2010 PAETEC Communications Overview

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PAETEC is personalizing business communications for medium and large businesses, enterprise organizations, and institutions across the United States. We offer a comprehensive suite of IP, voice,
data, and Internet services, as well as enterprise communications management software, network security solutions, CPE, and managed services.

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  • PAETEC has a national network with 82 of the top 100 Metropolitan Statistical Areas in 2008
  • 2010 PAETEC Communications Overview

    1. 1. PAETEC: America’s Premier Alternative to Incumbent Local Carriers Tracey Gaffney Account Consultant
    2. 2. <ul><li>Solutions for </li></ul><ul><li>[Insert Customer Logo Here] </li></ul>
    3. 3. <ul><li>PAETEC’s mission is to be the most </li></ul><ul><li>customer and employee-oriented </li></ul><ul><li>communications provider. </li></ul><ul><li>“ PAETEC rises above the communications service provider pack.” </li></ul><ul><li>Forrester Research </li></ul>
    4. 4. Agenda <ul><li>Financial Highlights </li></ul><ul><li>Company Highlights </li></ul><ul><li>PAETEC’s Network </li></ul><ul><li>Industry Recognition </li></ul><ul><li>Caring Culture </li></ul><ul><li>Open Communication </li></ul><ul><li>Unmatched Service </li></ul><ul><li>Personalized Solutions </li></ul><ul><li>The PAETEC Difference </li></ul>
    5. 5. Financial Highlights <ul><li>NASDAQ: PAET </li></ul><ul><li>Revenue – $1.6B </li></ul><ul><li>Adjusted EBITDA – $256.9M </li></ul><ul><li>Free Cash Flow – $135.4M * </li></ul>* Adjusted EBITDA Less CAPEX
    6. 6. Company Highlights <ul><li>84 of the top 100 U.S. MSAs </li></ul><ul><li>5.9 million access line equivalents </li></ul><ul><li>Approximately 4,000 employees </li></ul><ul><li>ISO 9001:2008 certified </li></ul><ul><li>Headquartered in Rochester, NY </li></ul><ul><li>Employee-led “Green Team” </li></ul>Data Center – Conshohocken, PA 88 Voice Switches 34 Soft Switches 124 Backbone Routers 3 Network Operations Centers 6 Class-A Data Centers 20,077 Route Miles of Fiber
    7. 7. PAETEC’s Network
    8. 8. Industry Recognition <ul><li>2010: Ranked #982 on FORTUNE 1000 List </li></ul><ul><li>2010: Ranked #9 in 2010 and #10 in 2009 Best Large Companies to Work for in New York State New York State Society for Human Resource Management ( NYS-SHRM) </li></ul><ul><li>2010: Ranked #38 of Top 125 International Training Organizations Training magazine </li></ul><ul><li>2009: Ranked #414 in North America on Deloitte Technology Fast 500 List; one of only 22 companies over $1B to make the list Deloitte </li></ul><ul><li>2009: NOC Named National Back-Office Customer Service Department of the Year </li></ul><ul><li>Stevie ® Awards </li></ul><ul><li>2008: Received Most Innovative Product Award for the Application of SIP Trunking </li></ul><ul><li>Telephony magazine </li></ul><ul><li>2008: Ranked #66 of Top 125 International Training Organizations Training magazine </li></ul>
    9. 9. Corporate Values <ul><li>Caring Culture </li></ul><ul><li>Open Communications </li></ul><ul><li>Unmatched Service </li></ul><ul><li>Personalized Solutions </li></ul>
    10. 10. Caring Culture
    11. 11. Community Connections <ul><li>PAETEC strives to live up to our </li></ul><ul><li>Corporate Value: Caring Culture </li></ul><ul><li>PAETEC offers select non-profit organizations up to 50% savings in telecommunications services through our Community Advantage program </li></ul><ul><li>All PAETEC senior officers serve on the board of a local charity, including: </li></ul><ul><ul><li>American Heart Association </li></ul></ul><ul><ul><li>American Red Cross </li></ul></ul><ul><ul><li>Habitat for Humanity </li></ul></ul><ul><ul><li>Make-A-Wish Foundation </li></ul></ul><ul><ul><li>United Way </li></ul></ul><ul><li>The majority of our employees are active board members or volunteers in more than 300 charities nationwide </li></ul>
    12. 12. Open Communication Customer Advisory Board Meeting
    13. 13. We Listen to Our Customers <ul><li>Discuss business challenges </li></ul><ul><li>Build the foundation for PAETEC’s product and service investments through customer feedback </li></ul><ul><li>Access PAETEC senior executives </li></ul><ul><li>Network with peers </li></ul>Customer Advisory Board Program Regional forums with over 950 active members for knowledge sharing and relationship building between PAETEC and our customers “ I have been a CAB member for the past three years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.” Joanne Zanetti LEGO Systems, Inc.
