RiskView ® Tutorial: Selling Assurance “ Quad-Play”

1. RiskView®Tutorial:Selling Assurance “Quad-Play” July 2012 Robert Cruickshank CEO robert.cruickshank@rev2.com +1-703-568-8379 Evan Birkhead VP Marketing & Sales evan.birkhead@rev2.com +1-908-910-6988

2. Assurance Quad-Play Sales Goal • MSOs without ARRIS Assurance • Sell all-four Quad-Play solutions • MSOs with some ARRIS Assurance • Sell missing Quad-Play solutions • Sell best fit solution(s) to meet MSO needs • Set stage for additional sales of missing Quad-Play solutions Confidential 2

3. Selling the Message • Get Familiar with Assurance Quad-Play & RiskView’s role • www.rev2.com/arris-resources/ : Videos, Info Sheets, Case Studies • Assess MSO Assurance Need • Does MSO have Assurance Products: SAA, EA, WA, Others? • Have Enrollment Conversation to Gauge MSO Interest • Goal: Selling opportunity via: • 1) Webinar, 2) in-house Demo, or 3) other next steps • Follow-up with Sales Package based on MSO Assurance Needs Confidential 3

4. Get Ready for Customer Facing: About RiskView • How Assurance Quad-Play works together – Next Slide • Description of each Assurance Solution – ARRIS & Rev2 • RiskView Service Outage Analytics Video • https://dl.dropbox.com/u/42856417/Rev%202%20Video%201%20Edit%204.wmv • RiskView Service Outage Analytics Demo • https://dl.dropbox.com/u/42856417/Rev%202%20Short%202%20Hi%20Def.wmv • Savings Model • Deployment Steps • Feedback – What you didn’t get, what else you need…? Confidential 4

5. From Automated Outage Notification to Repair Financial Impact Analysis Rev2 RiskView® provides service outage analytics that enable prioritization of infrastructure issues based on their financial impact. EventAssure declares an Event with an automated notification for a Work Order WorkAssure creates the work order and acknowledges with the assigned job ID Network outage suspected at Node 0 Workforce Management Performance Management Proactive Outage Management Automated Outage Interface WorkAssure determines the best resource to fix the issue (skillset, distance, equipment etc.) EventAssure determines all devices offline behind Node 0 Common Data Collection Common Periodic Data Collection for Performance and Outage Information CMTSs and CPEs The tech is dispatched and notified via his handheld of the outage details The tech fixed the outage and closes the job on his handheld. WorkAssure powered Field Tech

6. Prioritizing undetected outages • In real-time analysis, small and intermittent issues/outages may not exceed thresholds • Issues may be missed for extended periods • Some issues are precursors of larger outages GOOD NEWS: Clues clearly point operations teams to issues and concentrations of outage risk. CHALLENGE: Clues are needles in voluminous haystacks imprisoned in disparate databases. Confidential 6

7. Systematically correlate multiple inputs over time • Call Center • Connectivity Calls & Repeats • WorkAssure • TC = Service Calls & Repeats • EC = Refer to Maintenance • DI = Voluntary Disconnects • Biz/Residential, 1/2/3 Services • Maintenance Activity • Planned, Demand • SAA ServAssure Advanced • Hourly Degraded CMs • US/DS Errors/SNR/Power/Util • On/Offline, Node Combining Confidential 7

8. RiskView data warehouse architecture Confidential 8

9. Problem resolution layered over your services The outliers represent the most material risks. Confidential 9

10. Example Study Parameters of Blind Comparison Study by Maintenance Department • 1,000,000 subs in Region | 25,000 HFC miles | 180 technicians | 15 supervisors | 4 managers | 1 director • 7,500 nodes in 3,000 DOCSIS Serving Groups (combinations of nodes) Hypothesis • [operating cost without Automation – operating cost with Automation] = Quantifiable Savings Data Inputs/Outputs • Business as Usual “Control Group” (BAU): Inputs from 10 different systems in four categories: • Connectivity Calls • Service Truck Rolls • Telemetry (ARRIS ServAssure, Home Grown Telemetry) • Preventative and Demand Maintenance Activities • “Experimental Group” (EG): Correlation and outage analytics of all above BAU data inputs Departments Impacted by EG Discovered Issues • Service Department focuses on Non-Area Issues • Maintenance Department focuses on Area issues

