PRODATA PARTNERS LTD

1. PRODATA PARTNERS LTD Consulting and Research in Ethernet & Related Markets www.prodata-partners.com

2. Worldwide Carrier Ethernet market is growing • Ethernet now capable of providing connectivity for over 97% of networked devices on LANs worldwide. • Ethernet services can be provided over a variety of infrastructure, from Sonet/SDH to IP/MPLS, and from ATM to WDM and OTN (optical transport network) equipment. • Ethernet shown to reduce broadband Capex & Opex, as well as to protect and enhance operators' existing infrastructure investment. Ethernet Market Overview

3. Current Ethernet Trends – Service Providers (1) • Growth in sales of Power over Ethernet (PoE) ports • Next generation optical solutions also offer opportunity for improved integration & differentiated Ethernet services. • Ethernet also being developed and used to deliver broadband services with enhanced efficiency. • Multicast-based services being delivered via Ethernet aggregation networks:- • Requires multimedia multicast transport solutions • Ethernet now supports a range of speeds from 10Mbps to 10 Gbps, but prices are highly competitive. • Service providers are expanding portfolio of Ethernet services to enhance profitability, control costs, and roll out wider service offerings with improved service assurance. • Ethernet service suites being extended to include e.g.:- • Ethernet-to-frame relay/cell relay interworking • Ethernet private line services • Ethernet access to IP networks/Internet services • Ethernet is also increasing in popularity for metro services, owing to low bit cost & operational simplicity.

4. Current Ethernet Trends – Service Providers (2) • In UK, for example, London metro Ethernet network Exponential-e extended to 50 other locations in England and Scotland:- • Gigabit-Ethernet network designed to provide businesses with WAN capabilities easy to integrate with existing corporate Ethernet networks, cheaper than leased line services • Expanded network now stretches as far as Glasgow, Southampton, Bristol and Leeds • Exponential-e claims it can now reach around 85% of corporate customers with metro Ethernet • Cisco continues to dominate Ethernet market • Other key vendors include:- • HP • 3Com • Foundry • Large businesses looking actively at direct purchases of retail metro area Ethernet services from service providers.

5. Current Ethernet Trends – End Users • Ethernet, alongside e.g. Frame Relay, provides enhanced access options to Layer 2 VPNs for enterprise/sites requiring high capacity access & simple bandwidth selection. • Increasing requirement for enterprises to control service quality, via Ethernet diagnostic operations & maintenance features. • Increasing enterprise interest in new VPN service options e.g. VPLS, VLL, IP VPNs. • Opportunities for service providers to upsell to enterprises for higher quality Ethernet offerings, e.g. using tiered SLAs. • ICT end user departments are often used to Ethernet protocols and features • Deployed as a LAN technology since early 1980s • Enterprises using Ethernet to satisfy demand for high bandwidth services, which can:- • Support converged voice and data services • Underpin electronic trading & IP applications • Offer robust service guarantees • Provide seamless interworking with existing private data services • Satisfy demand for ever-increasing amounts of bandwidth • Interconnect more LANs/sites • Offer scaleability

6. Prodata Ethernet-Related Experience – Project Areas • Voice Services • Wide area networking • Inbound services • Managed services • Private circuits • IP Networking/Telephony • Wireless/Mobile • Operator Licence Models • Market Pricing • Churn Prevention • Mobile Data/Fixed-Mobile • Applications  • CRM • Knowledge management • Supply chain management • Outsourcing/BPO • E-Business/Content • Data Services • Frame Relay • ATM • MPLS • Broadband • Internet, Intranets • Local Area Networking • Optical/Storage Area Networking • Other • Networking Equipment • Software Applications • Business Continuity/Security Applications • B2E / Enterprise-Based Solutions

7. We undertake extensive market modelling and forecasting work for clients in the telecommunications market worldwide Desk research Primary research Dynamic market models Macro-economic factors Client data Prodata Market Forecasting & Modelling • Results orientated advice:- • Identify areas of opportunity & threat • Forecast revenues and cost • Understand the impact of industry trends • Target sales and marketing activity • Test pricing strategies • Benchmark operations against industry standards • Inform investment decisions

8. Prodata Telecommunications Consultancy Team • We work with over 35 consultants based in more than 20 countries worldwide • A virtual team is put together based on the mix of deliverables and individual expertise required for each project • All our consultants have had extensive hands-on telecoms/ICT experience prior to working in marketing, research and consultancy with Prodata

9. Prodata Telecommunications Consultancy Team • Sarah Ball – Director • BSc (LSE), MBA (Cranfield), member of MRS & IOD • 20 years’ experience in market research & telecoms marketing • Previously Associate Director with Harris Research globally • Senior roles with PwC communications consulting division • Market Segmentation methods for High-Tech Companies specialist PhD area of research (Canfield School of Management) • Managed major market segmentation, customer profiling, market strategy, market entry, product strategy & telecoms user experience projects for major telecoms clients • Specialist in global market research project management • Other key areas – broadband, WAN, IP & web-based technologies • Skills – Global Project management, and all aspects of research and business customer insight

10. Contact us DIRECTORS : Sarah Ball Email : sarah.ball@prodata-partners.com www.prodata-partners.com