    14. 14. Unmatched Service
    15. 15. Industry-Leading Customer Satisfaction <ul><li>PAETEC adopted the NPS methodology to measure the satisfaction of our customer base </li></ul><ul><li>Our December 2009 NPS increased from the adjusted Q2’09 NPS of 17.2 </li></ul>Non-PAETEC company (consumer) data was gathered from the “Satmetrix 2009 Net Promoter Industry Report: Telecommunications – Local & Long Distance” PAETEC data was gathered from Sparks Research 0 PAETEC 18.8 -15 AT&T Telecom NPS Benchmarks -18 Verizon -34 Qwest
    16. 16. Unmatched Customer Care <ul><li>70 dedicated Customer Care representatives </li></ul><ul><li>225 highly trained Service and NOC technicians </li></ul><ul><li>PAETEC strives to answer incoming calls by a live person in 20 seconds or less </li></ul>Network Operations Center – Charlotte, NC Network Operations Center – Rochester, NY Network Operations Center – Cedar Rapids, IA
    17. 17. Personalized Solutions
    18. 18. Industry Focus Commonwealth of Massachusetts Miami Dade County State of New York State of South Carolina Government Bank of America Citigroup HSBC Bank Wachovia Securities Financial Services American Breast Cancer Foundation Dartmouth Hitchcock Medical Center Lifespan MedStar Health Healthcare Hyatt Starwood Hotels & Resorts Tempus Resorts The Palms South Beach Hotel Hospitality Boston University Cornell University Georgetown University Stanford University Higher Education
    19. 19. Product Matrix Core Products Value-Added Services Data Equipment Applications Data Center Voice <ul><li>Data </li></ul><ul><li>MPLS VPN </li></ul><ul><li>Managed Router Support </li></ul><ul><li>Dedicated Internet Access </li></ul><ul><li>Transport/Access </li></ul><ul><li>Ethernet Local Loop </li></ul><ul><li>Private Line </li></ul><ul><li>Fixed Wireless </li></ul><ul><li>Security </li></ul><ul><li>Hosted E-mail Security </li></ul><ul><li>Hosted Web Security </li></ul><ul><li>Network Firewall </li></ul><ul><li>Intrusion Detection & Prevention System (IDPS) </li></ul><ul><li>Managed CPE Firewall </li></ul><ul><li>CPE </li></ul><ul><li>IP Phone Systems </li></ul><ul><li>Routers </li></ul><ul><li>Integrated Access Devices </li></ul><ul><li>Media Gateways </li></ul><ul><li>Consulting </li></ul><ul><li>Network Engineering Consultation </li></ul><ul><li>Hardware Maintenance Support </li></ul><ul><li>Financing </li></ul><ul><li>Equipment for Services </li></ul><ul><li>Equipment Rental </li></ul><ul><li>Software for Services </li></ul><ul><li>Voice </li></ul><ul><li>Local </li></ul><ul><li>Long Distance </li></ul><ul><li>Toll-Free </li></ul><ul><li>Enhanced Toll-Free </li></ul><ul><li>Advantage Business Lines </li></ul><ul><li>Direct Trunk Overflow (DTO) </li></ul><ul><li>Managed Fraud Protection </li></ul><ul><li>VoIP </li></ul><ul><li>Dynamic IP </li></ul><ul><li>Hosted IP Telephony </li></ul><ul><li>IP Simple </li></ul><ul><li>Conferencing </li></ul><ul><li>Audio Conferencing </li></ul><ul><li>Web Conferencing </li></ul><ul><li>Consulting </li></ul><ul><li>Network Diversity Engineering </li></ul><ul><li>Toll-Free Routing Consultation </li></ul><ul><li>Colocation Services </li></ul><ul><li>Data Backup & Recovery </li></ul><ul><li>Dedicated Hosted Server </li></ul><ul><li>Shared Web Hosting </li></ul><ul><li>PINNACLE Enterprise </li></ul><ul><li>PINNACLE Online </li></ul><ul><li>Hosted Broadcast Notification </li></ul>
    20. 20. PAETEC Solutions Core Products Value-Added Services Data Equipment Applications Data Center Voice Communications <ul><li>All Data </li></ul><ul><li>All Equipment </li></ul><ul><li>All Voice </li></ul>Security <ul><li>MPLS VPN </li></ul><ul><li>Hosted E-mail Security </li></ul><ul><li>Hosted Web Security </li></ul><ul><li>Network Firewall </li></ul><ul><li>Intrusion Detection & Prevention System (IDPS) </li></ul><ul><li>Managed CPE Firewall </li></ul><ul><li>Network Engineering Consultation </li></ul><ul><li>Managed Fraud Protection </li></ul>Managed Services <ul><li>Managed Router Support </li></ul><ul><li>Managed CPE Firewall </li></ul><ul><li>Network Firewall </li></ul><ul><li>Intrusion Detection & Prevention System (IDPS) </li></ul><ul><li>Colocation Services </li></ul><ul><li>Data Backup & Recovery </li></ul><ul><li>Dedicated Hosted Server </li></ul><ul><li>Shared Web Hosting </li></ul><ul><li>Hosted IP Telephony </li></ul><ul><li>Managed Fraud Protection </li></ul>Financing <ul><li>Equipment for Services </li></ul><ul><li>Equipment Rental </li></ul><ul><li>Software for Services </li></ul>Business Continuity <ul><li>MPLS VPN </li></ul><ul><li>Fixed Wireless </li></ul><ul><li>Private Line </li></ul><ul><li>Network Engineering Consultation </li></ul><ul><li>Hardware Maintenance Support </li></ul><ul><li>IP Phone Systems </li></ul><ul><li>Colocation Services </li></ul><ul><li>Data Backup & Recovery </li></ul><ul><li>Dedicated Hosted Server </li></ul><ul><li>Dynamic IP </li></ul><ul><li>IP Simple </li></ul><ul><li>Direct Trunk Overflow </li></ul><ul><li>Network Diversity Engineering </li></ul><ul><li>Toll-Free Routing Consultation </li></ul><ul><li>Enhanced Toll-Free </li></ul><ul><li>Hosted Broadcast Notification </li></ul>Business Intelligence <ul><li>Managed Fraud Protection </li></ul><ul><li>Hosted Broadcast Notification </li></ul><ul><li>PINNACLE Enterprise </li></ul><ul><li>PINNACLE Online </li></ul><ul><li>All Data Center </li></ul><ul><li>PINNACLE Enterprise </li></ul><ul><li>PINNACLE Online </li></ul><ul><li>All Applications </li></ul>Solutions
    21. 21. The PAETEC Difference <ul><li>National network presence </li></ul><ul><li>Broad product portfolio </li></ul><ul><li>Personalized solutions </li></ul><ul><li>Trusted business partner </li></ul><ul><li>Unmatched customer service </li></ul>

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