Profit Opportunities – Partnering with at&t Marion Associates, LLC Presented by: Jerry Roberts Marion Associates, LLC At&t Master Solutions Provider (MSP)

Profit Opportunities – Partnering with at&t Hardware and Installation services provided by dealers and brokers always stopped at the demarc or 66 block. Numerous profit opportunities exist on the other side of the demarc or firewall. If you do not begin providing these goods and services to your customer someone else will. Copyright © 2006 AT&T. All rights Reserved. Page

Hardware and Installation services provided by dealers and brokers always stopped at the demarc or 66 block.

Numerous profit opportunities exist on the other side of the demarc or firewall.

If you do not begin providing these goods and services to your customer someone else will.

Profit Opportunities – Partnering with at&t Historically Perspective Telco Companies sold or leased, hardware (packs, boards and instruments). Did Moves, adds and changes. Computer Companies sold or leased networking hardware (routers and hubs) The “phone company (AT&T) ” provided the lines, dial tone, bandwidth and connectivity. (the other side of the demarc) Copyright © 2006 AT&T. All rights Reserved. Page

Telco Companies sold or leased, hardware (packs, boards and instruments). Did Moves, adds and changes.

Computer Companies sold or leased networking hardware (routers and hubs)

The “phone company (AT&T) ” provided the lines, dial tone, bandwidth and connectivity. (the other side of the demarc)

Profit Opportunities –Partnering with at&t The changing landscape of traditional hardware sales You need to develop additional sources of revenue for your company We have all seen the profit erosion on the traditional sales of hardware. I don’t think any of us see a reversal of this trend. We are starting to see various manufacturers shift prices from traditional hardware sales to proprietary software which cannot be resold nor transferred. This trend will NOT go away. Copyright © 2006 AT&T. All rights Reserved. Page

You need to develop additional sources of revenue for your company

We have all seen the profit erosion on the traditional sales of hardware. I don’t think any of us see a reversal of this trend.

We are starting to see various manufacturers shift prices from traditional hardware sales to proprietary software which cannot be resold nor transferred. This trend will NOT go away.

Profit Opportunities – Partnering with at&t Today Today there are business opportunities for either the computer or telco sales companies for providing the services traditionally reserved for the “phone company (AT&T)”. By partnering with an at&t Master Solutions Provider (MSP) and becoming an Authorized Solutions Provider (ASP) you can now offer the at&t products and services to your end users and increase your profits. Copyright © 2006 AT&T. All rights Reserved. Page

Today there are business opportunities for either the computer or telco sales companies for providing the services traditionally reserved for the “phone company (AT&T)”.

By partnering with an at&t Master Solutions Provider (MSP) and becoming an Authorized Solutions Provider (ASP) you can now offer the at&t products and services to your end users and increase your profits.

Profit Opportunities – Partnering with at&t AT&T has recognized the reseller channel model worked well for IBM and H/P. Why not AT&T? Example 70% of IBM’s sales to SMB is achieved by “the channel”. IBM still has dedicated sales teams dealing with the Fortune 50 companies and key government accounts but other accounts are relegated to “the channel” In 2007 53% of at&t’s “winbacks” came through the channel Copyright © 2006 AT&T. All rights Reserved. Page

AT&T has recognized the reseller channel model worked well for IBM and H/P. Why not AT&T?

Example 70% of IBM’s sales to SMB is achieved by “the channel”.

IBM still has dedicated sales teams dealing with the Fortune 50 companies and key government accounts but other accounts are relegated to “the channel”

In 2007 53% of at&t’s “winbacks” came through the channel

Profit Opportunities – Partnering with at&t Why are these opportunities available NOW to the telco and computer reseller? Unlike the 80’s and 90’s the “phone company” now has a lot of competition. CLEC’s, VoIP, Internet, Cable Providers. The shifting landscape of the “phone companies” has now left a lot of end users confused as to who provides what to whom. The computer and telco dealer may have a better, more stable relationship with the end user than the “phone company”. Copyright © 2006 AT&T. All rights Reserved. Page

Why are these opportunities available NOW to the telco and computer reseller?

