© 2009 All rights reserved  Bandtel Confidential and Proprietary SIP Trunking: Everything You Need to Know Introduction to SIP Trunking February, 2009 Joel Maloff Senior Vice President of Sales and Marketing

© 2009 All rights reserved  BandTel Confidential and Proprietary 2 Overview SIP Trunking isn’t the best product or service name ever created! –The enterprise marketplace, analysts and media are unclear. Breaking down buzzwords and highlighting the value

© 2009 All rights reserved  BandTel Confidential and Proprietary 3 The Market Perception of SIP Trunking 2008 Perception Audit –Industry analysts, media personnel –75% surveyed indicated that they were familiar with SIP Trunking service providers. –However, three of the top five vendors mentioned were hardware providers rather than service providers! –The top three benefits derived from SIP Trunking were: Quality of service Ease of use Reduction in costs

© 2009 All rights reserved  BandTel Confidential and Proprietary 4 Defining SIP Trunking Ask five people to define SIP trunking. –You may very well get ten answers! The IETF Definition –“A SIP trunk is a virtual sip entity on a server constrained by a predefined set of polices and rules that determine how to process requests.” (J. Rosenberg, 2008, SIP trunking, simply put, is a way for organizations to accomplish something that they already do, for less money, with equal or better quality, and with greater functionality.

© 2009 All rights reserved  BandTel Confidential and Proprietary 5 The BandTel Definition of SIP Trunking A SIP trunk utilizes new or existing broadband Internet connectivity as a supplement or replacement for traditional telephone company circuits connecting business telephone systems to the outside world. –The term “trunk” is technically inaccurate in that there is no physical circuit but rather one or more concurrent calls that are routed over BandTel’s network to and from other telecommunications carriers worldwide via broadband connections.

© 2009 All rights reserved  BandTel Confidential and Proprietary 6 The Value of SIP Trunking The geographically dispersed but technologically unified VoIP enterprise –For organizations that have multiple locations throughout North America or the world, communications between these locations has historically been accomplished via expensive dedicated circuits (leased lines) or via direct dialing. –Organizations that are served by multiple SIP trunks can take advantage of being “on net” to one another, and because there is no need to complete the calls via the Public Switched Telephone Network (PSTN), costs are dramatically reduced.

© 2009 All rights reserved  BandTel Confidential and Proprietary 7 The Unified VoIP Enterprise

© 2009 All rights reserved  BandTel Confidential and Proprietary 8 The Value of SIP Trunking Creation of “virtual” presence domestically and internationally –Through the use of BandTel-provided Direct Inward Dialing (DID) numbers, organizations can create a local “virtual” presence anywhere in the USA or elsewhere in the world so that local callers are answered in a centralized location. –Impact of downsizing and corporate consolidation This is especially significant for organizations that wish to retain local identity but must consolidate their operations into fewer geographic locations. –Global Number Portability (GNP) –SIP Trunking creates “virtual” presence without the need for expensive leased line connections.

© 2009 All rights reserved  BandTel Confidential and Proprietary 9 The Value of SIP Trunking The International Nature of Business –Business today is international. BandTel offers a variety of solutions to meet the needs of businesses throughout the world. BandTel Global Number Portability offers North American direct inward dialing (DID) numbers for termination internationally as well as DIDs from select cities outside of North America, including: –Sydney (Australia) –London (UK) –Paris (FR) –Bahrain (UAE) –And many more! BandTel SIP trunking offers an innovative way to increase exposure to customers worldwide and create a true virtual presence wherever you find your markets!

© 2009 All rights reserved  BandTel Confidential and Proprietary 10 Applied Value of SIP Trunking Legacy System Retention –During economic downturns, businesses seek to extend the usable life of their capital investments. –SIP trunking allows businesses to retain existing analog or non- SIP enabled telephone systems yet still benefit from cost and feature savings. –Major capital expenditures can be postponed or avoided altogether. –Business disruptions from “fork lift” replacement of telecommunications systems can be forestalled. –BandTel partners with companies such as Audiocodes, Dialogic, Quintum, and VegaStream to facilitate legacy systems and SIP trunking.

© 2009 All rights reserved  BandTel Confidential and Proprietary 11 Applied Value of SIP Trunking Interoperability with SIP-enabled systems –SIP-enabled IP PBX telephone systems are designed for SIP trunking. –BandTel is compliant with the SIP RFC specifications and interoperable with most IP PBX systems. –Implementing SIP trunking with an IP PBX is normally a quick and easy process, allowing businesses to quickly begin enjoying the cost savings and enhanced features. –BandTel IP PBX partners include Allworx, Asterisk-based systems, Avaya, Epygi, Objectworld, ShoreTel, Talkswitch, Teles-AG, and Zultys. More are being added regularly.

© 2009 All rights reserved  BandTel Confidential and Proprietary 12 Applied Value of SIP Trunking How have businesses benefitted from SIP Trunking? –Global Fortune 100 Financial Services Company Challenges: –Facilitate PBX and regional office consolidation into major data centers –Retain legacy phone systems wherever possible Results: –Maintain local office perception while reducing operating costs –66% reduction in annual telephony costs –OPEX savings of US$12 million annually –Payback period for technology investment = nine months »Source:

© 2009 All rights reserved  BandTel Confidential and Proprietary 13 Applied Value of SIP Trunking ROI and cost justification analysis shows a range from 25% to 70% cost reduction using SIP trunks. –In general, the larger the organization, the greater the savings. –Multiple locations can also be served more cost effectively via SIP trunking.

© 2009 All rights reserved  BandTel Confidential and Proprietary Summary SIP Trunking may not be the best service name ever created, but it does provide substantial value to distribution partners and to enterprises. The value provided from SIP trunking may start with dramatic cost reductions but can provide additional benefits previously unavailable from traditional telephony, including Global Number Portability.