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FiberSource® Overview




                                                                   February 2006
                        This document is confidential and is intended solely for the use and
                                          information of the client to whom it is addressed.
CFN Services continues a 25-year history of providing carriers with
  telecom infrastructure services.



                 CFN Services Provides Telecom Infrastructure Services

         Where We’ve Been…                                                                                   …What We Do Today

   As CSX Corp, Co-founded Lightnet, 4th                                                      
   Bringing Wal-Mart economics to wireless
    largest long haul network prior to sale in                                                     and wireline network operators
    1989
                                                                                                     
   Solving the TDM access dilemma

   Since 1983, helped over 50 carriers deploy
    almost 20,000 route miles of fiber along rail                                                    
   Driving platform economics around
    corridor ($10B in plant & equipment)                                                                 metro access networks

   CSX Corp launched CSX Fiber Networks in                                                    
   CFNS specializes in fiber-based
    late 2001 to manage fiber lease business                                                       transport networks and facilities

   In the past several years, deployed
                                                                                                     
   Leased transport off-net to on-net
    custom-integrated dark fiber networks in
                                                                                                         network optimization
    metro markets for major carrier clients
                                                                                                     
   Custom fiber network design,

   Built what is today FiberSource® as
                                                                                                         sourcing, and deployment services
    internal dark fiber planning and integration
    platform to price and deliver fiber networks
                                                                                                     
   Wireline & wireless network backhaul

   CSX FN, LLC spun off in August ’05 –
                                                                                               
   Design/Deployed fiber networks for
    becomes CFN Services, Inc.
                                                                                                   Sprint-Nextel, AT&T, MCI, Verizon,
                                                                                                   Level 3, Broadwing



                                                                                                                                       CFN Services   2
              This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
Bringing Wal*Mart economics to wireless and wireline network
   operators to solve the TDM local access transport network dilemma.

  ILLUSTRATIVE

             – Optimized Transport Network Platforms Flatten the Access Cost Curve –

                                                                                                       
   Access Dilemma: Local access was a
                                                                                                           $30B cost for carriers in 2005; 53% and
             Current linear access cost curve
                                                                                                           38% of MCI and ATT topline; 40-60% of
                                                                                                           wireless network operating costs.

                                                                                                       
   Carriers are facing rapidly increasing
                                                                                                           transport volumes due to data services
 Recurring                                                                                                 bandwidth growth (e.g. Ethernet MAN)
                                               Facilities based
TDM Access                                                                                                 and 3G wireless services expansion
                                             platform deployment
   Cost
                                                                                                       
   Facilities based infrastructure provides
                                                                                                           significant bulk capacity with low
                                                                                                           incremental growth costs effectively
                                New incremental access cost curve                                          “flattening” the access cost curve
                              (CFNS optimized infrastructure platform)
                                                                                                       
   CFN’s platform approach enables carriers
                                                                                                           to enhance profitability as volumes grow
                                                                                                           without requiring new capex/opex
                                                  2x                                        3x
                                               Volume

               Carriers facing local access transport volume growth
         achieve better economics with a facilities based platform approach.
                                                                                                                                            CFN Services   3
                 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® is the industry’s best and most comprehensive
   telecom infrastructure knowledge and relationship base.




     FiberSource®: Powers CFNS Fiber Network Design & Delivery Capabilities

                          Web enabled portal
                                                                                                                         FiberSource® & FiberMAP®
                          for real time access

                                FiberSource®                                                                               Local access transport and
     Over100 asset                                                   220,000 fiber
           owners                                                    route miles                                           backhaul network design,
                                                                                                                           optimization, and implementation
                                                                     550 metro
5-90Ghz broadband
                                                                     networks
 wireless spectrum
                                                                                                                           Local market footprint expansion
                                                                                                                           via leased line and fiber served
      15,000 on-net                                                  150,000
                                                                                                                           buildings and LEC collocations
          buildings                                                  cellular sites

  1,000 collocation/                                                 100,000 miles
  carrier hotel sites                                                rail corridor                                         Carrier and enterprise network
                                  120 Markets
                                                                                                                           design for dedicated or shared
                          20,000 Central Offices,                                                                          TDM, WDM and Ethernet networks
                               FCC Market
                            boundaries, MSAs



                                                                                                                                                CFN Services   4
                 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
Together FiberMAP® and FiberSource® enable CFN Services
                              capabilities for off-net to on-net optimization displacing type II costs.
FiberMAP® (Local Access Optimization Process)

