Beyond SIP Trunking What’s Next ?

1. Beyond SIP TrunkingWhat’s Next ? September 11, 2007 Michael Remacle

2. What’s Going On with the Communications Market Today? • The communications environment has seen a lot of change over the past 10 years with the advent of VoIP / SIP • Significant changes on the horizon as applications, networks, and end points converge to a pure IP environment Yesterday Today Tomorrow Integrated Architecture Distributed Architecture Horizon 1 Horizon 2 Horizon 3 IP/ TDM End points PSTN End Point Application Applications Application Convergence Network Convergence End point Convergence Network Network Transport Transport

3. Current Communications Environment • Wireline Communications Environment Transitioning from Vertical Communications Environment to a Horizontal Communications Environment • 2G/2.5G wireless business model still vertically integrated Traditional Communications (Vertical Integration) IP Centric Communications (Horizontal Integration) • Hosted Applications • Access/Service Delivery • Customer Support • Sales & Marketing Customer Support CASPs VoIP Technology • Enhanced Services • Feature Server/Class 5 • Application Server • SBC • Media Server • Gateway Value-Added Services ISVs / IHVs Switching • E911 • PSTN Connectivity • Nationwide DIDs • Multiple Peering Partners • IP Transport Wholesale Carriers Local Access Long-DistanceNetwork

4. Horizon 1: Application Convergence • Applications and call control transition to a SIP core • Primary line applications integrate with enhanced service applications to create business communications solution sets • Conferencing, unified messaging, and contact center • End points interact via media gateways as IP edge and end points Majority of end points still interact via IP / PSTN gateways • Wireless and wireline networks still independent of each other • Service providers deliver incremental value to their customers while end users obtain greater productivity and simplicity • Marketers are moving away from wireless and wireline to business and consumer • Example: Packet 8 Wireless Wireline Application Convergence Primary Line Conferencing Contact Center Unified Messaging IP TDM Waves Frame Relay

5. Horizon 2: Network Convergence • Integration of wireless and wireline networks leveraging SIP core • Single identity or phone number possible across wireless and wireline networks • Can be marketed as stand alone wireless or integrated communications • End points are either TDM and/or IP • Messaging services ubiquitous across end points • Leverages IP routing core • Service providers able to offer bundled solutions while providing integrated and universal messaging, billing, and feature set • Example: Jitterbug Wireless End Points Wireline End Points Application Convergence Network Convergence Waves Frame Relay

6. Horizon 3: End Point Convergence • Ubiquitous IP environment • Wireless and wireline end points are all IP based • Directly interacts with native IP-based application servers • Access provided by reliable IP-based wireless last mile network • Will be initially launched in campus environments End Point Convergence Application Convergence Network Convergence Waves

7. Summary • Innovation is rapidly changing the communications market • Migration to IP technology is the core to this change • Change will start at the application layer and move to the edge • Innovation will come in waves and we need to focus our business strategies to leverage each business and technical horizon • Innovation is improving end user experience while helping to improve the overall telecom market