Executive Viewpoint Keys to Profitably Delivering VoIP to SMBs · Executive Viewpoint Keys to Profitably Delivering VoIP to SMBs Tim Bradley, SVP - VoIP Services March 21, 2006 COMPTEL

Executive ViewpointExecutive ViewpointKeys to Profitably Keys to Profitably

Delivering Delivering VoIPVoIP to to SMBsSMBsTim Bradley, SVP - VoIP Services

March 21, 2006

COMPTELSan Diego, CA

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NGT Corporate OverviewTDM ExperienceTDM Experience

VoIP ExperienceVoIP Experience

New Global Telecom (NGT) was formed in 1996 to participate in the deregulation of the global telecommunications industry

Switched over 3 billion minutes of voice traffic with 50 carriers in 2004 Customers have included AT&T, Telecom New Zealand, Belgacom, Telecom Argentina

NGT pioneers telephony solutions to Service Providers worldwide – we lead the wholesale market with over 45 service providers currently serving in excess of 60,000 BroadWorks seats

VoIP product suite branded under 6DegreesIPWe own & operate redundant BroadWorks application servers (regularly upgraded to

latest software load) and redundant NexTone clusters with additional NexTone devices in our isolated Product Lab in Golden, Colorado

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NGT’s VoIP FocusUsing NGT’s 6DegreesIP, service providers can remain focused on critical customer touch-points – NGT does the rest

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Feature/Function sets are very similar - Little or no perceived differentiation across competitive products

It’s still tough to buy! – Incumbents’ sales forces are not well prepared and are being cut back

No one is taking a consultative, solutions-oriented portfolio approach – Incumbents’ sales teams are in silos

TCO can drive sales but no one is talking about it – But, for the customer, economics drive the purchasing decision

The time is right to win the SMB segment - 9-18 month window for Service Providers to win the SMB segment without significantcompetition

SMB Market Re-Cap

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ObservationsIncumbents Have Created Sales Opportunities

Sales personnel need to be well trained product specialists

Sales personnel should be solutions-oriented consultants

Create a portfolio approach so you can shepard customers to the ‘right’ solution

Understand purchasing drivers, and be prepared to address them proactively

Make it easy for customers to buy

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Identify Target Market Opportunities

15-50 Stations

51-100 101-200 Stations

201+ Stations

<15 Stations

<3 Years

>3 Years

<3 Years

>3 Years

<3 Years

>3 Years

1 Office Multi-Office

1 Office Multi-Office

1 Office Multi-Office

Fixed

Mobile

Fixed

Mobile

Fixed

Mobile

Fixed

Mobile

Fixed

Mobile

Fixed

Mobile

<1 Year >1 Year

<T1 >T1 <T1 >T1 <T1 >T1

Yes No Yes No Yes No

No Yes No Yes No Yes

SMB Customer Base

Number of Locations

Staff Mobility

Telephone Count

Age of System

Contract Length

Data Access

Phone as Point of Sale

Impending Event (moves, scale)

UNATTRACTIVE

ATTRACTIVE

MOST ATTRACTIVE

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Apply a Different Sales Proposition

Step-by-step approach required to deal effectively with objections – before they become barriers!

Pre-requisites to this process include establishing the same telephone number (LNP), Directory Listing, etc…

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Establish Favorable TCO

Incorporate a TCO tool that will provide support to your marketing claims of cost savings (ROI doesn’t mean much)Qualities of a successful TCO tool:

Completely adaptable to any business/target audienceSimple and intuitive to useProvides fair, conservative assumptionsAdds credibility to your claims of cost savings for VoIP

Incorporates voice & data

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Establish Favorable TCO (Cont’d)

We have developed collateral based on 3 pre-defined scenarios:

20-person business, single location100-person business, single location100-person business, multi-location

Comprehensive TCO model is also available for use by our customers

Instructions and default assumptions explicitly laid out

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Highlight Ease of Management

Highlight the easy-to-use point-click interfaces for simple, web-based management of-

Moves, adds, changesCalling plan administrationSelf-management for routing and provisioning

In addition, end-users can easily self-configure & manage their own services in real-time – throw out your phone guide for star codes!

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Highlight Ease-of-Management (Cont’d)

Simplicity of a Hosted solution relative to on-premise systemsGrowth managementMaintenanceMoves, adds & changes (MACs)Network management & administrationOpen (non-proprietary) technologyVendor supportDisaster recovery

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Address Feature Parity

Same features as traditional phone/key systems, with all the basics

Dialtone – simple callingTransfer / Call Forward3-way CallingOn-net / abbreviated dialing

No need to compromise on functionality, quality or business responsiveness

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Address Feature Parity (Cont’d)

“6DegreesIP Demonstration Guide” Word document“Feature Animations” – set of interactive animations for the most commonly used Incoming Call, Outgoing Call and Call Control features

Feature Animations

6DegreesIP Demonstration

Guide

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Demo ‘Cool’ Features

Without overwhelming the end-user with ALL the bells and whistles – show them a few eye-popping featuresOrganize product features by needs of each market segment, such as-

If multiple locations – demo on-net dialing or abbreviated calling between officesIf multiple road warriors – demo mobility features including find-me, follow-me, or simultaneous ringIf Microsoft Office users – demo integrated Microsoft Outlook Telephony Toolbar for point-click functionality from within Outlook

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Demonstrate ‘Cool’ Features (Cont’d)

“6DegreesIP Demonstration Guide” Word document“Feature Animations” – set of interactive animations for the most commonly used Incoming Call, Outgoing Call and Call Control featuresVertical Market Applications

Auto DealershipConsulting FirmContractorsHigher EducationHospitalityLegal ServicesMedical OfficeReal Estate

Legal Services Example

Real Estate Example

4/7/2006 32

The Hidden Costs of VoIP DeliveryGood News: the fundamentals of VoIP make it ripe for profitable deliveryBad News: Managing VoIP delivery involves a wide range of important, complex issues and hidden costs

The LAN problem! To assess or not to assess. Walking away is hard.

Support, troubleshooting and the missing demarc

SLA’s and the demarc rediscovered!

QoS: the role of expanding bandwidth; understand your customer expectations; monitor proactively

Integrating disparate VoIP technologies

The CPE conundrum: you can pay me now, or pay me later – test, test, test

Local Number Portability (LNP)

E,v911, CALEA, Directory Assistance & Directory Listings, Operator Services, 800 Services

Voice vs. IP: the convergence that missed the people…. So far

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Winning The SMB Segment

Strategic Commitment – It’s the Right Time9-18 month window of opportunity to aggressively acquire customerswithout serious competitive threat from large carriersCustomer’s are increasingly asking about VoIP, but don’t know where to turn for answers…and carriers are ignoring or confusingthem

Invest in Marketing, Sales, Provisioning & Support Marketing: Rational segmentation, demand generation, attractive value propositionsSales: Dedicated sales reps with deep product knowledge and armed with the sales tools to win the target segmentsProvisioning & Support: Qualified sales engineers and installers to ensure flawless deployment, reduce cost to serve by getting it right the first time and develop a reference customer baseOperations: Ensure you have the skills for effective trouble-shooting and management of disparate network elements & complex service delivery – this is difficult stuff!