PAETEC In Review

Personalizing Solutions for a Changing World

PAETEC IN REVIEW

Personalizing Solutions for
a Changing World

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2 PAETEC IN REVIEW 3

Message The modern economy can move from boom to
bust and back again with little warning, while
advancing technology can change the competitive

From Our landscape almost overnight.

The only constant for anyone running a business range of capabilities. In other words, we’ve

CEO:
or institution seems to be perpetual disruptions worked hard to create a unique portfolio that
and ever-more complex challenges. allows us to be your trusted partner and expert
advisor. You’ll find more detail on our approach
In this environment, data, voice, and Internet to partnership throughout this publication, but
communications play such a central role I’d like to briefly highlight what I see as three
for any business that your decision about a of PAETEC’s most significant differentiating
communications provider is critical. Great characteristics: personalized solutions delivered
communications providers serve as effective nationwide, unmatched customer service, and
business partners, and few partners will be a solid financial position.
more essential to your organization’s near-
term survival and long-term success than the
company you entrust with your mission-critical Personalized Solutions,
communications. Delivered Nationwide

For more than 10 years, PAETEC has pursued We work nationwide to deliver reliable and
organic growth and strategic acquisitions that go scalable solutions for your data, voice, and
beyond the ordinary to create an extraordinary Internet communications across 83 of the top


MESSAGE FROM OUR CEO

To ensure that we stay attuned to our In 2008, our adjusted EBITDA* exceeded
customers’ experience, we have formal $237.0 million, and we ended the year with
Customer Advisory Boards in 50 cities with $164.5 million in cash and equivalents.
over 1,000 members. We use this customer
feedback to improve operations and refine Ultimately, what most distinctly differentiates
our product roadmap. PAETEC is our people. Our mission is to be
the most customer and employee-oriented
Internally, we place a tremendous emphasis communications provider. We go to great
on developing the PAETEC workforce so lengths to solicit your opinions, and our
our people have the expertise to give you employees go the extra mile to respond.
Arunas A. Chesonis unmatched customer service. PCU (PAETEC
Chairman and CEO (in his office in front of employee photo wall) Communications University) includes extensive The result is that our 3,600-plus employees
courses on systems, product solutions, sales serve as customer ambassadors, delivering
skills, and more. In 2009, for a third consecutive unmatched service and personalized solutions
year, our Training Department was named throughout the country. Our people treat all
among the top 125 international training of our 47,000 business-class customers as if
100 MSAs (Metropolitan Statistical Areas) in I am also very excited about the launch of organizations, according to Training magazine. each one was our only customer. In the end,
the nation. Since our McLeodUSA acquisition fixed wireless services nationwide. PAETEC that’s what PAETEC is all about – personalized
in early 2008, we’ve organically expanded has acquired a company with 10 years of Also in 2009, our NOC (Network Operations solutions, designed for you.
into Oregon, Maine, and Northern California experience using fixed wireless to supplement Center) was named the Back-Office Customer
including San Francisco, Oakland, San Jose, wireline local network access or even to bypass Service Department of the Year in the annual Sincerely,
and Sacramento. the incumbent carrier’s local network entirely. Stevie Awards for Sales and Customer Service.
It’s exciting to increase the depth of our one-
We have combined elements of PAETEC’s stop services by offering this capability at the
broad portfolio to create holistic solutions to national level. Solid Financial Position Arunas A. Chesonis
the critical challenges of primary connectivity, Chairman and CEO
business continuity/disaster recovery, and In a volatile economy, it is important to know
security. In addition, we can manage key Unmatched Customer Service that PAETEC has a solid financial position.
services end-to-end, allowing you to devote Our revenue in 2008 exceeded $1.5 billion in
more time to your business. PAETEC operates nationally, but we think just our 10 th year of operation, and we have
and serve locally. One of our first major actions been free cash flow positive* for the 24th
PAETEC also delivers business-intelligence after achieving national status in 2008 was to consecutive quarter.
capabilities that let you accurately understand create a regionalized leadership structure. We
and more effectively manage the lifecycle of have placed accountability for sales, order
complex IT resources. And, we have a financing fulfillment, and customer service in the hands *Adjusted EBITDA (earnings before Interest, Taxes, Depreciation and Amortization) and free cash flow (adjusted EBITDA less capital
expenditures), are non-GAAP measures that are defined and reconciled to GAAP in the “Selected Financial Data” section herein.
solution that can subsidize and even eliminate of four regional presidents who are committed
your capital cost for equipment and software as to maintaining a positive local touch.
part of a broader network services contract.


