Creating a Global Presence with Ease Teddy Chu

Creating a Global Presence with Ease Teddy Chu Director, Business Development AT&T Proprietary Use pursuant to Company instructions

Agenda Vo. IP Market Trend Vo. IP Service Provider’s challenges Role of Clearinghouse Business Model and Service Benefits of Clearinghouse Key considering factors when choosing a clearinghouse AT&T Proprietary (Restricted) 2

Voice over IP Market Trend Vo. IP accounted for 5. 6 billions MOUs in 2001, about 4. 8% of the total traffic. Vo. IP will account for approximately 75% of world voice services by 2007. (Frost & Sullivan, 3/2002) Established PSTN carriers are increasingly using Vo. IP technology and adding Vo. IP products to their list of offerings. AT&T Proprietary Use pursuant to Company instructions 3

Challenges faced by a Vo. IP service provider Limited termination points Multiple bilateral interconnection agreements § Incorporates expenses such as negotiation, legal, billing, credit risk fee, auditing, maintenance. Financial risks § Origination – may require to submit multiple bank guarantee § Termination – collection problems Limited choice of routes Liaison with multiple engineering supports in case of service problem Interoperability with other service providers AT&T Proprietary Use pursuant to Company instructions 4

Role of a Clearinghouse Single financial relationship Clearinghouse Access to new applications Reduced administrative cost Global footprint AT&T Proprietary Use pursuant to Company instructions 5

Clearinghouse acts as Broker Member A ISP Vo. IP Minutes Member B Vo. IP Minutes Global Clearinghouse Carrier Vo. IP Minutes Broker ITSP Vo. IP Minutes Member C ITSP Member D AT&T Proprietary Use pursuant to Company instructions 6

Clearinghouse Financial Model Termination Rate Wholesale Rate Retail Rate Customer Margin Clearing Fee* Customer Margin Termination Cost Terminating Side Clearinghouse AT&T Proprietary (Restricted) Clearing Fee Termination Cost Originating Side * Percentage based 7

Standard Clearinghouse Services Facilitate exchange of Vo. IP traffic Perform financial settlement between its customers Guarantee payment to all members Support multiple platforms Route management: § All the voice traffic will be routed by the clearinghouse § Choose your desired route based on the Qo. S/ rate information provided AT&T Proprietary Use pursuant to Company instructions 8

Benefits of Joining a Clearinghouse Immediate access to a global termination network Single financial relationship Guarantee payment Low administration costs Wide selection of routes Swiftly deploy IP communications services Access to new IP-based applications Single point of contact to report problems and dispute AT&T Proprietary Use pursuant to Company instructions 9

Key Considering Factors when choosing a clearinghouse Quality Reporting Reliability Interoperability AT&T Proprietary Use pursuant to Company instructions 10

Key considering factors when choosing a Clearinghouse? High voice quality Provide prompt payment and accurate invoice Financial stable and trustworthy AT&T Proprietary Use pursuant to Company instructions 11

Key considering factors when choosing a Clearinghouse? Provide Qo. S information of the routes which terminates your traffic, for example, ASR reporting AT&T Proprietary Use pursuant to Company instructions 12

Key considering factors when choosing a Clearinghouse? Provide comprehensive traffic report to enable you to understand your traffic pattern and better manage your business. AT&T Proprietary Use pursuant to Company instructions 13

Key considering factors when choosing a Clearinghouse? Support multiple platforms Support traffic exchange and call settlement between different Vo. IP platforms and protocols. § More choices on rate selection § Spur traffic growth AT&T Proprietary Use pursuant to Company instructions 14

Thank you! Please visit our website: www. att. com/globalclearinghouse AT&T Proprietary Use pursuant to Company instructions