Qwest® OneFlex™ Hosted VoIP 08/2004

Contents: VoIP Overview VoIP Comparison Why Qwest® for VoIP? OneFlex™ Hosted VoIP – Overview OneFlex Hosted VoIP Description and Packages Benefits Technical Summary

VoIP - Overview What is VoIP? VoIP means Voice over Internet protocol. VoIP is an IP application that provides real time, two-way voice capability in IP over a broadband connection. Over time, VoIP may offer new products and services not available over the legacy public switched telephone network (PSTN).

Why VoIP? Convergence cost savings Scalable Flexible Extensible You can consolidate multiple traffic types, including IP, voice, video and data over a single network. Scalable You have control over services - the “traditional” central switching function is simplified. Flexible You receive support for a broad set of services (voice, video, messaging). Extensible Enables addition of new applications yet to be defined. Standards based IP, UDP, RTP, SIP IETF RFC 3261 thru 3265. Various compression mechanisms (G.711, etc), soft client support.

Location-Centric Communications Individual-Centric Communications Fundamental Shift in Perspective Location-Centric Communications (Calls are placed to a physical place) Individual-Centric Communications (Calls are placed to a person) The Individual The Household Phone

Hosted vs Premises-based VoIP Premises-based VoIP – industry today Equipment capital investment model: Requires on-site equipment management expertise and/or outsourcing. May be cost effective for deployments with a significant density of users per location. May be cost effective when existing PBX equipment is not depreciated and can be easily upgraded to support VoIP. Reliability - increases redundancy requirements (cost) for sites that host VoIP services. Hosted VoIP solution – Qwest market leader Low capital investment. Technology protection. Daily equipment maintenance tasks performed by the service provider. On-site personnel can focus on providing the best service to the end user. Cost effective for businesses with multiple geographically dispersed locations and a low-to-medium number of users per location. Converged data and voice service from one provider with a single point of contact for trouble resolution. Reliable - intelligence is in the cloud. Provides an additional level of flexibility that may be hard to achieve with premises- based deployment. Feature transparency across the entire United States.

Qwest® Uniquely Positioned for VoIP Early adaptor of VoIP in the long-distance backbone Expertise in IP State-of-the-art IP backbone Expertise in long-distance Expertise in local service Expertise in hosted applications Briefly, the new layering in the voice industry has “VoIP Gateways” and IP Transport on the lower layers, with the Gateways providing the conversion and interface to the PSTN, and the IP Transport for the carrying of the voice traffic itself (referred to as “media”). These layers, now very well defined with standard interfaces, have no knowledge of “voice features” or “customer profiles” and hence can be implemented with cost efficient commodity hardware. (This is contrasted quite starkly with the intense complexity of the Class 5 voice switch.) In this new layering, voice services are implemented on an IP-based “voice applications platform” located anywhere on an IP network, and typically in only a small number of places, enough places for minimize east – west latency, and provide redundancy. This obviously reduces the costs dramatically for rolling out and supporting voice services as compared with the conventional approach of having to deploy voice features end-office by end-office. A voice services approach deployed in this manner can be leveraged for both in-region and out-of-region and benefit both business and consumer customers. This approach also illustrates how the barrier-to-entry to provide “out-of-region” voice services has been dramatically reduced. By acting as a CLEC and merely deploying a VoIP gateway in a local market, voice services from a centralized platform can be offered to customers over a wide array of IP transport. The incremental network capital associated with Voice to support an VoIP endpoint is roughly $50 – this includes the most expensive component of the architecture: the VoIP Gateway. It should also be noted that once the applications platform is deployed, this incremental capital to serve customers is virtually all “success-based” and can be deployed as demand dictates. When combined with IP access offerings for customers that have also have a need for data connectivity, compelling “voice and data” package can constructed for customers.

Qwest® OneFlex™ Hosted VoIP - Overview Qwest OneFlex Hosted VoIP is an Internet protocol (IP) application that provides real-time, two-way voice capability in IP over a broadband connection. OneFlex has an extensive set of standard features including voice mail and find me/follow me services. A suite of browser-based applications provides control of business communications, including find me/follow me controls, Microsoft® Outlook® integration with click-to-call functionality, call logs and integrated messaging. Additional features include client billing codes and PC-based administration tools.

