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Next Generation Network Solutions “PAETEC rises above the communications service provider pack” - Forrester Research COMMUNICATIONS SECUITY SECURITY BUSINESS CONTINUITY BUSINESS INTELLIGENCE MANAGED SERVICES FINANCING

Paetec Company Story 2011

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Page 1: Paetec Company Story 2011

Next Generation Network Solutions

“PAETEC rises above the communications service provider pack”

- Forrester Research

COMMUNICATIONS

SECUITY

SECURITY BUSINESS CONTINUITY BUSINESS INTELLIGENCE MANAGED SERVICES FINANCING

Page 4: Paetec Company Story 2011

Company Overview

- Headquartered in Rochester, NY

- Founded 1998

- Evolution of an Industry Leader

- Key Mergers & Acquisitions

- NASDAQ: PAET

- 4,600+ Employees

- $2.2 Billion Revenues*

- Services 86 of Top 100 Metro Regions

- ISO 9002 Certified

- Largest CLEC in the US by Revenue

Page 6: Paetec Company Story 2011
Page 7: Paetec Company Story 2011

Account Stewardship

Customer Service

Page 8: Paetec Company Story 2011

Unmatched Customer Service

-3 fully redundant (24 X 7 X 365) Network Operation Centers

-Rochester NY, Charlotte NC & Cedar Rapids IA

- Industry leading web portal with real time access to trouble ticketing system

- 265 highly trained NOC technicians

- In 2010 86% of all incoming calls were answered by a live person in 20 seconds or less

- Customer retention in excess of 99% (monthly average)

Network Operations Center - Charlotte, NC

Network Operations Center - Rochester, NY

Page 10: Paetec Company Story 2011

Customer Satisfaction

2008 Customer Advisory Board Meeting

- Dedicated Account Team Approach

• Provides multiple layers of support

• Employee compensation based on customer

retention and satisfaction***

• Escalation list provided

• Provides direct liaison with PAETEC’s NOC

- Customer Experience • Quarterly performance reviews provided (Including a welcome

package meeting within 10 days of the first invoice)

• Simplified Invoicing Structure

• Industry leading online support tool via “PAETEC Online”

• Customer retention rate in excess of 99%

Page 11: Paetec Company Story 2011

We Listen to Our Customers

- Discuss business challenges

- Build the foundation for PAETEC’s product and

service investments through customer feedback

- Access PAETEC senior executives

- Network with peers

- Discuss Industry Trends & Concerns

Customer Advisory Board Program

Regional forums for knowledge sharing and

relationship building between PAETEC and our

customers

2008 Customer Advisory Board Meeting

“I have been a CAB member for

the past four years and value

the program completely. The

LEGO Group truly benefits from

the products, services, and

actions that result from CABs.”

Joanne Zanetti,

LEGO Systems, Inc.

Page 12: Paetec Company Story 2011

Industry-Leading Customer Satisfaction

Net Promoter Score (NPS) measures

customer satisfaction

PAETEC’s 2010 NPS is 19.8, an increase

from our 2009 score of 18.8

PAETEC employees’ bonus depends on

constant improvement of our NPS score

Data for non-PAETEC companies was

gathered from the “Net Promoter

Telecommunications Industry Report of 33

Telecommunications Companies – June 2010”

completed by Satmetrix Systems.

0

PAETEC

19.8

-15

AT&T

Telecom NPS Benchmarks

-18

Verizon

-34

Qwest

Page 14: Paetec Company Story 2011

Products & Services Portfolio Personalized Solutions

2008 Customer Advisory Board Meeting

PAETEC’s strategic product marketing focuses on 6 major product categories:

Communications Solutions

Security Solutions

Business Continuity

Managed Services Solutions

Business Intelligence

Financing Options

Page 15: Paetec Company Story 2011

Core Products Value-Added Services

Data Equipment Applications Data CenterVoice

Communications All Data All Equipment All Voice

Security MPLS VPN

Hosted E-mail Security

Hosted Web Security

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Network Engineering Consultation

Managed Fraud Protection

Managed

Services

Managed Router Support

Managed CPE Firewall

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Shared Web Hosting

Hosted IP Telephony

Managed Fraud Protection

Financing Equipment for Services

Equipment Rental

Software for Services

Business

Continuity

MPLS VPN Fixed Wireless Private Line

Network Engineering Consultation

Hardware Maintenance Support

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Dynamic IP

Direct Trunk Overflow

Network Diversity Engineering

Toll-Free RoutingConsultation

Advanced Toll-Free

Hosted Broadcast Notification

Business

Intelligence

Managed Fraud Protection

Hosted Broadcast Notification

PINNACLE Communications Management Suite

Data Center

PINNACLE Communications Management Suite

sApplications

Solutions

PAETEC Solutions

Page 16: Paetec Company Story 2011

Core Products Personalized Solutions

2008 Customer Advisory Board Meeting

• Voice - Local/Long Distance

- Toll Free

- SIP Trunking

• Data- Dedicated Internet

- MPLS

- Data Center Solutions

• Differentiators- Pinnacle Software Moving into the cloud

- Cloud Based Solutions

- Quagga Family of Products

- PBX Centralization (Virtual Telephone Number VTN)

- 3G/4G Wireless MPLS Backup (Managed)

- Equipment for Services Program

Page 17: Paetec Company Story 2011

Strategic Investments- Recent Acquisitions Personalized Solutions

One of the nations

largest Fiber

footprints. 37,000

Fiber route miles.

Custom network

solutions from

10Mb to 10Gb

Sonet/Wavelength

& Ethernet

World-class

systems integrator

and top partner for

Avaya on the West

Coast, with

expertise in IP-

based voice and

video systems for

medium and large

businesses.

Among the largest full

service providers of

advance

communications

solutions servicing

enterprise customers.

Avaya Platinum

partner specializing in

managed services

Uses mobile

applications on a

smart phone to

simplify the way

people communicate

with each other.

Page 18: Paetec Company Story 2011

Equipment Partners Personalized Solutions

2008 Customer Advisory Board Meeting