Personalized PAETEC’s philosophy of personalized solutions
for business communications is at the heart of
everything we do. Our people take great pride in

Solutions delivering the most appropriate solution built around
your specific needs. It begins with core offerings
that span data, voice, and Internet requirements.


Solutions Built for Your Needs

Having consulted with our customers for many years, we’ve learned that businesses need
more than a catalog of products and services. You need solutions. PAETEC has responded by
compiling key elements of our portfolio into solutions that address specific categories of needs.

Communications Solutions Managed Services Solutions
deliver reliable and scalable products for data, help you manage budgetary constraints and
voice and Internet services. PAETEC tailors limited IT resources by essentially outsourcing
its range of primary services to enhance your your communications needs. Wouldn’t it be
internal and external communications. nice to let somebody else worry about the
network so you can focus on your operations?
That’s exactly what PAETEC’s Managed Services
Solutions deliver.

Business Continuity Solutions
utilize PAETEC’s effective tools for disaster
preparedness, network redundancy, and
application recovery. These tools help Financing Solutions
you recover from the loss or corruption create an opportunity for you to acquire vital
of data, and help you keep operating business equipment or software at little or
during and after a disaster. no capital expense. PAETEC’s EFS (Equipment
for Services) program includes an innovative
profit-sharing mechanism to reduce and
subsidize capital expenses as part of an
overall network services contract.
Security Solutions
protect critical corporate files and PAETEC can also make arrangements to rent
applications, mitigate risks, and support equipment to your business. We are responsible
regulatory compliance. for equipment maintenance, monitoring, and
support for the life of the contract. When the
term expires, you can either continue to rent
the equipment, or return it and upgrade to Lori Ewoldt, Michael Mills, Kaleb Harrison
a more advanced communications system NOC, Cedar Rapids, IA
without facing the loss of embedded costs for
owned equipment.


Voice Communications.
Years of Experience + Innovative Thinking

Data Services data and networks while freeing up your
IT resources to focus on your business.
Can you imagine a day without data Are your IT resources strained? PAETEC’s
communications? Data networking is essential two geographically diverse, Class-A Customer
for every business model and every type of Data Centers can host your applications and
enterprise. PAETEC’s robust portfolio includes provide flexible and secure access to your data,
a wide variety of data solutions and applications, freeing you from the hassle of managing your
all designed with the strictest security and own equipment.
performance requirements in mind.
If reducing expenses while increasing
Do you have multiple locations? MPLS VPN competitiveness is what you’re after, then
(Multi-Protocol Label Switching Virtual Private our Dynamic IP (Internet Protocol) with SIP
Network) can dramatically boost productivity (Session Initiation Protocol) Trunking solution
while helping you manage your bandwidth set can give your business the edge you need.
more cost-effectively. PAETEC’s Dynamic IP services converge data
and voice communications onto a single circuit,
In addition, Ethernet Local Loop is a flexible, which reduces expenses while delivering
high-bandwidth access solution that can IP-based flexibility and capabilities.
support both voice and data communications.
This proven, cost-effective technology is an
increasingly popular access solution and can Voice Communications
support Dedicated Internet, MPLS VPN, and
VoIP (Voice over Internet Protocol). PAETEC In a world of Twitter and texts, there is often
offers bandwidth over Ethernet Local Loop no substitute for the sound of a human voice.
that ranges from 10 Mbps to 1,000 Mbps. PAETEC’s voice services include local, long
distance, and toll-free services. Whether you
Are you worried about malicious hackers? choose traditional voice or next-generation
Managed CPE (Customer Premises VoIP services, we deliver world-class quality
Equipment) Firewall with UTM (Unified built upon our own vast industry expertise and
Threat Management) protects corporate the leading technology of our partners.

