Managed Office Positioned for the Enterprise

1. Managed Office Positioned for the Enterprise

2. What is Managed Office? A simple, fully managed, bundled solution that integrates all elements of their communication network. • Data backup, voice, email and other services are cloud based, providing the benefits of a virtualized environment • All hardware is leased and maintained, including refresh, so customers don’t need to own equipment or make costly capital investments • Software upgrades are kept current, reducing incidents, outages & costs • Layered security and patch management protect the integrity of the customer’s environment • A single, converged network is proactively managed, carrying all customer voice and data, scaling to customer needs

3. Managed Office Components • Managed Data • • Speeds of DS1 toEthernet 100Mbps with additional speeds planned • Internet, Private or Enhanced Port (based on the number of locations) • ADTRAN wireless access point • ADTRAN routers and switches • Managed Voice • • Hosted VoIP via the BroadSoft platform • Polycom phones • Managed Applications • • Messaging capabilities and collaboration tools (e.g., file sharing) • • The latest security • • Online Backup Managed Office provides a predictable cost structure that moves SMB’s from a capital expense (CapEx) purchasing and premises equipment model to an operational expense model (OpEx) where SMB’s pay for usage, not ownership.

4. Two Managed Office Options Managed Office Managed Office Essentials Managed Data Managed Data + + Managed Voice Managed Voice + …and no Wireless Access Point Managed Applications

5. Why Develop Managed Office? • CenturyLink needs to expand SMB market penetration to grow revenue • Monthly wireline telecom opportunity in CTL footprint is nearly $5B annual opportunity; with addressable IT services another nearly $5B annual opportunity • Today, CenturyLink penetration of SMB segment is approx. 28%, with continued pressures from Cable MSOs and other competitors • Managed Office allows for both a capability/solution differentiator as well as a package to address both telecom and IT spend addressable markets • Managed Services is the largest growth engine for business customers • $27B U.S. market opportunity (all segments) • ~15% Compound Annual Growth Rate (CAGR) • Strong demand across all business segments for a proven model, with ~3x upside in customer spend Source: Various third-party research studies 5

6. Growing Managed Services is Highly Strategic What We’re Doing Why It Matters to Customers Customers are facing resource challenges and need to focus on growing their businesses Developing a suite of services across customer segments that simplifies business life • SMB Market • Low-cost distribution channels, simple offerings, and automated process support • Mid-Market & Local GES • Direct and Indirect distribution channels, complete solutions, and integrated support • Large Enterprise & GES • Dedicated account teams, broad feature sets, system integrations, and customized support • Increased pressure to reduce budgets and capital spending • Lack of resources within current IT organizations to keep up with tech trends, compliances, and regulations • Significant market opportunity to deepen traditional telecom relationships towards a fully Managed Service paradigm SMBs are migrating to Managed Services because they provide cost-effective advanced technological solutions that help them stay competitive and grow their businesses.

7. Managed Office Architecture Off-the-shelf, pre-packaged solution SMB Market Simple offering & automated support process Three Managed Stacks • LAN Stack • Managed Voice Solution • Equipment • WAN Stack • Managed Data • Network • Equipment • Apps Stack* • Email/ Collaboration • Security • Online Backup • Scalable Seat-Based Pricing • End-to-End Management *See slide 11 for the complete list of available Apps

8. Managed Office – LAN Stack • Direct inward dialing (DID) • Advanced feature package with personal mobility package • CTL-supported certified soft client • Unified messaging feature package • Domestic calling LAN Voice Solution & Equipment • Hosted VoIP • Premium seats for each • employee with advanced • IP phone features • IP Phones • Selection of phones with the option to add a soft client PolycomVVX400 PolycomVVX300 Polycom SoundStation IP 7000 Conference Phone Polycom SoundPoint IP650 • Other LAN Equipment • Switches • Wireless Access Point • Optional Failover Switch • (included in WAN stack) • Optional Uninterruptable • power supply (UPS) NetVanta 1234 Tripp Lite NetVanta 160

