WIXLIB

UC Agenda Opening Remarks - Greg Zweig of GENBAND Introductions - All Market Review – Matt Townend of Cavell Group Customer Experience – Dan Legge of Bell Aliant Customer Experience – Trefor Davies of Trefor.net (formerlyof Timico) Product/Solution Q&A – Swapan Nandi & Arjun Cholkar ofGENBANDQ&A is encouraged at all times

UC MARKET REVIEWMatt Townend of Cavell Group

Introduction to Cavell GroupCavell is a specialist Consulting, Research and Professional Services business, who have workedfor the last decade advising service providers, enterprises and government on emergingtechnologies. Particular focus on (UC & VoIP, Content, WIFI & Wireless, SDN)Cavell has a wholly owned research business illume research which has been tracking the HostedUC/VoIP & SIP Market since 2005Matt Townend is Board Director of Cavell and founder of illume research and has been providingadvice to providers on the IP Voice and UC market for over a decadeMatt has a carrier background having held Senior Director roles in the PIPEX/UUNET businessesand was Product & Marketing Director of one of the first VOIP Companies in Europe Inclarity.Cavell provides research and consulting to both some of the largest providers and the new kids onthe block, customers include

UC DefinitionUC was originally defined as whatever the PBXmanufacturers were selling at the time, and for theEnterprise to benefit they just had to replace there wholeinfrastructureThere are many definitions but put simply:“Communications integrated to optimize business processes"“UC will mean different things to every customer astheir process and communications differ which is thechallenge for many service providers ”

What leading Service Providers saytheir UC offers bring companies“Communications that unify”Collaborate more efficiently usingunified communications with youremployees, suppliers, customers andbusiness partners“Better Communication, BetterBusiness, Turbocharge your company’scompetitiveness and simplify businessoperations”“Transforming business through bettercommunication”“Communicate and Collaborate in aWork Anywhere World”“Helping you realize your businessGoals by driving greater employeeeffectiveness productivity whileReducing cost and complexity”“Revolutionize your businessproductivity by better connecting yourpeople at the office, in the field or athome”

Big tasks and Big promises fromService Providers Work Anywhere Enabling Communications& Collaboration Driving Productivity Transform your business Integration of services &applications Cost not mentioned as keyDriver?Can service providers deliver on this promise without aFundamental change to their organization?

Technology drivers adding to thechallenges of UCHyper‐convergenceShadow IT & BYODFlexible Working & MobilityContinued globalizationCautious economic environmentMulti Screen World

Flexible Working & MobilityFlexible Working Flex working makesemployees 39% moreproductive However utilization of officespace as low as 50% in theUK and other markets A third of small employers saythat the associated costs ofextending flexible working toall employees are too highMobile Communication In UK Ofcom reported thatover 51% of all business callswere now from mobile Smartphone penetration 6090% in developed countries ARPUs generally falling Mobile broadband outnumbersfixed broadband 3:1Mobile has to be at the core of UC strategy !Polycom survey/Redshift Research – 2013CIPD – Flexible working provision and uptake – 2012Ofcom Communications Report – 2013Global mobile statistics 2014 – Mobile subscribers; handset marketshare, mobile operators.

BOYD & Shadow key consideration inUC strategy 89% of IT professionalssupport employees using‘personally-owned mobiledevices for work.’ Only 51% of IT managerssaid their companies had astrategy in place to managepersonally-owned devices 53% of information usersuse/install unsupportedsoftware & Applications theyuse for work.You may have to enable integration to user applicationsThe Mobility Edge: CDW’s 2012 Small Business Mobility Report”Forrester Report 2013

Customers require internationalsolutionsWe are seeing providers like Vodafone,8x8, Ringcentral and BT with globalplatform capabilities.We are aware of other Providers settingup international relationships and pops toserve both Medium & Large Enterpriserequirements“UK Companies exporting grew from32% ‐39% in 2013”British Chamber of Commerce SurveyGlobal requirements are not limited tovery large enterprises, as we see moreand more mid sized companiesHow can I extend the service beyond my traditionalGeographic boundaries !

WebRTC appears to becoming anenabling technology for UCMost users are currently usingWebRTC for its video and audiofunctions together, not just forvoiceMany people see its biggestusage in customer serviceswhere a customer will be able todirectly speak to someone in acontact center.This will increase the potentialfor customer support, sales andmade other functionsTokBox asked 1,000 professionals from around the world about their experience with WebRTC and their plans to use it in the uture/

To assess the UC opportunity it is key tounderstand the core enabling services Fibre access & LTE/4 Gproven key drivers to growthof UC MarketEnablersSIP TrunkingAccessMobile &Fixed The UC market was beingdriven by IP PBX Now SIP Trunking, HostedPBX & Smartphone playingkey enabler role Application often linked toenablers to date Fibre access & LTE/4 Gproven to key drivers in US &ASIA markets

SIP Trunking signaling the death toISDN & Key Enabler The UK has over 1 million SIPtrunks in the market. In 2012, Ofcom saw ISDNchannels decrease by 300k,approx. the same number of SIPTrunks were added in this time. Fibre access will allow manymedium sized companies tomove to SIP as they takeadvantage of FttC and EFMtechnologies. Growth rates will slow downtowards the end of 2016 as ISDNreplacement reaches saturation.IP/SIP Penetra on of Available 18