Marc Cross
Central Office, Cedar Rapids, IA


Many businesses will find PAETEC’s Advanced Of course, if you would rather speak with fiber network to extend our point-of-presence to Our next-generation facilities are only part
Toll-Free services particularly useful. This someone at PAETEC, give us a call. We answer another location that does have a clear line to the of the story though. Combined with our full
service offers 32 distinct features that include customer calls with a live person, typically customer’s building. PAETEC wireless solutions suite of managed professional services,
Advanced Routing (including time of day within 20 seconds. are also ideal for campus settings that require including advanced monitoring of device
and geographic routing), hosted Integrated high-bandwidth point-to-point connections and application performance, data backup
Voice Response functionality, and Online between buildings in a private network. and recovery services, and comprehensive
management and report tools to boost your Fixed Wireless 24 x 7 x 365 monitoring, you can rest easy
marketing efforts. This not only helps you knowing that dedicated PAETEC personal
efficiently manage workflows, it also supports In 2008, PAETEC acquired MPX, a New York- Data Center Services are always monitoring your data.
business continuity in the event of a disaster. based company with 10 years of experience
in licensed fixed wireless system engineering PAETEC Data Centers are home to many
PAETEC’s commitment to personalization and field integrations. In 2009, we are taking of the largest Web properties and business
doesn’t end with core services. Our portfolio these capabilities nationwide. collocation facilities in the nation. Built for
delivers powerful options that include our the most demanding of customers, our data
PAETEC Online customer portal, Fixed We use carrier-grade microwave equipment centers provide a secure environment to
Wireless, telecom management software, and consultative engineering to build reliable develop your business continuity and hosting
equipment, and consulting. “last-mile” access loops between your facility needs, eliminating the need to build and
and a local PAETEC point-of-presence. We can maintain your own private data center.
provision your wireless local loops at speeds
PAETEC Online ranging from DS-3 to Gigabit Ethernet, which Robust and dedicated Internet access on our
will support the full range of voice and IP IP backbone, a combination of both public and
To give you greater control of your services in our portfolio. private Internet peering arrangement, and SAS
communications services, PAETEC Online 70 Type II certification means you never have
offers a new world of proactive partnership. The benefits are many. Fixed Wireless provides to worry about your business-critical data.
Think of it as an online customer service complete physical infrastructure diversity to
representative that securely provides better ensure your ability to operate during When it’s time to take your business to the next
information, account management, and and after a catastrophe. You could even totally level, PAETEC data centers provide the flexible
problem resolution from any Internet- bypass the local wired network if you choose. solutions to let you grow your business. PAETEC
connected computer. This free capability Customers have also benefited from leveraging offers a variety of cabinet rack space solutions
allows you to directly add and change features, PAETEC’s fiber network in tandem with Fixed or custom cages built to your specifications, all
review bills and payment history, and even Wireless facilities. In cases where customer housed within our secured facilities with best-
view the status of your trouble tickets. In facilities were in obscured locations, without in-class fire suppression, power coverage, and
addition, you can use PAETEC Online to analyze a direct line-of-site to the wireless equipment, redundant network connectivity.
your service usage patterns, spot trends before PAETEC has been able to use our extensive
they become problems, and plan for growth.