9. Managed Office – WAN Stack WAN Network Connectivity Equipment • Network Connectivity • Single Site • Multi-Site • Multi-Tenant Unit (MTU) • Premier Ethernet Local Access • DS1 to 100 Mbps Ethernet • Quality of Service (QoS) • WAN Equipment • Routers (Internal • switch/firewall) • Routers determined by • needed bandwidth • Optional Failover Router • (Internal switch/firewall) NetVanta 1335P NetVanta 4430P NetVanta NV6355

10. Managed Office – Application Stack • Cloud-based exchange with installation • of client on endpoint (25Gb per user) • Email, calendar, address book contacts and tasks • 1-year retention on email archiving • Cloud access to individual email box • Choice of SharePoint templates • for collaboration (100Gb unlimited users) Applications Email/Collaboration Security Virtual Server • Email & Collaboration • Hosted Exchange • SharePoint • Email Archiving • Multi-varied defense providing desktop • firewall capable of stopping desktop • intrusion • Rapid endpoint updates • Proactive attack detection (SPAM/Virus/ • Phishing/Worm Protection) • Security • McAfee Endpoint • Protection • McAfee Email Protection • Cloud-based enterprise platform for • backup of data from PC/laptops • Encrypted and compressed on a • redundant platform • FIPS140-2 certified • Supports Windows, Mac, and Linux • Virtual Server • On-line Backup

11. Platform/Equipment Partners Key Partners During Initial Product Launch • Rock-solid platform that features Geo/High availability, redundancy, and is the industry standard for Hosted VoIP • Supports a wide variety of cloud-based features, including mobility and unified communications, which align to CenturyLink’s roadmap strategy • Longevity in telecom, with an extensive, diversified portfolio • Long-term relationship with CenturyLink (included in our first bundle offered ) • Standing SE certification support on new offers/sales • Rich history in voice-driven hardware with brand recognition • Current vision and strategy aligns well with the CenturyLink HVoIP and Managed Office roadmaps CenturyLink plans to add more partners as we deploy additional feature/functionality in future product releases. 11

12. White Glove Customer Experience • Project Manager assigned to every customer • Introduced at contracting stage; collects information and establishes relationship • Gathers technical and site contacts and user information needed to set up access to applications; provides outline of what to expect via a detailed project plan • Sets up and conducts progress calls with the customer at least once per week • Coordinates service turn up of Managed Office • On-site installation and training • Technician introduced to the customer by the project manager • Technician provides LAN/WAN equipment set up and user voice portal set up • Technician trains the customer via web-conference to fit customers’ schedule • Remote installation and training • 3rd party installing the customer applications (Mural) introduced by the project manager • Cloud activation occurs before contacting the customer to install the client on user PCs • On-site training of admin and users tailored to fit customer preferences and schedule • First bill review and moves/adds/changes (MAC support) • Project manager schedules first bill review between customer and account consultant • Account consultant assigned to support multiple customer accounts • Provides first bill review to ensure billing accuracy and corrects any errors • Assists customers with user Moves, Adds, and Changes for both voice and Apps • Day 2 Support (Trouble Handling) • Technical Assistance Center (TAC) staffed to support and own end-to-end accountability specific to Managed Office • Ownership and accountability for all stacks in the Managed Office solution (LAN/WAN/Apps) • Designated Managed Office toll-free number to report troubles should they occur

13. Managed Office Worry-Free Value Proposition Get the maximum return on your investment. One single price per seat provides a predictable, “all in” cost for managing your entire communication network with a more scalable cost model. A company you can trust with your network A financially stable Fortune 200 company and 3rd largest integrated service provider in the nation – we will be here for you. CenturyLink Managed Office ensures your business is always ready to perform A customized solution that incorporates best practices from highly skilled experts. Our core competency in networking with certified, experienced staff working a detailed, methodical process delivers a better user experience than customers can build on their own. Easily adapt to changing business needs as they occur. Our scalable management model is adaptable and efficient and truly allows IT to change as business needs dictate. Know your network will always be up-to-date. From technology refresh and hardware maintenance to security patches & software upgrades, we know how to keep your systems running.