Unlike the 80’s and 90’s the “phone company” now has a lot of competition. CLEC’s, VoIP, Internet, Cable Providers.

The shifting landscape of the “phone companies” has now left a lot of end users confused as to who provides what to whom.

The computer and telco dealer may have a better, more stable relationship with the end user than the “phone company”.

Profit Opportunities – Partnering with at&t Consider Your company has already done the hard part of the job. You have an established a relationship with the End User. Now, you need to establish a relationship with AT&T that allows your company the ability to quote/provide and get paid for the typical AT&T services. AT&T will, design, engineer and install these services. The products available will be voice, data and long distance. Copyright © 2006 AT&T. All rights Reserved. Page

Your company has already done the hard part of the job. You have an established a relationship with the End User. Now, you need to establish a relationship with AT&T that allows your company the ability to quote/provide and get paid for the typical AT&T services.

AT&T will, design, engineer and install these services.

The products available will be voice, data and long distance.

Profit Opportunity – Partnering with at&t Does this apply to your company? Are you coordinating network cuts but not getting paid? Are your customers asking you to place network orders? Are you coordinating and designing networks but not getting paid? Do you feel “out of control” since you do not control the delivery of the network services? Copyright © 2006 AT&T. All rights Reserved. Page

Are you coordinating network cuts but not getting paid?

Are your customers asking you to place network orders?

Are you coordinating and designing networks but not getting paid?

Do you feel “out of control” since you do not control the delivery of the network services?

Joint Offering Bundles (Examples) AT&T & ASP

Copyright © 2006 AT&T. All rights Reserved. Page 2. Key / PBX Bundle 1. IP Telephony Bundle AT&T and ASP PRIMARY OFFERS AT&T Components DSL PRI IP Flex Managed Internet Service PSTN with Long Distance ASP Components* PBX systems VOIP systems Soft phones *ASP Business Partner can perform services after certification AT&T Components DSL 1FB PRI IP Flex ASP Components PBX System Key Systems Hybrid Bundled offering are the cornerstone to owning all aspects of your customers communications needs. Purchased a la carte

AT&T Components

DSL

PRI

IP Flex

Managed Internet Service

PSTN with Long Distance

ASP Components*

PBX systems

VOIP systems

Soft phones

*ASP Business Partner can perform services after certification

AT&T Components

DSL

1FB

PRI

IP Flex

ASP Components

PBX System

Key Systems

Hybrid

Copyright © 2006 AT&T. All rights Reserved. Page IP Telephony Bundle Offering AT&T, ASP team to provide complete solution System i IP Telephony Headquarters AT&T MPLS VPN Virtual Private Network (VPN) connection Public Switched Telephone Network (PSTN) connection AT&T’s Multi-protocol Label Switching (MPLS) and Internet connection AT&T MPLS Network AT&T Managed Router ASP provides: System i IP Telephony Local Area & Wide Area Networks AT&T provides: Managed Internet Service for Internet (MIS) Private Network Transport for VPN (PNT) PSTN for outbound calling (Trunks & PRI) Long Distance Plans (Block of Time or HVCP) PSTN Analog / PRI Gateway Branch Branch New Revenue opportunity New Revenue opportunity New Revenue opportunity Don’t leave money on the table!