CASE STUDY: NEW YORK UNIVERSITY LANGONE MEDICAL CENTER

Fixed Wireless Case Study:
NEW YORK UNIVERSITY · LANGONE MEDICAL CENTER

New York University Langone Medical Center Building a private fiber network would involve As NYULMC has grown and its communications
(NYULMC) is among the world’s premier significant right-of-way challenges in addition needs have evolved, the center has repeatedly
centers for healthcare, biomedical research, to being very costly and technically complex. chosen PAETEC Fixed Wireless to deliver
and medical education. And with 10,000 people The best alternative, Bridgeman concluded, a personalized solution:
on staff, the institution is one of New York was a licensed fixed wireless system that
City’s largest employers. would deliver high reliability without the ƒ PAETEC connected the Hospital for
risk of interference from neighboring Joint Diseases with a remote facility
As the center steadily expanded in size and wireless networks. on 2nd Avenue. This link provided
scope, Director of IT Charles Bridgeman faced 155 Mbps connectivity over a Gigabit
a tremendous recurring challenge to upgrade He turned to PAETEC for a fixed wireless Ethernet interface.
the center’s multi-site network infrastructure. system that delivered 100 Mbps Ethernet for
Crunch time came when the center began data, with incremental T-1 circuits for voice to ƒ The center installed a Gigabit Ethernet
moving functions into leased facilities remote a remote facility on Park Avenue. The PAETEC link between the Rusk Institute on First
from its main “Superblock” Manhattan engineering team worked with Bridgeman Avenue and offices on 34th Street.
campus. Bridgeman recognized the need throughout the design and implementation
for more data capacity, and he wanted the stages. The PAETEC team determined the ƒ PAETEC extended the Rusk Institute’s
flexibility to incorporate voice services. physical installation requirements at each LAN (Local Area Network) to a medical
building, and also handled all aspects of practice office across the street.
FCC licensing on NYULMC’s behalf. After
installation, PAETEC configured the system ƒ PAETEC deployed a Gigabit Ethernet link
interfaces to operate the link within the between the Rusk Institute and the Day
center’s broader network. Surgery and Musculoskeletal Center
on East 38 th Street.
“As soon as we put the microwave link
into service, our staff noticed a significant ƒ Another Gigabit link went live between
‘quickening’ of the network,” Bridgeman said. Skirball Institute and 32nd street.
“We felt like we had our own private fiber line,
but without any of the associated headaches.” Incorporating fixed wireless transport has
improved communications service for end
The center also contracted with PAETEC for users, reduced operating costs for the
comprehensive maintenance, emergency institution, and enhanced the delivery of quality
response, and remote monitoring services care to patients. “The research, clinical, and
where technicians proactively communicate administrative groups we support are happy
with Bridgeman’s team in the event of with the results they see,” Bridgeman said.
any service issue. “It’s a winning scenario all around.”
Charles Bridgeman
Director of IT, NYU Langone Medical Center


PERSONALIZED SOLUTIONS

Network Design,
Deployment & Equipment

PINNACLE Software Allworx 9224, a premier high-fidelity wideband
IP phone, as well as Allworx’s next-generation of
The PINNACLE Communications Management communications system software.
Suite established new standards for usability,
flexibility, and integration opportunities in 2008 Allworx systems support both traditional and
with the release of PINNACLE Communications VoIP telephone services, providing a “future-
Management Suite V6. proof” solution that allows customers to
manage their transition to VoIP at their own
PINNACLE simplifies and automates IT pace. With Allworx, you receive all the business
lifecycle management by integrating productivity enhancements, cost savings, and
Telecom Expense Management, Service flexibility of VoIP with no risk of disruption to
Management, Operations Management, your business.
and Regulatory Compliance into a single,
platform-independent framework.
Network Design, Deployment
The more complex your network, the more & Equipment
opportunities you will have to save money and
increase efficiency. PINNACLE V6 helps our PAETEC also is a certified partner with Cisco,
customers capitalize on those opportunities by Nortel, Avaya, and ADTRAN. Through these
incorporating interactive user-friendly business established relationships, we offer business
intelligence analytics, context-sensitive multi- telephone systems, voicemail, voice and data
media training materials, and a fully customizable cabling, IP applications and services, routers,
user interface that will allow your organization to and turnkey cabling solutions to businesses
do things that were never before possible. of all sizes.

Our dedicated technical and engineering
Allworx personnel are ready to help you through every
step of creating a new network or upgrading
Winning Internet Telephony’s Product of the Year your current facilities. Our support includes
for the 3rd consecutive year was just the start project management, staging, configuration,
for Allworx, which PAETEC acquired in 2007 as physical installation, and end-to-end testing.
a wholly owned subsidiary. The award-winning After installation, we can partner with you to
communications platform that PAETEC acquired monitor and manage your network.
would go on to win Product of the Year from
Communications Solutions, receive recognition Quite simply, PAETEC is your one-stop shop
and accolades from industry heavyweights such for everything from sales and service to Timothy Brotzman
as Texas Instruments, and bring to market the installation, maintenance, and management. Senior Manager, Database Applications, Rochester, NY


