The document summarizes research from a study on the SMB VoIP market. Key findings include: SMBs are unsure where to learn about and purchase VoIP solutions; no single provider dominates; measured SMB VoIP adoption has declined; interest in fixed-mobile convergence is higher than expected; and total cost of ownership models show hosted VoIP can cost around $45 per employee per month for a 75-employee company. The research included surveys, interviews and competitive analysis of VoIP providers.

1. Selling VoIP to SMBs Latest Market Research VON.x San Jose 2008

8. How Familiar are you with VoIP? Awareness Moves from Low to Medium

9. How Interested are you in VoIP? Interest Increases

10. When you think of the term VoIP, with which phrase do you most identify?

11. How would you expect a VoIP system to compare to your current system? < 100 Employees

13. Whom do you think of as a business VoIP provider?

14. How important is each of the following in deciding to change to a new phone system? (< 100 employees)

16. Measured VoIP Adoption over Time

17. From whom did you purchase your VoIP system?

18. How important were each of the following in your decision to switch? (< 100)

19. Since installing your VoIP system, what new features are most important to your company? (< 100)

20. How does your VoIP service compare to your old service? (< 100)

21. Would you recommend VoIP service to your business peers? Not Recommend Recommend Highly Recommend

24. FMC Interest

26. Competitive Product Set Vendor Product ADTRAN NetVanta – Premises AT&T Voice DNA – Hosted AT&T Nortel BCM – Premises AT&T TDM Centrex AT&T IP Flex Reach - Trunking Bandwidth.com Business VoIP – Hosted Cbeyond BeyondVoice – Trunking Covad ClearEdge Pro - Hosted Cox TDM Business Voice EMBARQ Nortel BCM – Premises EMBARQ TDM Centrex

27. Competitive Product Set Vendor Product Optimum Lightpath TDM Internet and Voice Paetec Dynamic IP – Trunking Qwest OneFlex – Hosted Sprint IP VC – Hosted TWC TDM Business Voice Verizon Omni PCX – Premises Verizon HIPC – Hosted Verizon TDM Centrex Verizon TDM PRI XO IP Office – Premises XO XOptions – Trunking

28. Total Cost of Ownership + +

29. TCO – AT&T Voice DNA – 75 Employees TCO = $152,316 or ~ $45 per employee per month What does the customer need to pay up front? Phones - $11,804 H/W - $13,591 Install - $6,762 Total - $32,157 What does the customer pay each month for voice and data? 2 T-1s - $854 Service - $2,434 Auto Att - $50 Total - $3,338 X 36 m =$120,159 What does the customer pay each year? None

30. TCO/Employee/Month – 75 Stations Monthly Cost for Voice & Data per Employee $ 20 $ 40 $ 60 $ 80 $ 100 $ 120 $ 140 Feature Richness Low High Premises Based VoIP $43-80 Trunking $14-20 Range of Reported Spending $20-100

31. TCO/Employee/Month – 75 Employees

33. For more information: Mick Ahearn, VP Business Development [email_address] +1-617-670-4315