This document proposes a new service model called "IP in a Box" to provide converged communication and other managed services to small and medium businesses (SMBs) through a unified platform. The proposed model aims to address current pain points SMBs face in configuring and managing multiple communication services from different vendors by offering an easy to use "one stop shop". Key elements of the proposed IP in a Box model include centralized management and provisioning of IP-based voice, collaboration and other services to SMB offices. It also discusses strategies to partner with value added resellers to market the services to SMB customers.

1. Next Gen IP ServicesG Suresh Kumar

2. Business Concept- 2 -The idea or concept proposed tries to introduce Low cost IP as aService to Small and Medium businesses (SMBs). The conceptalso includes delivering converged communication and other managed services through a unified platform. The ease of configuration of service and novel means of provisioning make the model highly innovative. Product marketing toValue Added Resellers (VARs) is also discussed. The stakeholders involved are new Startup, SMBs, technology vendors, connectivity providers and VARs.ServiceProviderSMBsIP in a BoxRevenue ShareSupport, Updates, CustomizationIP as a ServiceValue Added Reseller

3. Current Scenario in SMB communicationPain Areas: Fixed Line Provider Connectivity Provider Multiple entities are involved to effect enterprise communication. Finger-pointing happens in the event of faults.

4. Heavy investment is required on fixed phone lines. Enterprise collaboration is minimal.SoftphoneProvider IP Phone ProviderIT Backend SMB

5. Current Scenario in SMB communication1. Service Configuration Connectivity ProviderPain Areas: Fixed Line Provider Complicated Deployment and management processes.

6. Numerous calls to be made and forms to be filled for setting up communication.Cost Factors

7. IT know-how is required.

8. SMBs have to spend a lot to constantly maintain and upgrade their systems to stay competitive.No transparency in billing.SMBSoftphoneProvider IP Phone Provider2. Service ManagementSupportSMB IT StaffSMB3. Updates/customization IT Staff$$$SMBService Providers

9. SMB - Current Scenario- 5 - Connectivity Provider Fixed Line ProviderService ProvidersService ProvidersConnectivityProvidersSoftphoneProviderTechnology VendorsTechnology VendorsTechnology Vendors IP Phone ProviderSMBsTechnology VendorsVoiceTechnology VendorsICT ProvidersNetwork ServicesService ProvidersBackup servicesSecuritySMB IT StaffIT ServicesSMBs in current scenario deal with multiple partners and vendors for their voice, data , connectivity, IT needs etc, complicating the deployment and management of various services required.

10. Pain Areas/OpportunitiesSMB market segment is high-volume, low marginPrefer to deal with a single partner / POC for ICT issues and optimize procurement and supplier management costsSMBs require solutions Easy-to-useAvailable off-the-shelf (with little customization)No specific skills to operate (fast learning curve)Prefer a specialized partner that can be the “extended” IT personnelBusiness NeedsBusiness efficiency driven by faster and better interactions with customers and partners and consequent improved customer relationship Business flexibility driven by sharing business information in real-time, remote access, mobile workers.Productivity increase driven by automation, focus on core-business, self-service- 6 -

11. Market SpeakForrester Research forecasts that SMBs will drive 36% of Europe’s managed service revenues – jointly spending almost €8 billion in 2008.Worldwide Revenue for Business Gateway and Office-in-a-box solutions would be reaching €1.7 Billion – Forrester Research.Analysis strategy consulting predicts that SMB business needs, fostered by broadband, will allow telecom operators and ISPs in major European countries to add €25,000 per year in 2008 to ARPU levels for sites of over 20 employees.Analysis Strategy predicts that the revenue from Value Added Services through broadband will grow from €1.1 billion in 2003 to €10.3 billion in 2008.The global SMB segment for PBX (IP and TDM) is set to reach US $6.7 billion in 2007 - Source AMI Partners Inc.The number of SMBs in China is expected to grow to 12 million in 2008 and represent 10.5% of GDP (Source: AMI Partners Inc. and State Statistics Bureau)

12. Competitive Analysis: Current Competitor SetBT

13. Strong presence in the SMB market

14. Comprehensive SMB solutions for communication

15. Offers solutions even when on the move and abroad

16. “Communications Complete”, a unified messaging solution for SMBs launched in collaboration with Cisco.

17. Cisco

18. Expertise in networking hardware

19. Cisco Call Manager Express is a communication solution for SMBs

20. Recently launched Cisco Smart Business Communication System for APAC market.

21. Microsoft

22. Expertise in network software