“IP” refers to an efficient and flexible technology All signature and patch updates are delivered
for transporting data, voice, and video. automatically to ensure that you always have
PAETEC’s IP services are carried on our private the most recent network protection.
network, not the public Internet. This adds an
important level of security compared with many Both services are designed to protect
IP services for business on the market. But business-class customers from malicious
private network facilities are just the beginning Internet attacks and network-security
of our approach to ensuring your security. anomalies. And multi-location customers
can deploy Managed CPE Firewall and
PAETEC has created UTM services that deliver Hosted Firewall together to create layered,
comprehensive Internet security solutions. “defense in depth” network security for
These include Hosted Firewall, as well as dispersed locations.
Managed CPE Firewall.
Customers have told us that Internet security
Hosted Firewall is ideal for multi-site is extremely complex and time-consuming.
John Chapman customers. It keeps your corporate assets In response, we developed the hosted and
Senior Vice President, Marketing and customer information secure, which is managed firewall solutions, which allow you
essential given the increasingly stringent to devote your IT resources to building your
regulatory requirements for data security. business while PAETEC protects your vital
PAETEC’s Hosted Firewall solution resides data and assets.
within our network rather than at your location.
IP services have become mainstream, but not all IP service Since we “host” your firewall, you are free to
devote more resources and time to your core
providers are created equally. For starters, it’s important to know business operations.

that using IP technology does not necessarily mean you have to For single-site customers, Managed CPE
Firewall delivers robust security while
entrust your business to the public Internet. In fact, relying on eliminating the need for you to purchase and
maintain the multiple appliances, servers, and
the Internet can expose your business to serious and software needed for an in-house solution.

unnecessary risks.


ALLWORX EQUIPMENT, PAETEC MPLS CASE STUDY: CARLTON SCALE

Allworx None of the company’s 85 employees had
voicemail at work. There was no option for
offices to call each other through extension
dialing. And requesting maintenance and
The installation also provides “soft phone”
service, which lets traveling employees use
the Allworx system to make calls through
a laptop computer.

Equipment
repair was a challenge because it involved
multiple service technicians from diverse “The Allworx system is very user-friendly,
equipment providers. In 2007, Carlton Scale’s and it is a really wonderful system,” said
new president decided it was time for a unified Carlton Scale’s President, Chris Trevey.
communications system. “I suggest that anyone go and try it. The
system has so much functionality, and
The company sought help from Hayes & it is so easy to set up conference calls.”
PAETEC MPLS CASE STUDY: Associates, a communications equipment
and network reseller based in a nearby The new communications system was just the
CARLTON SCALE city. Fortunately, the head of Hayes had beginning of benefits for Carlton Scale. The
recently discovered and installed an Allworx company also decided to move its managed
Carlton Scale distributes and services industrial communications system and allowed Carlton communications services from AT&T to
scales from its headquarters in Greensboro, NC, Scale to connect to his Allworx system for PAETEC’s MPLS network. This lets employees
and seven branch locations in North Carolina, a test drive. securely access company data from virtually
Tennessee, Virginia, and Maryland. Until recently, anywhere. It also prioritizes voice traffic to
each office of the 60-plus year old company had It didn’t take long for Carlton Scale to decide better ensure that customers can stay in
a different phone system. that Allworx was an excellent and cost- touch with the company, and that company
effective choice. Today, the company uses the employees can stay in contact with each other.
flagship Allworx 24x system at its corporate
headquarters and has Allworx 6x systems at Allworx systems can be personalized to meet
all branch locations. In addition to this core the specific needs of any business. And the
equipment, Carlton Scale purchased 86 systems offer built-in flexibility and scalability
Allworx office phones. to accommodate new communications
requirements as a business grows.
Productivity has increased because every
employee now has voicemail as well as three-
digit, desktop-to-desktop dialing to all sites.
Among many other features, staff members
can forward incoming calls to their cell phones,
which means customers can be served more
quickly and efficiently.
Chris Trevey
President, Carlton Scale


Our Network

Seattle
WORLD-REACH
WORLD-REACH Canada
Asia
Portland

Albany Boston
Providence
Minneapolis / St. Paul Rochester Syracuse Worcester
Springfield
Boise Poughkeepsie
Buffalo Bridgeport / Hartford / New Haven
Scranton
Milwaukee Detroit Bethlehem
Madison
Cleveland New York
Conshohocken WORLD-REACH
Harrisburg Philadelphia Europe
Cedar Rapids Chicago
Salt Lake City Pittsburgh
Des Moines Columbus Baltimore WORLD-REACH
Sacramento Omaha
Indianapolis Dayton
Washington, DC Africa
Cincinnati
San Francisco Denver
San Jose Richmond
Kansas City St. Louis Louisville Norfolk
Colorado Springs

Greensboro Raleigh
Knoxville
Nashville
Chattanooga Charlotte
San Bernardino Greenville
Oxnard Memphis
Anaheim
Los Angeles Albuquerque Columbia

