LD Surcharges keeping you up at night?????

1. AireSpring Training Presents: LD Surcharges keeping you up at night????? Confidential Information Subject to Airespring Non-Disclosure Agreement

2. A I R E S P R I N G Why the change and sudden surcharge madness? • Long Distance Carrier’s have reviewed their networks and determined they are spending more money to maintain the network, but getting less revenues. • Reasons • Per minute rates are down (the race to zero!) • Average call length is down (Dialers and Call Centers are driving this) • Call Completion % are down (over 1/3 of all calls do not complete, thus not billable) • More “carriers” least cost routing (from the Wholesale side of the house) • Dialers/PBX’s are more sophisticated and can “game” the network • Qwest is a major carrier to all other carriers (the trickle down effect)

3. A I R E S P R I N G Why the change and sudden surcharge madness? • Proposed Carrier Solutions • Impose Short Duration Surcharges to ensure call length is extended to at least 7 seconds • Impose Call Completion language to ensure that more calls are billable (remember, over 1/3 of all calls are deemed to be unbillable.) • Raise rates across the board (Retail and Wholesale) • Stipulate that “Dialer” traffic is no longer accepted • Implement minimum usage requirements

4. A I R E S P R I N G What is each carrier doing? • -Qwest Communications • Began the process in early June by warning carriers that they would be implementing Call Completion % Surcharges • Current language states that 50% of calls must complete or a surcharge of $10 per DSO will be applied at the trunk group level for all trunks under 50%. $240 per T1 (24 DSO’s in a T1) • Short Duration Surcharges implemented to some carriers (not Airespring as of today) that charges a $.01 surcharge for all calls 6 seconds or less. (10% allowed) • Qwest is the main carrier for many other carriers in the industry. • Automated billing for surcharges

5. A I R E S P R I N G What is each carrier doing? • Global Crossing • Implemented Short Duration Call Surcharges, effective Feb 1 billings, of $.02 per call. 10% of all calls are allowed to be 6 seconds or under. If customers goes over 10%, all Short Duration calls will be surcharged at $.02 per call. • Due to Qwest being a major route within their network, their choices were limited • Global Crossing does NOT have Call Completion language • Automated billing for surcharges • PaeTec • Implemented Call Completion language effective December 1, 2008 stating that 60% of all calls must complete or a $.01 surcharge per call will be implemented. • While they have no language to the point, they are routinely kicking customers off the network who have excess Short Duration Calls. • Rate increases are in place for major offenders of both issues • Automated billing for surcharges

6. A I R E S P R I N G What is each carrier doing? • Verizon/MCI • Implemented minimum usage commitment of $700 per T1 effective January 1, 2009 (take or pay) • Belief that regardless of Call Completion % or Short Duration %, this will solve their issues • Again, Qwest a major LD provider within their network • Level 3 • No dialer or call center traffic • Routinely notifying customers and carriers of impending new language • XO Communications • No dialer or call center traffic • Notified carriers of this in 2008

7. A I R E S P R I N G The Airespring Solution • Airespring has built a Next Generation switching infrastructure able to support both TDM and the increasing amount of SIP applications in the market. Our core has been built on providing Dialer, Enterprise Call Center, Marketing and LD customers a solution at a great price, on a stable network, with a “customer first” approach to service. Through increased augments, Airespring is able to service the SMB market for local products all the way up to the high-end Call Center/Dialer customer that needs high CPS (calls per second) and a billing/rating structure second to none. • Solutions for the Surcharge Madness • Airespring Network LD has no Short Duration call language in their contracts • Airespring Network routes to 15 different carriers within our network, thus not as much dependence on the “surcharging” carriers • Airespring Network has Call Completion language that requires 50% of all calls to complete, however the surcharges is only $.005 per call for the difference between customers % and 50%. • Airespring Network LD bills in 6 second increments and 6 decimal rounding • Airespring supports TDM applications (from 2 T’s1 up to a DS3) • Airespring supports SIP and has over 20,000 paths of LD up and running today • Airespring Network LD manually calculates call completion % surcharges (attention!!!!!!) • Airespring Network LD has no 80/20 or 70/30 • AirespringNetwork LD has no call completion language for 4 T1’s/100 SIP paths or less.

8. A I R E S P R I N G CASE STUDIES • Customer #1 • Potential customer is a mortgage company that has 4 LD T1’s and 1 Local PRI with another provider that are using for a dialer. Customer currently bills in excess of $5,000 per month, and their dialers are not SIP enabled. They would like to be able to out pulse different telephone numbers for each of their campaigns. They would like their potential callers to be able to call back into the DID they are out pulsing, thus the current need for the Local PRI. Based on initial analysis, customer has a call completion % of 56% and an average length of call (ALOC) of 18 seconds. • What options for carriers do we have? • What type of solution can we provide? • Where can you make the most money? • Is SIP an option? • ***Michael Nesci, Agent Channel Manager, is your moderator • - Subpoints • Text

9. A I R E S P R I N G CASE STUDIES • Customer #2 • Potential customer has a TDM DS3 with another carrier. They are an Emergency Broadcasting company for the Restaurant industry that needs immediate access to multiple T1’s for calling restaurants/grocery stores/fast food chains/etc. They will not be utilizing all T1’s at the same pace based on their client needs. They currently have SIP enabled dialers, but have been unwilling to make the change to SIP due to quality concerns. Their average length of call (ALOC) is 1 minute and they complete 80% of their calls (many messages are left). They want the ability to call 8xx numbers as many of their clients have these for their locations. They got a great deal on a GIGe of bandwidth from a low cost provider and are not using more than 15% of that capacity for current internet applications. • What options for carriers do we have? • What type of solution can we provide? • Where can you make the most money? • Is SIP an option? • ***Charles Lomond, Director of Agent Sales, is your moderator

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