11. Operating Cost Savings • Savings Method • Correlated across DOCSIS Serving Groups then Alerted on unusual costs • Base Weights applied • Reputational cost was used to Trigger HFC Maintenance Alerts= Calls + (2*TCs) + RepTC + (3*ECs) + (2*DI) + CHG + TRB + Up&Down(Err + SNR + Power + Resets) • During Alert Periods, 25% of Financial operating cost was used to calculate savings= $0.55/min Calls, $60 TC and DI, $100 EC, CHG, TRB (set by MSO) • Example of Savings for a single Node on Next Slide • Alert Period = Prior Day RepCost>=15 AND (Same Day OR Next Day RepCost >=10) • Total Operating Cost • $3,228 = 71 Calls + 24 TCs +2 EC + 12 DI + 1 CHG + 2 TRB • Potential Savings based on Alerts driving earlier maintenance actions • $411 = 7.5 Calls + 2.75 TCs + 0.25 EC + 1.5 DI + 0.25 CGH + 0.5 TRB • Projected Annual Savings: $0.35 - $0.40 per Sub per year

12. Typical Serving Group, Node and Street Behavior 18-Day | Total Fin Cost: $3,228 | Potential Cost Savings: $ 411

13. Next Steps… Include “Other” Savings in Model • Lingering Issues – don’t cross threshold (yet) but create issues • Example: Trigger Alert based on accumulated cost over 3-days • Customer Experience / CLV • Knowing Value of Customer helps quantify savings of prevented Disconnects • CLV = Present Value of (ARPU – COGS - Care Costs); Lower Care = Higher CLV Customer Lifetime Value Model: Dr. Ron Rizzuto

14. Transactional Savings Impact on P&L (Proforma) • Maintenance Department: Additional Work 16K Preventative Maintenance Actions Created -4K Saved Tasks/year (2.5K ECs + 0.8K CHG + 0.7K TRB) = 12K Net New Preventative Maintenance Actions/year $1.2M Cost due to additional Tasks @ $100 each • Service Department: Reduce Contractor Head Count • Approx 50% of Installs performed by Contractors @ $60.00 • As TCs are reduced, Staff do “would be contracted” installs $900K Saved 15K TCs/year @ $60 $360K Saved 6K Disconnects/year @ $60 • Call Center: Reduce Capacity with normal staff attrition $320K 40K Calls/year @ $8 • Summary: $380K Saved per Year for 1M Subs

15. Deploying RiskView at Cable MSOs • Start Single Server: Gather, Process, Display UI, Email Reports • MSO Provides: a) Standalone Hardware, or b) WMware Machine • Microsoft Windows Server 2008 R2 64-bit • 64-bit processor, 32GB RAM, 500 GB SATA @ 7200 RPM  • Rev2 Provides and Remotely Configures all Software • Microsoft .NET Framework 4, SQL Server 2008 Enterprise R2 64-bit, ActivePerl 5.12+ • Connect Data Sources: Customer Care, Field Service & NOC • MSO Provides: a) IP Addresses for “Pull”, or b) Push Daily Files • Rev2 Provides: Specific Data Fields and Collaboration on Queries • Call Center: Connectivity Calls • ServiceDepartment: • TC-Truck Rolls, EC-Escalations to Maintenance, DI-Volun Discos • Maintenance Department • Preventative & Demand Maintenance • NOC: ServAssure, Telemetry Confidential 15

16. Typical Data Sources and Fields Confidential 16

17. Thank you!