Guide to Understanding Today’s Service Provider MarketGary CobenDirector, Hosted Consumer VoIPdeltathree, Inc.

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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California

www.ITEXPO.com

Who is deltathree?

Founded: 1996

Public: NASDAQ: DDDC

Financial Status: Profitable, Positive Cash Flow

Headquarters: New York, USA

Customers: > 400 service providers

3 of top 10 U.S. telecom companies

Award winning:

World’s 1st broadband phone offering commercial SIP Network hosted broadband service to tier-1 telco

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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California

www.ITEXPO.com

The Market’s Challenge

Others

• VoIP market rapidly growing– $19.9 billion forecast revenue U.S. 2009

• Hyper competitive market • New breed of competitors

VoIPservice

providers

Cable Co’s

Web Portals

Telco’s

Infonetics Research 2005

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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California

www.ITEXPO.com

The Consumer VoIP Experience

Consumer VoIP

A customer’s VoIP experience is defined as the follows:

Learn Order

Inst

all

UseS

up

po

rt

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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California

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Faster, Cheaper, Better

Projected Implementation

RealizedImplementation

“build” time-cost considerations infrastructure adaptation & cost (capex) back office integration (capex) new skill sets acquired / developed (opex) risk - uncertain cost & time

Total Cost of Ownership

Time to Market

deltathree - “buy” time-cost considerations Minimal infrastructure costs, if any Minimal HR changes, if any Low risk - capped expenses High certainty - tried & tested

“Build” costs

“Buy” costs (deltathree)

T+3T-1

Projected Implementation

RealizedImplementation

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September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California

www.ITEXPO.com

Thank you!