Guide to Key US Carrier Hotels by Hunter Newby, TelX

Guide to Key U.S. Carrier Hotels September 2007 HUNTER NEWBY Chief Strategy Officer The tel x Group, Inc. 1 State Street – 12 th Fl New York, NY 10004 www.telx.com 212.480.3300

Definitions - Distinctions
Carrier Hotel
Meet Me Room
Internet Exchange (IX)
Peering Point
Data Center
Colocation, Collocation, Co-location
They all provide space, power and connectivity in varying degrees, but they all perform different functions and deliver different value as a result

“ Managed” Meet Me Room Benefits
NO LOCAL LOOPS – Cost and time savings
Access to more competitive rates from dozens of network providers
Ability to interconnect within 48 hours resulting in reduced time to market
Industrial Class Power – Generator, UPS, DC
Day & night technical support & security
Networking expertise
Access to Market Intelligence

Carrier Hotel Location, Location, Location The Westin Building, Seattle, WA 200 Paul, San Francisco, CA Harbour Centre Vancouver, BC Union Bank Building, Portland, OR One Wilshire, Los Angeles, CA 120 Van Buren St., Phoenix, AZ 2323 Bryan, Dallas, TX NAP, Miami, FL 36 NE 2 nd , Miami, FL 56 Marietta, Atlanta, GA 1275 K St., Washington, DC 350 E Cermak, Chicago, IL 60 Hudson, NYC 151 Front St, Toronto, ON 111 8 th Avenue, NYC 600 S Federal, Chicago, IL 1 Summer St, Boston Pittock Building, Portland, OR

The SIX - The Westin Building, Seattle, WA PAIX, Palo Alto, CA Equinix, San Jose, CA Any2 - One Wilshire, Los Angeles, CA NAP, Miami, FL PAIX / AIX - 56 Marietta, Atlanta, GA Equinix – 350 E Cermak., Chicago, IL NYIIX, NYC TorIX - 151 Front St, Toronto , ON Equinix, Newark, NJ Equinix, Ashburn, VA IX Location, Location, Location Big APE, NYC PAIX, NYC

Core Interconnection & Secondary Colocation Space Availability in the North American Market Usually 1-2 sites per major market ** <100,000 sq ft of total Meet Me Space **Statistics from Fat Pipe Magazine Data, ** On the same Floor, **** In the same building , or annex

Core Interconnection & Secondary Colocation Space Number of Networks Present within the Facility Dozens of carriers from every network Category – the point of highest concentration > 50 carriers Depending on medium, usually The same as direct access > 40 carriers Much less dense and rely on access To the Meet Me Points < 30 carriers Few carriers with an actual presence. Mostly Type II < 10 carriers *Carriers defined as those that sell layer 2 and/or 3 services

Core Interconnection & Secondary Colocation Space Need & Cost for Local Loops Between Networks No need for local loops or transport access Costs between networks present within the facility Varying degrees of need and increased monthly costs, Depending on distance limitations and circuit types. Increasingly varied degrees of need and cost depending on distance limitation and circuit types Almost every interconnect is a local loop and therefore most costly

Core Interconnection & Secondary Colocation Space Cost per Square Foot / Cabinet Highest cost, but greatest value due to time And access cost savings > $40 /psf / m Above average cost, but high value with Related access > $30 / psf / m Average cost with mix of direct and local loop Access possibilities < $20 / psf / m Below average cost with little to No direct interconnect options < $15 / psf / m

Core Interconnection & Secondary Colocation Space Overview Conclusion Interconnect Facilities = Access at the Transport Layer to Services therefore Carriers & Enterprises should extend their network DMARC(s) to Interconnect Facilities

tel x Meet Me Area West 9 th Floor – 60 Hudson

tel x Meet Me Area 23 rd Floor – 60 Hudson

HUNTER NEWBY Chief Strategy Officer The telx Group, Inc. 1 State Street – 12th Fl New York, NY 10004 www.telx.com 212.480.3300 Questions? THANK YOU

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