Mstar Our mission is to become the leading provider of converged IP services

Mstar is currently delivering the most advanced IP services, including: Ultra high-speed, symmetrical, Internet (speeds available up to 100 Mbps) Managed VOIP telephone service IPTV - digital, high definition ready television with no atmospheric interference Poised to bring these and other services into a converged experience Mstar is the leading provider of services on two of the country’s most advanced fiber-to-the-premise (FTTX) networks in the world UTOPIA and iProvo

Mstar is currently delivering the most advanced IP services, including:

Ultra high-speed, symmetrical, Internet (speeds available up to 100 Mbps)

Managed VOIP telephone service

IPTV - digital, high definition ready television with no atmospheric interference

Poised to bring these and other services into a converged experience

Mstar Milestones Serving more than 12,000 households and businesses over fiber Adding between 250 and 550 new subscribers every month Secured the first complete set of IPTV licenses in the country (ABC, NBC, FOX, Disney, ESPN, HBO, Lifetime, etc.)

Serving more than 12,000 households and businesses over fiber

Adding between 250 and 550 new subscribers every month

Secured the first complete set of IPTV licenses in the country (ABC, NBC, FOX, Disney, ESPN, HBO, Lifetime, etc.)

Tremonton Brigham City Perry Layton Centerville West Valley City UTOPIA (Utah Telecommunication Open Infrastructure Agency) Murray Midvale Riverton Cedar Hills Lindon Orem Payson Cedar City The largest fiber access network in the U.S. 170,000 potential subscribers 14 founding member cities

Tremonton

Brigham City

Perry

Layton

Centerville

West Valley City

Murray

Midvale

Riverton

Cedar Hills

Lindon

Orem

Payson

Cedar City

The largest fiber access network in the U.S.

170,000 potential subscribers

14 founding member cities

iProvo Similar to UTOPIA only a single city Both projects are active Ethernet networks Mstar is actively involved in trying to employ PacketFront Layer3 architecture and technology

Similar to UTOPIA only a single city

Both projects are active Ethernet networks

Mstar is actively involved in trying to employ PacketFront Layer3 architecture and technology

United States Broadband Rankings by Year of the top sixteen economies in the world 2001 4 th 2002 7 th 2003 11 th 2004 13 th 2005 16 th 2005 Rankings Korea HK, China Netherlands Denmark Canada Switzerland Taiwan, China Belgium Iceland Sweden Norway Israel Japan Finland Singapore USA Source: International Telecommunications Union (ITU), Annual Surveys

2001 4 th

2002 7 th

2003 11 th

2004 13 th

2005 16 th

2005 Rankings

Korea

HK, China

Netherlands

Denmark

Canada

Switzerland

Taiwan, China

Belgium

Iceland

Sweden

Norway

Israel

Japan

Finland

Singapore

USA

Speed Comparison Fiber-optic Technology in Perspective Mathematically correct comparison of dial-up and DSL/Cable

Fiber-optic Technology in Perspective Dial-up and DSL compared to 100 Mbps and 1 Gig connections

Basic requirement for creating a converged IP experience

Stages leading up to a converged IP experience Stage 1: Bundling Bundling: Different infrastructures, different, formats, different companies Example: Qwest with Direct TV

Stages leading up to a converged IP experience Stage 2: Single Company Bundle Examples: Comcast, Cox, Other MSO’s

What is a converged IP experience? All communication services are delivered over one infrastructure, one protocol, one bill

Advantages We are operating a “true” IP triple-play Internet, telephone and IP video services over local fiber networks Possibly the only “legal” IP triple-play service in the country NCTC Relationship Service Quality We have spent the past 14 months learning how to provide services We have a head-start in the market Only known service provider looking to leverage Layer 3 Architecture We are poised to create a true converged IP experience Implemented all other elements necessary for delivery of services including support and billing;

We are operating a “true” IP triple-play

Internet, telephone and IP video services over local fiber networks

Possibly the only “legal” IP triple-play service in the country

NCTC Relationship

Service Quality

We have spent the past 14 months learning how to provide services

We have a head-start in the market

Only known service provider looking to leverage Layer 3 Architecture

We are poised to create a true converged IP experience

Implemented all other elements necessary for delivery of services including support and billing;

Unique Data Offering Residential offering of 15-50 Mbps symmetrical bandwidth As low as $34.95 per month

Residential offering of 15-50 Mbps symmetrical bandwidth

As low as $34.95 per month

Unique Phone Offering Telephone service Low in price / rich in features Voice activated services Call filtering Directory Broadcast capabilities Low-cost long distance (unlimited or 4 cents per minute) Data and phone service bundle is as low as $49.95

Telephone service

Low in price / rich in features

Voice activated services

Call filtering

Directory

Broadcast capabilities

Low-cost long distance (unlimited or 4 cents per minute)