                                                                                                           Conduct
                              Gather Network                                                            Infrastructure
                                                             Perform Analysis                                                                                          Implementation
                                                                                                                                                Map, Engineer
                               Requirements                    and Mapping                                                                                                Planning
                                                                                                                                              Optimized Networks
                                                                                                         Optimization
                                                                                                           (iterate)
                             Optional Business
                              Case & ROI Data
                                     AT&T
                                  MCI
                               Verizon
                                                                                    CFNS
                               •  Circuit Costs
                               •  Forecasts
                                                                               Customer
                               •  New Service
Understanding Requirements




                                                                                                                                                                       Detailed network
                                                                          Network Deployment
                                  Opportunities
                                                                                                                                                                       deployment
                                                                             Requirements
                                                                                                                                                                       planning and
                                                                                                                                                                       implementation
                                                                                                                                                                       support
                                                                                       FiberSource®
                                     Telecom & IT
                                       Network                                                 CFNS
                                     Requirements                                            Inventory
                                                                                         (fiber, facilities,
                                                                                        and relationships)

                               Transport           Customer
                              Equipment           MAN & WAN
                             Specifications        Locations

                                                                                                                                                                          CFN Services   5
                                              This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® improves the productivity of pre-sales support resources
and accelerates sales cycles for fiber dependent products and services.


           FiberSource® Planning Service Keeps the Sales Cycle Moving Forward

      Requirements               Develop Route Level Estimate High-level                                         Confirm Asset             Develop Site-level
       Submission                      Design          Costs (+/- 25%)                                         Availability, Design        Designs and Costs

                                                                                                                      1-4 weeks aligned with sales cycle
                  2 – 72 hours depending on complexity


•  Confirm objectives,            •  Route level overview                  •  High-level cost                      •  Confirm asset         •  Finalize cost
   scope, and required               and solution network                     estimates including:                    availability, etc.       estimate
   detail                            maps                                  •  Fiber                                •  Revise/refine         •  Working with asset
•  Dark fiber/Lit Services        •  Preliminary hub/                                                                 design and cost          owners initiate site
                                                                           •  Network Integration
                                     node sites plotted                                                               estimates based on       surveys to finalize
•  Collocation                                                             •  Lateral and other
                                                                                                                      availability,            costs on
                                  •  Customer required
•  Sites/addresses                                                            construction costs
                                                                                                                      demarc, etc.             construction and
                                     sites plotted
•  Transport/access                                                        •  Collocation                                                      other components
                                                                                                                   •  Finalize proposed
   equipment and/or                                                        •  Engineering and                         route maps with
   technologies                                                               Permitting                              construction
•  Diversity requirements                                                                                             required
•  Other design
   standards


CFN Services provides fiber sourcing along a continuum from network planning support
    through turnkey network delivery and financing under a single IRU/Lease/SLA


                                                                                                                                                    CFN Services      6
                This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® Sample Metro Fiber Data & Demo Screenshot




                                                                                                                               CFN Services   7
      This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® Sample Metro Fiber Data & Demo Screenshot




                                                                                                                               CFN Services   8
      This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® Off-net to On-net Optimization Demo Screenshots




                                                                                                                                CFN Services   9
       This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
FiberSource® Off-net to On-net Optimization Demo Screenshots




                                                                                                                                CFN Services   10
       This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.