Hosted VoIP/UC alreadysignificant in key global markets In many markets Cloudvoice services are not newUK Hosted VoIP Users December 20131,400,0001,200,0001,000,000800,000600,000 In some key markets HostedUC/Voice are really startingto gain significant marketshare400,000200,000‐Jun‐12Dec‐12Illume research – Hosted VoIP report 2014WhichVoIP statistics – 2013Synergy Research Group ‐ 2014Jun‐13Dec‐13 But increasing number ofplayer entering thosemarkets UK – 80 providers PBX Vendors fighting backcausing confusion to thecustomer

VoIP providers will have to changemarket approach as products matureKotler Product LifecyclePBXSIP‐CHosted UCCSIP‐AGrowthCompeting with alternativesMarketing focus:Basic ProductPR ‐ EducateFirst supplierCore Hosted slowing in rategrowth Providers focussed on competingwith PBX/ISDN Little advertising and marketingis undertaken SIP C still growing strongly PBX fighting back byrepositioning around UC &offering Hosted benefits New suppliers entering themarket More and more channels beingestablished.ISDNCore HostedIntroduction Marketing focus:New FeaturesAdvertisingNew suppliersMore channelsMaturityDeclineCompeting with competitorsMarketing focus:Price declineFew new suppliersFocus on loyaltyMarketing focus:ConsolidationSuppliers Exit

So where is the value for ServiceProviders in Selling UC services More than direct SIP & SeatRevenues Applications drive incrementalvalue but Presence &Messaging almost table stakes New revenue linesProfessional Service &Consulting revenue Locking core revenues inVPN, Data,Voice,Mobile Driving a different customerrelationship

Key Challenges we are engaged on areoften not technical in natureHow can we change our sales organizations to sellthese solutionsMy Service and Support organisation is focused onsupporting individual productsHow do I ensure my business case reflects the value of the serviceHow should I Integrate into mobileDo I need to build a consulting and professional service capabilityWhat about Microsoft & Google

SummaryTo unify communications is the fundamental challengethat all Service providers are going to have to addressin the coming yearsIt will involve new approaches to selling & supportingcustomers but it will be a journey that all must take!

BELL ALIANTUC CUSTOMER EXPERIENCEDaniel Legge, P. Eng. MBASenior Manger – Voice Services and OSS Engineering

About Bell AliantYTBCNTAB One of North America'slargest regionalcommunications providers Serve customers in sixCanadian provinces Population served: 5.3million NAS: 2.9 million IPTV customers: 200k Annual revenues: 3billion 7,000 employeesNUSKMBONQCNLNBPEINS20

UC Market in Atlantic Canada High Centrex penetration 70% business NAS is Centrex Customers saying they don’t want to run the voicenetwork Increasing competitive pressures PBX Resellers (Cisco, Avaya), CableCo, other Cloudproviders (8X8, Ring Central) Fibre-to-the-premise: “FibreOP” key enabler forUC 500M investment, 800k premises passed, 200kcustomers Will reach 1M prems passed by the end of 2014Industry leading Centrex and FTTP penetration make the Bell Aliantmarketplace somewhat unique.2013 01 22 CONFIDENTIAL21

Bell Aliant’s Vision: Linkage to UCTo be the leading communications provider in themarkets we serve by pursuing five key strategicobjectives: Improve the customer experienceRetain our customersGrow broadbandReset our cost structureEngage employeesAlthough Unified Communications touches all five of BellAliant’s strategic objectives, it is most closely meshed withthe retention of our Centrex customers.22

Unified Communications is NOWBell Aliant’s Unified Communications service is the power of IP phone,providing enhanced collaboration and anywhere connectivity, withoutthe capital cost or business disruption. EnhancedCollaboration.AnywhereConnectivity. Most Flexible. LeastDisruptive. Reliable. FullyManaged. Lowest Total Cost ofOwnershipBell Aliant has invested in providing key UC building blocks. Need moreassertive providers in the market to drive technology advancement.23

Key Challenge / Lessons Learned #1:Operational ScalabilityInternetVPNSoft PhonesCS2k ComplexSPMCICMF/WCS2KData AccessA2CustomerEdge RouterCustomerLANIP PhonesPVGSS7TraditionalPhonesBusinessSystems Many touch points LNPLine provisioning, data provisioning, number porting, voicemail, UC features, routers,firewalls, customer LAN, Internet, VPN, sets, legacy interworking.Lack of investment in provisioning automation, self serve, OSS tools will putproviders at a competitive disadvantageGiven UC complexity Product standardization, provisioning automation,customer self serve, and OSS tools required for Tier 1/2 trouble resolution needto be part of the UC strategy2013 01 22 CONFIDENTIAL24

Key Challenge / Lessons Learned #2:Getting Ahead of Customer Feature Demand2005-2012: The Basics 2013-2014: EnhancementsIP SetsPC ClientMeetMe ConferencingPresence/MessagingVoicemail / Voicemail-to-email /Fax-to-email Microsoft integrationMobile clientsNext Gen IP SetsCollaboration ToolsGrowing customer feature expectationsCustomer expectation of high quality functional product and solidroadmap are table stakes to joining the UC conversation.2013 01 22 CONFIDENTIAL25

Key Challenge / Lessons Learned #3:Customer Expectation of Quality Example: PC Client experience Calling Line ID DisplayHeadset configuration retentionCall set up delayInstallation freezingLow occurrence,annoyance issues Lessons learned Eat your own dog food Rigorously address issues found internallyBell Aliant’s experience with Enterprise customerdeployments indicate quality excellence is still essential.2013 01 22 CONFIDENTIAL26