14. Managed Office Customer Benefits • Future proof--no big technology bets, sunk costs, obsolescence risk. • CenturyLink Managed Office plans are flexible for SMBs both to grow and shrink –- reflecting business realities. Swap CapEx for OpEx • Roll up separate service contracts/bills into one partner. • One support number covers all services. No more running in circles between fingerpointing providers. • Stability of CenturyLink, etc. One partner accountability • Frees up IT staff time for computer support, software development. • No more bills from outside VARs or consultants to install, manage, update, troubleshoot phone, LAN/networking gear. Save IT dept time, money • CenturyLink dedicates customer reps specifically to Managed Office. • Dedicated Project Manager, scheduled touchpoints mean expert advice to avoid pitfalls, deal with service issues during transition. Careful attention to support 14

15. Managed Office Transforms Legacy Networks We converge and simplify your infrastructure..... ...and deliver services from the cloud.

16. Managed Office Transforms Role of IT Driving Business Results with IT Without Managed Office In many organizations, over 70% of IT resources are devoted to managing basic infrastructure elements Driving Business Results with IT Managing IT Components & Services With Managed Office CenturyLink manages day-to-day IT tasks, frees customer IT to deploy critical new applications to drive business Managing IT Components & Services Managed Office virtually expands a customer’s IT staff via a CenturyLink Network Operational Center fully supported by local and centralized staff.

17. Superior Total Cost of Ownership (TCO) • A predictable cost structure that moves SMB’s from a capital expense (CapEx) purchasing and premises equipment model to an operational expense model (OpEx) where SMB’s pay for usage, not ownership. • ____________________________________________________ • All components outlined in the LAN, WAN, and application stack are included in a price per seat model. • The price per seat varies based upon the number of seats and term length. • The price structure provides the customer with more predictability and cost management associated with IT expenses.

18. How is Managed Office Priced? • Seat based pricing determined by number of seats and term commitment • Seats include all equipment and applications with Managed Office • Seats include all equipment less the WAP with Managed Office Essentials • (1) TN/voice mail included in each seat – Long Distance minutes included per location • Hunt groups, soft client, extra TNs are available as an ala carte option • Port included when no additional bandwidth is required for data • Access rules apply: • Bundled in 10/100 Mbps when in territory – adder applied when out of territory • Priced ala carte in all other options

19. Aggressive Pricing Rate Card Prices (per seat) • Note 1: The following are not included in the price per seat. They may be purchased separately: • Softphone • Auto Attendant • Additional Hunt Groups • Extra Telephone Numbers • Note 2: For Managed Office, the price on a minimum term is $115, but can go as low as $75 per seat. For Managed Office Essentials. the seat price can go as low as $55 per seat. • Note 3: Lowered seat price available when access and/or port is unbundled from the seat. This option allows for layering management on top of existing services.

20. How applicable is Managed Office in the Enterprise? • Solution for remote, satellite and branch office locations • where no local IT support is present • SIP at Headquarter locations • PCR approval may be required to accommodate custom dial plans between SIP and Broadsoft platform • Target state SIP (via Broadsoft) creates seamless solution for HQ and branch locations

21. Special Pricing • Managed Office Business Pricing Tool (BPT) used for • standard pricing up to 100 seats • Engagement of SE for equipment configurations that go • beyond 100 seats at a particular location • Submitting of NSP request w/Statement of Work • Adtran Equipment is a requirement

22. Additional Resources • Training • Managed Office Product Fundamentals • Selling the solution • Pricing and Qualification • Managed Office CHATTER GROUP • Total Cost of Ownership Tool TCO TOOL • Business Marketing Intranet (BMI) PRODUCT PAGE • Job Aids • Sell sheets created for Enterprise Opportunities • Proposal templates • Customer Presentations

23. Q&A and Survey • Q&A • Survey • https://www.surveymonkey.com/s/JVYPW9B • (please click url to launch survey. You may need to enable pop ups)