Qwest® OneFlex™ Hosted VoIP Packages Qwest OneFlex has two package options designed to meet your specific needs and calling patterns—a combination of local, long-distance, voice and office features. The packages are OneFlex™ Office and OneFlex™ Office Enhanced. The service works with Qwest iQ Networking™ Internet Port (formerly known as DIA).

Qwest® OneFlex™ Hosted VoIP Packages Caller ID with name Call waiting with caller ID Call hold Call block Call transfer Call forwarding Smart call forwarding / personal locator Three-way calling Do not disturb Speed dial Repeat dialing Hunt groups Electronic facsimile service 24/7 customer support Service installation and activation (separate nonrecurring charge (NRC)) OneFlex Office Package Unlimited local and 8XX outbound calling Unlimited on-net calling (any OneFlex Hosted VoIP user to another OneFlex Hosted VoIP user) 911 dialing1 OneFlex Personal Online Dashboard with: Call logs Contact manager Click-to-call Click for voice mail Voice mail with: E-features Indicator One button push Office administrator account profile Distinctive ring Abbreviated dialing 1Restrictions apply OneFlex Office Enhanced Package (includes OneFlex Office features) Microsoft® Outlook® integration Integrated messaging Remote calling

Qwest® OneFlex™ Hosted VoIP Premium Features Premium features: not included in packages (priced separately) – only available for purchase with OneFlex Office or OneFlex Office Enhanced packages. Additional basic seat with: Unlimited on-net calling OneFlex Personal Online Dashboard 911 dialing1 Caller ID with name Distinctive ring Abbreviated dialing. Separate NRC applies to service installation and activation. Business white and yellow pages listing Microsoft® Outlook® integration Integrated messaging Personalized set up and training and on-site office administrator training2 Site survey and personalized local area network analysis Business customer premises equipment customized to the location Off-net calls (domestic local toll and long distance, and international) Directory assistance (411) 1Restrictions apply 2Included in OneFlex Office and Office Enhanced packages with greater than five seats per location

Emergency calling / 911 911 service requirements: You must have Qwest®-approved customer premises equipment (CPE). You must have Qwest-approved IP connectivity. 911 calls must originate from the service installation location. If you do not meet these requirements you will not have access to 911 emergency service. If you move your IP handset within the service installation location, the 911 service may need to be reconfigured. Summary: Qwest will provide access to emergency 911 service at the service installation location if you meet the 911 service requirements shown above. If a stationary IP handset is moved, calls may not be routed to the appropriate public service answering point (PSAP).

Qwest® OneFlex™ Hosted VoIP Benefits Converged solution Converged voice and data service with dynamically allocated bandwidth. Cost effective – you can: Reduce telephony capital expense. Lower move/add/change (MAC) costs. Minimize ongoing operations and deployment costs. Eliminate the need for separate voice and data networks. Save on long-distance and on-net calls. Increased productivity through applications integration: Advanced IP-based applications. Personal Dashboard for communications control. Integration with Microsoft® Outlook®. Scalable IP telephony solutions change as business changes Easy seasonal adaptation. Mobility Telecommuters and frequent travelers have same communications services on the road as in the office.

VoIP Requirements LAN hardware: LAN/WAN quality of service (QoS): Review of your local area network including hardware, software, voice services and features, network topology Full-duplex switched 100 Mb Ethernet LAN Category 5 or higher cabling Adequate bandwidth for both voice and data traffic Must not exceed one-way latency: IP phone to IP phone - 150 milliseconds IP phone to gateway - 120 milliseconds Must have low packet loss - less than 0.5 percent Must have low jitter - less than 20 milliseconds. Minimum number of IP addresses required LAN VoIP awareness: Network address translation (NAT) or port address translation (PAT), if present, must be VoIP/session initiation protocol (SIP) aware Firewalls must be VoIP aware. LAN/WAN quality of service (QoS): Understand QoS policy Routers support Layer 3 type of service (ToS) /Diffserv Layer 2 switches support class of service (CoS) tagging WAN services support QoS (Optical, ATM, Frame Relay) New IP handsets: Use in-line power (802.3af) for IP handsets with uninterruptible power supply (UPS) backup Disperse analog phones throughout the enterprise for emergency dialing LAN infrastructure configured with redundancy Understand the migration path: Create location-by-location migration strategy from TDM to VoIP (dialing rules) with minimal downtime and customer impact