Atlanta Augusta Charleston
Phoenix Birmingham
San Diego
WORLD-REACH
Paci c Rim (Oceana) Tucson Dallas / Ft. Worth
Jackson

Mobile Jacksonville

Daytona Beach
Baton Rouge
WORLD-REACH Austin

Central America San Antonio
New Orleans Orlando

Houston Lakeland Palm Bay
Tampa
WORLD-REACH West Palm Beach
South America Sarasota
Ft. Myers

IP NETWORK Miami

FIBER NETWORK

LOCAL SERVICE AREA

PAETEC POINT OF PRESENCE

LONG DISTANCE SERVICE AVAILABLE NATIONWIDE

Our Products

DATA VOICE Consulting Financing
Data Voice ƒ Network Diversity ƒ Equipment for Services
ƒ MPLS VPN ƒ Local Engineering ƒ Equipment Rental
ƒ Managed Router ƒ Long Distance ƒ Toll-Free Routing ƒ Software for Services
Support ƒ Toll-Free Consultation
ƒ Dedicated Internet ƒ Advanced Toll-Free
Access ƒ Advantage Business EQUIPMENT APPLICATIONS
Lines CPE ƒ PINNACLE
Transport/Access ƒ Direct Trunk Overflow ƒ IP Phone Systems Communications
ƒ Ethernet Local Loop ƒ Managed Fraud ƒ Routers Management Suite
ƒ Private Line Protection ƒ Integrated Access ƒ Hosted Broadcast
ƒ Fixed Wireless Devices Notification
VoIP ƒ Media Gateways
Security ƒ Dynamic IP DATA CENTER
ƒ Hosted E-mail Security ƒ Hosted IP Telephony Consulting ƒ Colocation Services
ƒ Hosted Web Security ƒ Network Engineering ƒ Data Backup &
ƒ Hosted Firewall Conferencing Consultation Recovery
ƒ Managed CPE Firewall ƒ Audio Conferencing ƒ Hardware Maintenance ƒ Dedicated Hosted
ƒ Web Conferencing Support Server
Paul Bunting, Rachel Greene
ƒ Shared Web Hosting
Customer Care, Cedar Rapids, IA


Our PAETEC’s national network is the result of
aggressive organic expansion combined
with strategic acquisitions made over more

Network than a decade.

Today, our network includes 88 circuit-based
switches, 32 IP-based soft switches, 107
The compelling part of this story, though, is
how we’ve assembled and configured these
backbone routers, and 19,000 route miles of network elements to support personalized
fiber. These network elements are monitored solutions in all of our markets across the
by three geographically diverse NOCs. United States. In October of 2008 – just seven
months after the McLeodUSA acquisition
added 26 major markets in 20 states – PAETEC
announced the successful unification of
previously separate network facilities to
create an integrated data network across the
company’s national footprint.

This milestone established the platform we
used to deploy an integrated product portfolio
available to new customers nationwide. We
also used our own internal resources to develop
a single view for Network Management across
our facilities to enhance our own monitoring
and trouble-resolution capabilities.

As part of our commitment to building and
Customer Care Call Center developing world-class, next-generation
Charlotte, NC communications networks, we have partnered


OUR NETWORK

with leading technology providers including expensive to install, maintain, and operate.
Cisco, GENBAND, Alcatel-Lucent, and Juniper. PAETEC understands how challenging this
We expect these and other key partners to push can be for you. Our proven solutions help
the boundaries of technology and flexibility your business achieve maximum efficiency
and to help us deliver unparalleled reliability, and productivity whether you choose next-
availability, and serviceability. generation capabilities, traditional technologies,
or a mix of both.
Through our relationships with these and other
strategic technology companies, we have
been able to streamline our operations while
helping you simultaneously keep a sharp watch
on expenses and maintaining our quality of
customer service.

Our network is supported and monitored
24 x 7 x 365 in our state-of-the-art NOCs.
Our NOC technicians are certified through
a rigorous program with four levels of
proficiency. This career progression program
means you can rest assured that your business
is getting the attention it deserves from
experts who care about your business.

