PRIMUS 04 25 02 Global Voice and Data

PRIMUS 04. 25. 02 Global Voice and Data

Primus Facts • $1. 2 Billion in Revenue • 600 M Minutes/month International Termination • 50+ PSTN Directs • 400+ Vo. IP Direct, 200 International Partners • 2. 5 -3 M International Terminating Minutes/Day over Vo. IP Cloud 04. 25. 02 Global Voice and Data

State of the Industry The Bad News 04. 25. 02 • The Giants Continue to Fall • PTTs Experience Peril in North American Market • Capital Markets are Closed • Credit Issues persist Global Voice and Data

State of the Industry The Good News 04. 25. 02 • Where there is failure for some, there is opportunity for others • Expansion available through acquisition of distressed assets for pennies on the dollar • Vo. IP is still in its infancy Global Voice and Data

IP Telephony Projections-Market Drivers 04. 25. 02 Global Voice and Data

IP Telephony Call Scenario Phone Call 1 4 IP Backbone 2 Primus IP Interconnect Trans. Nexus and Peering Clearinghouse Arrangement 1. Authentication 2. Authorization 04. 25. 02 ITSP ISP, or CLEC 3 ITSP ISP, or CLEC 4 3. Secure Call Set-up 4. Call Detail Reporting Global Voice and Data

Vo. IP Opportunities • No Less than 10 Inquiries/week from potential international Terminating partners • 40 Installations in queue at any given time • Turn-up takes 2 Hrs-2 Days depending on Technical expertise of Partners • Nearly all based on Cisco 5300 with OSP. 04. 25. 02 Global Voice and Data

Opportunities • Provide competitive origination and termination services to Carriers Debit Card Providers, Agents And PC-Phone Providers • Carriers now embrace Vo. IP as long as price, ASR, and call duration are acceptable • Debit Card Providers demand retail quality for International Traffic Vo. IP is often the solution • Agents provide affordable retail marketing • PC-Phone and Vo. IP International origination are still in embryonic stage 04. 25. 02 Global Voice and Data

Unique Opportunities • Swaps- elevates relationships to new levels • Private Label PC-Phone- Provide entrepreneurs with specific niches a viable product • Off-Shore enterprise solutions; International Retail Vo. IP will explode to take advantage of cost differentials 04. 25. 02 Global Voice and Data

Retail is King • The closer you are to the end-user, the higher the margins • The wholesale only model cannot work long term • “wholesale is a very difficult business to make money in and a real easy business to lose money in” 04. 25. 02 Global Voice and Data

Challenges • How to address risk aversion in the global telecom sector • How to implement International routes where time zone differences, language, and technical expertise vary 04. 25. 02 Global Voice and Data

Primus Softphone 04. 25. 02 Global Voice and Data