 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 $11,820per year $985per month $49per employee

  4. BANDWIDTH CONFIDENTIAL The cost of Digital Voice 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 • 20 person Office • 8 concurrent calls(lines) • Minimum of 500Kb Internet Access • 4000 Min. LD $14,700per year $1225per month $61per employee

  5. BANDWIDTH CONFIDENTIAL With SIP, voice is an IP Application • Sets up and Tears Down Calls (919)555-1212 (919)555-1212 • Signaling Separated from Audio Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO • Travels over private and public IP Networks • Easy to Troubleshoot Long Distance Network • Many Failover and Recovery Options Mobile Device SoftPhone Application Anywhere, USA or The Internet • CallerID, DID, DNIS Included and many (919)555-1212 • Dynamic Allocation of Bandwidth 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 • 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 $7,488per year Save up to 37% $624per month $31per employee

  8. *Robert Half Technology (Top 10 Tech Investments, April 13th, 2009) But wait… there’s more. • 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) • Those benefits, however, must be realized without giving up the quality-of-service and redundancy that enterprises are used to.

  9. You used to have 2 networks. Voice Network Internet Network W / PRI W / T1 PBX T1 Router Requires IT Technician Requires Telecom Technician Up to50% unused Telcom Manager Inefficient

  10. With VoIP, you have 1. (Convergence) • Save headcount • More redundancy options • More flexibility • Lower management costs Up to10% unused Most Efficient

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

  12. Traditional Design FL OFFICE NY OFFICE CA OFFICE OH HOME OFFICE • 30 Users • Receptionist • Small Call Center (Sales & Support) • DIDs for Local Users ITEM NRC MRC $14,262.00 IP-PBX & Phones (Open Source) $360.00 Long Distance (9000 min) $550.00 PRI $425.00 T-1 Miami Office Total $14,262.00 $1,335.00

  13. Traditional Design FL OFFICE NY OFFICE CA OFFICE OH HOME OFFICE • 20 Users • Receptionist • DIDs for Local Users ITEM NRC MRC $10,762.00 IP-PBX & Phones (Open Source) $240.00 Long Distance (6000 min) $240.00 8 Analog Lines $425.00 T-1 New York Office Total $10,762.00 $905.00

  14. Traditional Design FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE • 15 Users • Receptionist • DIDs for Local Users ITEM NRC MRC $6,691.00 IP-PBX & Phones (Open Source) $180.00 Long Distance (6000 min) $180.00 6 Analog Lines $425.00 T-1 Los Angeles Office Total $6,691.00 $785.00

  15. Traditional Design FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE • 1 User • DID for Local User ITEM NRC MRC $129.00 2 Line Analog Phone $12.00 Long Distance (300 min) $60.00 2 Analog Lines $45.00 DSL / Cable Cleveland Home Office Total $129.00 $117.00

  16. Traditional Design FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE Total for All Sites ITEM NRC MRC $1,335.00 $14,262.00 Miami HQ Office New York Office $905.00 $10,762.00 $785.00 Los Angeles Office $6,691.00 $117.00 Cleveland Home Office $129.00 $31,844.00 $3,142.00 Office Total If Equipment is Leased $0.00 $3,938.10

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

  18. Centralization with SIP FL OFFICE NY OFFICE CA OFFICE OH HOME OFFICE • 30 Users • Receptionist • DIDs for Local Users • Used 30 Lines/Trunks for Entire Company ITEM NRC MRC $16,430.00 IP-PBX & Phones (Open Source) BoxSet Vol. 3 Includes NxT1, 10 Trunks $999.00 $500.00 Additional Trunks (20) Long Distance (Unlimited Local & LD) Miami Office Total $16,430.00 $1,499.00

  19. Centralization with SIP FL OFFICE NY OFFICE CA OFFICE OH HOME OFFICE • 20 Users • DIDs for Local Users ITEM NRC MRC $5,404.00 IP-Phones (20 Phones) $425.00 T1 New York Office Total $5,404.00 $425.00

  20. Centralization with SIP FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE • 15 Users • DIDs for Local Users ITEM NRC MRC $4,185.00 IP-Phones (15 Phones) $425.00 T1 Los Angeles Office Total $4,185.00 $425.00

  21. Centralization with SIP FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE • 1 User • DID for Local User ITEM NRC MRC $194.00 1 Phone $45.00 DSL Cleveland Home Office Total $194.00 $45.00

  22. Centralization with SIP FL OFFICE CA OFFICE OH HOME OFFICE NY OFFICE Total for All Sites ITEM NRC MRC $1,499.00 $16,430.00 Miami HQ Office New York Office $425.00 $5,404.00 $425.00 Los Angeles Office $4,185.00 $45.00 Cleveland Home Office $194.00 Cleveland Home Office Total $26,213.00 $2,394.00 If Equipment is Leased $0.00 $3,004.33

  23. Centralization with SIP Comparing Traditional versus SIP CAPITAL EXPENSE MONTHLY SAVINGS WITH LEASED EQUIPMENT ITEM $31,844.00 $3,938.10 $3,142.00 Traditional SIP $3,004.33 $26,213.00 $2,349.00 $933.78 Savings $5,631.00 $793.00 24% Savings % 25% 18% • Savings near $34K by 36th month Lease? Buy? - Expect ROI within 3 Years

  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: Time Savings allow for: • MPLS • Alternate PBX for Redundancy • Alternate Access • Video Deployment • Network Upgrades • 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 serviceFast 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

  29. BoxSet Business Bundles Pre-tested VoIP & Internet bundles that work out-of-the-box • Fast Facts • Save 40% or more over traditional phone serviceFast 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

  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 A pattern of partnership 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 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 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. 24x7x365 Customer Support MyBandwidth.com Customer Portal 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.

  38. Customer Case Study: GTL makes the switch to VoIPChallenge: Convert all MCI TDM locations to VoIP… and do it fastGTL 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 Partner Sales If you want to become a Bandwidth.com Authorized Partner, call: If you are looking to buy from Bandwidth.com directly, call: (888) 292-8277 (800) 808-5150

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