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Fiber Locator

  • 1. FiberSource® Overview February 2006 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.
  • 2. CFN Services continues a 25-year history of providing carriers with telecom infrastructure services. CFN Services Provides Telecom Infrastructure Services Where We’ve Been… …What We Do Today   As CSX Corp, Co-founded Lightnet, 4th   Bringing Wal-Mart economics to wireless largest long haul network prior to sale in and wireline network operators 1989   Solving the TDM access dilemma   Since 1983, helped over 50 carriers deploy almost 20,000 route miles of fiber along rail   Driving platform economics around corridor ($10B in plant & equipment) metro access networks   CSX Corp launched CSX Fiber Networks in   CFNS specializes in fiber-based late 2001 to manage fiber lease business transport networks and facilities   In the past several years, deployed   Leased transport off-net to on-net custom-integrated dark fiber networks in network optimization metro markets for major carrier clients   Custom fiber network design,   Built what is today FiberSource® as sourcing, and deployment services internal dark fiber planning and integration platform to price and deliver fiber networks   Wireline & wireless network backhaul   CSX FN, LLC spun off in August ’05 –   Design/Deployed fiber networks for becomes CFN Services, Inc. Sprint-Nextel, AT&T, MCI, Verizon, Level 3, Broadwing CFN Services 2 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 3. Bringing Wal*Mart economics to wireless and wireline network operators to solve the TDM local access transport network dilemma. ILLUSTRATIVE – Optimized Transport Network Platforms Flatten the Access Cost Curve –   Access Dilemma: Local access was a $30B cost for carriers in 2005; 53% and Current linear access cost curve 38% of MCI and ATT topline; 40-60% of wireless network operating costs.   Carriers are facing rapidly increasing transport volumes due to data services Recurring bandwidth growth (e.g. Ethernet MAN) Facilities based TDM Access and 3G wireless services expansion platform deployment Cost   Facilities based infrastructure provides significant bulk capacity with low incremental growth costs effectively New incremental access cost curve “flattening” the access cost curve (CFNS optimized infrastructure platform)   CFN’s platform approach enables carriers to enhance profitability as volumes grow without requiring new capex/opex 2x 3x Volume Carriers facing local access transport volume growth achieve better economics with a facilities based platform approach. CFN Services 3 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 4. FiberSource® is the industry’s best and most comprehensive telecom infrastructure knowledge and relationship base. FiberSource®: Powers CFNS Fiber Network Design & Delivery Capabilities Web enabled portal FiberSource® & FiberMAP® for real time access FiberSource® Local access transport and Over100 asset 220,000 fiber owners route miles backhaul network design, optimization, and implementation 550 metro 5-90Ghz broadband networks wireless spectrum Local market footprint expansion via leased line and fiber served 15,000 on-net 150,000 buildings and LEC collocations buildings cellular sites 1,000 collocation/ 100,000 miles carrier hotel sites rail corridor Carrier and enterprise network 120 Markets design for dedicated or shared 20,000 Central Offices, TDM, WDM and Ethernet networks FCC Market boundaries, MSAs CFN Services 4 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 5. Together FiberMAP® and FiberSource® enable CFN Services capabilities for off-net to on-net optimization displacing type II costs. FiberMAP® (Local Access Optimization Process) Conduct Gather Network Infrastructure Perform Analysis Implementation Map, Engineer Requirements and Mapping Planning Optimized Networks Optimization (iterate) Optional Business Case & ROI Data AT&T MCI Verizon CFNS •  Circuit Costs •  Forecasts Customer •  New Service Understanding Requirements Detailed network Network Deployment Opportunities deployment Requirements planning and implementation support FiberSource® Telecom & IT Network CFNS Requirements Inventory (fiber, facilities, and relationships) Transport Customer Equipment MAN & WAN Specifications Locations CFN Services 5 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 6. FiberSource® improves the productivity of pre-sales support resources and accelerates sales cycles for fiber dependent products and services. FiberSource® Planning Service Keeps the Sales Cycle Moving Forward Requirements Develop Route Level Estimate High-level Confirm Asset Develop Site-level Submission Design Costs (+/- 25%) Availability, Design Designs and Costs 1-4 weeks aligned with sales cycle 2 – 72 hours depending on complexity •  Confirm objectives, •  Route level overview •  High-level cost •  Confirm asset •  Finalize cost scope, and required and solution network estimates including: availability, etc. estimate detail maps •  Fiber •  Revise/refine •  Working with asset •  Dark fiber/Lit Services •  Preliminary hub/ design and cost owners initiate site •  Network Integration node sites plotted estimates based on surveys to finalize •  Collocation •  Lateral and other availability, costs on •  Customer required •  Sites/addresses construction costs demarc, etc. construction and sites plotted •  Transport/access •  Collocation other components •  Finalize proposed equipment and/or •  Engineering and route maps with technologies Permitting construction •  Diversity requirements required •  Other design standards CFN Services provides fiber sourcing along a continuum from network planning support through turnkey network delivery and financing under a single IRU/Lease/SLA CFN Services 6 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 7. FiberSource® Sample Metro Fiber Data & Demo Screenshot CFN Services 7 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 8. FiberSource® Sample Metro Fiber Data & Demo Screenshot CFN Services 8 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 9. FiberSource® Off-net to On-net Optimization Demo Screenshots CFN Services 9 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.
  • 10. FiberSource® Off-net to On-net Optimization Demo Screenshots CFN Services 10 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed.