Wholesale HCS Neutral Tandem

November, 2011

Neutral TandemCompany Overview

Neutral Tandem Company Overview

General

• Founded in 2003, HQ in Chicago, and established service in 2004

• IPO in Nov. 2007, publicly traded on NASDAQ under “TNDM”

• $200M Revenue FY 2010

• Strong balance sheet

Core Business

• We are the leading provider of direct voice termination services in the U.S.A. Our coverage is more extensive than even AT&T or Verizon.

• Direct termination capability to over 530M numbers in the US

• Located in 189 markets

• Terminate over 11B minutes per month

• We operate the largest Tandem and SIP routing network in the USA, and the 2nd biggest globally.

• Provide services to wireless, cable, competitive landline and VoIP service providers

Neutral Tandem Company Overview

Competitive Advantage

• Successfully implemented an open business model with demonstrable customer value: Direct Interconnections – inclusive of transport to the serving MSC Strong “Network Effect” Neutrality, with an accompanying focus on operational excellence

The Recent Acquisition of Tinet SpA:

• Redefines Neutral Tandem as a global IP-based network services company focused on delivering connectivity for domestic US and International voice, Internet, data and video services

• Enables us to leverage our core competencies, expand our global footprint, accelerate our Ethernet and International voice initiatives and offer a range of new data solutions

• Neutral Tandem is now a leading global provider of IP Transit and Ethernet services

• * Top 10 Global provider of IPv4 backbone services

• ** Number one provider of IPv6 backbone services worldwide

MT

ID

OR

WA

WY

ND

SDNE

KS

CO

UT

AZ

NM

TX

NV

OK

AR

LA

MO

IA

MN

IL

WI

MI M

I

IN

KYT

N

MS

AL

GA

FL

VA NCS

C

WV

PA

OH

NY

MEV

T NH

MD

CA

MIAMI

ATLANTA

TAMPAHOUSTO

N

DALLAS

ST. LOUISPHOENI

X

LAS VEGAS

SAN DIEGO

LOS ANGELE

S

SALT LAKE CITY DENVER

SEATTLE

BOSTONHARTFO

RDNEW YORK

MA

CHICAGO PHILAD

ELPHIA

DETROIT

INDIANAPOLIS

NJ

DE

ORLANDO

SAN FRANCIS

CO

PORTLAND

CLEVELAND

MINNEAPOLISMILWAU

KEE

PUERTO RICO

NEW JERSEY

+

+

+

+

++

+

+

+

+

++

++

CHARLOTTE

COLUMBUS

CINCINNATI

+

++

++

+

+

++

+

WASHINGTON, D.C.

Neutral Tandem Company Overview

Global Business Highlights• Combined Operations in over 70

Countries

• 4th Largest Tier I IP-Transit provider by volume

• Over 600 inter-connected carriers

• Compelling Ethernet, Exchange and IP Transit Services

Proprietary and Confidential

Neutral Tandem

Tinet

Transit voice calls from one competitive carrier to another

NT is the access homing tandem in LERG

Proprietary and Confidential

NT eliminates the need to deploy a switch and build out a network to PSTN

One connection accesses NT’s footprint of Ethernet lit buildings

5th Largest Tier 1 IP Transit provider offering Internet connectivity throughout the world

G.722 enabled with direct connectivity to other Hi-Def carriers

SIP Peering and Routing to International and Domestic carriers

Neutral Tandem Products

Access Services

Local/National Transit Service

Gateway Tandem Service

EtherCloud

CommonPoint

High Definition Routing

IP Transit (TINET)

Neutral Tandem has expanded from the “Go-To” domestic voice carrier to a robust, International service provider offering valuable next-gen solutions.

Neutral Tandem Select US Customers

Proprietary and Confidential

Mo

bil

eC

LE

CC

abl

eIX C

110+ US Service Providers Directly Interconnected with Neutral Tandem

Neutral TandemHCS Wholesale Market and Reseller Requirements

Hosted ServicesCollaboration Market Opportunity

“By 2012, 40% of enterprises will adopt a blend of cloud- and premises-based approaches to meet their UC needs.”

Gartner

Predicts 2010: Video, Cloud and UC Services Loom Large in Enterprise Communications

Wholesale HCSSolution Categories

WebCollaborationIP Communications MessagingMobile

Applications

Customer Care

Enterprise Social SoftwareTelePresence

Scalable System Architecture

Optimized Virtual Platform

Open Architecture

Hosted Collaboration Solution Management System

• More Features – richer feature set as compared to premise solution• Expenditure shift from CAPEX to OPEX• Higher Availability – 24/7/365 monitoring• Focus IT resources on core business• Streamline business processes• Accelerate business strategies• Mitigate risk of technology obsolescence

• Cisco UC is the global market leader• Increase agility and speed of deployment• Low cost of entry into “Hosted” delivery model• Steady, predictable monthly revenue stream • Work with Cisco technology you already know and implement• Integration of adjacent VAR vertical specific applications• Deliver consistent experience – better customer retention• Maintain account ownership

End-Customer

VAR

Wholesale HCSBenefits of Cloud Delivery

• Partnership requirement between VAR and NT• Active participation in 360 feedback loop• Pipeline creation • HCS marketing• Assign necessary project leads• Pass credit check

• Cisco certifications and requirements• Advanced UC• MSCP Express*• 24/7 Tier 1 support for end-users• Partner in good standing with Cisco

Wholesale HCSSolution Categories