As technology’s evolution continues, traditional Pete Hagstrom
voice networks have become increasingly NOC, Cedar Rapids, IA

Jason Fava
NOC Technician, Charlotte, NC


SIP Trunking converges data, voice, and Other benefits of choosing PAETEC include:
Internet communications onto a single
high-speed, IP circuit. This creates ƒ VoIP-to-TDM conversion provided within
a powerful, yet flexible foundation for PAETEC’s network.
advanced communications capabilities.
ƒ Expanded free local calling areas.
We offer SIP Trunking nationwide, which
frees multi-site customers from developing ƒ Site-to-site voice and data sharing that
patchwork solutions that involve multiple is securely isolated from the public Internet.
carriers for networking across diverse locations.
In addition, PAETEC delivers SIP Trunking You also have multiple options for certified
features across both modern IP platforms interoperable IP/PBX equipment from numerous
as well as traditional TDM (Time Division world-class vendors including Cisco, Toshiba,
Multiplexing) network technology. You can Allworx, and others. Certifying the interoperability
make the jump to an IP PBX (Private Branch of communications equipment and IP networks
Sanjay Hiranandani Exchange) with a native IP connection, or makes it easier for you to achieve the full benefits
Senior Vice President, Engineering you can choose an Integrated Access Device of advanced communications capabilities.
that can work with your legacy PBXs
or key systems. Telephony magazine has selected PAETEC’s
Dynamic IP with SIP Trunking as the industry’s
We also use compression techniques that can Most Innovative Product in 2008. In judging
Many companies offer IP services, but PAETEC has built our IP significantly increase the number of high-quality PAETEC against telecom and cable companies,
voice circuits within a single T-1 compared with wireless service providers, and a host of niche
capabilities with the express purpose of giving you maximum traditional PRIs (Primary Rate Interfaces). communications companies, Telephony Editor-
in-Chief Carol Wilson said, “The judges were
flexibility. For example, with SIP Trunking from PAETEC, you In addition, our QoS (Quality of Service) impressed not just by this service but also by what
capabilities instantly adjust your bandwidth PAETEC delivers to its customers in support of SIP
can choose the bandwidth that truly meets your requirements, allocation as your business needs change Trunking. In this instance, they are innovating in
dynamically throughout the day. Voice signals the way they deploy SIP Trunking.”
ranging from a T-1 to Gigabit Ethernet. And, we offer numerous receive instant priority over data to ensure
high-quality voice services when you need Another judge, Cindy Whelan of Current Analysis,
features to address security, connectivity, business continuity, them. Yet when no voice traffic is present, said, “Where PAETEC shines against these
all of your available bandwidth can be competitors is in its focus on customer service.”
and other critical business issues. used for data.


INTEGRATION

Integration “Integration” is an important and far-reaching
concept at PAETEC.

We offer integrated voice and data many competitors rely on disparate customer-
communications to cost-effectively increase billing systems, PAETEC’s creation of a single
your organization’s productivity. We partner platform for all customers nationwide should
with you as an integrated provider that can meet increase our internal efficiency, as well as our
diverse needs that include communications external flexibility to serve your evolving needs.
services and equipment; network design,
installation, and management; and software A huge milestone came less than a year after
that allows you to expertly manage the full we acquired McLeodUSA, when we announced
lifecycle of complex IT resources. And, we have an integrated product portfolio available in
incorporated the ability to help you finance all of our markets. PAETEC is now one of the
capital purchases as part of your network few carriers that offers a consistent product
services contract. portfolio nationally, and all new customers
receive a single invoice even if they have sites
Integration also refers to PAETEC’s unusually in multiple regions of the country.
aggressive approach to creating unified national
operations and capabilities from our diverse To enhance the speed and accuracy of
acquisitions and organic growth strategy. This customer service, we created a common
aspect of “integration” is significant, because customer database for former US LEC and
PAETEC essentially tripled our revenue and PAETEC customers. McLeodUSA customers will
geographic reach through the acquisitions of be incorporated into this database as quickly
US LEC in 2007 and McLeodUSA in 2008. as possible. The key value here is that once an
Effective integration processes are how we are account representative updates information
ensuring customers benefit from this dramatic in one system, the change automatically flows
expansion just as much as the company does. through to our other systems including billing.

For example, the last critical step in the As we continue to develop and integrate
integration of US LEC began in the fall of new markets and capabilities, we remain
2008 when we announced plans to unify the focused on putting the right tools into
PAETEC and former US LEC billing systems. the hands of the right people – people
We expect to complete this project in early 2010, who are dedicated to delivering the best
and intend to convert the McLeodUSA billing and most personalized service in the
system within the following 12 months. While communications industry.


