client presentation executive summary 09 2009

Integrated Telecommunications Strategies and SolutionsStrategies and Solutions

©2009 MetTel. Confidentialwww.mettel.net

®Overview: About MetTel

• Leading Integrated Communications Provider– Founded in 1996 and headquartered in New York City– Verizon’s key wholesale customer– Proven Executive Management teamg– Full service communications company– Customer care centers in Salt Lake City, UT, Providence, RI and New York, NY– State-of-the-art back-office and operating support systems

• National Reach– Over 300,000 access lines– Operational in 48 contiguous states & DC

• Strategic Relationships– Long-term wholesale contracts with:

– Agreements with leading carriers including:


®Overview: MetTel Value

C titi P i i O tiC titi P i i O tiN ti l R hN ti l R h Competitive Pricing OptionsCompetitive Pricing Options

• Price Lock: line pricing is locked for the duration of the contract, regardless of the increases in RBOC rates

National Reach

• Over 300,000 access lines

• 48 contiguous states and DC

St t i t hi / h l l l ti hi ith k

National Reach

• Over 300,000 access lines

• 48 contiguous states and DC

St t i t hi / h l l l ti hi ith k rates

• Variable: fixed percentage discount on variable RBOC line pricing

• Month-to-month: no term commitment; i bl i i

• Strategic partnerships/wholesale relationships with key Tier 1 and Tier 2 Providers

• 100% Coverage in Tier 1 territories

• Strategic partnerships/wholesale relationships with key Tier 1 and Tier 2 Providers

• 100% Coverage in Tier 1 territories

Tier 1: Verizon, AT&T, Qwest, Embarqvariable pricing

e e o , & , Q est, ba qTier 2: Sprint, Level (3), Paetec, Covad

Integrated Communications Solutions

• Centrex/POTS/Trunk/RCF

• PRIs/Other, DS1

I t t T1 / MPLS / DSL

Integrated Communications Solutions

• Centrex/POTS/Trunk/RCF

• PRIs/Other, DS1

I t t T1 / MPLS / DSL

Premier Client Care

• Centralized customer care structure

• Dedicated project management team

Premier Client Care

• Centralized customer care structure

• Dedicated project management team• Internet T1 / MPLS / DSL

• Long Distance

• Managed Solutions

• VoIP

• Internet T1 / MPLS / DSL

• Long Distance

• Managed Solutions

• VoIP

• On-site integration support

• Guaranteed adherence to rollout schedule

• Billing review against contract terms

• On-site integration support


• Billing review against contract terms


• Wireless• Wireless • Online issue reporting and tracking• Online issue reporting and tracking

®Overview: Integrated Product Suite

B i Li• Business Lines• PBX Trunks• Digital Centrex Services• Service Options

Toll Free Service Conferencing

One Company.One Choice.

• DSL Services• Internet T1 and T3 Services

Conferencing Call Management Features Voice Messaging

One Bill.One Solution.

• Internet Service Options Web Hosting Email

• MPLS Services• Private Line Service

MetOneTM

Private Line Service• ISDN PRI Services• Digital PBX Service• Frame Relay • Integrated T1• Consolidated Billing

• Customized Service Plans• Hosted PBX Service• Business Trunking• Virtual RCF

• Voice, Data, Broadband and Messaging

Customized Service Plans• Single Point-of-Contact• Significant Savings


Messaging

®Savings with MetTel

Cut your telecom spending by 15-20%y p g y

Optimize your telecom inventory and forecast your telecom expenses

Increase operational efficiencies

Analysis/Implementation Stage Hard Dollar Savings Soft Dollar Savings

Formal Audit: MetTel performs a comprehensive audit of client’s telecom inventory• Letter of Authorization

Formal Audit: MetTel performs a comprehensive audit of client’s telecom inventory• Letter of Authorization

g

• Save 4-5% by identifying and removing unused telecom products and services

• Eliminate the need for TEM services,

• Save 4-5% by identifying and removing unused telecom products and services

• Eliminate the need for TEM services,

g

• Reallocate staff to revenue generating activities

• Reallocate staff to revenue generating activities

Letter of Authorization• Copy of client’s telecom bills

Letter of Authorization• Copy of client’s telecom bills

Eliminate the need for TEM services, saving 3-4%Eliminate the need for TEM services, saving 3-4%

Proposal Review: MetTel presents a competitive bid for client reviewProposal Review: MetTel presents a competitive bid for client review

• Save 10-15% on rates• Avoid 1.5% late fees by integrating

invoicing with Accounts Payable

• Save 10-15% on rates• Avoid 1.5% late fees by integrating

invoicing with Accounts Payable • Reduce invoice processing time and • Reduce invoice processing time and competitive bid for client review• Contract Review• Invoice Consolidation

competitive bid for client review• Contract Review• Invoice Consolidation

invoicing with Accounts Payable system

• Cut invoice processing costs by up to 95%

invoicing with Accounts Payable system

• Cut invoice processing costs by up to 95%

necessary resources by consolidating thousands of telecom bills into one invoice

necessary resources by consolidating thousands of telecom bills into one invoice

Service Migration: MetTel designs a customized migration plan• Dedicated Customer Service Team;

Staff Augmentation• Contract Tracking

Service Migration: MetTel designs a customized migration plan• Dedicated Customer Service Team;

Staff Augmentation• Contract Tracking

• Save 10-15% by automatically migrating telecom services as existing contracts expire

• Save 10-15% by automatically migrating telecom services as existing contracts expire

• Reduce internal resources required to coordinate migration processes

• Delegate telecom contract tracking responsibilities to MetTel

• Reduce internal resources required to coordinate migration processes

• Delegate telecom contract tracking responsibilities to MetTel


15-20% 5-10%

gg

®Invoicing: Challenges and Solutions

Telecom Management Challenge MetTel Solution

• Inefficient invoice processing requiring l di d i t

• Full integration with internal accounts payable system

• Customized coding by GL store numbermanual coding and input Customized coding by GL, store number, or other client specified criteria to meet accounting and operational requirements

• Inability to accurately forecast telecom d

• Consolidated billing platform and comprehensive reporting suite allow forspend comprehensive reporting suite allow for forecasting

• Inconsistent application of contracted rates • Transparent invoicing and billing review

• Late fees (1.5%) resulting from inefficient invoice processing

• Timely receipt of electronic invoices

• Customized and streamlined invoice delivery options

Accidental service disconnects for non f• Accidental service disconnects for non-payment

• All-inclusive, single invoice facilitates management of services; eliminates errors


®Invoicing: Process Flow

Current State:• According to Gartner Research

Provider 1Invoice

Provider 2 Invoice

Provider 3 InvoiceProv

ider

Provider 1Invoice

Provider 2Invoice

Provider 3Invoice

Current State:• According to Gartner Research, 80% of telecom bills are wrong

• Accounting departments are overwhelmed by the volume and complexity of invoices

Client: Region 1

Manual Coding by GL C

lient

Client: Region 2

Manual Coding by GL

complexity of invoices

• Companies tend to perpetuate errors by paying on trend within 10% of previous invoices

Accounts Payable System

MetTel Process:• MetTel’s centralized invoicing is

fully integrated with client’s t bl t

Met

Tel

MetTel Invoice via EDI file (GL

coded)Do Not Remit E-Invoice

Do Not Remit E-Invoice

account payable system

• Detailed, user-friendly reporting and custom-built invoices provide the customer with a thorough

d t di f t l d

Client: Region 1Accounts

Payable System

Client: Region 2

understanding of telecom spend

• Enhanced internal control over a major P&L expense provides greater comfort to the CFO for


Clie

nt

Payable Systemrelated 302 certification

®

Comprehensive suite of canned reports

Reporting: Overview

• Comprehensive suite of canned reports

• Ability to build custom reports based on client specifications

• Compatibility with Microsoft Excel

Real Time Inventory List: detailed listing of all servicesReal Time Inventory List: detailed listing of all services

OptimizationOptimizationVariance Report: trending data for user defined variablesVariance Report: trending data for user defined variables

Optimization Report SuiteOptimization Report Suite

Usage Report: analysis of regional and long distance usageUsage Report: analysis of regional and long distance usage

Migration Implementation Report: live status of the integration processMigration Implementation Report: live status of the integration process


®Scoping & Migration: Process Overview

MetTel’s holistic approach to implementing integrated telecommunications solutions• MetTel’s holistic approach to implementing integrated telecommunications solutions allows clients to realize ongoing savings

• MetTel performs an audit of client’s telecom inventory prior to contracting the services, providing a value-added servicep g

• Dedicated project management team works with each client to identify the appropriate solution and migration plan

Billing ReviewBilling Review

Phased Implementation

Phased Implementation

Consolidation Analysis

Consolidation Analysis

• Comprehensive audit of • Dedicated Project • Formal bill reviewComprehensive audit of existing inventory:

– Identify unused resources

– Assess need for

Dedicated Project Management Team

• Customized migration plan based on client’s specifications

Formal bill review against contract terms and rates

• Transparent pricing structureAssess need for

adding/removing products and features to optimize performance

– Achieve cost efficiency

specifications


• On-site integration t d t i i

structure

• Guaranteed contracted rates


Achieve cost efficiency support and training

®

Repair/Billing

Customer Care: Service Assurance

Repair/Billing

• A single-point-of-contact within our Dedicated Care Team to ensure the prompt resolution of service matters