VoIP Architecture Qwest® IP Network Qwest VoIP Network Internet VLAN 1 iQ Internet Port Plus Qwest® IP Network IP Handset Customer Ethernet Switch Customer Router Qwest Edge Router (Cisco® 10K) VLAN 2 Computer Business VoIP Customer Acme Packet Session Border Controller (SBC) Qwest VoIP Network Sylantro Feature Server Sonus PSTN Gateway (GSX) IP Unity Messaging Server TDM Long Distance Voice Network (CLASS 4) TDM Local Voice Network (CLASS 5) Black Phone

VoIP Components VoIP 5 3 Feature Server Dedicated IP Access IP Network LD VoIP Gateways Local/LD Local/911 PSTN 4a 4b 4c Dedicated IP Access 2 1 IP Phone IP handsets 2. Dedicated IP access 3. Feature server (implements Class 5 and PBX features) 4. VoIP gateways – three “flavors” 4a. VoIP gateways for outbound traffic to IXC network (then to ILECs via FG-D) 4b. VoIP gateways for inbound traffic from local and long-distance 4c. VoIP gateways for outbound local traffic (including 911 trunks) 5. Web-based interface for ordering, billing, configuration changes, control, etc.

VoIP to VoIP Call VoIP Feature Server “Call Setup” Path IP Network Customer Premises VoIP Feature Server “Call Setup” Path IP Network Router/ Switch VoIP Gateways Not Involved Customer Premises “Call” Path (a.k.a ‘Media Path’) Router/ Switch

VoIP to PSTN Call PSTN call steps: Feature Server Customer Premises / Business VoIP Customer Local / LD Term IP Network PSTN 911 411 PSTN call steps: 1. VoIP signaling / voice traffic originates on the IP handset 2. Signaling is directed to the VoIP feature server 3. Signaling / voice traffic is redirected to the PSTN Local Long-distance 911 411

Note: Office Administrators have equal access privileges Web Portal Management Hierarchy Office Administrator Management Tools Secure access to office/administrative portal provides real-time inventory of number of stations and features by telephone number/employee name Full move, add, change, delete (MACD) capability Monthly call detail report (CDR), by account, office, employee. Office Administrator (Web portal) Corporate HQ Regional Office #1 Regional Office #50 User Portal Outlook integration Find me / follow me Inbound, outbound and missed calls log Click to dial Call treatment groups Address book End Users Temp Users Contractors Other The Administrator Dashboard is a browser-based tool used to manage a company’s voice communications, including moves, adds, and changes (MAC), feature assignment, hunt group configuration, and reporting Managing Employees Perform MAC and phone number assignment, select and deploy feature sets, reset passwords, access employees’ personal Dashboards Feature Assignment Calling features, telephony services, and dial pad templates can be assigned on a per employee basis Call Center and Hunt Groups Assign toll-free numbers for incoming callers and configure hunt groups Reports Access systems summary information, employee-specific telephony service and feature usage, and corporate billing information End-User Web Portals (for office end users) Note: Office Administrators have equal access privileges

User Web Portal Check voice mail Click on <individual voice mail message> Check call log Click on <“My Calls” tab> Configure My Assistant Click on <“My Assistant”> Configure My Settings Click on <“My Settings”> Activate Reach Me features Click inside <“Reach Me” box display>

Qwest® OneFlex™ Hosted VoIP Summary Single “national” service provider solution Cost effective – true voice, video and data convergence – can: Reduce telephony capital expense Lower MAC costs Eliminate the need for separate voice and data networks Save on long-distance and on-net calls Increased productivity via applications integration, including: Dial tone, voice messaging, instant messaging, PSTN access, e-mail integration, and personal dashboard for communications control Inherent IP resiliency Standards based Scalable Flexible Extensible

All trademarks are the property of their respective companies. OneFlex Hosted VoIP is available to customers in select areas across the continental U.S., with new locations being added. Minimum one-year term commitment required. Early termination charges may apply. Monthly charge and activation fee based on configuration selected. Long-distance and local toll charges are additional. International charges are additional and vary. Listed rates do not include taxes, incremental charges and surcharges. Separately purchased equipment and Internet access compatible with the service are required. Call for availability and complete details.