Data and phone service bundle is as low as $49.95

Unique Video Offering IPTV Service Building a strong library of VOD content including Free content (movies, kids, karaoke) Instructional services Community content Rolling out HD and DVR Rolling out LiVN Mstar channel Putting in place the ability for consumers to become producers Triple play as low as $79.95 / higher end packages range from $104 on up

IPTV Service

Building a strong library of VOD content including

Free content (movies, kids, karaoke)

Instructional services

Community content

Rolling out HD and DVR

Rolling out LiVN Mstar channel

Putting in place the ability for consumers to become producers

Triple play as low as $79.95 / higher end packages range from $104 on up

Management Team Ben Gould, President and CEO 17 years technology business experience Executive positions at Apollo Health Technologies, DynamicCity, iLumin, Novell, & WordPerfect Strong marketing background – oversaw effort to gain political and public support for UTOPIA Steve Russo, Chief Financial Officer 19 years technology business experience CFO of 2 publicly traded technology firms Involved in multiple M&A transactions Kirk Tanner, Chief Operating Officer 20+ years consumer and technology marketing experience Strong background in market development, consumer and technology brand creation, customer satisfaction Experience includes large agency work, Novell, Wicat, Softsolutions, Aradyme Tim Brown, Chief Technology Officer 18 years telecommunications and information technology experience Strong background in strategic business planning, technical architecture, implementation, operations management for broadband services, mobile data products and data networks

Ben Gould, President and CEO

17 years technology business experience

Executive positions at Apollo Health Technologies, DynamicCity, iLumin, Novell, & WordPerfect

Strong marketing background – oversaw effort to gain political and public support for UTOPIA

Steve Russo, Chief Financial Officer

19 years technology business experience

CFO of 2 publicly traded technology firms

Involved in multiple M&A transactions

Kirk Tanner, Chief Operating Officer

20+ years consumer and technology marketing experience

Strong background in market development, consumer and technology brand creation, customer satisfaction

Experience includes large agency work, Novell, Wicat, Softsolutions, Aradyme

Tim Brown, Chief Technology Officer

18 years telecommunications and information technology experience

Strong background in strategic business planning, technical architecture, implementation, operations management for broadband services, mobile data products and data networks

“ The purpose of business is to get and keep customers” Theodore Levitt, The Marketing Imagination

“ The purpose of business is to get and keep customers”

Theodore Levitt, The Marketing Imagination

Components that go in to providing retail services Customer Experience Technology & Licenses Brand Sales & Marketing Products & Services Legal Finance Personnel & Culture Operations (Network & Internal)

The customer experience defines what our brand means Technology & Licenses Brand Sales & Marketing Products & Services Legal Finance Personnel Operations (Network & Internal)

Now we have fiber – what next? Some of the core obstacles include Communicating the value of superior bandwidth Working through the “bugs” Creating the ability to quickly adapt to market forces Creating in-house competence Competition

Communicating the value of superior bandwidth

Working through the “bugs”

Creating the ability to quickly adapt to market forces

Creating in-house competence

Competition

Biggest issues in rolling out retail services over fiber A competent network manager/operator Next to the customer, PacketFront, UTOPIA and iProvo are our most important business relationships

A competent network manager/operator

Next to the customer, PacketFront, UTOPIA and iProvo are our most important business relationships

Biggest issues in rolling out retail services over fiber Creating the proper customer experience In-house, 24 x 7 support Unique offerings Creating customers who are “married” to our brand

Creating the proper customer experience

In-house, 24 x 7 support

Unique offerings

Creating customers who are “married” to our brand

Customer Relations

Support Decision Tree Support tools we have created Following are screen shots of the support decision tree. The support decision tree allows customer service reps to query for answers to problems and obtain information from either a database or a knowledge base. The information is continually updated.

Support Knowledge Base Support tools we have created The knowledge base provides information for support reps to disseminate solutions to our customers Following are screen shots of the knowledge base

Training We have implemented a training program and continue to add curriculum We have training weekly – customer support, billing and other personnel are cross trained reducing: The number of personnel needed The hold times a customer has to wait The number of times a customer needs to be transferred

We have implemented a training program and continue to add curriculum

We have training weekly – customer support, billing and other personnel are cross trained reducing:

The number of personnel needed

The hold times a customer has to wait

The number of times a customer needs to be transferred

Measurement & Tracking Tools Reducing response time to unresolved customer issues (open tickets)

Result from the tools Better quality support Lower hold times More efficient staffing by hour Key metrics allow us to make course corrections in a more timely manner

Better quality support

Lower hold times

More efficient staffing by hour

Key metrics allow us to make course corrections in a more timely manner

Improvements Today We complete 90% of our installs on the first visit – lack of completion is usually due to customers not showing up or UTOPIA / iProvo delays We complete all of our residential installs with one two-man crew. One skilled laborer, one not. Our schedule on the residential installs stays down to two weeks Billing is initiated within 24 hours We have created an integrated system between order management, sales, customer support and billing

Today

We complete 90% of our installs on the first visit – lack of completion is usually due to customers not showing up or UTOPIA / iProvo delays

We complete all of our residential installs with one two-man crew. One skilled laborer, one not.