• A ticket created for tracking and reporting purposes for each request or issueg p g p p q

• Online access to open tickets directly in MetTel’s system

• Each ticket evaluated and directed to the appropriate department for resolution

• Status updates to client until the issue is resolved

• 24 / 7 / 365 network monitoring of T1’s and other advanced services

Moves / Adds / Changes / DeletionsMoves / Adds / Changes / Deletions

• Dedicated Toll-Free access to single point of contact for all states

• Customized work process

• MetTel handles technician dispatch responsibility including inside wire

• MetTel monitors installation process

• Online access to monitor all MACDs


Online access to monitor all MACDs

• Multi-level escalation list

®Industry Focus

• MetTel has extensive experience providing telecommunications services to companies across• MetTel has extensive experience providing telecommunications services to companies across industries:

− Retail

− Health Care

− Governments/Municipalities

− Financial Services

• A customized telecom solution allows clients to achieve economical and operational efficiencies

• MetTel offers services in 48 contiguous states, eliminating the need for multiple carriers

• Single service delivery platform facilitates consolidated billing and reporting

Recent Highlights:

MetTel Deliverable Value to Client

R ll d t SIP T ki f ti l • Significantly reduced overhead and • Rolled out SIP Trunking for a national nursing home chain

g yequipment required to operate patient telephone services

• Implemented a switch diversity solution • Ensured a disaster recovery network


• Provided staff augmentation services to a retail client

• Assumed day-to-day telecom management responsibilities

®Pricing: Contract Terms

Different pricing options allow the client to select the most appropriate contract terms

Price LockPrice Lock Variable PricingVariable Pricing Month to MonthMonth to Month

• Different pricing options allow the client to select the most appropriate contract terms

• All pricing frameworks ensure significant savings over RBOC rates

Price LockPrice Lock

Price lock for the Price lock for the

Variable PricingVariable Pricing

Fixed percentage Fixed percentage

Month-to-MonthMonth-to-Month

No term commitmentNo term commitmentduration of the contractduration of the contract

savings off RBOC ratessavings off RBOC rates

RBOC rate increases do not impact client rates

RBOC rate increases do not impact client rates

Rates fluctuate based on RBOC changesRates fluctuate based on RBOC changes

Variable pricing based on RBOC increasesVariable pricing based on RBOC increases

ratesrates


®Pricing: Sample Structure

RBOC pricing for POTS lines and

$154,280 $154,280 $154,280 MetTel

Average Spend for 1000 POTS lines in NY, MA and PA (July '05 - June '08)

• RBOC pricing for POTS lines and local usage has increased consistently over the last two years

Sample Spending on POTS lines:

$193 210

$154,568

$204 860

$163,888

$216 860

$173,488

Verizon

Variable Rate Provider

• MetTel’s pricing structure provides consistent savings

• Sophisticated reporting $193,210 $204,860 $216,860

$- $200,000 $400,000 $600,000 $800,000

Verizon

Year 1

Year 2

Year 3

• Sophisticated reporting capabilities allow companies to analyze and optimize usage

$15,000$16,000$17,000$18,000$19,000

Total Monthly Spend for 1000 POTS lines in NY, MA and PA (July '05 - June '08)

V i bl R t P id

Sample Schedule:

$10,000$11,000$12,000$13,000$14,000

,Verizon

MetTel

Provider VerizonVariable Rate Provider

(20% off Verizon) MetTelYear 1 $193,210 $154,568 $154,280Year 2 $204,860 $163,888 $154,280

Year 3 $216,860 $173,488 $154,280Total $ 614,930 $491,944 $ 462,840Net Savings - $122 986 $ 152 090


Variable Rate Provider

Net Savings $122,986 $ 152,090% Savings - 20% 25%

Note: MetTel’s rates are based on a 36 month contract

®Telecom Issues and Challenges

• Average Fortune 500 company reports that telecommunications costs account for 3.6% of revenue, making it a top three line item

• Average Fortune 500 company reports that telecommunications costs account for 3.6% of revenue, making it a top three line item

Expense ManagementExpense Management• A typical mid-market company processes over

3,000 telecom bills per year; the average Fortune 500 company manages 15,000

• A typical mid-market company processes over 3,000 telecom bills per year; the average Fortune 500 company manages 15,000

Operational ConstraintsOperational Constraints

expense

• Telecommunications expenses consume about one-third of the average IT budget

expense

• Telecommunications expenses consume about one-third of the average IT budget

telecom invoices per year

• Nearly 80% of telecom bills are incorrect and up to 14% of telecom charges are in error

telecom invoices per year

• Nearly 80% of telecom bills are incorrect and up to 14% of telecom charges are in error