ASP provides:

System i IP Telephony

Local Area & Wide Area Networks

AT&T provides:

Managed Internet Service for Internet (MIS)

Private Network Transport for VPN (PNT)

PSTN for outbound calling (Trunks & PRI)

Long Distance Plans (Block of Time or HVCP)

IP Telephony Revenue Opportunity Copyright © 2006 AT&T. All rights Reserved. Page * All ASP prices are US List and subject to change * All AT&T prices are average standard pricing. Pricing will vary based on customer location and needs. New Revenue opportunity paid upfront at install based on negotiated commission plan ASP Components 25 Handsets Single-Site 50 Handsets Single Sites PBX System (With VM) (Average margin 12%) $20k $40k Key System (With VM) (Average margin 12%) $15k $30k IP Telephony System (With VM) (Average margin 12%) $25k $50k AT&T Components Single-Site Single-Site Managed Internet Services (MIS) – T1 1.5 Mbps circuit $560/mth See MIS/PNT item PRI for Outbound Calling $550/mth $550/mth Long Distance Plan varies varies 1FB (10 lines) $450/mth $450/mth

Copyright © 2006 AT&T. All rights Reserved. Page ASP and AT&T Value Add Reduce your time to market in high-demand solution areas Differentiate yourself from the competition Earn incremental revenue Generate long term recurring revenue Leverage the ASP and AT&T brand names Accelerate product training through focused training programs Leverage joint marketing and demand generation programs Use single point of contact business partner program office for pre and post-sales support Provide direct input to solution and product development cycles Sign-up as AT&T agent (under Marion & Associates) Engage in AT&T on-boarding process Leverage and extend ASP and AT&T marketing Engage in AT&T provided training programs Generate demand for offering bundles within sales community Provide sales incentives to sellers Register Opportunities Own the customer relationship Provide focal point for feedback to Marion & Associates office Joint AT&T & ASP Business Partner enables you to: Partner Expectations:

Reduce your time to market in high-demand solution areas

Differentiate yourself from the competition

Earn incremental revenue

Generate long term recurring revenue

Leverage the ASP and AT&T brand names

Accelerate product training through focused training programs

Leverage joint marketing and demand generation programs

Use single point of contact business partner program office for pre and post-sales support

Provide direct input to solution and product development cycles

Sign-up as AT&T agent (under Marion & Associates)

Engage in AT&T on-boarding process

Leverage and extend ASP and AT&T marketing

Engage in AT&T provided training programs

Generate demand for offering bundles within sales community

Provide sales incentives to sellers

Register Opportunities

Own the customer relationship

Provide focal point for feedback to Marion & Associates office

Profit Opportunities – Partnering with at&t What do you need to do to begin providing these services? Example of at&t’s Solution Provider Program. You will need to provide 2 years of audited financial statements, undergo a background investigation on all principals. Successfully pass product specific certification tests. Demonstrate an ability to integrate your back office with the at&t’s procedures. Copyright © 2006 AT&T. All rights Reserved. Page

What do you need to do to begin providing these services?

Example of at&t’s Solution Provider Program.

You will need to provide 2 years of audited financial statements, undergo a background investigation on all principals.

Successfully pass product specific certification tests.

Demonstrate an ability to integrate your back office with the at&t’s procedures.

Profit Opportunities – Partnering with at&t Example of the AT&T channel. Master Solutions Provider – typically provides the interface to at&t and provides the back office function to your company Authorized Solution Provider – Places orders through the MSP. Provides the end user interface Referral Agents – are used as non logo carrying agents by either the MSP or the ASP. Note the MSP and the ASP are authorized to carry the AT&T logo on their cards, stationery and promotional material Copyright © 2006 AT&T. All rights Reserved. Page

Example of the AT&T channel.

Master Solutions Provider – typically provides the interface to at&t and provides the back office function to your company

Authorized Solution Provider – Places orders through the MSP. Provides the end user interface

Referral Agents – are used as non logo carrying agents by either the MSP or the ASP.

Note the MSP and the ASP are authorized to carry the AT&T logo on their cards, stationery and promotional material

Marion & Associates, LLC An at&t Master Solutions Provider Jerry Roberts Marion Associates, LLC Evergreen, CO 80439 [email_address] www.marionassociates.com 303-679-8311 303 -931-0497 cell Copyright © 2006 AT&T. All rights Reserved. Page

Jerry Roberts

Marion Associates, LLC

Evergreen, CO 80439

[email_address]

www.marionassociates.com

303-679-8311

303 -931-0497 cell