Our schedule on the residential installs stays down to two weeks

Billing is initiated within 24 hours

We have created an integrated system between order management, sales, customer support and billing

Beyond customer satisfaction Services are passive in nature – as a result You know when they are dissatisfied No one knows when they are satisfied Customers have to be loyal to help your business

Services are passive in nature – as a result

You know when they are dissatisfied

No one knows when they are satisfied

Customers have to be loyal to help your business

Going beyond customer satisfaction Awareness Consideration Preference Purchase Loyalty Introduction First Date Engagement Courtship Marriage

What is the brand? It isn’t an icon, mark or name. Instead it is an emotional reaction to those things. A brand is like an instant rolodex file All factors contributing to the overall customer experience impact the brand.

It isn’t an icon, mark or name. Instead it is an emotional reaction to those things.

A brand is like an instant rolodex file

All factors contributing to the overall customer experience impact the brand.

Putting the brand in context Brand is the permission Technology is the execution of that permission Awareness Consideration Preference Purchase Loyalty Introduction First Date Engagement Courtship Marriage

Brand is the permission

Technology is the execution of that permission

Marketing Communications Price, Product, Promotion and Place Public Relations and Community Outreach fall under Promotion Acquisition Marketing and Base Management

Price, Product, Promotion and Place

Public Relations and Community Outreach fall under Promotion

Acquisition Marketing and Base Management

Public Relations Fill the empty spaces High-tech PR is all about the customer Capitalize on being the local provider Mix coverage in both horizontal and vertical media channels Monitor national news and tie into larger stories Reality is 90 percent perception

Fill the empty spaces

High-tech PR is all about the customer

Capitalize on being the local provider

Mix coverage in both horizontal and vertical media channels

Monitor national news and tie into larger stories

Reality is 90 percent perception

Community Relations High School Sponsorships Teacher discounts Civic involvement (Chamber of Commerce) Supporting the Arts (libraries and parks) Booths at local events (parades, fairs)

High School Sponsorships

Teacher discounts

Civic involvement (Chamber of Commerce)

Supporting the Arts (libraries and parks)

Booths at local events (parades, fairs)

Acquisition-related Marketing Marketing is about multiple exposures Reach and Frequency Targeted Direct Response Sell the value (always value before price) Pinpoint and exploit your real consumer benefit All campaigns need three things (excitement, news/info, call to action) Be Creative Tie all marketing efforts back into revenue

Marketing is about multiple exposures

Reach and Frequency

Targeted Direct Response

Sell the value (always value before price)

Pinpoint and exploit your real consumer benefit

All campaigns need three things (excitement, news/info, call to action)

Be Creative

Tie all marketing efforts back into revenue

Don’t forget to sell! Sales conversion rates of 75 percent Door to door sales Lawn signs Referral program A proven service provider can do all of these things

Sales conversion rates of 75 percent

Door to door sales

Lawn signs

Referral program

A proven service provider can do all of these things

Direct mail

Memorable and Persuasive Direct Response

Seasonal Offers and Upgrades

Seasonal Ads

Collateral Materials for Base Management Mstar Welcome Kit Channel Guide Quick Start Guide Telephone Star Codes Frequently Asked Questions Vouchers and Coupons

Mstar Welcome Kit

Channel Guide

Quick Start Guide

Telephone Star Codes

Frequently Asked Questions

Vouchers and Coupons

Community Involvement

Installer Vehicle Wraps

Local Community Relations

What’s coming next? We have 30 additional services in R&D right now including: Visual communications Telemedicine Home security and surveillance Community content Mstar sponsored community hot-spots

We have 30 additional services in R&D right now including:

Visual communications

Telemedicine

Home security and surveillance

Community content

Mstar sponsored community hot-spots

Attracting a service provider Have great network management: No one blames the network – they blame the service provider Create a level playing field Let the market forces work (momentum over inertia) Be flexible

Have great network management:

No one blames the network – they blame the service provider

Create a level playing field

Let the market forces work (momentum over inertia)

Be flexible

Q&A Matt Clayton Director, Marketing [email_address]

Matt Clayton

Director, Marketing

[email_address]

Mstar The country’s leading provider of converged IP services delivered over fiber-to-the-premise (FTTP) networks