• With the consistent increases on business lines rates over the last two years, U.S. spending on telecommunications has grown by 11% from $924B in 2006 to $1,025B in 2007

• With the consistent increases on business lines rates over the last two years, U.S. spending on telecommunications has grown by 11% from $924B in 2006 to $1,025B in 2007

• 90% of companies do not have visibility into their wireless spending

• With the growing trend of converging telecom

• 90% of companies do not have visibility into their wireless spending

• With the growing trend of converging telecom$924B in 2006 to $1,025B in 2007

• Average Fortune 500 company spends $110-$140M on telecom annually, while a mid-market firm spends $25-$40M per year

$924B in 2006 to $1,025B in 2007

• Average Fortune 500 company spends $110-$140M on telecom annually, while a mid-market firm spends $25-$40M per year

• With the growing trend of converging telecom and IT departments, CIOs have inherited the responsibility for managing telecom contracts

• Companies have limited resources with

• With the growing trend of converging telecom and IT departments, CIOs have inherited the responsibility for managing telecom contracts

• Companies have limited resources with

• Approximately 70-75% of the telecommunications budgets are allocated to landline service

• Approximately 70-75% of the telecommunications budgets are allocated to landline service

• Companies have limited resources with telecommunications expertise

• The cost of processing an invoice in a mid-size company can be as high as $9 $15

• Companies have limited resources with telecommunications expertise

• The cost of processing an invoice in a mid-size company can be as high as $9 $15


company can be as high as $9-$15company can be as high as $9-$15

®Is Your Telecom Working for You?

How would you rate the effectiveness of your telecom solutions?How would you rate the effectiveness of your telecom solutions?

• Can you forecast your telecom expense for the next month? Next year?

• Do you know what services consume most of your telecom budget?

• How many telecom invoices does your company process per month? What’s the cost per invoice and the turn-around time on payment?

• How many telecommunications providers do you procure your services from?

Customer Size/Complexity

Telecom Providers

Telecom Product Set

Forecasting/ReportingCapabilities

Invoicing Process

Telecom Costs

Micro-Business Single Basic Limited Manual Low

Multi-Location Mid-Size Company

Multiple Extensive Limited Manual, Complex

High

Multinational Conglomerate

Multiple Extensive Third-partysystems

Automated High

MetTel Clients Single Extensive Robust Automated, Substantial


g ,Consolidated savings over

ILEC rates

®Selected Client List


®Client Testimonials

A leading specialty retailer of children’s merchandise with more than 1,200 stores in North America as well as e-commerce and catalogue operations. The Children’s Place wanted to organize and consolidate telecom services purchased in 48 states from over a dozen carriers. The company wanted an innovative carrier with national reach to provide streamlined trouble reportingover a dozen carriers. The company wanted an innovative carrier with national reach to provide streamlined trouble reporting and follow up services, a process for ordering services for new locations and customized digital billing and EDI upload capability for each subsidiary.

MetTel was called upon to develop an inventory of all services including Business Lines, Centrex, Trunks and ISDN BRI.

With a dedicated project manager and provisioning team coordinating every order MetTel migrated over 4 500 lines in 48 statesWith a dedicated project manager and provisioning team coordinating every order, MetTel migrated over 4,500 lines in 48 states within a month. The Children’s Place now receives one monthly electronic statement from MetTel replacing more than 1,250 invoices from 14 carriers.

U.S. provider delivering healthcare products and services. SunBridge Healthcare Corporation operates 216 skilled nursing, long-term care, assisted living and mental health facilities in 25 states with approximately 23,520 operating beds. Other Sun affiliates provide rehabilitation therapy, medical staffing and related services. Sun Healthcare Group wanted to consolidatetelecom services across 500 locations from over two dozen carriers in 40 states. The company needed a carrier with national reach to provide digital billing which could be uploaded into Sun’s ERP Accounting System, utilizing appropriate GL coding.

MetTel’s objective was to significantly reduce actual telecommunications hard costs as well as backroom expenses.

MetTel designed and implemented a customized migration plan, providing more than 3,000 lines across 40 states and 250 Internet T1’s with custom designed circuits, allowing redundant DS3 Internet access in separate facilities. MetTel established a


g , g pcustomized website for Sun Healthcare Group which details the services and expenses for each facility by GL code. Each facility manager can monitor their own telecom costs while headquarters personnel can view detail and company-wide level. MetTel is also implementing a SIP Trunk solution, which will provide service to more than 23,000 patient beds.

client presentation executive summary 09 2009

Documents

solutions2009 mettel

contract terms2009 mettel

tem services

dcst t i t

dsl services internet

telecom expenses

telecom spending

significant savings2009