Internet Telephony – SIP TrunkingCary Tengler, Director of Partner Programso – 720-888-4522 e – [email protected]
© 2006 Level 3 Communications, Inc. All Rights Reserved. 2
Level 3 ProfileA premier provider of services over one of the world’s most advanced, IP-optimized networks
Established: 1998Headquarters: Broomfield, CO2006 Annual Revenue: ~$3.2 BillionEmployees: 6000+ Four Groups
Wholesale MarketsContent MarketsBusiness MarketsEuropean Markets
Customers:MySpace, Yahoo!, YouTube, BT, Internet2, The Hershey Company, Comcast
Network:One of the largest global Internet backbones
Services:Complete portfolio of voice, data, video and Internet services
Broomfield Headquarters
© 2006 Level 3 Communications, Inc. All Rights Reserved. 3
Level 3 – The Right NetworkDesigned to maximize coverage, performance, flexibility and scalability
More Long-Haul and Metro Route Options than Other Providers > 77,000 intercity route miles available in North America and Europe > 21,000 metropolitan route miles
High-Capacity, Nationwide BackboneOverbuilt backbone with new DWDM, IP and private-line switching layers in 2005Long-haul capacity grew 50% this year and will double every two yearsIP backbone capacity tripled between 3Q05 and 1Q06
Expanding Voice FootprintConnectivity to every long distance tandem office in the U.S., as well as a large and growing number of end officesAbility to terminate calls anywhere in the world over the Level 3 Network
© 2006 Level 3 Communications, Inc. All Rights Reserved. 4
Level 3 Local Network Coverage
Miami
Tampa
Dallas
Denver
Tucson
Atlanta
Chicago
Houston
Phoenix
Seattle
Salt Lake City
Portland
Boise
Milwaukee
LasVegas
Cincinnati
New Orleans
Minneapolis
KansasCity
San Antonio
Albuquerque
Jacksonville
IndianapolisSan Francisco
San Diego
LosAngelesMemphis
Detroit
Boston
NewYork CityPhiladelphia
Raleigh
Washington, DC
LegendVoIPcoverage areas
E-911-enabled VoIPcoverage areas
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Level 3 – The Right ServicesLevel 3’s product portfolio has grown organically and through acquisitions. 2007 will see an increased focus on sales through partners based on distribution strategy, operational readiness and partner demand.
© 2006 Level 3 Communications, Inc. All Rights Reserved. 6
Ecosystem Approach to the VoIP Marketplace
Level 3
Level 3 / TAP Partners
Master Reseller
TAP Partners
Master Reseller
Master Reseller
Ecosystem map – Courtesy of Khali Henderson, Comptel/XChange Magazine
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Economic Considerations for SPs
It is Possible to Make Money in a Commoditized Market Using Voice
1. Continue to Drive Lower Unit Costs
2. Drive Incremental High Margin Revenue by Delivering Cutting Edge Applications
3. Deliver Superior Customer Experience
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Driving Lower Unit Costs Is a Must
Legacy Approach:
1. Distributed servers
2. Multiple, potentially underutilized PRIs
3. High cost leased facilities and network operations
New Approach:
1. Centralized server platform
2. Shared and scaled architecture yields lower cost of ownership and ease of use
Benefit from Scalable SIP-Based Networks, Avoid Expensive Infrastructure and Overhead
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Deliver Incremental High Margin Revenue
VoIP Early Entrants Offered Lower Cost Primary Line Replacement
Making Money Requires More than LEC Parity
Our Customers Drive Revenue Growth and Competitive Differentiation by Developing Add-On Enhanced Voice Applications
Level 3 Provides VoIP Network Building Blocks to Enable Our Customers’ Creativity at the Application Layer
© 2006 Level 3 Communications, Inc. All Rights Reserved. 10
Level 3 Supports Cutting-Edge Apps
In Addition to the “Traditional” VoIP Applications, Level 3 Supports Many Other Cutting-Edge Apps
IVR Hosting
Self Service IVR
Unified Messaging
Conferencing
Social Networking
Contact Center
e-commerce$
© 2006 Level 3 Communications, Inc. All Rights Reserved. 11
Conclusion - There’s Money to Be Made!
Leverage a Scalable Network Provider to Lower CostsTake advantage of partner ecosystems
Choose the Proper Network Foundation to Build Upon
Deliver Unique Applications to Drive Revenue Growth
Don’t Lose Sight of Providing Exceptional Customer Service
© 2006 Level 3 Communications, Inc. All Rights Reserved. 12
Questions
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