The fundamental key to our success is instilling Unmatched Service
PAETEC’s culture throughout our national
operations. And, our culture is based on four PAETEC does not pretend to be perfect.
core values that have guided our people since No company is. But we do pledge to give
the company’s inception: our customers the best service in the
telecommunications industry. In addition to
things we learn from talking with customers,
Caring Culture we also measure ourselves through the
rigorous process of NPS (Net Promoter Score).
PAETEC cares about you and the local We use NPS as a valuable tool to measure our
communities where we both live and work. service against competitors. It’s one more way
We know that current conditions have created that we evaluate our performance with the goal
major challenges for non-profit agencies of ensuring your satisfaction.
and institutions. To help these organizations
maintain the vital community services they
Sharon LaMantia provide, PAETEC is making network services Personalized Solutions
Executive Vice President, Network Operations available to non-profit groups at approximately
half price for two years. Another aspect of We design and deliver solutions tailored to
caring culture is PAETEC’s corporate-wide your specific situation and needs. Then we go
Green Team, which is working diligently to beyond expectations in order to build a long-
reduce our impact on the environment. lasting relationship with your organization.
The common denominator underlying the many facets of For instance, when a PAETEC customer calls
one of our contact centers, we answer with a
“integration” within PAETEC is our people. Before we begin the Open Communication live person, typically within 20 seconds. We do
not force PAETEC customers into an automated
process of integrating systems, product portfolios, or network From Customer Advisory Boards to open-doors answering system, because your call is really
throughout the company, we rely on frank and important to us!
elements and capabilities, our first priority is to integrate our honest communications to help us constantly
improve our ability to serve you. Living up to these values has led our people
people. Our goal is to create a cohesive team that cares just to take extraordinary actions to serve your
business and our communities.
as much about your business as you do.


The Road When you think about your business, what do you
need from your communications solutions provider?
More importantly, what do you want? What will your

Ahead business need next year, and five years after that?

Since our founding in 1998, PAETEC has been
asking customers questions just like these.
recovery, as well as new offerings,
including virtual servers and Software
We then use that information to refine our as a Service (SaaS).
processes and develop our product roadmap.
We will continue to integrate acquired
On PAETEC’s road ahead, we will continue companies to fully deliver the benefits of a
turbo-charging our network services including single, contiguous company. By leveraging
our MPLS VPN, VoIP, Fixed Wireless, data our national network, nationwide reach, and
centers, security, and managed service unified systems, our benchmark customer
offerings. Our unique combination of assets support will become ever better. We expect
are designed to be there for your expanding to continue expanding organically into new
communications needs as your business major markets. Building on our current reach
succeeds and grows. into 83 of the top 100 largest US MSAs, we are
exploring new organic expansions in areas
Additionally, over the next three years we’re such as Las Vegas, Cincinnati, and Tulsa.
expanding our data centers nationally to better
serve your business. These data centers will Over time, we plan to steadily increase our
have “in the cloud” product portfolio which on-net, last-mile connectivity, whether it’s
include web hosting services, data backup and using our fiber network assets or our ability


THE ROAD AHEAD

to deliver fixed wireless local access anywhere And that is ultimately the sweet spot of
in the country, providing more cost-effective PAETEC’s business model. We work hard
options for our customers. to treat customers the way customers want
to be treated.
In 2008, PAETEC began serving businesses
as an independent energy advisor, currently In a world where communications technology is
limited to our markets in upstate New York. constantly changing and competitive pressures
Building on expertise we gained through a are increasingly intense and global, PAETEC
recent acquisition, we help customers find will continue to take the time to understand
innovative and flexible energy services that your business. Our goal is to give customers
include renewable as well as traditional personalized solutions and unmatched
sources of energy. customer service, both today and through
whatever changes the future might bring.
In the years to come, as we continue expanding
our geographic reach and our ability to help
customers succeed, PAETEC fully expects to
become a Fortune 500 company. We believe
this will happen because the market ultimately
will prove that customers want a company
that cares.

Daidre Fanis
Senior Director, Customer Solutions
National Customer Advisory Board Meeting,
Charlotte, NC


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